Tag stalemate

Tag stalemate

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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