Value-Stream Budgets

A Value-Stream Budget refers to the detailed allocation of financial resources to specific value streams within an organisation. Each budget is allocated relative to the strategic importance of the value stream and the expected return on investment.

Purpose

The purpose of defining budgets for value streams is to ensure that financial resources are optimally allocated to different areas of the business based on relative strategic priorities. This helps to maximise efficiency, improve product development outcomes, and achieve better financial performance.

Anti-patterns

• Over-Concentration: Allocating too much budget to one stream while neglecting others, potentially stifling innovation and balanced growth.
• Static Budgeting: Failing to revise budget allocations in response to changing market conditions or internal project outcomes.
• Underfunding Critical Areas: Insufficient budget allocation to areas critical for value creation, such as quality assurance or customer support.