Today I've just finishing doing the capital planning aspect of our budget round for the financial year 2011 for the IS department I work in.
The process entails consolidating and collating a lot of information, mostly from many of our technical people. The broad list of items then goes through a 3 stage process of prioritisation and refinement until we have a properly ranked and classified set of items that allow the creation of a sensible capex plan. As part of the process the EAs in my team take an initial lead on making sure the information is being put together by the stakeholders and then I get the managers across the department together to debate the relative rankings and merit of the items. Lastly once I've completed this process, the list is then handed over to our commercial manager to be turned into a document for submission to senior management.
I use a fairly extensive SharePoint list I've developed over time, plus a documented ranking process that takes into account our governance mechanisms around chargeback to our business units. I'd prefer to use some sort of portfolio tools so I could persist and manage the business rules I've built into this process over time. I could see a portfolio tool allowing quarterly updates and forcasts to be better reviewed in the light of the original financial plans.
I'm also acutely aware a lot of EAs don't get involved in processes like this - and I think they should. I personally enjoy running the process as I get a vary clear picture of where we have come from and where our investment profile is going. Especially after being involved with 3 rounds of financial planning over the last 2 and a bit years!
Questions for readers of this blog:
- Does your financial capital planning for IS follow a similar process?
- How detailed do you go with ranking?
- Are your EAs involved and how heavily?
- Do you use a portfolio management tool to do this? If so, what and why?