Common criteria for all projects
Allocation refers to the distribution of a finite resource to potential recipients.
Thus, budget allocation is the art of distributing a finite resource, i.e. the budget, among relevant projects and according to set criteria.
What makes a project relevant?
A tradesman for instance has a very specific business objective by which to gauge his projects’ relevance. But what about large enterprises?
Large enterprises develop strategies and divide them into sub-objectives in order to implement them. Since progress, however, is the driver of business, these strategies are liable to change at an ever growing pace. Additionally, with price sensitivity on the rise, more and more projects have to be realized across business units in a shorter amount of time.
Different people, different tasks, different points of view. This results in different assessments of the same situation.
From subjective point of view to objective big picture
Different departments, different goals. How can a project’s impact on the overall strategy be judged?
A holistic approach takes into account different points of view and determines to which extent they contribute to the overall strategic objective. The increased transparency of the assessment allows redundancies and conflicts of interest to be avoided. Furthermore, since not only monetary factors are taken into account, projects are better defined, which allows side effects to be revealed before they occur.
Every tradesman has his yardstick
Through Strategic Budget Allocation we help your enterprise realize a holistic system of prioritization. Not only does every ‘tradesman’ get a yardstick, Strategic Budget Allocation also ensures that each yardstick measures the same units.
Have you ever tried to assess your strategy based on current projects? Our methods will allow you to even accomplish that feat.