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How do you justify your budget and resource allocation to stakeholders?

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As a program coordinator, you are responsible for managing the budget and resources of your projects and ensuring that they align with the goals and expectations of your stakeholders. However, sometimes you may face challenges or trade-offs that require you to justify your decisions and demonstrate the value and impact of your program. How do you communicate effectively and persuasively with your stakeholders and secure their support and approval for your budget and resource allocation? Here are some tips to help you.

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Stefan Choquette, DFMCP2

Aide-de-Camp, Deputy Commander U.S. Northern Command

1 Understand your stakeholders

Before you present your budget and resource allocation, you need to know who your stakeholders are, what their interests and concerns are, and how they prefer to receive information. You can use a stakeholder analysis tool to identify and prioritize your stakeholders, and tailor your communication strategy accordingly. For example, some stakeholders may want to see detailed data and reports, while others may prefer a summary or a visual representation. Some may focus on the outcomes and benefits of your program, while others may be more interested in the risks and costs. By understanding your stakeholders, you can anticipate their questions and objections, and prepare your responses accordingly.

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Stefan Choquette, DFMCP2

Aide-de-Camp, Deputy Commander U.S. Northern Command
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As budgeteers it’s easy to find ourselves staying within the confines of our office making decisions. It’s important to go out and understand your stakeholders and their needs and end goals. Take a page from Toyota’s TPS process improvement book and exercise “Gemba” or “Go and see the actual place.” In one of my Air Refueling squadrons they asked for wrestling mats and we prioritized them low every year. However after being invited out to the hangar we saw they used them to lay aluminum wheels to change KC-135 tires. By purchasing more they could change 6 tires in a day as opposed to 1-2 significantly increasing output. Go out, see, understand the situation for your end users. You are part of the mission!

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2 Align your budget and resource allocation with your program objectives

Your budget and resource allocation should reflect and support your program objectives, and show how you plan to achieve them within the available resources and constraints. You should be able to explain the logic and rationale behind your budget and resource allocation, and how they contribute to the desired outcomes and impact of your program. You should also be able to demonstrate how you have considered alternative options and scenarios, and why you have chosen the best one for your program. You can use tools such as a logic model, a theory of change, or a results framework to illustrate the linkages between your inputs, activities, outputs, outcomes, and impact.

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3 Provide evidence and examples

To justify your budget and resource allocation, you need to back up your claims and assumptions with evidence and examples. You can use data and indicators to measure and monitor your program performance and progress, and show how you are using your resources efficiently and effectively. You can also use case studies, testimonials, or stories to highlight the success and impact of your program, and how it has made a difference for your beneficiaries or target audience. You can also use benchmarks, best practices, or standards to compare and contrast your program with similar or relevant programs, and show how you are adding value or innovation.

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4 Be transparent and accountable

To build trust and credibility with your stakeholders, you need to be transparent and accountable for your budget and resource allocation. You should disclose and explain any assumptions, limitations, or risks that may affect your budget and resource allocation, and how you plan to mitigate or address them. You should also report and share any changes or deviations from your original budget and resource allocation, and the reasons and implications for them. You should also solicit and incorporate feedback from your stakeholders, and show how you have used it to improve or adjust your budget and resource allocation.

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5 Use clear and compelling communication

To persuade your stakeholders to support and approve your budget and resource allocation, you need to use clear and compelling communication. You should use simple and concise language, avoid jargon and technical terms, and use visuals and graphics to enhance your message. You should also use positive and confident tone, emphasize the benefits and value of your program, and appeal to the emotions and values of your stakeholders. You should also use stories and anecdotes to make your budget and resource allocation more relatable and memorable. You should also be prepared to answer questions, address concerns, and negotiate compromises if needed.

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Stefan Choquette, DFMCP2

Aide-de-Camp, Deputy Commander U.S. Northern Command
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Operationalize your language. When we start talking big numbers and spread sheets to non-budgeteers you can literally watch eyes glaze over and your coworkers become zombies as they nod yes to whatever you put in front of them in hopes of going to the next slide. Stop talking numbers and start talking effects. Instead of saying, we have $170K left for the quarter in travel support, operationalize the language by saying on average we can afford 23 more continental trips this quarter. Leaders can understand this better to make the decision to possibly say, there’s no need for 23 trips, let’s use those dollars for compensation plans instead.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you justify your budget and resource allocation to stakeholders?

1

2

3

4

5

6

1 Understand your stakeholders

2 Align your budget and resource allocation with your program objectives

3 Provide evidence and examples

4 Be transparent and accountable

5 Use clear and compelling communication

6 Here’s what else to consider

Program Coordination

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How do you justify your budget and resource allocation to stakeholders?

1

2

3

4

5

6

1 Understand your stakeholders

2 Align your budget and resource allocation with your program objectives

3 Provide evidence and examples

4 Be transparent and accountable

5 Use clear and compelling communication

6 Here’s what else to consider

Program Coordination

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