Lean Budgeting: Structure 1.0.0

Requires the following solutions to be installed:

• Custom Period Enablement (73f495ed-64e6-43dd-8958-dc43f7afb6b7)
• Colored and Formatted Units – Core Mashup (cb9ca2ee-8ba2-4e91-bab8-9c0ccd7199b3)

It has to be extended by at least one of the following solutions:

• 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)
• Lean Budgeting: Connection to Teams (48a6f062-2fb1-4c41-b118-9f7ad65133dc)

It has to be extended by the following solutions:

• Lean Budgeting: Automation Rules (f54e7c3e-d42a-4958-80f4-2396f71d6022)
• Lean Budgeting: Metrics (cf2ecd46-928f-421b-8e17-ae344dc2cfb0)

It has to be extended by one of the following FUNDING solutions:

• 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)

It can be extended by the following FINANCIALS solutions:

• Lean Budgeting: Portfolio Epic (Project) Proposed Budget and Actuals Views (6ae3990e-851c-4081-bb55-e47ed6e2b97b)
• Lean Budgeting: Product Proposed Budget and Actuals Views (5e24f3e5-3e96-46d9-8dac-94826360e83a)
• Lean Budgeting: Value Stream Proposed Budget and Actuals Views (c97dacf3-2a60-4a35-b520-db6d10b4d882)
• Lean Budgeting: Solution Train Proposed Budget and Actuals Views (639b69b2-0b81-474e-ad63-33bbb6b7fb09)
• Lean Budgeting: Agile Release Train (ART) Proposed Budget and Actuals Views (476b04d5-72ad-4ad7-aab2-5fd83c7962da)
• Lean Budgeting: Team Proposed Budget and Actuals Views (7d2b8ad9-cd70-40e1-ab5f-97c2fe3d44cc)

It can be extended by the following solution (if you prefer Proposed Budget to be calculated based on Work Allocations):

• Lean Budgeting: Proposed Budget based on Work Allocations (119122bc-501d-4fe3-92ea-8c1778a4be76)

The following diagram represents a visualization of these requirements:

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Solution Overview

Lean Budgeting solution requires the possibility to fund Value Streams by Planning Intervals. This set of Budgeting solutions allows to do budgeting by a custom Period (or Planning Interval Period) and fund Value Streams, Solution Trains, Agile Release Trains, or if you are still in the process of transitioning to Lean Budgeting – Products or Portfolio Epics.

There are the following phases that are supported by Budgeting solutions in Apptio Targetprocess:

• Budget Target - describes the company's initial idea of distributing funds across Portfolios and defining guardrails (Run vs Grow, CapEx vs OpEx).
• Budget Proposal - describes budgets proposed by Portfolio Epic Owners based on the funds needed to implement Portfolio Epics.
• Budget Approval - comparing the numbers in a Budget Target and Budget Proposal reflects the final decision on the investment into each Portfolio.
• Actuals - shares information about labor and non-labor expenses related to a Portfolio and Portfolio Epics.

The solution is the first essential part of the Lean Budgeting solution. It enables the structure of Period Budgets. On top of it, you will install and configure the other parts of Lean Budgeting solutions allowing you to fund People (Value Streams, Solution Trains, Agile Release Trains or Teams), Products or Work (Portfolio Epics (Projects)), calculate Proposed Budget and/or see Actual Costs and Expenses for any of them.

Note: The mentioned on the diagram entities should be non-global for the solution to work. If you already use Product, Value Stream, Solution Train, or Agile Release Train, which are global, please contact us for further assistance.

Solution Configuration

There are several parts of Lean Budgeting solution represented as solutions in the Solution Library (see the diagram in the solution prerequisites). You'll install some of them to cover the user case you have. Here are the steps you'll need to perform to configure it:

STEP 1: Install Lean Budgeting: Structure solution

You'll see Lean Budgeting: Structure folder in the left menu:

STEP 2: Install and configure Lean Budgeting: Connection to.. solutions

Decide which entities you'd like to do Budgeting for: People (Value Streams, Solution Trains, Agile Release Trains and/or Teams), Work (Portfolio Epics), or/and Products (Products). The solution supports any combination of them. The defined structure will affect what Entity Budgets will be connected to Portfolio Budgets.

In Lean Budgeting you will fund Value Streams, Solution Trains or Agile Release Trains from Portfolio, which means  that based on your People structure it'll be either Value Stream or Solution Train or Agile Release Train Budgets connected to Portfolio Budgets. You still will be able to see the Proposed Budget and Actuals for the Work and/or Product hierarchies.

If you still would prefer to fund Portfolio Epics or Products by custom Period, then the structure will look as one of the following for Portfolio Epic funding:

or for Product Funding:

Make a decision and install the needed solutions (you may install one or several solutions):

• Lean Budgeting: Connection to Portfolio Epic (Project) (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)
• Lean Budgeting: Connection to Teams (48a6f062-2fb1-4c41-b118-9f7ad65133dc)

The solutions will enable the connection of the Lean Budgeting Structure to the needed objects (Value Streams, Solution Trains, Products, etc.).

STEP 3: Install and configure Budgeting: Automation Rules solution

Install Lean Budgeting: Automation Rules solution from the Solution Library. Now we need to configure the automation rules parameters.

Configure Budgeting Portfolio ID in the rules

To make budgeting information available to a limited group of people, we must hide Budgets in a separate Portfolio (Project) called Budgeting (or use any other name that suits your organization). All the Budgets, Costs, and Expenses will be kept in this project by default. By assigning people to this project, you will provide access to the budgeting details. People who don't have access to the Budgeting Portfolio (Project) won't see anything on the Budgeting tab at Portfolio or Portfolio Epic views. To do that:

• Create a "Budgeting" portfolio
• Copy a "Budgeting" portfolio ID
• Go to Settings -> Automation Rules
• Replace the value for the ID parameter in the following rules:
  • Create Budgets when any Budget is created/updated
  • Create Budgets when any Resource is created/updated
  • Delete Budgets when any Resource is deleted
  • Start Budgets creation when "Generate Budgets" is pushed
  • Manually delete Portfolio with Budgets
• Save the rules

To move Costs and Expenses to the Budgeting Portfolio, we need to update automation rules with the correct Budgeting Portfolio ID:

• Copy a "Budgeting" portfolio ID
• Go to Settings -> Automation Rules
• Replace the Project ID parameter in the rule:
  • Move Costs and Expenses to Budgeting portfolio
• Save the rule

Configure Lean Budgeting Structure parameters

There are Work, People, and Product parameters in the automation rules. They should be configured based on which vertical (Work, People, or Products) you'll be FUNDING (budgeting) and which verticals you need to see FINANCIALS for (calculate Proposed Budget, Actual Costs, and Expenses). The default configuration is Portfolio Epic Financials, Product Financials, and VS-ST-ART Funding, which means you'll be funding Value Streams (and further Solution Trains and Agile Release Trains) and see Proposed Budget and Actuals for Products and Portfolio Epics.

If you need a different configuration, you'll need to update the parameters. The parameters values are defined in the table below:

To update the parameters:

• Go to Settings -> Automation Rules
• Open the following rules one by one:
  • Create Budgets when any Budget is created/updated
  • Create Budgets when any Resource is created/updated
  • Delete Budgets when any Resource is deleted
  • Start Budgets creation when "Generate Budgets" is pushed
  • Manually delete Portfolio with Budgets
• Go to JSON tab
• Update parameter values to the selected ones based on the table above.
• Save the rules

Example 1: If you would like to fund ARTs and see financials by Products and Portfolio Epics, you need to choose the following configurations:

• Portfolio Epic Financials
• ART Funding
• Product Financials.

Example 2: If you would like to fund People (e.g. ST-ART Funding) and see financials for Products, you need to choose the following configurations:

• Portfolio Epic Funding
• Product Financials

Connect Costs to the correct entity Budgets

To see actuals for any of the mentioned verticals, we need to configure the rules, which connect Costs and Expenses to the lowest-level entities in each vertical. By default, Costs and Expenses will be connected to Portfolio Epic, Product, and Agile Release Train. You need to adjust the rules if you use any of not default configurations of Budgets. To do that:

• Go to Settings -> Automation Rules
• Adjust the list of entities on Editor tab and the parameters on JSON tab in the following rules:
  • Connect a Cost to a Period, Period Budget and Budget
  • Connect an Expense to a Period, Period Budget and Budget
• Save the rules

For example, if you don't use Budgeting for Products, and only use it for Value Streams, Solution Trains, Agile Release Trains, and Portfolio Epics, you need to keep Agile Release Trains and Portfolio Epics in the list.

Note: You should have the same objects selected in Quick Add for Cost and Expense. By default, you'll have Portfolio Epic, Agile Release Train, and Product. If you selected different objects in the rules, you'll need to adjust Quick Add respectively.

Generate Budgets

After all the parameters are configured, we now need to generate a structure of Budgets. To do that:

• Go to Settings -> Automation Rules
• Enable the following automation rule:
  • Create Budgets when any Resource is created/updated
• Close Settings
• Open Lean Budgeting Structure -> Budget Generation view in the left menu
• Click the "Generate Budgets" checkbox on a Period you need to generate Budgets for.

Budgets and Period Budgets will be created for all existing Portfolios and the defined in the rules entities. You can see them generated on the Budgets Hierarchy view:

Note 1: Do not click "Generate Budgets" simultaneously for two or more Periods. Please wait until budgets are generated for one selected period and then click "Generate Budgets" for the following Period.

Note 2: When somebody creates a new entity (Portfolio, Portfolio Epic, Product, etc.), Budgets will be created automatically for the current period and future periods for which Budgets have already been generated.

Note 3: The levels you'd like to enable the Budgeting solution are configurable. Please contact us if you'd like to implement it for different work entity types.

Note 4: If you don't see Budgets on the views, please make sure Budgeting Portfolio is selected in the filters:

STEP 4: Install and configure Budgeting: Metrics solution

Install the solution from Solution Library.

Configure Portfolio Budget Type

There is a metric on Portfolio Budgets that defines which vertical (Work, People, or Products) you'll be FUNDING (budgeting). For Lean Budgeting solution, it is People (Value Streams, Solution Trains, Agile Release Trains). If you fund Work (Portfolio Epics) or Products, the value in the metric needs to be updated respectively. To do that:

• Go to Settings -> Metrics
• Replace the value based on chosen funding vertical (Work, People, or Product) for the Portfolio Budget Type in the following metric:
  • Portfolio Budget Type for Budgets
• Save the metric.

Note: If you fund People, just click Recalculate to set "People" as Portfolio Budget Type for all existing budgets.

Step 5: Install Funding views

There are 5 solutions with views. You need to install ONLY ONE of them to see be able to fund Value Streams, Solution Trainsб Agile Release Trainsб Portfolio Epics or Products, 

• 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)

Step 6: Install Financials views

There are 6 solutions with views to see Proposed Budget and Actuals for any of the entity types you use in the Budgeting flow. You can install them if needed.

• Lean Budgeting: Portfolio Epic (Project) Proposed Budget and Actuals Views (6ae3990e-851c-4081-bb55-e47ed6e2b97b)
• Lean Budgeting: Product Proposed Budget and Actuals Views (5e24f3e5-3e96-46d9-8dac-94826360e83a)
• Lean Budgeting: Value Stream Proposed Budget and Actuals Views (c97dacf3-2a60-4a35-b520-db6d10b4d882)
• Lean Budgeting: Solution Train Proposed Budget and Actuals Views (639b69b2-0b81-474e-ad63-33bbb6b7fb09)
• Lean Budgeting: Agile Release Train (ART) Proposed Budget and Actuals Views (476b04d5-72ad-4ad7-aab2-5fd83c7962da)

You shouldn't install solutions for the same entity type, for example, if you fund Value Streams (Lean Budgeting: Value Streams Funding Views solution), you shouldn't install Lean Budgeting: Value Stream Proposed Budget and Actuals Views) solution from steps 5 and 6.

Step 7: Install Proposed Budget solution

There is a solution, which can be used to calculate Proposed Budget automatically. Please check out the solution descriptions for more details.

• Lean Budgeting: Proposed Budget based on Work Allocations (119122bc-501d-4fe3-92ea-8c1778a4be76)

If you prefer to enter Proposed Budget manually, please contact us for assistance.

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Version: 1.0