^{READ TIME: 6 MINUTES}

“You’re giving my headcount to Engineering?!”

WTF? This was the second year in a row this had happened to me.

At the beginning of the annual planning cycle I’d put together a brilliant business case for my why my data team needed 4 additional headcount.

But here at the end of the cycle my boss tells me, “Sorry Tris, we’re going to need to reallocate those roles to software engineering.”

🤬🤬🤬🤬 

Turns out my business case wasn’t so brilliant, after all.

Pithing for budget is one of those things that no one ever teaches you how to do, but it is a crucial part of data leadership - any leadership for that matter.

Managing a budget for your function is a large part of being a data leader. But so too is acquiring that budget so you can accomplish your strategic objectives.

Not knowing how to do this will result in you not attaining sufficient capital and potentially failing to deliver as a leader (which will suck).

😬 You won’t want to suck at this (like I did)

It’s that time of year again: Annual Planning.

It’s an opportunity for leaders of functions to present their plans for the coming quarters, and alongside them, provide estimates for the levels of operating expenditure (OPEX) and capital expenditure (CAPEX) they’ll need to deliver their vision.

It will include the cost of any additional headcount they’ll need, the capital they’ll require to invest in new tools or services, as well as the cost to continue running the function they currently have.

Getting this wrong and failing to procure the capital you need, can have dire consequences - here are a few:

• 📉 Missed growth opportunities for the data function:

  No money = no tools & no team. Delivering your strategy and vision will be extremely tricky and the function is likely to stagnate and be unable to deliver necessary data initiatives.

• 🫣 Erosion of trust and credibility with leadership:

  If a data leader can’t clearly articulate the value of data initiatives, it could lead executives to perceive data as a cost centre rather than a strategic asset. This will harm the leader’s credibility and make it harder to secure support for future projects.

• ⚖️ Reduced influence in strategic decision making:
  A failed pitch can limit the data leader's involvement in high level strategic discussions. This will reduce the data team’s voice in key decision making processes and impair your wider influence.

• 🧠 Difficulty attracting and retaining top talent:

  Pretty straight forward. If you don’t secure budget for top talent - you can’t afford top talent. This one stung me a few times!

A strong budget pitch isn’t just about the moolah, it’s essential for establishing your credibility, expanding influence, and ensuring the data team has the resources to thrive.

Enough with all the negativity, how are we actually gonna do this? 👇🏻

💵 Dollar Dollar Bills Ya’ll

At budget time, you’re competing against every other function, all vying for a piece of the same pie. 🥧

And in most organisations, data is typically at a supreme disadvantage.

Why?

Because we’re seen as a cost centre. 🏷️

Compared with sales or marketing that typically do a far better job tying their initiatives to ROI, we look like a big price tag full of expensive individuals playing with expensive software all day. A necessary cost - but one they’d rather not inflate.

We want to do everything we can to avoid this.

We have tell a different story to secure that bag for data:

• 🔗 Link to strategic business goals:

  Directly connect the budget request to core business priorities like revenue growth, customer satisfaction, efficiency, or innovation. This alignment makes it clear that the funding isn’t just for data initiatives but for advancing the company’s overall objectives.

• 📈 Showcase tangible ROI with data and metrics:

  Leadership will want clear financial justification. When data leaders quantify expected returns, it provides executives with a concrete basis for the investment.

• 🛣️ Outline a practical roadmap with phased milestones:

  Provide a phased plan that includes specific milestones. Explain what each phase achieves, ensuring that each step yields measurable, incremental value. This helps secure ongoing buy in and funding in the long term.

• 🤝 Emphasise cross functional benefits and collaboration:

  Describe how the project will benefit multiple departments (e.g. how enhanced customer insights will improve both marketing and product development), increasing stakeholder buy in across the organisation.

• 🚦Prepare for objections and show risk mitigation:

  Budgeting decisions come with scrutiny, so data leaders should anticipate possible concerns about risks, technical challenges, or costs. Proactively address potential objections by outlining a risk assessment and mitigation strategies.

It is SOOOO much easier to get this right and procure the capital you need at the planning stage, than it is to go hat-in-hand later in the year for more budget.

Remember, this is a core component of leadership - you don’t want to screw this up like I so often did.

Good luck out there!!

-

📧 I’d love to hear from you!!

What’s been your experience with the budging side of data leadership?

Hit reply to this email and let me know!

🌟 DIY Coaching For Data Careers 🌟

If you’re interested in data leadership coaching, but not yet ready to commit to the full fat version, then my DIY Coaching could be for you.

DIY Coaching helps data professionals unlock and maximise the potential of their data careers in their own time and at their own speed.

This self-paced email series and accompanying exercises provides actionable tools to help data professionals navigate career transitions, set goals, and achieve success.

It’s currently only £49

To learn more about this hugely popular product and to purchase, click here!

Tristan Burns

Find me on LinkedIn or Book a 1:1 call