In this engaging episode of Agile People Fika, the focus is on the

transformative role of Artificial Intelligence (AI) in Human Resources

(HR). The discussion centers on how AI can revolutionize various HR

functions, particularly in recruitment and talent acquisition. A key point is

the potential for AI to inadvertently perpetuate biases, as illustrated by

an example involving Amazon's AI recruitment tool.

The conversation extends beyond recruitment, touching on AI's

applications in performance reviews, employee engagement, and

communication enhancement. The speakers discuss the evolving HR

technology landscape, predicting a shift towards more AI-integrated

platforms and flexible, skill-based recruitment processes.

The podcast highlights the importance of vigilance in managing AI

biases and emphasizes the exciting opportunities AI presents for HR

innovation. It concludes with encouraging embracing AI in business,

advocating for an experimental approach to leveraging AI for more

efficient and effective HR practices. This episode is a must-listen for

anyone interested in the intersection of AI and HR.

Welcome to this episode of the Agile People Fika podcast, where we

engage in an unscripted discussion about 'Resource Allocation Budgets

versus Prioritizing Flexibility with People'. This insightful conversation

among Agile People team members and guest David Thompson delves

into the fundamental question of whether organizations should measure

value or costs, particularly in the context of IT departments.

The dialogue opens with an examination of the drawbacks of rigid

budgets in stifling innovation and flexibility. One example cited is a team

with a potentially valuable innovation but constrained by budget

limitations in their specific 'money bag', hindering the project's fruition.

This example illustrates how budgets can lock teams into a non-

innovative mindset, focusing solely on meeting deadlines set by

predefined projects.

The conversation then shifts to the idea of dynamic resource allocation,

which could be more effective if not constrained by fixed performance

targets. This approach would allow resources to be shared where

needed most, promoting efficiency and adaptability. The panel

discusses the challenge of convincing those who control budgets

('money bag holders') to embrace this fluidity, acknowledging the

inherent fear of 'going crazy' or losing control.

Addressing the notion of control, the discussion highlights the

importance of adapting to reality rather than adhering rigidly to plans

made in the past. It's argued that using resources where they're most

needed at any given time is a wise and responsible approach, as

opposed to the false sense of security offered by fixed budgets.

Further, the panel delves into the idea of agile for finance, emphasizing

the need to shift from traditional budget rituals to more adaptive, reality-

based planning. This includes acknowledging the unpredictable nature

of the business environment and the impossibility of controlling complex

human systems. The concept of 'value creation' versus 'cost

management' is also explored, suggesting that organizations should

focus on potential value rather than just costs.

The discussion also touches on the tendency of organizations to stick

with projects in which they've heavily invested, even when it's more

sensible to abandon them. The benefits of small, focused teams over

larger, less cohesive ones are considered, along with the need for agility

in resource allocation and decision-making.

Towards the end, the conversation steers towards practical steps for

traditional organizations to transition towards more flexible resource

allocation. Suggestions include questioning annual budgets, making

changes as needed, and avoiding rewarding people based on

performance against fixed targets.

The podcast concludes with an invitation for listeners to explore further

training with Agile People, highlighting an upcoming certification

focusing on agile for finance. This initiative aims to foster modern

leadership and governance for a more profitable and sustainable future.

Join us in this engaging Fika session to gain deeper insights into

navigating the complexities of resource allocation and prioritizing

flexibility in organizations.

Join us on this episode of the Agile People Fika podcast, where we

explore the intriguing subject of 'What are the drawbacks of having

overly specific financial objectives'. This engaging discussion explores

the complexities and potential pitfalls of setting highly specific financial

goals within organizations.

Our conversation opens with reflections on traditional accounting

practices and the resistance to change often encountered in the field of

finance. The panel, including an ex-accountant, discusses how outdated

methods persist in budgeting and management, highlighting the

reluctance to adopt new approaches despite evident inefficiencies.

We then shift to examining human behavior in organizations, particularly

how adding complexity to problems often leads to short-sighted

solutions. This is especially true in finance, where traditional values and

practices are deeply ingrained. The conversation underscores the

challenges of encouraging people to think creatively and adopt new

methods, particularly in areas like budgeting and management.

A significant part of the discussion focuses on the drawbacks of overly

specific financial targets. These rigid objectives can lead to unethical

behaviors, such as gaming the system, and foster a short-term mindset

that undermines long-term organizational health. Specific examples are

cited, illustrating how rigid financial goals can disconnect from the real-

world context of a product or service, leading to counterproductive measures.

The conversation then turns to performance management, especially in

relation to financial objectives. The panelists discuss how managers

often engage in counterproductive actions to meet financial goals linked

to their performance bonuses. This leads to a broader discussion on the

limitations of checklist-driven approaches in finance, where ticking off

tasks can overshadow the holistic impact of actions.

Towards the end of the discussion, the panel introduces the concept of

'beyond budgeting'. This approach involves breaking the link between

annual budgets, fixed performance targets, and rewards, advocating for

a more dynamic and responsive financial planning process. This

method recognizes the need for agility in resource allocation and

decision-making, moving away from the rigid structures of traditional

budgeting.

The podcast wraps up with reflections on the role of HR and finance as

key enablers of organizational agility. The need for these departments to

collaborate more closely is emphasized, suggesting that joint efforts

could be a crucial step in advancing agile practices within organizations.

Overall, this episode of Agile People Fika offers a deep dive into the

challenges and potential solutions for moving beyond traditional

financial objectives, highlighting the importance of agility

In this insightful podcast episode, the focus is on the concept of "beyond

budgeting" and its relevance in today's dynamic business environment.

The speakers, inspired by a seminar from a financial expert, delve into

the evolution of budgeting, tracing its origins back to 1923. They discuss

how traditional budgeting methods, designed for a more stable

economic era, are increasingly mismatched with the current volatile

global market.

The conversation highlights the limitations of annual budgets,

emphasizing how they fail to adapt to rapid market changes and create

a false sense of control. A significant part of the discussion revolves

around the need for financial systems within organizations to be flexible

and adaptable, aligning with modern operational methods.

An example of a forward-thinking steel manufacturing company is

presented, showcasing how innovative approaches to salaries,

feedback mechanisms, and employee involvement lead to greater

adaptability and success.

The episode concludes with a critical view of traditional budgeting

practices, advocating for a reevaluation of target setting, costing, and

resource allocation as distinct processes. This enlightening discussion

is a call to action for businesses to embrace more agile and responsive

financial practices in the face of today's complex and ever-changing

business landscape.

In this Agile People Fika session, we dive into the critical topic of finance and agility. The discussion centers on the vital need to decouple targets, forecast, and resource allocation in financial planning. We contrast traditional budgeting methods with agile approaches, highlighting how traditional methods often lead to inefficiencies and missed business opportunities. Key challenges in conventional budgeting are explored, including rigid targets and inefficient resource allocation, especially in IT companies.

The session also examines different budgeting practices in public and private sectors and discusses the integral role of HR and finance in creating more holistic budgeting processes. Participants share real-world examples from various organizations, illustrating the shift towards more agile, flexible budgeting methods in response to unpredictable events like the pandemic.

We wrap up with an invitation to an upcoming webinar for deeper insights into agile budgeting. This session is a must-listen for anyone interested in the intersection of finance and agility, offering valuable perspectives for adapting to the ever-changing business landscape.

If you want to know more, maybe you are interested in our education Agility in Finance: https://agilepeople.com/agility-in-finance-course-description/

Join us in the latest Agile People Fika podcast episode as we dive into the intriguing world of financial agility. We'll be exploring the transformative concept of "decoupling" in financial management. Learn how traditional, rigid financial systems with annual budgets can limit organizational agility, and discover the benefits of a more dynamic approach.

Get ready to hear about the need for modernizing financial models. We discuss breaking down traditional processes like forecasting and resource allocation, and how this can lead to more agile and effective decision-making within organizations.

But that's not all. We'll also delve into the importance of equipping teams with financial know-how, and aligning their actions with the company's strategic goals. Plus, we'll touch on the unique Swedish tradition of 'Fika' and its role in fostering a collaborative and trusting work environment.

Don't miss this insightful episode, where we unpack the keys to unlocking financial agility in the modern corporate world. Tune in now for an enlightening discussion!

If you want to know more, maybe you are interested in our education Agility in Finance: https://agilepeople.com/agility-in-finance-course-description/