Strategic and Program Funding
Strategic and Program Funding
The Strategic and Program Funding capability supports defining the strategic financial targets for the organization, and the program financial targets aligned to the strategic targets. 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 Outcomes
Definition
Supports the setting of time-phased financial targets at the strategic and program level which can be analyzed against the financial plan.
Business Outcome
We can define and adjust budget, benefit, and revenue targets for elements of the strategic plan so that these budgets can be used to fund initiatives and programs.
Business Outcome
We can perform variance reporting against target levels.
Business Outcome
We can define budgets for elements in the strategic plan that represent the portfolio’s investment.
Business Outcome
We can support investment planning by providing the context of strategic budgets for analyzing demand and assessing our ability to take on new investments.
Business Outcome
We can estimate the costs, benefits, and revenue associated with initiatives and programs aligned to our organizational financial data model to develop the business case for the program.
Best Practices
Embrace adaptive funding
Capture changes over time to assess and manage funding changes at both the investment and portfolio level. Fund portfolios incrementally based on timeframe or stage-gate to evaluate investment progress and make course corrections easier.
Manage strategic funding and performance
The right strategic plan enables you to maximize the ROI from strategic initiatives. An investment-centric approach creates capital plans that integrate strategic and organizational financials to promote visibility and drive performance. Executives and others should be able to prioritize and rank investments based on their alignment with corporate strategies and financials.
Reallocate funding
A shift in strategy prompts an analysis of portfolio funding. Knowing the current spending on each strategic initiative provides a baseline for determining changes to support the new direction. Teams can determine new funding levels for each portfolio based on the updated strategy. This strategic management process encourages finance to create more flexible funding approaches to easily reallocate as circumstances require.
Capture benefits
Capture the benefits of strategic programs by how they add value and contribute to the strategic objectives of the organization. Track benefits over time and automatically calculate financial metrics such as IRR, NPV, ROI, and Payback Period, using dashboards to understand the performance measurement across the portfolio in an easy, visual way.
Plan at all levels
Support business plans at different levels – strategy, objectives, initiatives – with each having their own budgets, desired results, owners, and other key information to outline the plan. Identify both financial and non-financial benefits to be achieved to create value.
Build a business case
Enable stakeholders to build a strategic business case with capital and operating expense plans to achieve objectives, understand how funding is being spent, and reallocate as needed throughout the fiscal period.
Processes and Reports
The strategic and program funding capability supports strategic planning by providing the ability to set time-phased financial targets at the strategic and program levels. The strategic budget is created by entering labor capacity and non-labor financial targets into the financial plan, then baselined to allow for variance reporting between the baseline and actual cost of delivery. This capability supports strategic investment planning by providing the context of budgets to analyze against demand, enabling you to assess your organization’s ability to take on new investments.
Financial Targets Process Steps
Financial targets process flow
| Process Step | Description |
|---|---|
| Enter labor capacity |
Enter the labor capacity in the strategic budget, which represents the investment “pot” of money that will be used to balance against the many demand priorities an organization is considering. This budget also serves as the baseline for comparison against the actual cost of delivery. Budgets may be created at any level of the Strategy structure on the Financial Planning Detail screen then spread down to lower levels or rolled up to higher levels. Alternatively, data may be loaded using the Strategic Financial Load then rolled up and edited. For more information: |
| Enter non-labor financial budgets or targets | Enter the non-labor capacity in the strategic budget. 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. |
Related Capabilities
Initiative Planning
This capability provides the ability to define and manage your organization’s strategic missions and initiatives, assign ownership to elements of the strategic plan, estimate the cost and benefits of each strategic initiative, and perform variance reporting on benefit targets.
Read morePrioritization and Scenario Analysis
This capability provides the ability to compare, assess, prioritize, and rank all your potential and existing investments before the approval of your overall portfolio plan. The creation and comparison of what-if scenarios is supported to inform investment decision-making.
Read moreCapacity Planning
This capability provides the mechanism to set resource capacity targets which can be used to analyze capacity against demand, and assess the organization's ability to continue with existing investments or adopt new investments.
Read more
Supported Solutions