Savvy marketers are serious about using their budgeting and resource allocation as the critical strategic lever to ensure the organizational capabilities that lead to competitive advantage are funded. To be clear, this staid and somewhat dreaded activity is one of the most critical decisions you lead your team through as CMO or Director of Marketing Operations.
At TPG, we’ve created a comprehensive budgeting methodology that combats the politics and competitiveness that occurs with each budgeting cycle. We’ve found that most organizations, perhaps even your own, follow a predicable path when determining their budget. They start with the current year budget and then adjust that total amount up or down by a nominal percentage for the coming year. While common, it’s an approach that shortchanges this quintessential function of leadership.