Vol 3 #2
Bridging goals in budgeting: From a tug-of-war to a collaborative roundtable for effective resource allocation in banking.
In core banking, budget meetings can often feel like a tug-of-war. On one side, we have operations, urgently pulling for the funds needed to “keep the lights on.” On the other, project teams argue just as passionately that without investment in the future, we risk stagnation. And somewhere in between, voices plead for a thoughtful balance to prepare for the future without compromising the present. Sound familiar?
This classic scenario, aptly illustrated in the cartoon “Budget Tug-of-War”, is a reality for many banks. But imagine a different setting, like in “The Funding Roundtable,” where all departments sit at a table discussing needs openly and equitably. Rather than battling for resources, they’re collaborating toward a balanced allocation. It’s an appealing shift, but how do we get there?
The “Budget Tug-of-War”: A Tale of Resource Struggles
“Budget Tug-of-War” doesn’t just provide humor—it’s a mirror to the frequent budget dilemmas banks face. Each team, whether operations or project development, sees its needs as essential. Operations claim, “If we can’t keep things running, nothing else matters.” The project teams counter, “If we don’t innovate, we’ll fall behind.” Both sides are right, of course, but the struggle to prioritize limited resources can leave everyone feeling frustrated and stretched.
Why Does This Matter?
When resources are scarce, it’s easy to feel like every budget meeting is a zero-sum game. One team’s gain is another’s loss, leading to an environment where short-term fixes and immediate needs overshadow strategic goals. We’ve all been there, leaving meetings with more tension than solutions.
The “Budget Tug-of-War” cartoon highlights common issues we face:
- Competition over Collaboration: Teams focus more on securing their portion than on the bank’s overall success.
- Short-Term Focus: Immediate needs push long-term projects to the background.
- Reduced Trust: With constant competition, teams can feel their priorities are undervalued, leading to a lack of trust in the budgeting process.
This approach isn’t sustainable. Constantly pulling in opposite directions weakens the bank’s overall resilience. But there’s another model we can look to—a collaborative one where resource allocation is driven by strategy and balance.
Introducing “The Funding Roundtable”: A Vision of Fair Allocation
Enter “The Funding Roundtable”, where the operations, change, and innovation teams sit together to discuss their needs openly. This cartoon provides a different picture—one of harmony rather than struggle. Around this table, every team acknowledges the resources they have and needs without conflict. There’s no tugging, no fighting for control. Instead, there’s a sense of shared purpose.
The Benefits of the Roundtable Approach
The roundtable concept embodies what many banks aim for: equitable allocation that lets all functions thrive. In a fair, collaborative setting:
- Long-Term Goals Take Priority: Rather than only focusing on immediate issues, teams align their needs with the bank’s strategic objectives.
- Enhanced Trust and Collaboration: When each team has a voice and their input is valued, there’s less competition and more cooperation.
- Balanced Innovation and Stability: Operations get the support needed to maintain stability, while innovation teams have room to explore new ideas.
Imagine how much easier budgeting would be if every team knew their needs were being considered and aligned with the bank’s mission. There’s no need to fight when everyone has a seat at the table.
Steps to Transition from Tug-of-War to Roundtable
Moving from a resource struggle to a fair allocation process isn’t easy, but it’s doable. Here’s how banks can start fostering a collaborative budgeting culture:
- Set Clear Priorities for the Bank: Start by establishing and sharing the bank’s long-term mission and current objectives with every team. When everyone understands the overarching goals, it’s easier to recognize shared priorities.
- Encourage Transparency and Trust: Openly share data and financial metrics behind budget decisions. This helps teams see why resources are allocated the way they are and builds trust in the process.
- Foster Cross-Functional Workshops: Hold regular workshops where teams present their needs and listen to each other’s goals. This can help eliminate siloed thinking and promote a broader view of resource needs.
- Balance Immediate and Future Needs: Develop a framework that explicitly balances short-term operational needs with strategic innovation. When teams know that both stability and growth are prioritized, they’re more likely to support each other’s goals.
- Reinforce the Value of Shared Success: Remind teams that their success is interdependent. A strong operations foundation allows for innovation, while innovative growth supports the bank’s relevance and longevity.
Implementing these steps requires time and commitment, but it’s worth it. When teams shift from competing for resources to collaborating for shared success, the entire bank benefits.
Why Fair Resource Allocation is Essential in Core Banking Transformation
Core banking transformations are demanding, and resource allocation plays a central role in their success. If we continue with the tug-of-war mindset, transformation initiatives can stall as departments struggle to secure the resources they need. But with a roundtable approach, banks can navigate the complexities of transformation with greater ease.
The Power of a Balanced Budget
A balanced budget goes beyond just fair distribution; it’s a strategy for resilience and growth. Here’s why fair allocation is essential:
- Encourages Innovation Without Sacrificing Stability: A roundtable model ensures operations remain stable, while innovation is also prioritized.
- Enhances Strategic Agility: Banks can pivot more effectively when resources are aligned with long-term objectives.
- Builds Team Morale and Trust: Teams that feel supported are more engaged and motivated to work toward the bank’s shared goals.
Reflecting on these benefits, I remember a time when my own team was working on a new initiative with limited resources. Initially, there was tension about where the funding would come from, but after a few cross-departmental meetings, we realized that by coordinating our resources, we could support both the ongoing operations and the new project. It was a shift from competition to collaboration that paid off.
Embracing the Roundtable for Sustainable Growth
The “Budget Tug-of-War” and “Funding Roundtable” cartoons capture two approaches to resource allocation in banking: one competitive, one collaborative. The former leads to tension and short-term thinking; the latter fosters trust, fairness, and alignment with long-term goals. As banks continue to transform, adopting a roundtable approach to budgeting is crucial.
So next time you’re in a budget meeting, ask yourself: Are we pulling against each other, or are we working around the same table? By prioritizing collaboration and fair resource allocation, we can fuel sustainable growth, support core transformations, and build a bank that’s ready for whatever the future holds.
#CoreBankingTransformation #RunChangeInnovateTheBank
