| "FMM is a new and clear way of looking at a cluster of organizational problems caused by planning and budgeting.
Dean is a real contributor to the world of business."
| Bill Lape
General Manager, IS (retired), Heinz USA
FMM is not a product, although there are software products that can implement it. FMM is a framework that neatly pulls together all the processes that create your operating plan, product/service catalog (with costs), budget, allocations, and chargeback rates.
The focus of FMM is on business and cost planning, not your accounting and tracking systems. It addresses the processes by which an organization develops its operating plan, budget, allocations, and rates. It is not a metric of financial accounting systems, broader resource governance processes, or billing systems -- although all of these other things are founded on the budget and rates.
FMM explains exactly how these processes should work to produce a clear definition of your products and services with an estimate of the full cost of each -- presented in your budget, allocations, and rates.
FMM defines five levels of capability -- from simple cost transparency to fully burdened rates -- and all the essential elements (methods, processes, and tools) required to make each level work. Each level builds upon the last -- adding details and delivering more benefits. This allows you to start simple and then evolve over time.
FMM is a practical framework used to help an organization (e.g., an internal service provider like IT) assess where it is in the maturity process, decide the target level needed to support its governance and tracking processes, and guide the implementation of exactly the methods and tools required to attain or fine-tune that target level.
The "Full-cost Maturity Model" report examines the problems caused by traditional budgeting and costing methods.
It presents a detailed vision of the solution -- calculating the full cost to shareholders/taxpayers/donors of an organization's products and services. It catalogs the benefits of doing so. Then, it introduces the Full-cost Maturity Model (FMM) which explains the practical challenges of implementing full costing, and a step-by-step path forward.
Detailed processes and software to implement any level of maturity are available under license.
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