About this report
The Budgetary Tracking report provides a real-time financial view to a subset of the organization, to enable tracking against its allocated budgets. The report displays the parts of the organization that are specified in a Strategic Snapshot, which is used to establish both the strategy and budgets (for the execution of the strategy) for the organization.
It offers leadership an opportunity to view progress in organizational terms, using the organization structure hierarchy, instead of the usual program-based view. This helps an enterprise align the organizational accountability and financial responsibilities specified in an org chart with the servant leadership roles in a scaled agile implementation.
The report shows budgets from one or more selected snapshots down to PIs and program allocations so you can effectively manage and balance budgets in context. If you decide not to select a specific snapshot, the report will be based on the selection in the Configuration bar. The report has the following two views:
- Top-Down View. If a snapshot is selected, the hierarchy is built downwards:
- From the snapshot, it shows the organization structure tied to that snapshot.
- From the organization structure, it shows the portfolios and programs tied to the organization structure.
- Next, it shows all PIs tied to the programs. PIs which are not directly related to the snapshot have a warning icon next to them.
- Bottom-Up View. If you do not select any snapshot, the hierarchy is built upwards:
- From the Configuration bar, it shows the selected programs, portfolios, and PIs.
- From the portfolios, it shows the organizational structures.
- Strategic Snapshot has been created (Enterprise > Strategy Room > Add Snapshot).
- Snapshot has been assigned a budget in the Total Budget field.
- Organization Structure(s) have been selected from the pool and saved for the snapshot.
- Funding Levels have been allocated to the selected Organization Structure within the snapshot.
- Program Increment(s) have been selected from the pool and saved for the snapshot.
- To see a strategic snapshot in the Snapshot list, you must be a team member of the program associated with a PI assigned to the strategic snapshot.
- Selected Program Increment(s) have been placed in the organizational hierarchy via the Organization Structure field of the Program Increment.
- Selected Program Increment(s) have specified a cost-per-hour in the Blended Rate field of the Program Increment.
- Epics targeted for the selected Program Increments have been assigned a Budget (on the Finance tab of the Epic page).
- Epics targeted for the selected Program Increments have updated their Funding Stage (on the Benefits tab of the Epic page).
- Epics targeted for the selected Program Increments have indicated a Strategic Driver (on the Details tab of the Epic page).
How are report values calculated?
Budgets are calculated as follows:
- Snapshot Budget
- Snapshot Budget: Budget as entered on the snapshot’s slide-out panel. Click the value in blue to open the snapshot’s slide-out panel to view the details or change the budget. NONE means this organization structure is not associated with the snapshot.
- Snapshot Total Budget: The sum of budgets of organization structures associated with the selected snapshots. The organization structure budget is an input field on the snapshot slide-out panel. Click the value in blue to edit it.
- Budget Rollup: Rollup from all portfolio budgets.
- Organization Structure Budget
- Budget: Budget as entered on the organization structure’s slide-out panel. Click the value in blue to open the slide-out panel to view the details or change the budget.
- Budget Rollup: Budget rollup from portfolios.
- Portfolio Budget: Rollup from all program budgets.
- PI Budget: PI budgets are pulled directly from the Budget field on the PI's slide-out panel.
- Program Budget
- Column under PI: Percent allocation from Program Allotment and actual budget on the PI slide-out panel. If a program is not tied to the PI, it says None. If a program has no allocation, it says 0%.
- Budget: Rollup from all PI allocations.
Note: You can click the values in blue to edit them.
Optimizing budgets across Program Increments can be done by switching on the What If mode to explore a hypothetical allocation of the snapshot budget. By using the “what if” analysis, you can set different budget values to explore various results, and then determine what value will produce the best result.
When this mode is on, you can see a pencil icon next to your projects. Click "Not Set", select the type of your project ("Build" or "Buy"), and then set a budget - just for the "what if" exercise. Note that this budget update won't change the Budget value in the Program Increment.
Program Increment Status
You can click any Program Increment to view its status. The Status page shows an overall summary of the history, such as time remaining, risk score, budget, and much more. Here, you can view work items and add new ones. You can also view skill groups and the assigned teams.
How to interpret this report
Senior leadership or those with fiduciary responsibility in the organization will use this report to manage the spend on the allocated budgets.
Snapshots are often set up for a calendar year, so a typical usage is to use the Budgetary Tracking report to track the spend across the annual budget cycle. As program increments are established (budgeted), they can be viewed in the context of the organization budget for the year (snapshot). As program increments are completed (at a cadence), the actual spend can be compared to the project budget, and again in the context of the budget for the year (snapshot).
This allows leadership to:
- Seek to add projects (or increase capacity in upcoming program increments) when the individual budgets shown under the organization structure are not tracking toward the snapshot budget.
- Actively manage the risk of cost overrun when program increments completing early in the snapshot interval are consistently completing over budget.
- Monitor the spend within the program increments against specific strategic goals via the Strategic Drivers defined in the work items (i.e. "investment categories").