| Introduction | | | | the projects be prioritized to maximize utilization of |
| Corporate budgeting is an obscure process. Usually it | | | | resources? What is the risk of each project and how |
| involves padding budgets to accommodate for | | | | should it be handled? |
| across-the-board cuts, and committees of corporate | | | | It is easy for even a corporate budgeting committee |
| officers finalizing figures for projects executed far | | | | to fall into the illusory convenience of arbitrary |
| below them. Unhappily, the team making funding | | | | money and resource allocation, in ignorance of tools |
| choices tends to lack the information needed to | | | | to do the job of allocation more efficiently, based on |
| accurately analyze what they are actually financing. | | | | realistic criteria. Providing only part of the money and |
| The team must answer questions that directly affect | | | | resources that a project needs, on the grounds that |
| corporate strategy. Which projects are critical to | | | | other projects need funding too, will simply result in |
| corporate goals? Which provide the best | | | | incomplete work and little benefit to the organization. |
| âbang for the buckâ? How should | | | | |