Budget issues:

-Stated Volkswagen group of America needed $210 million to fund 10 business units with more than 40
proposed projects
-Parent company Volkswagen Group capped budged at 60 million.
-received pushback as this hurts ability to improve growth in core business processes
-changes were made because previously they had an unstructured debate among exec sponsors
Budget Control:
-I believe that VW of America should have a bigger budget in first place, in order to make their own
decision on how much gets budgeted to these projects. However, that kind of control is unlikely in a
struggling company
-I think it should be simplified to 2 main steps. I think that VWoA could potentially keep doing in depth
research into the importance of each project and how much funds it should receive as a result. That
should, in turn, result in an in depth look at what is exactly needed.
-VWoA shows research to VWAG for final approval or adjustment. This is a better process as VWAG
would be given a more in depth view of the projects that definitely need to be funded to keep business
running. This should result in no shortfalls for needed projects and then VWAG can make adjustments
on projects that have lower importance. Its about having an informed decision rather than simply trying
to cut costs
CIO Response:
The CIO should not be giving any preferential treatment or handouts
-CIO should already be approaching parent company with suggestions mentioned on the previous slide.
This shows his coworkers at VWoA that he acknowledges issues and shows support for coworkers
-complex system on valuing projects should give him an accurate representation of shortfalls in needed
areas.