Process flows
Processes and Reports
The organizational funding capability supports investment planning by providing the ability to set time-phased financial targets at the organizational level. Budgets are created by entering labor capacity and non-labor financial targets into a cost center financial plan, and can be adjusted based on changing priorities or desired outcomes. Planned and in-flight investments can be analyzed against the financial targets, enabling you to assess your organization’s ability to take on new investments.
Video: Organizational Funding Demo
Financial Targets Process Steps
Financial targets process flow
| Process Step | Description |
|---|---|
| Define labor costs |
Enter the cost targets for labor into the financial plan. These targets can then be balanced against demand. For this capability, the costs for labor capacity are derived from the cost center or providing organization. Labor capacity can be entered manually or loaded from resource availability and planned standard activities. For investment and capacity planning, data may be loaded using a capacity or demand financial load and then rolled up and edited. For more information: |
| Define non-labor costs |
Enter the cost targets for non-labor financial costs into the financial plan. These targets should be divided into the appropriate non-labor categories. Non-labor data is often entered manually, then spread down to lower levels or rolled up to higher levels as part of the larger budgeting process. |
| Define expected benefits and revenue | Enter the revenue targets and benefits into the financial plan. These targets and benefits can be entered manually by drilling into the individual cost center financial plans. |
| Baseline financial plan | Following the input or roll-up of financial planning target data, a financial baseline should be taken to compare and track variances of the financials across time. |
Financial Targets Process Steps
Financial targets process flow
| Process Step | Description |
|---|---|
|
Add related projects to the portfolio |
Add all the related projects that will be funded by that portfolio.
Add related projects to a portfolio
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| Add funding amount to each project |
From the Projects section of the Portfolio Details screen, add the funding amount to each project within the portfolio.
Add funding amount to a project within a portfolio
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| Review remaining revenue and funding targets |
The Total Allocation and Remaining Funding fields on the Portfolio Details screen will update as funding is added to the related projects. Depending on the complexity of the funding structure, fields within the project grid may also update as funding is added for projects related to different portfolios. For more information: |
| Monitor and adjust | Monitor and adjust funding fields as the projects progress. Additional funding may be aquired from other portfolios, or funding allocations within the portfolio may need to be updated. |
Outputs, Reports, and Analytics
This solution capability is supported by the following outputs, reports, and analytics.
| Type | Associated Outputs, Reports, and Analytics | Description |
|---|---|---|
| Screen | Portfolios (Funding Distribution) |
This on-screen report shows a graphical representation of the portfolio's funding distribution. 
Portfolio Funding Distribution |
| Report | Portfolios (Portfolio Funding Allocation) | Portfolio report that includes project funding data stored on the link between the project and portfolio, and the project financial data. |
Best Practices
Inform stakeholders
The organizational budget is the engine that balances potential projects waiting for funding with the organization’s current in-flight work against the total capacity for work. It communicates to stakeholders how much money is available and when it’s available, allowing for informed decisions on the project portfolio, such as when projects can be started, paused, or cut to ensure the right priorities are being funded and delivered.
Use historical data
Your organization or departments likely have data from trying to accomplish similar objectives or goals in the past. Use this to your advantage as you move forward with the current strategy. Looking back at similar time periods – the projects funded and their forecast to actual budgets – is a great way to get a head start on building your overall financial plan.
Baseline and re-baseline
Your organizational budget is the baseline by which you’ll measure progress and make updates as the underlying projects progress. It’s a tool to gauge the variance of the plan. If the situation changes and the overall budget is adjusted, you’ll want to keep the appropriate baselines to see the evolution of the budget and how it’s performing against the current actuals.
Keep resource rates accurate
Resource rates can change, and when that happens it can significantly impact a project’s budget. Understanding when resource rates are adjusted, how that’s communicated to project managers, and assessing the impacts to all budgets is imperative to keeping a handle on the overall portfolio budget.
Budget and track non-labor costs
Budgets are comprised of both labor and non-labor costs (such as hardware, software, or professional services.) Having specific categories set up for tracking non-labor costs and accurately detailing them as part of the budget – as well as when actuals come in – will allow for accurate planning of all project costs.