Tony Golsby-Smith raises a good question on the Harvard Business Review blog: Is your budgeting process killing your strategy?
I'll admit, I never thought of the two as separate activities. From my experience, strategy always relies on budget. However, Golsby-Smith—founder and CEO of 2nd Road, a training and consulting firm headquartered in Sydney, Australia—suggests that you should free strategy discussions from budget talks.
"Ideally, developing a strategy should be exciting: strategy making is about creating a future for your organization, and engaging your people in that process," he wrote. "But all too often, the budget-planning monster weighs an organization down with endless inputs and bureaucracy and rules. The monster does not create coherence. It does not create energy. It does not excite people. No wonder companies have trouble inventing new products, services, and futures."
Golsby-Smith's ideas are worth reading and thinking about. In your experience, can the two processes be separate? Why?