| || Excerpt from WWW.FullCost.COM, © 2019 N. Dean Meyer and Associates Inc.
FullCost is both a tool and a method for business planning, budgeting, and service costing.
Focused specifically on your annual (or biennial) planning process, it's the most advanced tool for:
- Investment-based budgeting: Propose a budget for the products and services you plan to deliver, not just what you plan to spend. This shifts the dialog to the value you offer, links your funding to business needs and investment opportunities, and manages expectations.
- Service-costing: Know the full cost of your products and services, including fair share of all indirect costs (even what internal groups "sell" to one another). For internal service providers, this is the most accurate way to set forward-looking rates.
- Business planning: Plan what's expected of each group, and what staff and budget managers need to fulfill those expectations.
- Operating model: The planning process defines who "sells" what to whom within the organization (individual accountabilities for results), and how products and services are produced.
- Cost analysis: Understand the costs that go into each of your services in the year ahead, in time to do something about them.
- Pro-forma P&L: Analyze planned profit/loss by manager, product line, client, and more.
The data coming out of this planning process informs your resource-governance (demand management, priority setting) processes with two essential facts: how much is in the checkbook, and what your products and services cost.
Tool and Method
Vision and Concepts