The challenge
A stable budget moves the planning. It doesn’t remove it.
Project funding asks the same question every time: is this project worth a new budget? Stable funding, also called persistent or product-based funding, asks a different one: these teams are funded, so what is the most valuable work for them to do next? Teams stay together and get better, business cases are written to win priority rather than money, and the annual fight over project budgets becomes a steady flow of decisions.
That flow raises a new question for finance and portfolio leaders: is the funded capacity pointed at the right work? Instead of approving projects one by one, leaders decide what each value stream takes on and in what order, while run and support work claims its own share of every team. One stream’s slip can stall another’s plans, and those cross-stream dependencies rarely sit anywhere both sides can see.
Then comes the rebalance. On a steady cadence, often quarterly, leaders ask whether capacity should move from one value stream to another. The question is easy; the answer usually isn’t, because nobody in the room can see what a shift would actually do. Move capacity and something else slips or a mandatory deadline comes under pressure. Without that view, the rebalance turns into a negotiation, or last year’s split simply stays in place.