If someone would ask me to asses the level of digital transformation across the world and if you would need to asses the level of change across different industries, geographies, company sizes, one thing I would ask to look at is their budgets. The structure of budgets and process of budgeting.

A look at budgets and budgeting of any company uncovers how the company really works, how it sees itself versus the environment

I believe that a look at budgets and budgeting of any company uncovers how the company really works, how it sees itself versus the environment. If you think about it the way the company sets it's budget is informative about it's perception of reality, but also of it's interior skeleton, the ways permanent company structures are organised, how an organisation plans to put those structures to work and at what priorities. The way brands create budgets and what they put in those budgets will tell you much of their strategy, how they plan to cope with a competitive environment.

Budgets are a great way to discover whether the transformative digital change has been real and impactful to core of the business or it has been a surface, cosmetic type of change.

I also think budgets are a great way to discover whether the transformative digital change has been real and impactful to core of the business or it has been a surface, cosmetic type of change. Technology has brought change to consumers behaviours, their habits, how they search and access information, make decision and make purchases. And Brands have mostly adapted or trying to adapt their forward facing layers - communications and communication tools. But what about their core and structural elements - such as Budgets and Budgeting? Budgets are engines that move a certain company into pre-set levels and types of motion. Isn't it a good question to ask - has Digital changed the ways companies budget? If it did - what was that change. And if it hasn't can we say that environment changes imposed by technology have really been that altering. I don't have all the answers, but I do have some lines of thought to share.

Budgets are engines that move a certain company into pre-set levels and types of motion. Has Digital changed the ways companies budget?

Budgets are integral parts of company's execution. Strategy as a intention to compete, translates into actionable steps. Actionable steps - size, sequels, numbers are much defined by budgets. Thus, a look at the budgets - their structure, process of making and execution is also a look at the strategy of the company.

If one thing we can all agree on is that the consumers, competition and environment has never been changing so much and so fast - what should then that mean for brand's budgets?

If the market environment is changing and brands are increasingly unsure how these changes will unfold then the structure of budgets should facilitate company's exploration in face of such strategic uncertainty. 

If the environment is changing and brands are increasingly unsure how these changes will unfold then the structure of budgets should facilitate company's exploration in face of such strategic uncertainty. In effect that would mean that budgets and budget criteria should have the purpose of enabling strategic flexibility in any sense - from market selection that you're going to compete on, to method you're going to compete through. How would that translate into a real budgetary items, I am unsure, but definitely would keep it layered and make as little as possible fixed (long term) commitments I can.