What do you expect from your new strategy?
Did you go through all of that strategic planning effort to decide to keep doing the same things? Are you just going to change the dates on the cover page and continue with the “same ‘ol, same ‘ol?”
Never have I worked with an organization on their strategy who wants more of the same. They always want to be better.
If you want your new strategy to lift your organization’s performance to higher levels – to make even more of a difference – then you need to go into the process expecting CHANGE. And some of it may be uncomfortable.
*You may need to make changes in the programs/services/products you offer.
*You may need to make staffing changes.
*You may need to make Board changes.
*You may need to change your culture.
*And if you really want to improve your organization’s performance, it will definitely require changes to your budget.
CEOs and Boards need to go into the strategy process, expecting budget changes. In fact, the CEO should keep their Budget Committee updated as the strategy process unfolds. As Implementation Plans are created, there needs to be direct communication with the Budget Committee.
“The essence of strategy is making choices” (attributed to famed strategy expert, Michael Porter). There can be no “sacred cows” as these decisions are made.
Put key leaders in charge of implementing strategic goals. They should meet regularly with the CEO and be encouraged to recommend changes in budget priorities. You may even need to reorganize your budget according to your strategic goals.
Your strategy is doomed if it is not aligned with and supported by your budget. Strategy and budget alignment make your strategy real – and its greatly enhances its Mission Impact.
