Does this ring any bells? You’re sat in a meeting to sign off on an important new project and the thorny issue of who is paying for it comes up.
“Well we can’t. I’ve used up all of our budget on the new conveyor,” says the Production Director.
Finance quickly jump in. “Well, if we are going to contribute, we’ll have to insist on the first option.”
Maintenance, sensing problems further down the line, pipe up. “Well you would, it’s the cheapest and you won’t have to maintain it.”
Everybody looks at IT. “No, it’s impossible, this new ERP system has bled us dry.”
If this sounds familiar you almost certainly have silo budgeting, in which pots of money are given to individual functions, more often than not causing project delays, division and inter-departmental conflict, not to mention non-delivery of project objectives.