From the course: Lean Technology Strategy: Financial Management to Support Business Agility

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Making business decisions, not budget decisions

Making business decisions, not budget decisions

- In this unit we're going to talk about how to think about funding so that you're making business decisions instead of funding decisions. And really what this means is just because you're on budget and able to follow a budget process, does not guarantee that you're going to have success or that you have high performance or value delivered to your customers. So we're very familiar with the traditional operating versus capital expense funding models that organizations have, which then leads to the entire annual budgeting project versus operational paradigm within software use and delivery. Right now, with the business projects, IT operations paradigm and funding, what happens is we're actually making decisions on how we're going to run our business, build our products on accounting principles and accounting problems rather than business principles and business problems. So I'm going to present some alternatives to this general…

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