LEADERSHIP: CARVING UP THE BUDGET

Published: 2007-04-10   please add a comment below

Frugality is admired. And, necessity (as they say) is the mother of invention. But often, too much is made of scarcity. The extreme being the romantic notion of the starving artist slaving in a garret and producing works of enduring social value.

There's evidence for such tales. However, in many cases, it's put about by those who control the resources. And, this game is alive and well in many organisations.

For all the talk of zero-based budgeting (or starting with a clean slate), last year's budget is often the best predictor of who'll get what again this year. It takes a strong leader to start with an open mind and apply rigorous analysis: taking agreed goals, evaluating what they'll deliver, and allocating resources solely on expected return.

As well as history, fashion also skews allocations. So, does friendship or a forceful personality. But, courageous leaders resist the pressure.

Money is key, and having an adequate budget is a great start. But, what about share of infrastructure? Priority for IT and systems support? Or, access to staff?

How would an independent auditor rate the allocations you've made this year? Is each rational, fair and understandable? Or, do people scratch their heads? To use the jargon, do your colleagues see you as pouring money into black-holes, fighting un-winnable battles or (forgive the language) supporting sheltered workshops?

Resource your leadership!

Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership^®