Budget

Contexts have a budget. For decisions to effectively connect strategy to execution, they must influence the allocation of resources. Funding, with budgetary authority, is the fuel that gives agency to the decisions emerging from a context. In our taxonomy, budget refers to the sum of the resources allocated to the context to fulfill its responsibilities to run and change the business. This can be a dollar value, a headcount value, or another fungible proxy of value that can be exchanged. [Note: Using a proxy (e.g. 1 token = $1K) can be an effective way to talk about investment decisions while avoiding over-precision.]

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Example Syntax:

"<Context A> was funded by <parent context B> in <FY YYYY> with <budget amount - in terms of $, or some proxy like headcount>."

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For more:

• "Beyond Budgeting: How Managers Can Break Free from the Performance Trap", Jeremy Hope and Robin Fraser (2003).