Without an effective budget management process:
- The CIO gets pulled in different directions with changing demands and is unable to come in on budget at the end of the fiscal year.
- IT gets viewed as a cost center that is always asking for more money, and the business does not see the value it delivers.
With an effective budget management process:
- The IT department can proactively respond to changing demands and budget variances, staying on track towards its budget goals.
- IT can better demonstrate and communicate the value it delivers to the business, increasing business satisfaction.
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Book NowModule 1: Document Budget
The Purpose
The first step of managing your IT budget is to make sure there is a properly documented budget that everyone agrees upon.
Key Benefits Achieved
A properly documented budget facilitates management and communication of the budget.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Review budget for the year. |
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| 1.2 | Document each budget in the tool. |
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| 1.3 | Review CAPEX vs. OPEX. |
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| 1.4 | Customize accounts to match your organization. |
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Module 2: Optimize Documentation Process
The Purpose
A proper documentation process forms the backbone for effective budget management.
Key Benefits Achieved
A streamlined documentation process with accurate inputs that also considers the elements of people and technology.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Draw out process flow of current documentation. |
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| 2.2 | Identify bottlenecks. |
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| 2.3 | Discuss and develop roadmap to solving bottlenecks. |
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Module 3: Track and Control for Over- and Underspending
The Purpose
Track your planned budget against actual expenditures to catch areas of over- and underspending in a timely manner. Then, leverage control mechanisms to manage variances in your budget.
Key Benefits Achieved
Tracking and controlling for variances will help the IT department stay on track towards its budget goals. It will also help with communicating IT’s value to the business.
| Activities: | Outputs: | |
|---|---|---|
| 3.1 | Walk through the “Overview Bar.” |
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| 3.2 | Document actual expenses incurred in fiscal to date. |
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| 3.3 | Review the risk of over- and underspending. |
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| 3.4 | Use the reforecast column to control for over- and underspend. |
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