Uploaded August 2026 | Updated September 2026, 2 weeks ago
The traditional annual budget process is broken. It is rigid, backward-looking, and not operationally fit to keep up with today's fast-moving markets.
Top-performing companies are outpacing peers by budgeting differently. McKinsey’s Matthew Maloney, Karen McLoughlin, and Michele Tam join host Sean Brown to discuss how top-performing companies are transforming the budget from a control mechanism to a dynamic road map for driving growth. They share how leading CFOs are more closely linking the budget to strategic priorities and how harnessing AI can enable a data-driven, forward-looking approach.
*Chapters:*
0:00 – How CFOs are rethinking budgeting
2:02 – Why traditional budgeting can undermine strategy
5:34 – Four ways to rethink the budget
9:16 – Start with strategy, not last year’s budget
13:47 – What private equity gets right about budgeting
15:39 – Why resource allocation should be continuous
19:21 – How to fund new ideas and fail fast
22:08 – Effectively communicating shifting priorities
26:55 – Scenario planning for resilient budgets
33:57 – How to identify the investments that matter
38:04 – How AI is changing budgeting and forecasting
44:57 – What real-time data means for finance leaders
Read the full article: mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/your-budget-is-killing-your-strategy-here-are-four-ways-to-fix-it?cid=cl4c-cml
*Find us on:*
LinkedIn: linkedin.com/showcase/mckinsey-strategy-corporate-finance
X: https://x.com/McKStrategy
Listen to previous episodes of _Inside the Strategy Room:_
Apple Podcasts: podcasts.apple.com/us/podcast/314-how-to-maximize-competitive-advantage/id1422814215?i=1000779186822
Spotify:
open.spotify.com/show/4TcFfiQ0e6OYuc5kRDLxqj
Explore transcripts from previous episodes: mck.co/3SqhkOp
Subscribe to our channel: mck.co/YouTube
Subscribe to our newsletters: mck.co/Subscribe
The traditional annual budget process is broken. It is rigid, backward-looking, and not operationally fit to keep up with today's fast-moving markets.
Top-performing companies are outpacing peers by budgeting differently. McKinsey’s Matthew Maloney, Karen McLoughlin, and Michele Tam join host Sean Brown to discuss how top-performing companies are transforming the budget from a control mechanism to a dynamic road map for driving growth. They share how leading CFOs are more closely linking the budget to strategic priorities and how harnessing AI can enable a data-driven, forward-looking approach.
*Chapters:*
0:00 – How CFOs are rethinking budgeting
2:02 – Why traditional budgeting can undermine strategy
5:34 – Four ways to rethink the budget
9:16 – Start with strategy, not last year’s budget
13:47 – What private equity gets right about budgeting
15:39 – Why resource allocation should be continuous
19:21 – How to fund new ideas and fail fast
22:08 – Effectively communicating shifting priorities
26:55 – Scenario planning for resilient budgets
33:57 – How to identify the investments that matter
38:04 – How AI is changing budgeting and forecasting
44:57 – What real-time data means for finance leaders
Read the full article: mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/your-budget-is-killing-your-strategy-here-are-four-ways-to-fix-it?cid=cl4c-cml
*Find us on:*
LinkedIn: linkedin.com/showcase/mckinsey-strategy-corporate-finance
X: https://x.com/McKStrategy
Listen to previous episodes of _Inside the Strategy Room:_
Apple Podcasts: podcasts.apple.com/us/podcast/314-how-to-maximize-competitive-advantage/id1422814215?i=1000779186822
Spotify:
open.spotify.com/show/4TcFfiQ0e6OYuc5kRDLxqj
Explore transcripts from previous episodes: mck.co/3SqhkOp
Subscribe to our channel: mck.co/YouTube
Subscribe to our newsletters: mck.co/Subscribe
