Budget Setting Process For 2015 Budget Draft 0.1 Member Forum Date of Meeting: 27th May 2014

New Budget Process The new budget process aims to take a more structured approach with the following key requirements:  Management Board confirms the vision and strategic priorities  Clear guidelines communicated for project definition and the detail required for project approval e.g. costing, mapping to Member Country priorities  An agreed structure whereby the Management Team work with the Member Forum early in the process to scope, timeline and and cost ‘true’ projects and also identify the business as usual items and budget  All projects, business as usual items and resultant budget to be approved by Management Board

Standing Committees Chaired by relevant MB Member To support MF & MT to scope, cost and timeline projects Standing Committees Chaired by relevant MB Member To support MF & MT to scope, cost and timeline projects General Assembly Informed of decisions by Management Board Budget Approval General Assembly Informed of decisions by Management Board Budget Approval Management Board Create vision for SNOMED CT Confirm strategic direction Define scope of products/services Management Board Create vision for SNOMED CT Confirm strategic direction Define scope of products/services Management Team Define project principles based on feedback from Member Countries Prioritize Projects from MF Set Project Budget Deliver Projects Allocate resource to BAU Management Team Define project principles based on feedback from Member Countries Prioritize Projects from MF Set Project Budget Deliver Projects Allocate resource to BAU Content Implementation Quality Technical Ad-Hoc Committees Ad-Hoc Committees IHTSDO Members Complete survey to help define project principles and priorities IHTSDO Members Complete survey to help define project principles and priorities Member Forum Recommend top Projects in line with project principles and priorities from Management Team and Member Country Define Project Scope and Deliverables Requirements outside of project principles captured as business as usual deliverables (BAU) Member Forum Recommend top Projects in line with project principles and priorities from Management Team and Member Country Define Project Scope and Deliverables Requirements outside of project principles captured as business as usual deliverables (BAU) Vendor Liaison Forum New Budget Process Roles and Responsibilities

IHTSDO Planning and Budgeting Process Timeline Annual Plan April Conference Management Board confirms vision, strategic direction and scope of products and services By 30 th April Member Countries complete survey to help define project principles & priorities By Mid June Management Team & Member Countries (via MF) agree project principles By 31 st July Member Forum (MF) recommend top 10 projects and BAU scope & deliverables By 31 st August Management Team (MT) agree budget By Mid September Management Team resolve queries from MB By 30th September MB and Management team agree final budget October Conference MB inform General Assembly of final plans and budget. GA Approves Budget Standing Committees support MF and MT

Latest Status Report  Budget setting proposal approved in principle at April Conference  Member Forum has created a MF Budget Sub Committee  Management Team has created MT Budget Sub Committee  Definition of Project and BAU is being formulated  Management Team is compiling a list of work items continuing into 2015 (previously agreed as part of strategic objectives and 3 year plan)

Management Team Budget Sub Committee  Support Head of Finance to formulate the 2015 Budget  Agree Project Principles  Agree BAU Definition  Agree Process and Timeline  Agree Documentation  Ensure budget prepared and ready for presentation in October Conference  Support Management Team, Member Forum and Standing Committees to fulfill their obligations in the process

Project Principles 1) Projects must be over USD 150k in costs 2) Projects must be something that the majority of members identify as a top priority 3) Projects will have defined scope, defined start and end dates and deliverables 4) Projects will be managed as such and will have defined risk/issue register reporting requirements 5) Projects will have an assigned responsible business owner 6) Must adhere to the strategic objectives of the organisation

Definition of Business As Usual 1) Normal on going tasks for the organisation in the lines of business 2) Must be related to strategic and business objectives of the organisation 3) Defined as part of the LOB budget for the existing year 4) Will be items that meet the majority of member needs or functional requirements of the LOB 5) Will be considered small items of 150k or less 6) Requires business approval of the Head of Finance, LOB Owner and CEO to be included in the budget process

Member Forum Responsibilities  Agree project principles and priorities with Management Team – by Mid June  Recommend top 10 (approximately) projects, define project scope and deliverables – by 31 st July  Requirements outside of project principles captured as business as usual deliverables (BAU) - by 31 st July

Member Country Project Prioritization  Consider the following principles/criteria when prioritizing projects for IHTSDO:  There is commitment to implement the project deliverables by initiatives in Member Countries  The project can deliver quick wins that will directly benefit Member Countries  The project provides good ROI  International work can benefit more than one country  Will likely benefit suppliers and increase adoption  The project will lead to increased SNOMED CT capacity in Member Countries  The project can articulate measureable benefits and accomplishments  The project can further a high impact and recognized need  Important projects that are not urgent – consider deferring  Important projects that have limited commitment to uptake - consider deferring  Balance workload by limiting number of highest priorities

Next Steps  MT and MF sub committees to agree project/BAU principles  MT sub committee to provide list of work items continuing into 2015 with attributable budget value to Head of Finance  Head of Finance to publish budget value available for new work items (after overhead costs)  MF sub committee to provide list of projects/BAU in line with agreed principles and prioritized in line with Member Forum prioritization principles