The Chief Strategy Officer Podcast #12—Agile Budgeting: Capital Allocation at the Pace of Change
Apr 24, 2025
Eric Woodard, Head of Strategy at Primerica and former Bain consultant, dives into the world of agile budgeting. He argues that the traditional 12-month budgeting model is outdated in today’s fast-paced business landscape. Eric explains why companies must rethink their budgeting cycles and the importance of dynamic, strategy-driven funding. He highlights the critical difference between funds for running the business versus changing it and stresses that people, not systems, are the biggest barriers to adopting new budgeting practices.
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People Are The Biggest Barrier
- The biggest barrier to agile budgeting is people's mindset, not technology or processes.
- Leaders must embrace uncertainty and new rhythms for budget allocation to succeed.
Align Budget With Strategy
- Start agile budgeting by aligning your budget directly with your company's strategy.
- Ensure every business unit's priorities closely match top-level strategic goals to synchronize resource allocation.
Segment Budgets For Agility
- Separate budgets into 'run the business' with an annual cycle and 'change the business' with dynamic funding.
- Start agile budgeting by holding change funds centrally for flexible reallocation each cycle.