This post is from the Collabnet VersionOne blog and has not been updated since the original publish date.
Budgeting Your Strategic Themes to Help Teams Deliver Value
stra·te·gic / strəˈtējik/ adjective
- relating to the identification of long/term or overall aims and interests and the means of achieving them.(Source: Google)
Taking a strategic approach to your annual spending is a sound and fiscally responsible thing to do. Portfolio level strategic themes allow you to set a vision for the value streams within your enterprise, and align the initiatives, features and completed work from the teams to those themes. The next logical step is to decide on the budget amounts you want to allocate to those themes. In VersionOne you can allocate your budget by percentage, dollar amount or estimate points. The key point is to have meaningful and easy to use metrics to help the teams deliver value to the end customer. The three things that give your senior leadership team the information they need to track and keep the train moving in the right direction include:
- Setting your portfolio level strategic themes and vision
- Aligning your initiatives to your vision via the strategic themes, and
- Tracking the budgetary goals to the actual completion
EXAMPLE Here is an example pf a real/world scenario. Core Improvements is a strategic theme for the next year.
- 30% is the Budget amount we want to allocate to Core Improvements
- 29% is the Completed amount so far for this budget period for Core Improvements, a good indicator
- 8% is the Estimate At Completion amount once all the planned work is done, not such a good indicator
RESULTS The leadership team has the visibility they need to determine if their Core Improvement goals are being actively worked and ultimately satisfied. The next step will be to help the product owners and directors add more initiatives and features that align to the Core Improvements strategy. Key Benefits and Uses:
- Increased line of sight transparency of the overall strategy and vision from the work item level to the portfolio item levels
- Improved clarity and decision making for director levels and above
- Better collaboration between senior leaders, program managers and product owners
For more information on Portfolio Budgeting, visit our community page.