How can you align budget negotiations with your organization's digital transformation strategy?

7. Understand how the transformation adding value to both top line and bottom line, how the change improving customers business experience, enterprises own sustainability, how the peers are acting- overall the transformation must bring meaningful contributions to the key stakeholders of the business.

As a practitioner of digital transformation and / or customer journey automation initiatives I have always believed the one size fits all is never an option and should be discounted upfront. If Digital Transformation is the goal, the first task should be to identify multiple Value Propositions , aimed towards the end state objective or target state. Each value proposition should then be diligently evaluated of what value it provides, does the completion of a particular value proposition get , the org, team, business any closer to the goal or not. Does the completion bridge in now matter how infinitesimal small measure the gap between the current state and target state. Budget emphasis can then be made for those that aid towards the goal.

There's principally one thing wrong here. You shouldn't have to be "negotiating" budget with an organisation. You should be able to articulate the vision, deliverables, outcomes, Cost Benefit and Return on Investment (and a whole host of other things!) - to the point where it's a "no-brainer" for the business. You will have many Value Propositions for the portfolio / programmes of work you need to deliver to enable true digital transformation. Negotiation suggests that you are "bargaining" for the cost to deliver the proposition. Dangerous turf. What are you prepared to give up as part of the negotiation - does this detract from the overall proposition and what it will deliver - probably. Stand your ground - don't negotiate!

Digital Transformation means different ideas to different organizations. I have helped in de-mystifying and de-jargonizing the initiative. The value proposition of the initiatives needs clarity and alignment with other executives. If the alignment of the value is achieved - the budget will reflect that. Downplaying the true cost of the transformation will be more expensive in the longer run. I would suggest it is detrimental in providing what other executives "want to hear".

Desde la planeación y el direccionamiento estratégico se alinean la necesidad presupuestaria y estratégica, “todos” los aspectos relacionados con la transformación digital a implementar se deberán contemplar, quedando claro que su priorización ha sido producto de la sinergia de diversos procesos como lo son el diagnóstico de necesidades, la identificación de alternativas de solución o fortalecimiento, de un estudio técnico, financiero, de análisis del valor agregado a la compa?ía y las partes interesadas, etc., de manera que sea posible valorar y cuantificar la inversión a realizar, dar seguimiento y control, entre otros. Pretendiendo una hoja de ruta demarcada y ajustada en específico a la meta de crecimiento y rentabilidad planteados.

With the onslaught of AI possibilities, we can start thinking how to leverage focused AI investments to augment activities that could result in greater revenue for the organization.

Budgeting, and the management of, is a continual process within the delivery of transformation in any organisation. You should have a solid relationship with the CFO as the "holder of the purse strings" and be working together to achieve the overall vision and strategy. There will be give and take in this, it isn't a one way street. Contingency is one thing that you will have to have as part of your budget. If you don't spend it that quarter, hand it back to the CFO. On the understanding that if you need it later on there will be flexibility to get it back. If there isn't this level of awareness and agreement, don't hand it back - CFO's are in their role for a reason and will see the commercial sense in your rationale, it's logical

Its all about relationship, communication and collaboration - the foundations of any successful transformation programme. Empathy is a skill that great leaders have and exhibit. Of course it's about having and showing it as part of the budgeting process. Transformation isn't a sprint - it's a marathon - you will need a solid, well grounded, open, honest, transparent relationship with your C-Suite and key stakeholders. The budget process is one place you will create trust in you and your skills.