DECISION INVENTORY TOOL
We offer up our Decision Inventory which will help leaders, controllers, and portfolio management organizations plan better, react better, and share the status with the organization with more transparency.
Pre-clinical and Clinical trials (R&D testing in general) are scheduled based on science, patient enrollment, and trial endpoints - all unrelated to the calendar or annual budget cycles. A failure in a phase normally means no additional expenses are needed for this project. A success indicates the project may move to the next phase requiring additional expenses for this year. Financial organizations are faced with aligning a deterministic budget with a collection of technically risky projects which have uncertain durations.
Difficulties beyond scheduling are:
What happens if more projects succeed than previously expected and budgeted for?
If more projects fail than previously expected, is there another project waiting for those freed up funds?
In either case, what is the impact on next year’s requirements?
In years when more succeed than planned, how is the tradeoff made if increasing the budget is not an option?