Clarity

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  • 1.  Portfolio management

    Posted Aug 04, 2016 01:19 PM

    Case:

    A company wants to rollout a new HRMS. They need some servers setup (Hardware cost i.e. Capital) and web application setup and support for app and hardware i.e. Expense.

    Business Users use the HRMS so they are paying for Capital and IS who maintains all applications will keep paying for operating costs. Some of the work done by IS is also Capital for certain duration of the project.

    There are 4 projects like this coming up in Next FY

     

    Project

    Funding By

    Capital

    Operating

    Alignment

    A

    IS

    1000

     

    1

    A

    IS

     

    1000

    1

    B

    IS

    500

    1000

    2

    B

    Business

     

    3000

    2

    C

    IS

    1000

     

    3

    C

    IS

     

    1000

    3

    D

    IS

    500

    1000

    3

    D

    Business

     

    3000

    3

     

    We wish to do Portfolio management for IS separately and know what is the amount of Capital and Operating can budgeted for next FY.

    Project

    Funding By

    Capital

    Operating

    Alignment

    A

    IS

    1000

    1000

    1

    B

    IS

    500

    1000

    2

    D

    IS

    500

    1000

    3

    C

    IS

    2000

    1000

    3

     

    Bold projects are above waterline if 2000 is Capital target.

    To be able to achieve this what is the expected approach to be taken while setting up projects and cost plans?

     

    What field in Clarity should maintain "Funding By" aka investor to be able to do portfolio management at their respective level (i.e. individual investor level)?

     

    Note $6000 of the operating cost is taken out in second table(waterline view) and I dont know how to achieve that.



  • 2.  Re: Portfolio management

    Posted Aug 05, 2016 04:15 PM

    Not sure I fully understand what you are asking. But, if you are asking how to setup the capital and operating costs in Clarity to reflect in Portfolio management, this can be done in one of two ways.

     

    1. Assuming you are using the OOTB budget page, there is a field for Operating costs and Planned capital costs.  You can enter the simple project values there. If you do a detailed cost plan, that will overwrite those values.

     

    2. Cost Plans -  Again, using the OOTB features- there is a cost type filed at the project level on the financial page (required OOTB)   OR you can set the Capitalization % per team member or lastly you can set the cost type per task (capital vs. operating) .Once you have set those values, you can then create your cost plans based on team allocation (capitalization %) or by assignment to read the tasks. Your cost plan must have cost type as a Grouping Attribute, so that you can see the breakdown of capital and operating. Naturally, you can do a manual cost plan too and use cost type as the grouping attribute.

     

    Katherine wrote a nice entry on cost type when it first came up. If you search the communities, you will find it.

     

    After all that is created, the portfolio will simply read either the simple budget or the detailed cost plan to split out capital and operating costs accordingly. Your targets and the actual project data will then drive your waterline (using your ranking rules)

     

    After that long reply if that is not what you are asking regarding setup, can you please clarify your question regarding the funding by? If you are not using the OOTB cost type (sadly we are still on charge code), then everything will default to operating costs in the portfolio.



  • 3.  Re: Portfolio management

    Posted Aug 05, 2016 05:25 PM
      |   view attached

    I am already using Cost Type to separate out Capital and Operating. There is additional layer where CAPITAL is funded by IS or Business and IS manages portfolio separately than Business and they want to see what budget they should plan for.

     

    Portfolio management does not have a facility add another layer or granularity into CAPITAL and OPERATING costs. That concerns me so checking if I am missing anything.

     

     

    Regards,

    Suhas



  • 4.  Re: Portfolio management

    Broadcom Employee
    Posted Aug 05, 2016 08:16 PM

    For seperation in the Cost Plan, you can setup the "Funded By" choices in the Charge Code field and add that as a Grouping Atrribute after the Cost Type. Then set the Charge Codes on the individual tasks along with Cost Type to do the funding estimation for the Cost Plan. This would give you the information for each investment.

     

    You can then create a report in Advanced Reporting to show the information you want.



  • 5.  Re: Portfolio management

    Posted Aug 05, 2016 10:48 PM

    I have done all that. It still doesn't help in portfolio management. My concern is how to get this done in portfolio management module too. It doesn't have chargecode as grouping attribute



  • 6.  Re: Portfolio management

    Broadcom Employee
    Posted Aug 09, 2016 12:22 PM

    I agree, it would be great to be able to manage cost targets by funding source. I see it often that budgets are given to departments and then projects are finding by various departments. Or funding comes from sources that have to be managed and tracked separately for regulatory purposes - like grants.

     

    I would recommend searching Ideas in the communities and creating one if you don't see one.



  • 7.  Re: Portfolio management

    Posted Aug 09, 2016 12:25 PM

    Yes, absolutely.

     

    Regards,

    Suhas