Which organizational structure is likely to create more disagreements during budget development?

The organizational structure that is most likely to create more disagreements during budget development is one where the budget is under the Chief Financial Officer (CFO). In this scenario, the CFO often focuses on financial performance and cost control, which may lead to tension with department heads or other stakeholders who have varying priorities such as service delivery or program expansion. When budgetary authority resides with a single individual or a centralized office like the CFO, it can result in a more rigid budgeting process.

In contrast, a collaborative finance team promotes open communication and interaction among various departments, fostering shared ownership of the budget. An independent budget department may also lead to disagreements, but it operates with a neutral perspective, often serving as facilitators rather than gatekeepers. Meanwhile, when the budget is under the CEO, the ultimate authority is likely to align the organization's strategic goals with budgetary decisions, reducing the potential for conflict.

Thus, having the budget under the CFO typically confines decision-making to financial metrics, which can overlook the diverse needs and perspectives of other parts of the organization, leading to increased disagreements throughout the budget development process.