The Pedowitz Group 2017
Budget Analysis / Methodology / Four Lenses of Budgeting
To determine your resource allocation, use the Four Lenses of Budgeting
ROI
ROI
Align Budget to Strategy Compare to Benchmarks
Relative Performance of Tactics Consolidate Redundant Spend
Your first exercise should be to evaluate your budget for alignment to your strategy.
With an articulated strategy, prioritize your investments to drive the vision forward.
Expecting growth to come from emerging markets? Make sure your allocations don't
unfairly favor your cash cow established markets .
Benchmarks are great tools for providing a frame of reference for your allocations . They
can shed light on the investments of your industry peers and provide much needed
support when substantial budget changes are presented to your colleagues. The very
best benchmarks link budget allocations to performance measures.
Being able to draw a connection between marketing efforts and revenue impact is
critical for establishing credibility within the executive team. It's also immensely helpful
when proposing budget increases. The promise of measuring ROI is that we can
compare the relative effectiveness of activities and use that data to inform decisions
about future marketing investments.
Resolving redundant spend is straightforward in theory. It's messy as hell in practice.
Technologies that perform similar functions, disaggregated spend across similar service
providers, functional siloes that establish their own operations for activities such as
content, decentralized operations across regions. Just four examples of where a
matrixed organization can create gluttony in your budget.
