Examples include: - Resource allocation,
R&D budgeting, design to a price, Local Authority budgeting, Mergers and Acquisitions,
project prioritisation.
By creating a simple value tree of Cost elements together with their corresponding Benefits, you can easily see the benefit/cost
ratio for each project. A potential Solution is made up of a combination of projects. You can instantly see the best ones that lie on
the envelope bounding the top of the Solution Space.
Remember cost can include any scarce
resource, such as management time or lab space and of course money. You will be interested in the best solution within
your resource constraint.
What is resource constraint? More ideas than money, management time or lab space!
Experience has shown that using these
methods can increase the value delivered by 25% for any given budget. We have all been there. The year starts in April, the budget round starts in the previous September when blank forms arrive from business planning. We fill them in by adding 10% from last year. Business planning will collate these and then pro rata them down to 10% less than last year… There must be a better way
Using HiPriority you can capture core values and business drivers for an
organisation and use these to estimate the contribution of each package. This combined
with the timely use of Decision Conferencing can often halve the time needed to set budgets. This frees management time to manage and allows
the organisation to be responsive to the latest economic trends. E-mail: info@krysalis.co.uk
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