Lean Budgeting: Proposed Budget based on Work Allocations

Requires the following solutions to be installed:

• Work Allocation Forecasted Cost based on Estimate and Cost per Point (67513dcf-56fc-4e21-b602-252e9f18908e)

Requires the following solution, if you'd like to have Work Allocations connected to Products:

• Work Allocations connection to Product (5663621f-3fed-4723-8466-2a1b04750a7c)

Requires the following solutions to be installed:

• Lean Budgeting: Structure (242ac127-f629-486f-ac51-4a8266d34290)
• Lean Budgeting: Automation Rules (f54e7c3e-d42a-4958-80f4-2396f71d6022)
• Lean Budgeting: Metrics (cf2ecd46-928f-421b-8e17-ae344dc2cfb0)

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

• Lean Budgeting: Connection to Portfolio Epic (e54d7210-9f99-45fa-aab2-75455a14aa3b)
• Lean Budgeting: Connection to Product (e784d732-54b1-47ac-81c5-12a7eede91b3)
• Lean Budgeting: Connection to Value Streams (d13f0901-7449-4910-b866-16e19d1d5a1b)
• Lean Budgeting: Connection to Solution Trains (3e999f37-340f-404a-8b7b-8a13d734fdc3)
• Lean Budgeting: Connection to Agile Release Trains (ARTs) (8f5988a8-278a-4ddb-a138-dd16855ee887)

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

• Lean Budgeting: Value Stream Funding Views (5a15d62e-4ecb-4201-84ef-197cbd0c3032)
• Lean Budgeting: Solution Train Funding Views (225f089e-6d06-40fb-9cfe-faab9748de4c)
• Lean Budgeting: Agile Release Train (ART) Funding Views (96cd9bdd-e531-4ad2-997f-3b0a0c08d09c)
• Lean Budgeting: Product Funding Views (198d1b1b-c4eb-45e0-b996-5f3714394e21)
• Lean Budgeting: Portfolio Epic Funding Views (ca1d055c-a6a7-490d-85cc-d6c57c9a3d6d)

The following diagram represents a visualization of these requirements:

Note: The solution only works if you use Period for planning Work Allocations. It doesn't support Week, Month, Quarter, or Year Periods.

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Solution Overview

The solution allows calculating Proposed Budget for Portfolio Epics, Products, and People based on Team or Agile Release Train Allocations, representing the budget needed to cover labor expenses. It'll connect Work Allocations Forecasted Cost (via Demands) to Period Budgets of a Portfolio Epic, Products, and People so that you can see Budget by each Period considering all the created Work Allocations. It also distributes Forecasted Costs between Run/Grow and CapEx/OpEx categories based on the entered values. 

When creating a new Work Allocation, you'll have to see CapEx and Run Percentage values defining which part of a Work Allocation should be put into which financial bucket.

The values will be calculated based on the entered percentage and distribute the Total Allocated Cost between those categories:

Further, the Demands created for Work Allocations will be connected to respective Portfolio Epic and/or Product and/or Connected Team / ART Period Budgets. Therefore, the total across all the Work Allocations will represent the Proposed Budget of a Portfolio Epic and/or Product and/or Connected Team/ART for each Period, so you can make a data-driven decision on what Budget to approve for each Portfolio Epic and/or Product and/or Connected Team and a Portfolio in the upcoming Budgeting Period.

Note: Please keep in mind that when the solution is installed after you have used a system for some time and you have already had Work Allocations created, you'll need to set the correct CapEx (Percentage) and Run (Percentage) values for existing Work Allocations to get the numbers calculated into Proposed Budget. You can create a metric that will set the same values for all the Work Allocations or manually on each Work Allocation.

Solution Configuration

Configure the solution for other entities having Budgets

The solution will connect Work Allocation Demands to Portfolio Epic, Product, and Agile Release Train Period Budgets by default. If you do budgeting not for all the entities or for different ones, for example, if you use Teams Work Allocations instead of ART Work Allocations,  you need to adjust several rules in the solution with the correct set of entities. To do that:

• Go to Settings -> Automation Rules
• Open the following automation rules:
  • Connect Demands to Work Allocation parent Budgets - main rule
  • Manual trigger - connect Demands to Work Allocation parent Budgets
• Click JSON
• Update the set of entities to match your configuration.
• Click Save button

• Open the following automation rules:
  • Trigger - connect Demands to a newly created Budget
• Update the set of entities in the trigger line
• Click Save button

• Open the following automation rules:
  • Trigger - connect Demands to Work Allocation parent Budgets when Work Allocation is updated
• Update the set of entities in the trigger line
• Click Save button

Connect existing Work Allocations to Monthly Budgets

If you were using Work Allocations before installing the solution, you need to connect existing Work Allocations (their Demands) to Portfolio Epic and/or Product and/or Agile Release Train Period Budgets. To do that:

• Go to Settings -> Automation Rules
• Open the following automation rule:
  • Manual trigger - connect Demands to Work Allocation parent Budgets
• Enable the rule
• Click Save and Trigger button

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Version: 1.0