• The FTE Collection portion of the Prepare phase is used to establish the settings and assign responsibility for the collection of FTE data.

• By selecting "Yes," for the question shown below, you will require the collection of FTEs and Labor Costs.
• By selecting "No," you will only be able to capture organization level data.

• This is where the FTE Materiality Threshold is set. This term is defined in the graphic below.

• Allocation Increments is the increment at which FTE activity is allocated to specific processes.
• The Hackett Group strongly recommends using a 10% allocation increment for a directionally correct distribution of time across processes. Using a 1% allocation increment can pose a challenge for validation of FTE data.
• In the image below, a 10% allocation increment has been applied.
  • For reference purposes, a 1% increment represents a process an FTE spends  approximately 24 minutes per week or 2.5 days per year

• Organization-specific custom FTE processes can be included as a part of the benchmark that The Hackett Group does not collect within their benchmark taxonomy.
• Custom FTE Processes are not able to be benchmarked to Peer and World Class as they are specific to an organization; however, comparisons can be made within the enterprise based on collection details.
• The addition of custom FTE processes add clarity during the Collect phase if a particular process is out-of-scope in the standard Hackett functional taxonomy.