Budget Setting ProcessFor 2015 Budget

Draft 0.1Member Forum

Date of Meeting: 27th May 2014

New Budget Process

The new budget process aims to take a more structured approach with the following key requirements:

Management Board confirms the vision and strategic priorities

Clear guidelines communicated for project definition and the detail required for project approval e.g. costing, mapping to Member Country priorities

An agreed structure whereby the Management Team work with the Member Forum early in the process to scope, timeline and and cost ‘true’ projects and also identify the business as usual items and budget

All projects, business as usual items and resultant budget to be approved by Management Board

Standing Committees

Chaired by relevant MB Member

To support MF & MT to scope, cost and timeline

projects

General AssemblyInformed of decisions by

Management BoardBudget Approval

Management BoardCreate vision for SNOMED CT

Confirm strategic direction Define scope of

products/services

Management TeamDefine project principles based on feedback from

Member CountriesPrioritize Projects from MF

Set Project BudgetDeliver Projects

Allocate resource to BAU

Content

Implementation

Quality

Technical

Ad-HocCommittees

IHTSDO Members

Complete survey to help define project

principles and priorities

Member ForumRecommend top Projects in line with project principles and priorities from Management Team and Member CountryDefine Project Scope and DeliverablesRequirements outside of project principles captured as business as usual deliverables (BAU)

Vendor Liaison Forum

New Budget Process Roles and Responsibilities

IHTSDO Planning and Budgeting Process Timeline

Annual Plan

April Conference

Management Board confirms vision, strategic direction and scope

of products and services

By 30th AprilMember Countries complete survey

to help define project principles & priorities

By Mid JuneManagement Team & Member

Countries (via MF) agree project principles

By 31st JulyMember Forum (MF) recommend top 10 projects and BAU scope &

deliverables

By 31st AugustManagement Team (MT)

agree budget

By Mid SeptemberManagement Team

resolve queries from MB

By 30th SeptemberMB and Management

team agree final budget

October Conference

MB inform General Assembly of final plans and budget. GA

Approves Budget

Standing Committees support MF and MT

Latest Status Report

Budget setting proposal approved in principle at April Conference

Member Forum has created a MF Budget Sub Committee

Management Team has created MT Budget Sub Committee

Definition of Project and BAU is being formulated

Management Team is compiling a list of work items continuing into 2015 (previously agreed as part of strategic objectives and 3 year plan)

Management Team Budget Sub Committee

Support Head of Finance to formulate the 2015 Budget Agree Project Principles Agree BAU Definition Agree Process and Timeline Agree Documentation Ensure budget prepared and ready for presentation in

October Conference

Support Management Team, Member Forum and Standing Committees to fulfill their obligations in the process

Project Principles

1) Projects must be over USD 150k in costs2) Projects must be something that the majority of

members identify as a top priority3) Projects will have defined scope, defined start and end

dates and deliverables4) Projects will be managed as such and will have defined

risk/issue register reporting requirements5) Projects will have an assigned responsible business

owner6) Must adhere to the strategic objectives of the

organisation

 

Definition of Business As Usual

1) Normal on going tasks for the organisation in the lines of business

2) Must be related to strategic and business objectives of the organisation

3) Defined as part of the LOB budget for the existing year4) Will be items that meet the majority of member needs or

functional requirements of the LOB5) Will be considered small items of 150k or less6) Requires business approval of the Head of Finance,

LOB Owner and CEO to be included in the budget process

Member Forum Responsibilities

Agree project principles and priorities with Management Team – by Mid June

Recommend top 10 (approximately) projects, define project scope and deliverables – by 31st July

Requirements outside of project principles captured as business as usual deliverables (BAU) - by 31st July

Member Country Project Prioritization

Consider the following principles/criteria when prioritizing projects for IHTSDO:

There is commitment to implement the project deliverables by initiatives in Member Countries

The project can deliver quick wins that will directly benefit Member Countries The project provides good ROI International work can benefit more than one country Will likely benefit suppliers and increase adoption The project will lead to increased SNOMED CT capacity in Member Countries The project can articulate measureable benefits and accomplishments The project can further a high impact and recognized need Important projects that are not urgent – consider deferring Important projects that have limited commitment to uptake - consider deferring Balance workload by limiting number of highest priorities

 

Next Steps

MT and MF sub committees to agree project/BAU principles

MT sub committee to provide list of work items continuing into 2015 with attributable budget value to Head of Finance

Head of Finance to publish budget value available for new work items (after overhead costs)

MF sub committee to provide list of projects/BAU in line with agreed principles and prioritized in line with Member Forum prioritization principles