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Four_Lenses_Budgeting_Model

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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.

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