Organizational Funding

Organizational Funding

The Organizational Funding capability supports defining the financial targets for the organization. Each capability within the Planview Capability Framework has a distinct set of features and functionality, business processes, best practices, and analytics and reports that deliver value to customers in the form of specific business outcomes.

Definition and Business Value

Definition

Supports the setting of time-phased financial targets against which planned and in-flight projects can be analyzed.

Business Value

We can define and adjust budgets for an organization at various levels that represent the portfolio’s investment.

Business Value

We can support investment planning by providing the context of budgets for analyzing demand and making assessments on our ability to take on new work.

Business Value

We can forecast the costs required to deliver work, as well as the benefits or revenue the work is anticipated to generate, then use this information to inform the work business case.

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.

Processes and Reports

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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.

Select your product

           

Video: Organizational Funding Demo

 

Financial Targets Process Steps

           

Funding Capabilities - Financial Targets Process Flow.png Resource Capacity Planning gt; Capacity Targets

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 Reports

How are we able to see our financial targets for benefits and costs?

FastTrack Power BI Showcase Dashboards – Work – Portfolio Balance Cost Power BI Dashboard This dashboard shows how project investment costs are balanced across strategic initiatives in a portfolio. You can view a portfolio’s total spending for each month, actual spending to date by department, and additional financial information broken down by project.
FastTrack Power BI Showcase Dashboards – Work – Financial Summary Power BI Dashboard This dashboard allows you to compare strategic investments over time. You can view the total costs of a select portfolio over a given timeframe, view the breakdown of those costs by the strategic program, and identify portfolios that are meeting or exceeding approved budgets. Data for investment demand entities can be viewed and managed, allowing you to change their approval status, priority, and above or below-the-line status.
WRK31 – Work Portfolio Financial Analysis Analytic

This report analyzes project and portfolio financial plan data, with effort represented as FTEs, days, and hours, and financials as cost, benefits, and revenue.
 

The report uses a single version of the financial plan and a data type based on project attributes, account structure levels, or line attributes of selected accounts.
WRK33 – Project Cost or Revenue/Benefit Bubble Analytic This report can select cost, revenue, or benefits-based measures from the financial planning data to drive bubble size.
WRK34 – Work Portfolio Investment Balance Bubble Analytic This report identifies the risk and reward balance across projects. You can select benefit or revenue measures for the x-axis, a risk-based attribute for the y-axis, and cost-based measures for the bubble size. The report can run against each level in the strategy structure.
Planning Portfolio – Planning Manager – Analyze Pivot View Tile

In the Planning Portfolio – Investment and Capacity Planning View, use the Planning Manager Tile to view investments and make decisions based on portfolio financial targets and capacity targets.

Use the Analyze Pivot View to analyze investments by moving them above (accepted investments) and below the line (pipeline investments).

How are we able to understand how changing demand impacts our financial targets?

FastTrack Power BI Showcase Dashboards – Work – Financial Summary Power BI Dashboard This dashboard allows you to compare strategic investments over time. You can view the total costs of a select portfolio over a given timeframe, view the breakdown of those costs by the strategic program, and identify portfolios that are meeting or exceeding approved budgets. Data for investment demand entities can be viewed and managed, allowing you to change their approval status, priority, and above or below-the-line status.
Work Portfolio – Portfolio Manager – Financial Variance Column Set Tile The Work Portfolio – Portfolio Manager – Financial Variance Column Set gives you an overview of the work items in a portfolio. This allows you to see negative and positive variances in costs and effort, along with access to the details of each work item.
WRK32 – Project/Work Portfolio Financial Burndown Comparison Analytic

This report compares versions of project and work portfolio financial plan data, with effort represented as FTEs, days, and hours, and financials as cost, benefits, and revenue.

The report includes the following:

  • Burndown chart for the work portfolio and each project
  • Portfolio-based and summary time-phased chart showing the financial profile across the whole portfolio, based on versions of the financial plan
  • Project-level and time-phased chart showing the financial profile for each project, based on versions of the financial plan
  • Detailed data tables
Planning Portfolio – Planning Manager – Analyze Pivot View Tile

In the Planning Portfolio – Investment and Capacity Planning View, use the Planning Manager Tile to view investments and make decisions based on portfolio financial targets and capacity targets.

Use the Analyze Pivot View to analyze investments by moving them above (accepted investments) and below the line (pipeline investments).
Planning Portfolio – Planning Manager – Shift and Balance Pivot Views Tile

In the Planning Portfolio – Investment and Capacity Planning View, use the Planning Manager Tile to view current and pipeline investments and make decisions based on portfolio financial targets and capacity targets.

Use the Shift Pivot View to assess which investments are at risk due to insufficient capacity and examine the impact of shifting investment dates and durations.

Use the Balance Pivot View to identify and resolve capacity and demand issues in order to continue with priority investments.

           

           

Financial Targets Process Steps

           

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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. 

           

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Add related projects to a portfolio

           


For more information:
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. 

           

Click to expand or shrink

Add funding amount to a project within a portfolio

           


For more information:
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. 

           

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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.

           

Related Capabilities

Supported Solutions

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