As mentioned in part 1 of this article series, Product Funding allows for a more Agile approach to financials. If a team needs to pivot during the year, the Product Owner can adjust already approved funds without having to go through a lengthy approval process. Product funding financials would primarily be tracked in Clarity, with data being pulled in from Rally. Let’s look at the financial tracking and then see how to tie everything together.
By sticking with the ecommerce portfolio example (figure 4.0), you can see that the annual budget approved for this portfolio is ten million dollars. That is broken down to six million dollars for our shopping Product Group and four million for our shipping Product Groups. If we drill down further, we can see the six million for the shopping Product Group is broken down further for the Products of the online catalog, shopping cart, and payment processing.
If needs change throughout the year, the Product Owner can redistribute funds between the Products. For example, the Product Owner could take one million dollars from payment processing and move it to the shopping cart if they needed to. Also, if the shipping Product Group needs two million dollars, the Product Owner can take it from the shopping Product Group and move it over.
The only time the Product Owner would need to get with Finance for approval is if they needed to go over the original ecommerce portfolio budget of ten million dollars. This is rare and usually only happens if something new comes up outside of the cost of people, because the portfolio already has dedicated resources. An example could be wanting to migrate to the cloud.
And if we drill down further to the initiatives (work items), you can see that funding can be drawn from multiple Products to complete time-boxed initiatives. In the case of Initiative B, 200,000 is taken from the shopping cart and 800,000 is drawn from the online catalog.