Method to request projects that are routed for budget approval

Description

The CPM software needs to incorporate an efficient, streamlined process that enables users to propose, submit and gain approval for project budgets. This functionality is critical to manage project financing, improve forecasting accuracy, and facilitate resource allocation based on approved budgets.

Example Use Case

Scenario: A media company is planning for the next fiscal year. Each department needs to request marketing projects and align them with the forecasted budget. The CPM system they use needs to have a function where each department can request their projects, with the associated budget, and then route these for approval by the finance department.

Solution: The CPM software has a dedicated module for project requests. Departments can input their project details and cost estimates, which are then automatically matched with forecasted budget data. Users receive notifications once their request has been approved or declined, together with feedback. With this feature, budget allocation and departmental planning become a smoother, more coordinated process.

Considerations

This is useful when the project being proposed requires a significant expenditure. Users can add the project, and the system would be configured to push the financial impact through the model. To make this work effectively, the request must be relatively normalized - meaning a like request. For example, requesting budget for a marketing campaign vs building a storage facility would not have even close to the same drivers. As such, that would be handled on a different type of request form.

Usually, these types of requests are handled outside a CPM tool. Once they receive preliminary approval, they are modeled in the CPM tool.

Questions to Ask a Vendor

• Approval Mechanism: How can the approval workflow be tailored according to our internal structures and operational procedures?
• Reporting and Feedback: Does the system provide feedback to users on the status of project requests and budget approval decisions?
• Effect on Plan: Are approvers able to see the effectiveness of the proposal on the plan? Can the submitter see the same thing?