Tag funding

Tag funding

The Real World of IT Financing – A True Story

Tags: , , , , , , , , Assess, Business, Strategy, Uncategorized
photo credit: Steve Snodgrass via photopin cc

photo credit: Steve Snodgrass via photopin cc

Inspired by recent projects being undertaken by cibsys, I started thinking about some war stories I have heard through the years. The following blog post looks at an example of what could and does go wrong if you don’t ask important questions about IT financials.

The outline of the story was to resolve an IT budget crisis, where the COO was forecasting 10% over, dealing with figures in excess of ten million. In other words, there was a pressing need for fast remedial action to prevent disaster.  The regional CIO was a brilliant technical lead with fantastic ideas, who delivered amazing software surrounded by like-minded technical staff.  The one lonely voice in his management team who was screaming to be heard was his business manager who could see the pending crisis of budget and funding but was not being listened to.  The reality was that the forecast was way off, there was no real spend tracking and that the ledgers actuals were so far behind the reality of spend that no one really knew what was being spent and where the money was going.   There was dire need for proper departmental financial controls and proper forecasting in addition to the basic ones in finance department.

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The Cost Allocation Challenge

Tags: , , , , , Advance, Advice, Assess, Business
photo credit: me and the sysop via photopin cc

photo credit: me and the sysop via photopin cc

Following on from my last post about getting funding for your strategy, I am going to explore one of the big barriers to approval that you can face.

Strategy plans will often involve some kind of consolidation process; whether it be centralising a common service, or realigning architecture processes. This can often run into what I call the allocation conundrum. Typically, different areas in a business, whether departments or locations, will receive a cost allocation for the IT services they consume.  In terms of technologies and their champions, winners and losers will emerge from every consolidation programme; there will always be risk-takers and risk-adverse parties in any organisation. Where the challenge comes, is in handling the costs. The last remaining customer cannot be expected to carry the cost allocation of the whole service.

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Securing Funding for Your Strategy

Tags: , , , , , Assess, Business
photo credit: Images_of_Money via photopin cc

photo credit: Images_of_Money via photopin cc

We have talked a fair amount about the planning side of building a strategy, but what about the funding?

It is not much use having a wonderful vision without at least some execution capacity, and that means hard cash. Any CIO or Project Manager will know, extracting money from a tight fisted Board with conflicting priorities is never easy, and grandiose plans do not always convince. I believe there are a number of things that you can do to help this process along.

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