Abstract
The Beyond Budgeting performance management model enables companies to keep pace with changing environments, to quickly create and adapt strategy and to empower people throughout the organisation to make effective choices. We argue that this performance management model may be ideal for agile software development. Although drawn from different disciplines, both are designed for a customer-orientated, fast-changing operating environment and the Beyond Budgeting model suggests a useful overall framework for research in the performance management of agile software development teams. This paper uses the model as a lens to examine the performance management of agile software development teams within a large multinational. The findings show that some traditional performance management processes (most notably the budgeting process), which were designed to aid in the performance management of software development teams may impede the performance of agile teams due to their suitability adherence to the requirements of the systems development lifecycle model.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Conboy, K.: Agility from First Principles: Reconstructing the Concept of Agility in Information Systems Development. Information Systems Research 20(3) (2009)
Conboy, K., Fitzgerald, B.: Toward a conceptual framework of agile methods. In: Zannier, C., Erdogmus, H., Lindstrom, L. (eds.) XP/Agile Universe 2004. LNCS, vol. 3134, pp. 105–116. Springer, Heidelberg (2004)
Dybå, T., Dingsøyr, T.: Empirical studies of agile software development: A systematic review. Information and Software Technology 50(9-10), 833–859 (2008)
Boehm, B., Turner, R.: Management challenges to implementing agile processes in traditional development organizations. IEEE Software 22(5), 30–39 (2005)
Bogsnes, B.: Implementing Beyond Budgeting: Unlocking the Performance Potential. J. Wiley & Sons, New Jersey (2009)
Qumer, A., Henderson-Sellers, B.: A framework to support the evaluation, adoption and improvement of agile methods in practice. Journal of Systems and Software 81(11), 1899–1919 (2008)
Davila, A., Foster, G., Li, M.: Reasons for management control systems adoption: Insights from product development systems choice by early-stage entrepreneurial companies. Accounting, Organizations and Society 34(3-4), 322–347 (2009)
Drury, C.: Management and Cost Accounting. South-western, London (2008)
Hansen, S.C., Otley, D.T., Van der Stede, W.A.: Practice Developments in Budgeting: An Overview and Research Perspective. Journal of Management Accounting Research 15, 95–116 (2003)
Hope, J., Fraser, R.: Beyond Budgeting: How Managers can Break Free from the Annual Performance Trap. Harvard Business School Press, Boston (2003)
Poppendieck, M., Poppendieck, T.: Leading Lean Software Development: Results Are Not the Point. Addison-Wesley, Upper Saddle River (2010)
Ferreira, A., Otley, D.: The Design and Use of Performance Management Systems: An Extended Framework for Analysis. Management Accounting Research 20, 263–282 (2009)
Ambler, S.W.: Architecture and Design. Dr. Dobb’s Journal (2008)
Highsmith, J.: An Adaptive Performance Management System. Cutter Consortium Executive Summary (2006), http://www.infoq.com/resource/articles/Adaptive-Performance-Management/en/resources/apms0606.pdf
Chenhall, R.H.: Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, Organizations and Society 28(2-3), 127–168 (2003)
Covaleski, M.A., et al.: Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration. Journal of Management Accounting Research 15, 3–49 (2003)
Broadbent, J., Laughlin, R.: Performance Management Systems: A Conceptual Framework. Management Accounting Research 20, 283–295 (2009)
Abernethy, M.A., Brownell, P.: Management control systems in research and development organizations: The role of accounting, behavior and personnel controls. Accounting, Organizations and Society 22(3-4), 233–248 (1997)
Berry, A.J., et al.: Emerging themes in management control: A review of recent literature. The British Accounting Review 41(1), 2–20 (2009)
McFarland, K.R.: Should You Build Strategy Like You Build Software? MIT Sloan Management Review 49(3), 69–74 (2008)
Manville, B., Ober, J.: A Company of Citizens. Harvard Business School, Boston (2003)
Schmidt, J.A.: Is it Time to Replace Traditional Budgeting? Journal of Accountancy 174(4), 103–107 (1992)
Dugdale, D., Lyne, S.: Budgeting. Financial Management (14719185), 32–35 (2006)
Howell, R.A.: Turn Your Budgeting Process Upside Down. Harvard Business Review 82(7/8), 21–22 (2004)
Cassell, M.: Budgeting and more. Management Accounting: Magazine for Chartered Management Accountants 77(8), 22 (1999)
Kennedy, A., Dugdale, D.: Getting the most from BUDGETING. Management Accounting: Magazine for Chartered Management Accountants 77(2), 22 (1999)
O’Brien, R.: Living with budgeting. Management Accounting: Magazine for Chartered Management Accountants 77(8), 22 (1999)
Fraser, R.: Figures of hate. Financial Management (14719185), 22 (2001)
Hope, J., Fraser, R.: Take it Away. Accountancy 123(1269), 50–51 (1999)
Hope, J., Fraser, R.: New ways of setting rewards: The beyond budgeting model. California Management Review 45(4), 104–119 (2003a)
Hope, J., Fraser, R.: Who needs budgets? Harvard Business Review 81(2), 108 (2003b)
Hope, J., Fraser, R.: Who needs budgets? Response. Harvard Business Review 81(6), 132 (2003c)
Lohan, G., Conboy, K., Lang, M.: Beyond Budgeting and agile software development: A conceptual framework for the performance management of agile software development teams. International Journal of Information Systems (under review), St Louis (2010)
Miles, M., Huberman, A.: Qualitative Data Analysis. Sage, London (1999)
Yin, K., Robert: Case Study Research: Design and Methods. Sage, Thousand Oaks (2003)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Lohan, G., Conboy, K., Lang, M. (2010). Beyond Budgeting: A Performance Management Model for Software Development Teams. In: Abrahamsson, P., Oza, N. (eds) Lean Enterprise Software and Systems. LESS 2010. Lecture Notes in Business Information Processing, vol 65. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-16416-3_20
Download citation
DOI: https://doi.org/10.1007/978-3-642-16416-3_20
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-16415-6
Online ISBN: 978-3-642-16416-3
eBook Packages: Computer ScienceComputer Science (R0)