Blow Up Your Budgeting Process

/0 Comments/in , , /by

If you work in a large organization – This Blog’s for You.

You know what season is coming soon – you dread it. ‘Tis the season of Planning & Budgeting; the annual ritual of much time, many iterations, and little meaning – full of sound and fury, signifying not much.

What if you could radically revolutionize that process? Almost blow it up? All in a socially and politically acceptable manner, of course.

Resource Allocation is So Last Millennium

Planning and budgeting processes are about resource allocation. Partly that’s to coordinate plans. But partly it’s about predicting the future – of markets, the economy, technology – so we can intelligently place resource bets. So that we can plan on having umbrellas in case it rains.

We have built processes to worry about the future so that we can place resource bets in advance. But what if we didn’t have to place those bets in advance? Who cares about predicting rain for tomorrow if I know there will be an umbrella within arm’s reach when I need it?

What if you always had access to an umbrella? What if you did not have to make capital investments, hire and train people, develop new products – until the day before you needed to? And you were then able to do so with the snap of a finger?

You wouldn’t waste time predicting the future – you’d just deal with it on arrival. And increasingly, that’s what the world looks like.

The umbrellas, it turns out, are right within our grasp, right when we need them – if we just know to look for them. And there are three places to look.

The Three Sources of Umbrellas When You Want Them

Old style planning and budgeting assumes scarcity of resources – few umbrellas. We need to re-think; to recognize the umbrellas are already there, and we’re just facing a sourcing or distribution problem.

The three keys to changing that problem definition are speed, collaboration, and transparency.

Speed. You probably budget for headcount. If so, you assume a certain elapsed time for a category of employee – let’s say, a three-month cycle.

What if you could cut that to three weeks? To three days?  Think contracting, outsourcing, working virtually, across time zones, modularizing work. It’s the way software and movies and consulting and projects get done now, why not extend it to “core” hiring?

Speed attacks the need to plan for umbrellas, because it reduces your exposure to time-spent-without-umbrella.

Collaboration. You probably budget for facilities and equipment – because you assume you must own or have first call on assets. But what if you could get all the access you need just by sharing with others? And save tons of money at the same time?

After all, you rent a room at the Marriott in Chicago instead of owning a condo there. Push that thinking further; it’s like doubling your proven resource reserves without spending a penny on exploration.

Why own a car when you can use Zipcar? Why are you paying Microsoft for software to sit on your PC getting old when you can access cloud software, always updated, for less? Why are you buying books instead of renting them? Why are you spending money on dedicated office space when you could share it out with other tenants? Why are you driving alone?

Collaboration attacks the need to plan for umbrellas, because it changes a resource scarcity problem to a capacity utilization problem, while expanding perceived capacity.

Transparency. You probably budget for knowledge management and IP development – because you think your organization must carefully nurture its precious wisdom. But what if you could generate more knowledge, and more know-how, by openly sharing what you have with everyone else?

This is the logic behind meet-ups, networks, communities of interest, affiliate marketing, tribes, wikis, webinars, curating, mash-ups, and Spindows.

Transparency attacks the need to plan for umbrellas, because it sensitizes everyone to the presence of more umbrellas, to the availability of umbrella substitutes, and to rain-control initiatives.  

——-

Help free your organization from the tyranny of old-think resource-constrained planning and budgeting processes. Ask yourself how to get your group’s work done faster, more collaboratively, and more transparently.

This is how to be a socially and politically acceptable business revolutionary.

(Props to my mastermind group of @StewartMHirsch, Scott Parker and John Malitoris for this post) 

Making Collaboration Work

/13 Comments/in /by

I’ve got a problem. Once or twice a week, someone approaches me and says:

I really like what you do. I do something very similar. We should talk and figure out ways to do things together.

The problem: this almost never works.  Let’s figure out why.

Intent is Necessary but Not Sufficient

I’m glad people want to collaborate with me. I increasingly have little patience for those who won’t.  And when I’m the one who won’t, I know I should hit the reset button and start the day over. After all, collaboration is the new competition.

But intent alone doesn’t cut it. I can feel it in my schedule. I hate to be rude, but I just can’t take any more meetings based on goodwill and karmic synchronicity. Millions are in sync with me; I’m in danger of feeling boring, not lonely.

A Clear Vision is Necessary but Not Sufficient

If you don’t know where you’re going, any road will get you there. From a false assumption, any conclusion logically follows. So clearly you’ve got to be clear.

But clarity alone is worth not much. 20 years in strategy consulting taught me that a brilliant strategy and four quarters is worth a dollar. Despite what the Hegelians and the authors of The Secret will tell you, thought alone will not move matter.

Action Steps are Necessary but Not Sufficient

Before nearly every keynote address I give, someone says, “What our people really want are tangible action steps they can begin using the very next day.”

Okay, here you go. Tell the truth. Tell your spouse you love them. Make lists with five bullets. Fix your attitude. Meditate. Exercise. Be kind to dogs. Read your client’s industry newsletter. Listen better. Take two aspirin and call me in the morning.

Yes, that’s what people want. But try just giving action steps, and see if you get paid.

The Three Pathologies of Collaboration

If you’ve only got one of these three factors working, you’ve got bupkus.

More frequently, you’ve got two factors working.  But if you’ve only got two, you’ve got a pathology.  There are three pathologies:

  • Spinning Wheels. You’ve got Intent and Vision, but no Action Steps. You get no traction. You keep on talking, but it’s always to the same people, and you’ve already convinced each other. You need some action steps.
  • Grinding It Out. You’ve got Intent and Next Steps, but no Vision. You’re all processes and metrics and execution and best practices, but you never get anywhere, because you never figured out how to aim, align, coalesce, define a purpose, set a goal, do the vision thing. You’re only running a ground game, and it’s wearing down your offense.
  • Passive Aggression. You’ve got Vision and Next Steps, but no Intent. Your team is talking the talk, but blame-throwing behind the scenes. You’re all brains and no heart. You’re stuck in a 70s military strategy game, all Machiavelli and no truth-telling. You need some positive Intent.

Those people who call me up and offer to work together?  Wheel spinning. The solution, I’m finding, is to say, “Fabulous; you come up with one great Action Step, and I’ll buy lunch. Until then, let’s not “do lunch.”

Do you work in a grind-it-out organization? Swallow your subject-matter-expert pride and hire a motivational speaker. It’ll do you good.

Do you work in a passive aggressive organization? You’re far, far from alone. Go sit in on a 12-Step program and realize that you do not have to be co-dependent.

 

What do you think? What does it take to make collaboration work?

Note: if Anne Evans or Howard Schwartz are reading this, big props to you for an earlier version of the pathologies. And if you’re not reading it, write me and explain why.