(You really do have stamina if you have stuck with me this long. This is part 10 of a 16 part series on starting a competitive intelligence function in an organization. It is being written from the perspective of providing help to someone that has the interest in and responsibility of starting CI.  Furthermore, I am concentrating on the human dimension throughout the series. After all, it is the people that make the difference. It’s The People, Stupid).

You are really rolling now. The organization is likely beginning to notice your efforts to start competitive intelligence. They are beginning to discern the shape and quality of what you are doing. Enough people are likely to be intrigued but some skepticism remains. Meanwhile, at least one senior strategy manager is familiar and supportive of your work. Great job!

Now it is time to ask for money.

It is a truism that business measures with money. Investments areas are allocated budgets. Potential returns are “dollarized.” Products are evaluated based on revenue. Headcount is translated to loaded costs. Everything comes back to the money that is spent or the money that is earned for the business.

The competitive intelligence function cannot (and should not) avoid being involved in these discussions since they characterize so much about what the organization values. Similarly, the use of money (“follow the money”) is a great way to understand another company’s priorities and strategies. Leonard Fuld says that the cardinal intelligence rule is “where money is exchanged, so is information.” Money often is a proxy for what is important internally and externally.

It should be no surprise that the CI function needs money (investments).

The CI investment is required to acquire tools, to implement infrastructure and to get information on an ongoing basis. It is also necessary for one more important thing. That thing is respect. Sometimes there may be a misguided notion in the organization that the benefits from competitive intelligence are free or that the investments should be minimized. Neither of these sentiments is correct. CI is not free because there are expenses and people’s time involved. And, minimization of investment as a goal is only supportable when CI is treated without regard to the value it delivers.

CI investments should be justified based on the value produced compared to the resources invested.

This is a financial calculation but it determines the level of respect that the function (and its advocates) will receive. Management values what they count and they count nothing as precisely as they count money.

So, here are three things to do at this stage.

1. Ask for a budget. This is very, very important because it shows that you respect what you have started and expect others to do so as well. Being timid about asking signals that you remain unsure that you can provide significant value. You will approach the senior management sponsor with you request and you will be specific about the reason for the request.
2. Limit what you ask for. It might be tempting to request a large budget that is far beyond whatever has been spent to date. This is a mistake and may prematurely end your CI program or damage your relationship with your senior manager sponsor. Ask for something that is incremental. This helps your manager justify the expenditure and, perhaps, allows them to approve it without others being involved.
3. Use the money on infrastructure. There are many possible uses for the money once it has been approved. You might be tempted to acquire analyst reports or attend events that can be quite costly. Resist this. Instead, ask for money and support to develop infrastructure elements of the emerging CI program. This will set you up nicely for subsequent steps when the CI efforts become well known in the organization (and the customers and contributors increase). For example, use the money to create a website, database or portal that provides a framework for sharing information.

Later budgets will be easier than the first one especially when the value becomes so apparent. Putting the principle in action that money should be allocated for valuable activities, the CI function provides good ROI and that stepwise expansion of the function is prudent (and acceptable) will endear you to your sponsor. They will appreciate your awareness of their mindset (spend wisely). Even more, their ownership interest in the success of competitive intelligence (and you)  will grow as their financial commitments are rewarded by your performance.

Next topic is “Build The Presence”.

Here are the 15 steps that we are walking through. Which ones do you think are especially important?

The Human Side of Competitive Intelligence

1. Find The Pain
2. Get The Job
3. Tease The Vision
4. Frame The Foundation
5. Setting Some Standards
6. Introduce The Brand
7. Accumulate The Tools
8. Back To The Vision
9. Secure The Budget
10. Build The Presence
11. Expand the Brand
12. Go For the Value
13. Recruit A Staff
14. Go On The Offense
15. Evangelize The Mission