[EN] Beyond Budgeting Country Focus - the Netherlands

1. Outperformance
International Center for
Beyond Budgeting Country Focus -
The Netherlands
Page 1

2. Beyond Budgeting Country Focus -
The Netherlands
Table of Contents
Introduction.......................................................................................................................................................3
Status quo of budgeting in the Netherlands......................................................................................................4
Status quo of Beyond Budgeting in the Netherlands........................................................................................5
The Beyond Budgeting Entry Scan (BBES)......................................................................................................6
Beyond Budgeting pioneers and transformers..................................................................................................7
Overview......................................................................................................................................................7
Case descriptions........................................................................................................................................8
Kessels & Smit.......................................................................................................................................8
Unknown Benelux company ................................................................................................................10
Stork Worksphere & Strukton Groep....................................................................................................12
Internet Service Provider......................................................................................................................14
Beckers.................................................................................................................................................14
Academic thesises from the Netherlands with reference to Beyond Budgeting..............................................15
Dutch academic institutions with reference to Beyond Budgeting...................................................................15
Links...............................................................................................................................................................15
Resources ......................................................................................................................................................16
License...........................................................................................................................................................16
Version 1.0, July 2009
Page 2

3. Introduction
Compared to other countries, the Netherlands may be a small country, but surprisingly does feature a long Beyond
Budgeting history thanks to the efforts of mainly Prof. Dr. Andre de Waal. From 1999 - 2007 he has conducted
several primary research studies in the Netherlands, has published several articles in Dutch Controlling magazines
and three Dutch books, and set up a Dutch online Beyond Budgeting diagnostic (the Beyond Budgeting Entry
Scan (BBES)). Today Prof. Dr. Andre de Waal departed from the Beyond Budgeting mindset and focuses on
research on the “High performance organization”. Further important names in the Beyond Budgeting history of the
Netherlands are Mr. Eelco Bilstra, consultant at fiNext who attempted some Beyond Budgeting implementations in
the Netherlands, Prof. Dr. Tom Groot, and Mr. Van Horn, the Dutch Beyond Budgeting critics.
The withdrawal of Prof. Dr. de Waal and Mr. Bilstra today from Beyond Budgeting and the BBRT is a consequence
to the coherence of Beyond Budgeting, which was demanded from the BBRT, but not accepted by de Waal and
Bilstra. As Bilstra points out: "Why should a partial or gradual implementation of Beyond Budgeting cannot be? I
do not believe you must eliminate the budget radically to move Beyond Budgeting." De Waals opinion towards the
coherence of Beyond Budgeting is e.g. very good reflected in one of his main English publications “Is your
organization ready for Beyond Budgeting?” in which he advices finally: “Each organization should at least explore
the benefits of introducing one or more beyond budgeting principles.” In an Dutch interview with Bert Bekker at the
end of 2005 (published in November 2005) de Waals' personal Beyond Budgeting journey has ended as he points
out with reference to Beyond Budgeting: "I have moved on”, "There are valuable ideas in the BB-thinking.” In 2007
de Waals publishes his last Dutch book with reference to Beyond Budgeting with the suitable English title “Beyond
Beyond Budgeting”.1
In a retrospective the Dutch Beyond Budgeting books and articles by de Waal et al moreover seems like an own
version of Beyond Budgeting like the BBRT North America.2
The following country focus paper on the Netherlands gives an overview of the most important Dutch Beyond
Budgeting Pioneers and Transformers, first English translations of the works of de Waal, country specific links and
resources, and academic works. It is more an academic work to present the current status quo in the Netherlands.
Further contributions of all kinds are welcomed to expand this paper which text is fully provided under the creative
commons 3.0 BY SA license.
To understand esp. the Dutch Beyond Budgeting pioneer cases provided by de Waal, Groot and Bilstra it is
recommended to first understand the Dutch Beyond Budgeting Scan (BBES) due to the fact that these cases are
derived through the BBES. A comprehensive guide for the BBES in English and in Dutch is free-of-charge
available on de Waals Homepage. With reference to the evolution pathway of de Waals' et al cases no information
is currently available. Furthermore two of the Dutch Beyond Budgeting pioneers stay unnamed.
1 The interview by Bert Bekker points out that de Waal and Bilstra were not members of the BBRT anymore in November 2005. De
Waal was officially no BBRT Director ever. In January 2006 the Dutch working group on Beyond Budgeting published an
presentation with already the title “Beyond Beyond Budgeting”
2 See e.g. http://bbrtna.org/principles.html for the shortened Beyond Budgeting principles by the BBRT North America
Page 3

4. Status quo of budgeting in the Netherlands
"Budgets are quickly outdated, because too few take into account market developments.“
Wim Westerink, CFO Stichting Kinderopvang Nederland (Child foundation Netherlands)
In the Netherlands about 91% the organizations are working with a budget. Two Dutch organizations have
partly abolished the budget and only one Dutch organization is working wihout a budget3 In the Netherlands
the budget is used for control purposes (71%), planning of the next year (52%), planning for the next years
(27%), support of the strategy goals (50%), and distribution of resources for the nexr years (44%).4
Preferred alternatives to the budget by Dutch oganizations:
50,00%
45,00%
40,00%
35,00%
30,00%
25,00%
Column C
20,00%
15,00%
10,00%
5,00%
0,00%
Activity based budgeting Others Beyond Budgeting Zero based budgeting
Source: De Waal, Groot et al, 2006
3 Survey by de Waal at the Beyond Budgeting Controllers Institute and the participants at the Euro Forum „What's going on in
controlling?“. In total, 37 questionnaires from 69 participants were received (response rate of 54%). Of the respondents were 86% from
the profit sector and 14% of the non-profit sector. 8% of the organizations had fewer than 100 employees, 51% were medium-sized
companies (101-1000 employees), and 41% had more than 1,000 employees. Most respondents were controllers or financial managers.
4 Based on a survey with 66 Dutch respondants carried out at the end of 2005 by the Maastricht School of Management in cooperation
with ConQuaestor and Oracle
Page 4

5. Status quo of Beyond Budgeting in the Netherlands
„The results of the study into account, the conclusion justified that organizations are not ready for beyond
budgeting [in the Netherlands] (and probably also not even want to be), but there are also plenty of
opportunities for (incremental) improvements in the current budgeting process.“
De Waal, 2006
“The question is what the future of Beyond Budgeting in the Netherlands can be.”
Bert Bekker, 2005
"Dutch people are in any case open to beyond budgeting. They are willing to listen. But they want
more concrete examples. That is why we, after satellites in the United States and Australia, soon establish
Roundtables in the Netherlands and Germany. Who knows, then follows a momentum, a first breakthrough."
Jeremy Hope, 2004
„Netherlands now moves beyond budgeting or opt for improving the current budgeting process? Time will
tell. In any event, it is that beyond budgeting is still a largely unexplored area in the Netherlands and that
much of communication and knowledge needs to be done.“
De Waal, 2002
• 57 % of Dutch financial managers have never heard of Beyond Budgeting5
• 74 % of Dutch financial managers said Beyond Budgeting should not be considered. A commonly
heard reason from the Dutch managers for not moving Beyond Budgeting is that they cannot see
how the change works and what the introduction of the Beyond Budgeting model would mean for an
organization.6
5 From a survey by de Waal in 2005
6 From a survey by de Waal in 2002
Page 5

6. Assessment of the Beyond Budgeting Entry Scan (BBES) by de Waal and Bilstra for the Netherlands:
Component key Green Orange Red
A. Preparedness to adapt the budgeting process 27,00% 52,00% 21,00%
B. Status of
Self-governance framework [organization] 30,00% 20,00% 50,00%
Empowered managers [autonomy] 27,00% 18,00% 55,00%
Accountability for dynamic outcomes 23,00% 27,00% 50,00%
[responsibility, customers]
Network organization [organization] 54,00% 18,00% 28,00%
Market coordination [coordination, customers] 39,00% 25,00% 36,00%
Supportive leadership [organization] 14,00% 28,00% 58,00%
Relative targets [goals, controls] 11,00% 24,00% 65,00%
Continuous strategy-setting [planning] 32,00% 32,00% 36,00%
Anticipatory systems [planning] 29,00% 14,00% 57,00%
Resources on demand [resources] 55,00% 21,00% 24,00%
Fast distributed information [transparency] 34,00% 14,00% 52,00%
C. Authority to adapt the budgeting process 36,00% 46,00% 18,00%
Final Yes / No / Maybe transform to Beyond 15,00% 33,00% 52,00%
Budgeting?
Source: de Waal 2006: “Nederland is nog niet klaar voor beyond budgeting“ with added Beyond Budgeting
principles in brackets. The English translations of the Beyond Budgeting Entry scan are taken from the paper
„Is your organization ready for Beyond Budgeting?“ by de Waal in 2005
The Beyond Budgeting Entry Scan (BBES)
The Beyond Budgeting Entry Scan (BBES) is a Dutch online Beyond Budgeting benchmark test developed
by de Waal and Bilstra. A full description of the BBES by de Waal and Bilstra can be assessed in the paper
“Is your organization ready for Beyond Budgeting?“.
Link to the description of the BBES (English): http://andredewaal.eu/pdf/MBE-BB.pdf
Link to the description of the BBES (Dutch, older version): http://andredewaal.eu/pdf/APK2004.pdf
Link to the front page of the BBES (Dutch only): http://beyondbudgeting.ingangstoets.nl/
Page 6

7. Beyond Budgeting pioneers and transformers
"There is great curiosity in the Netherlands, mainly from medium-sized enterprises. Unfortunately still not
really their CEOs, but among financial people. I have quite a few applications,
including the Dutch division of British American Tobacco, Festo and SNT.“
Eelco Bilstra
Overview
Pioneers from the Netherlands:
• Interpolis
• Kessels & Smit (case study s. below)
• Unknown Benelux company (case study s. below)
• Stork Worksphere & Strukton Groep (case study s. below)
• Internet Service Provider (case study s. below)
Implementers from the Netherlands:
• Beckers (case study s. below)
Page 7

8. Case descriptions
Kessels & Smit
"Your employees know much more about problem solving, they have more expertise than the top hierarchy.
But this knowledge is only released when the employee has a certain degree of emancipation, freedom and
confidence. In the knowledge work, it is obvious that we need to organize differently than in the old
management hierarchy. If the people get used to that management makes the decision, they will never own
responsibility for their work. And then a part of their knowledge disappears. Rigid management systems are
very efficient at short notice. In the long run they lead to silly companies with employees who have learned
that the system is not interested in their own initiative." Joseph Kessels
"Nobody can be in a position from which he/she can instruct others. Such a thing would be unbearable for
me. Cora and I are the founders, not the bosses." Joseph Kessels
"It is one of our fundamental principles, that no one should make a work that does not interest him/her."
Joseph Kessels
"I do not believe in the principle that payment provides motivation. One cannot buy motivation. We ask
ourselves, what interests us, where we learn something and we can continue to develop. This is the first
step. The orders and payment are the consequence - not vice versa."
Robert van Noort, consultant at Kessels & Smit
Introduction to the case study
The Kessels & Smit Case was in April 2009 discovered by us. As the case is very new it has not been
completely researched. Currently confirmed are the leadership principles. With reference to the evolution
pathway Kessels & Smit maintained the alternative model since its foundation in 1977. Assumptions about
human nature represent Theory Y.
About Kessels & Smit
Kessels & Smit is a network of 50 independent professionals with a passion for learning and development.
The development of responsible leadership, sustainability and societal entrepreneurship are an important
focus for Kessels & Smit. Actually Kessels & Smit offers consultancy mainly in the fields of the Beyond
Budgeting's leadership principles.
Founded in 1977 by Joseph Kessels and Cora Smit in Utrecht in the Netherlands, Kessels & Smit expanded
to Belgium (2003), Germany (2008), USA (2008), India (2006), and South Africa (2007).
Clients are individuals, organizations and communities like e.g. government bodies, health care institutions,
educational organizations and businesses on training, learning, knowledge productivity and innovation and
include e.g. the Dutch Railway, a Dutch supermarket chain, Heineken and Alcatel-Lucent.
Page 8

9. Kessels & Smit calls itself the learning company, because as Kessels & Smit points itself out:
• “Learning is at the heart of what we do - without learning there is no growth, no improvement, no
innovation. Therefore we aim to create and facilitate powerful learning processes.
• We want to be a good company: we work together with colleagues, clients, stakeholders, scientists
in development processes because we believe the best solutions are developed in partnerships.
• We constantly renew our organization and approaches. Our company is our ‘laboratory’ where we
experiment and find our own answers for learning & development issues that face knowledge-
intensive companies“
The idea to found Kessels & Smit was an unpleasant experience by Cora Smit and Joseph Kessels when
they worked both together at a small company to create training films for nurseries. Both discovered by
chance that the two directors of the company spent more money for their leased cars than the salary of the
two employees. "But Cora and I made the productive work, we earned revenue. All the rest was overhead."
recalls Kessels. Then both announced: "We liked the work, but in such an environment we do not want to
work." As both quit their jobs, former customers asked if they do not want to work as free-lancers for them.
They then founded Kessels & Smit. And both knew what they never wanted to be: Managers of a company.
Actually, they wanted to have no managers or management at all. Their own company was only a means to
an end to work as efficiently as possible, pleasant, and so that it fits one's own principles to organize. "We
wanted our colleagues to produce an environment as we wish for ourselves. We are working with the
knowledge, we develop ideas - and a highly hierarchical environment is not particularly attractive for
knowledge workers.” says Kessels.
Today Kessels & Smit is owned by its employees. Cora Smit and Joseph Kessels decided one day to sell the
company to their partners.
Management practices
Currently confirmed are the Beyond Budgeting's leadership principles. Kessels & Smit's cells structure is
represented by a network of independent consultants who form project-oriented teams.
Further there are no job descriptions, vacancies or an HR department at Kessels & Smit. The hierarchy is
replaced by cooperation and ownership. Salaries are disclosed to all employees and the employees set
them.
There are no fixed offices, not even for the two founders, but empty, with nice tables and chairs furnished
rooms, in which everyone with his/hers laptop can take place. Furthermore an internal HR/talent market does
exist at Kessels & Smit.
Page 9

10. Unknown Benelux company
The following unnamed organization from the Benelux was researched and described by de Waal and Bilstra
using the Dutch Beyond Budgeting Entry Scan (BBES). The BBES was completed by several employees of
the organization. It is assumed that the following unnamed company is a new Beyond Budgeting pioneer
from the Benelux discovered by de Waal and Bilstra in about 2004.
Short company description
The company has got three offices in Belgium, Netherlands and Luxembourg with over 900 employees and
is focused on business services in information and communication technology. The organization itself is part
of a larger group consisting of relatively 'loose' body parts.
Description of the Beyond Budgeting principle “organization”
The organization is organized as a cell structure: the employees work together in self-managing teams,
which represent the network cells. Each network cell team is fully autonomous in hiring people, determining
salaries, and investments. A central cell monitors the market and provides the direction of the organization.
Description of the Beyond Budgeting principles “resources” and “planning”
The network cells prepare each four weeks a budget which is mainly used by the organization as a means
for planning and coordination and less for control purposes. Furthermore each month the network cells
prepare an analysis in which the actuals are mainly compared with the budget and previously issued
forecasts. Usually quarterly forecasts are created by the network cells.
Furthermore a numerical comparison focuses on leads and opportunities and threats in the market.
Description of the Beyond Budgeting principle “rewards”
The bonus for employees is only depending on the actual performance by the network cell.
Page 10

11. Results from the Beyond Budgeting Entry Scan with added Beyond Budgeting principles in brackets:
1-2 Willingness to adjust budget process Green
3 Self-governance framework [organization] Green
4 Empowered managers [autonomy] Green
5 Accountability for dynamic outcomes Green
[responsibility, customers]
6 Network organization [organization] Orange
7 Supportive leadership [organization] Orange
8 Relative targets [goals, controls] Red
9 Continuous strategy-setting [planning] Orange
10 Anticipatory systems [planning] Orange
11 Resources on demand [resources] Green
12 Fast distributed information [transparency] Green
13 Relative team rewards [rewards] Green
14 Freedom to adjust budget process Green
Source: de Waal, Groot et al with added Beyond Budgeting principles in brackets. The English translations of
the Beyond Budgeting Entry scan are taken from the paper „Is your organization ready for Beyond
Budgeting?“ by de Waal in 2005
Page 11

12. Stork Worksphere & Strukton Groep
About the Stork Worksphere & the Strukton Groep
The former Stork Worksphere (now Strukton Worksphere) is a technical service company operating in the
fields of property management, facility services, building services and hard services. In June 2006 the Stork
Worksphere was acquired by the Strukton Groep with at that time about 1400 employees and an turnover of
168 million € (2005). Today it is one of the Strukton companies, but operating completely independent. In
2008 a complete project organization was applied at the Strukton Worksphere.
With reference to Beyond Budgeting it is to note that there is a 12 month rolling forecast, an annual business
plan, and monthly financial reports in place.
The Strukton Groep which was founded in 1918, is a full-service provider of infrastructure and
accommodation solutions with the the ambition to enable end users to travel, live, work, relax and learn in
comfort. In 2008 the Strukton Groep generated a profit of 1,25 billion € with 5962 employees. In overall
Strukton’s activities are organized into five fields of operation, each represented by an individual and
independent company:
• Strukton Integrale Projecten provides innovative and integrated solutions in the fields of government
buildings, care, education and infrastructure (usually public private partnership PPP)
• Strukton Rail is a full-service provider of railway systems, specializing in infrastructure, railway
equipment, information systems, data capture and data management.
• Strukton Civiel is responsible for the design, building, maintenance and management of
infrastructure projects, with specific expertise in underground construction, road building, viaducts,
stations, noise barriers, foundation techniques, immersion techniques and the environment.
• Strukton Bouw & Vastgoed is responsible for the design, building and maintenance of property
• Strukton Worksphere provides integrated solutions in the fields of property management, facility
services, building services and hard services
With reference to Beyond Budgeting it is to note that at the Strukton Groep there are no rolling forecasts, a
three year business plan and and a moreover traditional budgeting system in place.
Page 12

13. Results from the Beyond Budgeting Entry Scan with added Beyond Budgeting principles in brackets:7
Stork Strukton Groep
Worksphere
1 Self-governance framework Yes Yes
[organization]
2 Empowered managers [autonomy] Yes Yes
3 Accountability for dynamic outcomes Yes Yes
[responsibility, customers, coordination]
4 Network organization [organization] Yes Yes
5 Market coordination [coordination, -- --
customers]
6 Supportive leadership [organization] Yes Yes
7 Relative targets [goals, controls] No Yes
8 Continuous strategy-setting [planning] Yes Yes
9 Anticipatory systems [planning] -- --
10 Resources on demand [resources] Yes/No Yes
11 Fast distributed information Yes Yes
[transparency]
11 Relative team rewards [rewards] Yes/No No
Source: de Waal, Groot et al with added Beyond Budgeting principles in brackets. The English translations of
the Beyond Budgeting Entry scan are taken from the paper „Is your organization ready for Beyond
Budgeting?“ by de Waal in 2005
7 Both BBES results were presented in January 2006 by de Waal et al before the acquisition of the Stork Workspere by the Strukton
Groep in June 2006
Page 13

14. Internet Service Provider
With reference to Beyond Budgeting this anonymous Dutch company, which is in the consumer market the
Dutch market leader, has a traditional budgeting system, a three year financial business plan, and a rolling
forecast in place.
Results from the Beyond Budgeting Entry Scan with added Beyond Budgeting principles in brackets:
1 Self-governance framework [organization] No
2 Empowered managers [autonomy] No
3 Accountability for dynamic outcomes No
[responsibility, customers, coordination]
4 Network organization [organization] Yes
5 Market coordination [coordination, customers] --
6 Supportive leadership [organization] Yes
7 Relative targets [goals, controls] Yes
8 Continuous strategy-setting [planning]
9 Anticipatory systems [planning] --
10 Resources on demand [resources] Yes
11 Fast distributed information [transparency] Yes
11 Relative team rewards [rewards] No
Source: de Waal, Groot et al with added Beyond Budgeting principles in brackets. The English translations of
the Beyond Budgeting Entry scan are taken from the paper „Is your organization ready for Beyond
Budgeting?“ by de Waal in 2005
Beckers
Beckers is a Dutch frozen food manufacturer and subsidiary of the Dutch food multinational Royal Wessanen
NV (5796 employees). This case is described by de Waal in his 2004 Dutch book “Beyond Budgeting” as an
implementation case study.
But as it seems mainly the budget has been abandoned at both Beckers and Wessanen.
Page 14

15. Academic thesises from the Netherlands with reference to Beyond Budgeting
• “Beyond budgeting' een nieuwe filosofie vor budgettering?” by Thomas Geelen, 2007, Universiteit
Hasselt: http://doclib.uhasselt.be/dspace/bitstream/1942/1872/1/geelen.pdf
Dutch academic institutions with reference to Beyond Budgeting
• Maastricht School of Management, Prof. Dr. Andre de Waal (Beyond Budgeting)
• Vrije Universiteit Amsterdam, Prof. Dr. Tom Groot (Beyond Budgeting)
• Erasmus University Rotterdam, Prof. Dr. Cees van Halem (Beyond Budgeting)
• Universiteit Hasselt, Prof Dr. Roger Mercken (Beyond Budgeting)
• Universiteit Twente, Prof. Dr. Joseph Kessels (s. Kessels & Smit case)
Links
• Andre de Waal's Homepage (in Dutch and English, gives an overview of all books and articles by de
Waal et al): www.andredewaal.eu
• Online discussion group: Accounting & Control Professionals in Nederland (in Dutch):
http://www.linkedin.com/groupInvitation?groupID=1685767&sharedKey=0EF7F228018E
Page 15

16. Resources
(all online resources accessed 4th July 2009)
• Articles by Andre de Waal et al, accessd through www.andredewaal.eu: „Budgetteren in Nederland:
stand van zaken en ontwikkeling” (2006), “Nederland is nog niet klaar voor Beyond Budgeting”
(2005), “De fraude voorbij met beyond budgeting” (2004), “Onethisch managementgedrag bestrijden
met beyond budgeting” (2004), “Is uw budgetteringsproces al APK gekeurd?” (2004), “De
voortschrijdende ontwikkeling van beyond budgeting” (2003), “Het budgetteringsproces afschaffen?”
(2002), “Gaat Nederland beyond budgeting?” (2002), “Competitief voordeel door 'Beyond
Budgeting'” (2001), “'Beyond budgeting': een goed idee?” (2001), “Beyond budgeting: de nieuwe
uitdaging” (1999), “Is your organization ready for Beyond Budgeting?” (2005)
• Article: „Weg met de budgetten“: Bert Bakker, in 2005 deAccountant: http://www.andredewaal.eu/pdf/
Wegbudget.pdf
• Article: “Lernende Firma” by Peter Laudenbach in BrandEins 5/2008
• Paper: “fiNext Wrap up: Beyond Budgeting”, 2004:
http://finext.nl/images/stories/pdf/wrap_up/Wrapup32004.pdf
• Paper: “The (R)evolution in Management Control” by EyeOn in Association with the Erasmus
University of Rotterdam: http://www.eyeon.nl/getfile.php?id=37
• Presentation „Developments in Budgeting“ by Tom Groot, 2007: http://www.ci.nl/ledenbijeenkomsten/
pdf/Groot_seminar_28_maart.pdf
• Presentation “Beyond Beyond Budgeting. De toekomst van budgettering” by de Waal, Tom Groot et
al, 2006
• Strukton Groep Annual Report 2008:
http://www.strukton.com/SiteCollectionDocuments/Engels/StruktonAnnualreport%202008.pdf
• Website: http://www.struktonworksphere.com
• Article: “Stork sells WorkSphere to Strukton”, 2006: http://www.infrasite.net/news/news_article.php?
ID_nieuwsberichten=4464&language=en
• Press release: “Sale of WorkSphere completed”, 2006:
http://cws.huginonline.com/S/130797/PR/200606/1061321_5.html
• Royal Wessanen Annual Report 2008: http://www.wessanen.com/clients/wessanen/wes-
corporate.nsf/0/97B51949C54CC4D6C125758100674B61/$FILE/Annual%20Report
%202008%20ENG.pdf
• Website: www.beckers.nl
• Website: http://www.kessels-smit.com
• Front Cover Picture (Amsterdam): Creative Commons BY NC SA by MorBCN:
http://www.flickr.com/photos/bcnbits/2902443392/in/set-72157594414195949/
License
This paper except all logos and except the front cover picture is licensed under a Creative Commons BY-SA
License. Credit: "International Center for Outperformance (www.intco.org)" within the reference list. The
exceptions from this license concerns only derivative works.
Page 16