Did Someone Say Budget?

When I was preparing for my post in Canada in 2021, I read various strategic papers and frameworks to inform my future work: the Arctic and Northern Policy Framework; Strong, Secure, Engaged (Canada’s former Defence Policy); Iceland′s Arctic Policy, etc. Thoughtfully crafted papers, full of promise, insights, and the way towards the future.??

After reading some of those documents I wondered how much the future would cost. And there I ran into a dead end: for the most part, I found zero information on budgets attached to these strategic papers or policy frameworks.?

Several years later, in February 2024, I participated in the Arctic 360 conference in Toronto. One panel focused on global capital and featured a great discussion on infrastructure, private-public partnerships, the role of parliamentary committees, and the importance of a long-term Arctic strategy. One of the panelists pointed out that “strategy means money,” and I thought to myself, “did someone mention budget in the same sentence as strategy?”?

The co-existence of strategy and funding is crucial for the success and sustainability of any endeavor or organization, whether corporate, non-profit, or government. This connection is particularly critical when it comes to goal alignment, resource allocation, risk management, innovation and adaptation, and communication and stakeholder confidence. A well-crafted strategy requires suitable funding for effective implementation and should align with the organization's strategic goals.?

In other words, organizations need to align their goals and strategic objectives with their financial capabilities. They need to develop strategies to achieve their long-term goals and objectives. In parallel, they need to make sure they have the essential funding needed to implement the strategies they put down on paper.??

Furthermore, organizations need to make sure they pinpoint the critical areas where resources must be allocated to achieve desired outcomes. Additionally, they must also have a clear communication strategy to build confidence among key stakeholder groups.??

Sufficient funding then needs to be allocated to support these strategic initiatives. Without it, even the best conjured plan will fall short of expectations. But when supported by appropriate financial resources, successful coordination between strategic planning and the budget becomes key to achieving sustainable growth and organizational outcomes.?