Values-Driven Budgeting
When you think of Apple, what comes to mind? Maybe it is products like the iPhone. Maybe it is services like Apple Music. Maybe it is an adjective like innovation. Apple, Inc. is worth approximately 2.66 trillion dollars. Making it the most valuable company in the world; worth more than Microsoft, Amazon, and Google. Though I bet you did not know that in the late 1990s, Apple was on the verge on bankruptcy?
In 1997 Apple asked Steve Jobs to come back as CEO after over a decade absence from the company. Jobs became CEO of Apple on the verge of failure. Jobs knew something had to change to turn Apple into a healthy corporation. Over the next few years, Jobs simplified Apple’s product lineup cutting 70% of their product line. Jobs thought the reduced product line allowed for greater focus on quality and innovation.
“Deciding what not to do is as important as deciding what to do.” – Steve Jobs, CEO of Apple
Jobs introduced a new vision for the company and centered all their work around innovation and design. Innovation was important to Apple. Proven by putting money where their mouth is and spent money on innovation. After Jobs first year as CEO, the company made a $309 million profit. Eventually, Jobs influence led to the introduction of the iPod, iPhone, MacBook, and more. These products revolutionized their respective product categories propelling Apple to be one of the most valuable and innovative companies in the world.
You could be the Steve Jobs of your chapter. As treasurer you are uniquely positioned to oversee the allocation of one of the most valuable resources your chapter has: money. It is easy to go through the motions as a Treasurer by turning on auto-pilot to work your way through budgeting and managing the chapter’s finances. You could ask your fellow chapter leaders how much money they want for their events or look at the budget from last year to copy and paste. Ask yourself, what would Steve Jobs do?
Jobs chose to prioritize focus and devote Apple’s resources towards what the company values most. For Apple, that was innovation. What is it for your chapter? What does your chapter value? You can test that right now. Look at how you currently spend your money. In which areas of operation do you spend the most? That’s what your chapter values. If a Potential New Member were to ask “What does your chapter value?” what would your members say? Does that match what the budget says?
“A budget is more than just a series of numbers on a page; it is an embodiment of our values.” - Former President Barack Obama
As treasurer, you have substantial influence to create a values-driven budget. A values-driven budget prioritizes spending on events, activities, and initiatives that align with your chapter’s values. If your chapter values scholarship yet there is not one dollar spent on academic programming or support, that’s hypocritical.
Introducing, “goal budget.” I suggest that you budget based on the goals of the chapter. Your chapter should choose 1-3 goals you want to achieve this term that align with your values. Then work with all chapter leaders to develop your budget based on those goals. Instead of stating you want to allocate $5,000 towards the recruitment chair, state that you want to allocate $5,000 towards the goal, “Increase membership by 20% by June 1, 2024.” Include all spending that aligns with this goal, even if the spending falls outside of the recruitment chair’s scope. This might include events or activities that are led by the membership or ritual chair. Many of our goals will need the support of multiple officers and areas of operation in the chapter. Create your budget to support your goals, not hinder them.
While your budget is a bunch of numbers on a page, they also tell your chapter’s story. The budget proves what your chapter values and what is important. How the chapter uses money is proof of living your values. Put your money where your mouth is. What is your story?
Tim Wilkinson
Tim Wilkinson (he/him) earned his Bachelor of Science in Entertainment Management from Missouri State University. He now serves as a Training Specialist for Lambda Chi Alpha Fraternity. In his role, he supports chapter treasurers to gain the knowledge and skills needed to be successful. Tim is passionate about education and financial literacy. Connect with him on LinkedIn: