The Full-cost Maturity Model
how to assess your organization's level of competence at business planning, budgeting, and costing

Speech Abstract

The Full-cost Maturity Model (FMM) is a metric of an organization's ability to plan its business (its operating plan) and its costs (its budget, allocations, and rates). Akin to the widely known Capability Maturity Model for software engineering, this scale describes levels of accuracy and validity in forecasting the full cost to shareholders/taxpayers/donors of an internal service provider's products and services.

The FMM maturity levels range from simple cost transparency to, at the highest level, budgets and rates which are fully comparable to external benchmarks such as outsourcing. FMM documents in detail the benefits achieved at each level, and what an organization must do to attain each level.

FMM can be used to assess your current planning and costing practices, determine where you need to be given your governance processes, and understand exactly what methods and tools you need to implement or fine-tune to attain your target level.

Whether you're just beginning to explore activity-based budgeting or ITIL service economics and are looking for a quick start, or have already implemented allocations, portfolio management, or chargebacks and want to improve your governance processes, FMM documents the details you need to develop an effective planning process and a practical implementation project plan.

This session overviews the Full-cost Maturity Model, and the ideal way to assign costs to an organization's products and services. It then provides a detailed explanation of how each level works and its benefits. Finally, it explains how to use FMM to improve your business and cost planning processes.

100-word version....

50-word version....

Outline

• The concept of a maturity model for business and cost planning

• What "full cost" means; which costs are included, and which are not

• The five levels of maturity

• How to use the Full-cost Maturity Model to improve your business and cost planning processes