Value Stream Funding
Value Stream Funding
The Value Stream Funding capability supports defining financial targets for a value stream. 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
Set time-phased financial targets for value streams in the form of benefits and revenue, against which planned and current investments can be analyzed.
Business Outcome
We can set the value stream budget and define benefits or revenue targets that the portfolio must yield. This provides the context for analyzing and prioritizing investments.
Business Outcome
We can forecast the costs and effort required to deliver agile work, and the benefits and revenue that the work is anticipated to generate.
Best Practices
Create guardrails for spending
Once you align your budget with your outcomes, create guardrails that define spending policies, guidelines, capacity, and practices across the portfolio. This ensures that the right investments are made within each budget while giving teams the freedom to weigh new opportunities against long-term strategies.
Allocate funding strategically
Organizations must ensure the right investments are made within each budget. They must set politics aside, review business cases objectively, ascertain their potential business impact, and fund the top value streams incrementally to reduce financial risk.
Reassess budgets often
Reassess your budget regularly to analyze investments across value streams and reallocate funds to new initiatives. Continuously monitoring your portfolio enables you to pivot toward new opportunities or away from unsatisfactory projects with greater flexibility and ease.
Budget collaboratively
Create a better-informed and effective system for distributing investments by involving stakeholders and business owners in the budgeting process. Participatory budgeting encourages leaders to share resources to achieve results within their initiative.
Use scenario planning
Scenario planning helps to forecast the cost and benefits of a given selection of product investments. Create and assess various scenarios of different product mixes to ensure the products you choose to invest in can achieve your organization’s strategic goals. For more information, see Prioritization and Scenario Analysis.
Processes and Reports
The value stream funding capability allows organizations to set financial targets for value streams in the form of benefits and revenue. A baseline is captured to monitor variance between the targets and the actual benefits and revenue the value stream generates. Financial targets support investment decision-making by providing the context against which planned and current agile work can be analyzed and prioritized, enabling you to assess your organization’s ability to take on new investments.
Financial Targets Process Steps
Financial targets process flow
| Process Step | Description |
|---|---|
|
Create/manage value stream financial targets (benefits/revenue) |
Capture the revenue targets and benefits of launching the value stream against which actual costs can be compared to later. All appropriate data should be populated in the Financial Planning Detail screen for the value stream. |
|
Baseline value stream financial plan |
Following the input or roll up of financial planning budgeting and target data, a financial baseline for the financial plan should be taken to compare and track variances on the value stream financials through time. |
Related Capabilities
Objectives and Key Results
This capability provides organizations a framework to define, align around, execute, and measure progress toward key organizational goals by linking organizational and team goals to measurable outcomes in a hierarchical way.
Read morePortfolio Planning
This capability supports the creation, initial planning, and lean business case development of new agile work to deliver portfolio outcomes as well as portfolio backlog management.
Read moreRoadmapping
This capability supports the translation of strategic ideas into an interactive timeline of business outcomes and deliverables. Roadmaps are used to set direction and communicate with stakeholders throughout delivery.
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Supported Solutions