Which one of the following is not a valid strategy-related reason why managers need to be deeply involved in the budgeting and resource allocation process?
A) Too little funding deprives organizational units of the resources to carry out their piece of the strategic plan and too much funding wastes organizational resources and reduces financial performance.
B) A change in strategy nearly always calls for budget reallocations and resource shifting.
C) The funding requirements of any change in strategy need to drive capital allocations and the size of each unit's operating budget.
D) Without budget reallocations it is hard, if not impractical, to match organization structure to the chosen strategy; moreover, aggressive resource reallocation is a prerequisite to creating needed core competencies and organizational capabilities.
E) Visible actions to reallocate operating funds and move people into new organizational units signal a determined commitment to strategic change and frequently are needed to catalyze the implementation process and give it credibility.
Answer: D