Proposed Budget based on Headcount

Requires the following solutions to be installed:

• Budgeting: Structure (7f7b1fec-480b-4011-9b4c-262cbc20303a)
• Budgeting: Automation Rules (a04a5dce-362f-499e-b168-1bf4621b53de)
• Budgeting: Metrics (877ad475-d0bc-4509-af72-11b5a6934895)
• Headcount Forecasted Cost (abb94d16-d4dc-4d89-982b-74ffb83da7c2)

Requires at least one of the following solutions to be installed:

• Budgeting: Connection to Portfolio Epic (Project) (bda287bd-b86b-40cc-9a2d-4da2026bbf43)
• Budgeting: Connection to Value Streams (c7baca53-831f-47a3-af4a-3f6965d21b58)
• Budgeting: Connection to Solution Trains (d0b9ef51-c3b3-40ec-a668-75ae8274e8b5)
• Budgeting: Connection to Agile Release Trains (ARTs) (3bd5f3c7-ce05-44c8-8b2d-02863522e5c1)
• Budgeting: Connection to Teams (29090431-bb10-4f5a-b472-99db69200d93)
• Budgeting: Connection to Product (4f6b967a-0e8d-4a3c-a12c-35d16f45be53)

Requires at least one of the following solutions to be installed:

• Budgeting: Portfolio Epic (Project) Funding Views (448b04d0-59ed-4e7b-9fc5-11a5796d020d)
• Budgeting: Product Funding Views (01fa67a3-faaa-477b-b057-8135cab12443)
• Budgeting: Value Stream Funding Views (0c7bed70-45bd-4d7e-a72e-4bd100e08f0e)
• Budgeting: Solution Train Funding Views (7284f89d-34f2-4016-a85c-c9c02e790d3e)
• Budgeting: Agile Release Train (ART) Funding Views (741b1f77-0471-46b1-a39f-353337e3afc4)

Can't be used together with the following solution:

• Proposed Budget based on Work Allocations (b82de5e7-4b6e-48b0-aa7c-c533d423711a)

Remove the following metrics before the solution installation:

• Proposed Labor Budget for Annual Budget
• Proposed Labor Budget in Scope for Annual Budget

The following diagram represent visualization of these requirements:

--------------------------------------------------------------------------------------------------------------------------

Solution Overview

The solution allows calculating Portfolio Epic Proposed Budget based on Headcounts, representing what budget is needed to cover labor expenses of a Portfolio Epic. It'll connect Headcounts to Annual Budgets of a Portfolio Epic, so that you can see Annual Proposed Budget of a Portfolio Epic considering all the created Headcounts. It's also distribute Forecasted Costs between Run/Grow and CapEx/OpEx categories based on the entered values.

Now when creating a new Headcounts, you'll have to see CapEx and Run Percentage values defining which part of a Headcount should be put into which financial bucket.

Money values will be calculated based on the entered percentage and distribute the Forecasted Cost between those categories:

Further, the Headcounts will be connected to respective Portfolio Epic Annual Budgets. Therefore, the total across all the Headcounts will represent the Proposed Budget of a Portfolio Epic for each Year, so you can make a data-driven decision on what Budget to approve for each Portfolio Epic in the upcoming Budgeting Year.

Note: The solution only works for Portfolio Epics (or any other work items) for now. It'll be extended to support Proposed Budget for Products and People (Value Streams, Solution trains, Agile Release Trains and Teams) in the upcoming new version.

Solution Configuration

Delete Proposed Labor Budget for Annual Budget metric

Before the solution installation:

• Go to Settings -> Metrics
• Delete the following metric:
  • Proposed Labor Budget for Annual Budget 
  • Proposed Labor Budget in Scope for Annual Budget

In this solution you won't see Proposed Labor Budget for Months and Quarters, but only for Years, as Headcounts are connected to Years and Portfolio Epics Annual Budgets directly.

Connect existing Headcounts to Annual Budgets

In case you already have Headcounts created in the system, we need to connect them to Annual Budgets of Portfolio Epics. To do that:

1. Go to Settings -> Automation Rules
2. Enable and open the following automation rule:
   • Headcounts to budgets connector - intitial trigger
3. Click Save and trigger now button

-----------------------

Version 3.0