FullCost Light is a proprietary software product for budgeting. It applies all forecasted costs to an organization's deliverables — the services and projects it expects to deliver in the coming year.

It is based on over 30 years of research on, and implementation experience with, "investment-based budgeting," where the focus of budget negotiations is on what the enterprise will "buy" from an organization (not micro-managing its spending).

The "Light" version is a derivation of the full-featured product, FullCost. Compared to that complete product, it is far less expensive and easier to implement. However, it has limitations. It's an ideal choice for small organizations, or as a first step for large organization who may later upgrade to the complete FullCost.

Benefits

TO ENTERPRISES:

• Teamwork: fund deliverables across all groups, so that all needed functions are resourced to support the initiative

• Performance, strategy execution: chosen deliverables fully resourced

• Inform rational budget decisions based on business needs and investment opportunities (not haggling over past year's spending, micromanagement)

• Empower clients of internal services to speak for their needs

• Explicit funding for infrastructure, innovation

• Reduce micromanagement of your costs; instead, manage by results

• Morale: expectations = resources (time)

• Transformational: Induce results focus ("sell" versus "do"), customer focus, entrepreneurship, teamwork, empowerment

TO DEPARTMENTS WITH ENTERPRISES:

• Build perception of value delivered for a given level of funding (reduce accusations that you cost too much, unfair allocations, unfair comparisons to decentralization/outsourcing)

• Align internal clients with your budget: add/delete initiatives based on their needs, garner their support for your budget

• Inform rational budget decisions based on business needs and investment opportunities (not haggling over past year's spending, micromanagement)

• Reduce micromanagement of your costs; instead, manage by results

• Teamwork: fund deliverables across all groups, so that all needed functions are resourced to support the initiative

• Manage expectations: clear understanding of what's funded (and what's not); counter "do more with less" demands

• Explicit funding for infrastructure, innovation

• Transformational: Induce results focus ("sell" versus "do"), customer focus, entrepreneurship, teamwork

Features and Capabilities

• Associates all costs with deliverables (projects and services)
  • Fact-based budget decisions based on opportunities/needs of business (not prior years' spending)

  • Opportunity to present ideas for additional projects/services/innovations

  • Potential for incremental budget to fund high-return incremental deliverables

  • Expectations aligned with resources (no apocryphal "do more with less")

• Scalable
  • If approved deliverables > base (current staff), scales up (or down):

    People (FTEs and costs, via additional contractors)
    External indirect costs
    Optionally, overhead costs

• Reports
  • Budget Deliverables: list of all deliverables, with costs; used for deciding which are approved

    Can filter rows by: client, revenue source, priority, 2 customizable tags (eg, product, enterprise strategy), approval status

  • Budget Groups

    FTEs per group (split by employees, contractors), net change in FTEs from base (current staffing)

    Costs per group (employees/contractors, direct, external indirect; split by expense/capital)

  • Budget GL Accounts

    People costs (split by employees/contractors, expense/capital)

    Costs in each GL account per group

• Data inputs
  • External indirect (costs applied to all the deliverables of a group)

    Can be targeted to a subset of the deliverables (eg, a specific service)

  • Direct (costs associated with a specific deliverable)

    Assigned to the prime contractor of each deliverable

    Only in budget if the deliverable is approved

  • People (current staffing, ie, the base)

    May be shared across groups

    Distinguish employees and contractors

    May be filtered by department (one or more groups)

    Can capitalize any portion of labor costs

  • Overhead (and internal indirect sold by one group to another)

    May be fixed (regardless of size of approved budget) or scaled (based on approved/base)

    If scaled, on Budget Deliverables, overhead costs are imbedded in costs of other deliverables

FullCost Light is offered as a perpetual-use license for a fixed price, and comes with the support (coaching) needed for initial implementation.

Price:

For organizations which have implemented Principle-based Organizational Structure: $20,000
For other organizations where additional coaching is required: $24,500

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