How frequently should Lean budget distribution be updated?

Lean budget distribution should be updated on demand to ensure that it reflects the current needs and priorities of the organization. This approach is consistent with the Agile principle of adapting to change and making informed decisions based on the latest information. By allowing for updates when necessary, organizations can respond to shifting market conditions, evolving project requirements, or changes in strategic direction without being tied to a fixed schedule. This flexibility supports better resource allocation and financial management, enabling teams to focus on delivering value and achieving their goals effectively.

The option that suggests annual updates may not be responsive enough to the fast-paced environment characteristic of Lean and Agile methodologies, where rapid adjustments may be needed. Similarly, updating only every iteration may overwhelm the budgeting process with constant changes, potentially leading to inefficiencies. Updating twice a year might also fail to capture key developments or shifts in priorities between those points. Therefore, updating on demand strikes the right balance for effective Lean budget management.