Implement an IT Chargeback System

Explain IT costs in ways that matter to the business.


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Fail to implement IT chargeback effectively and you will:

  • Continue to charge for IT services using technical cost drivers that the business does not understand or acknowledge, resulting in significant pushback.
  • Frustrate business owners who will continue to purchase external services without consulting IT, resulting in more shadow IT.
  • Continue to be seen as a cost center, rather than a business partner.

Perform the IT chargeback workshop and you will:

  • Develop a chargeback model that brings transparency to the flow of IT costs through to business value.
  • Bring transparency to IT spending.
  • Hold business units accountable for IT service costs and usage.
  • Recover IT costs fairly from those that benefit from them.

Book Your Workshop

Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.

Module 1: Kick-Off IT Chargeback

The Purpose

  • Make the case for IT chargeback.
  • Identify the current and target state of chargeback maturity.
  • Establish a chargeback governance model.

Key Benefits Achieved

  • Investigated the benefits and challenges of implementing IT chargeback.
  • Understanding of the reasons why traditional chargeback approaches fail.
  • Identified the specific pathway to chargeback success.

Activities: Outputs:
1.1 Investigate the benefits and challenges of implementing IT chargeback
  • Defined IT chargeback mandate
1.2 Educate business owners and executives on IT chargeback
  • IT chargeback kick-off presentation
1.3 Identify the current and target state of chargeback maturity
  • Chargeback maturity assessment
1.4 Establish chargeback governance
  • IT chargeback governance model

Module 2: Develop the Chargeback Model

The Purpose

  • Develop a chargeback model.
  • Identify the customers and user-facing services.
  • Allocate IT costs.
  • Determine chargeable service units.

Key Benefits Achieved

  • Identified IT customers.
  • Identified user-facing services and generated descriptions for them.
  • Allocated IT costs to IT services.
  • Identified meaningful, measurable, and manageable chargeback service units.

Activities: Outputs:
2.1 Identify user-facing services and generate descriptions
  • High-level service catalog
2.2 Allocate costs to user-facing services
2.3 Determine chargeable service units and pricing
2.4 Track consumption
2.5 Determine service charges
  • Chargeback model

Module 3: Communicate IT Chargeback

The Purpose

  • Communicate the implementation of IT chargeback.
  • Establish a process for recovering the costs of IT services from business units.
  • Share the financial results of the charge cycle with business owners.

Key Benefits Achieved

  • Managed the transition to charging and recovering the costs of IT services from business units.
  • Communicated the implementation of IT chargeback and shared the financial results with business owners.

Activities: Outputs:
3.1 Create a communication plan
  • IT chargeback communication plan
3.2 Deliver a chargeback rollout presentation
  • IT chargeback rollout presentation
3.3 Establish a process for recovering IT costs from business units
  • IT service cost recovery process
3.4 Share the financial results from the charge cycle with business owners
  • IT chargeback financial presentation

Module 4: Review the Chargeback Model

The Purpose

  • Gather and analyze feedback from business owners on the chargeback model.
  • Make necessary modifications to the chargeback model and communicate implications.

Key Benefits Achieved

  • Gathered business stakeholder feedback on the chargeback model.
  • Made necessary modifications to the chargeback model to increase satisfaction and accuracy.
  • Managed changes by communicating the implications to business owners in a structured manner.

Activities: Outputs:
4.1 Address stakeholder pain points and highly disputed costs
4.2 Update the chargeback model
  • Revised chargeback model with business feedback, change log, and modifications
4.3 Communicate the chargeback model changes and implications to business units
  • Chargeback change communication
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