Valuing Agile

3 Strategy, budgeting and expenditure

Traditional planning paradigms are based on strategic activities implemented as projects within the framework of annual budget cycles. While this approach is good enough for relatively stable and predictable environments, it is inadequate in highly changeable or innovative marketplaces. These environments require an approach to strategic management that is based on dynamic capabilities and an understanding that it is the legitimacy of the organization that underpins performance (e.g. values, beliefs and culture). From these can be derived an adaptive approach to financial planning that involves a continuous cycle of appraisal, incremental funding and subsequent validation. This cycle seeks to challenge the ...