WiseTechGuy

Step Four – Presenting the Budget With the work you accomplished in the previous steps, it is time present the budget. In all but the smallest organizations, standardize approaches for submitting and presenting budgets are mandated. These approaches may include spreadsheets, online tools, and presentation templates. A common goal is to produce submissions that are consistent with respect to organization and content. They also provide a way to ensure critical issues are addressed. For example, how each group will manage / be impacted by growth, potential reductions, or other significant events. Show Time Presenting an Information Technology (IT) budget can be challenging. The forces driving IT costs are not always understood, and even more fundamentally, the very essence of IT is often unclear to executives. Other factors can complicate the effort. As previously discussed, costs might be held by organizations outside of IT. This can make it difficult to calculate the

Step Three – The Unveiling  With the work you accomplished in step one and two, it is time to begin focusing on communication. Specifically, how the budget is built, the primary drivers, and validation. Focus on the Core Elements I like to begin by going back to the key elements picture from Step 1: Take time to walk through each circle on the diagram above. Doing so allows you to establish a standard vocabulary with your audience while illustrating your primary budget drivers. Be sensitive to local conventions and vernacular; consider adjusting your own when necessary. Avoid unproductive discussion about terminology whenever possible, the goal is to arrive at a common and informed view. As a side note, one of the benefits of previewing the budget, as discussed in the Validation section of Step Two, is to identify and resolve many, if not all, these issues early in the process. Assembling the Pieces With the essential core elements driving the IT budget defined, it

Building the Budget The precise mechanics you use to develop the budget is beyond the scope of this article, but I will address some key practices I think are worth incorporating in your approach. Clearly Define Ownership Begin with a core issue: how does the organization handle IT expenses?  Are IT expenses centralized within one budget or decentralized?    Seldom is this a black-and-white answer, but a detailed understanding is critical.  Consider for example service subscriptions.  Imagine your finance organization uses a service to help with state income tax rates or expense reporting.  Do they budget for that service?  Does that service index for headcount, does it include support, and how are IT costs impacted by that service? Almost every area of the organization can have embedded IT expenditures, often without the budget owner's recognition.  Even IT can suffer the same issue, consider all the small "tools" developers and system administrators l

In many organizations, Information Technology (IT) represents a  significant portion of the overall budget.  In fact, IT is typically among the top expenditures.  Consequently, this budgetary prominence drives a corresponding level of scrutiny by management; an exercise that is often found to be time-consuming and frustrating for all concerned. Much is written about capturing the value of IT and leveraging processes to ensure value-delivery.  Organizational cultures typically dictate the overall budget process.  During my career, I have labored under many of these systems; each has their advantages and disadvantages.   I am going to leave the overarching budget process for others to debate; the focus here is on how to communicate and sell your budget.   Your budget proposal needs to be communicate in a manner that will resonate with executive charged with approving the budget.  In my experience, this is where the process fails.   As with many issues, ineffective communicati

           Welcome to part three of this blog series, click here for a link to Part One or here for Part Two . Before beginning a prioritization process, it is essential to align the organization on how decisions will be made. Specifically, on the criteria used to evaluate and rank projects across the organization. The criteria is often derived from both internal and external drivers. Internal drives typically include factors such as financial resources, staff availability, pending transformations (e.g. M&As). I also advise looking carefully at the organization's ability to adsorb additional change. External drivers typical involve customer commitments, market conditions, evolving threats and opportunities, and possibly regulatory requirements. Step 4: Managing the Portfolio - Managing the Project List With your criteria in hand, a weighted project list can now be developed. A sample is show below. It lists each project (which is in support of a capability). In this

Welcome to part two of this blog series, click here for a link to Part One . Step 1: Defining the Core Capabilities As noted in the last entry, an organization’s core capability can be viewed as those things an organization does particularly well to drive meaningful business results. Examples can range from talent management, lean manufacturing, customer care, research or product design. For pharmaceuticals, some specific examples could be pipeline management, study design, regulatory management including submissions, responses, and related matters, as well as drug discovery. If you do not already have an organizational capability map, you need to begin by meeting with each business area. From those discussions, you can collaboratively develop a capabilities list for that area. That list will need to be filtered and sorted into priority order. The output from this, as well as discussions with other areas, will then need to be consolidated into a single list. Step 2: Enumerat

There are many things I associate with fall: cooler temperatures, vivid colors, and of course, falling leafs (and raking!) As an IT executive, there is something else I can count on: lots of e-mails focusing on CIO/IT Priorities for the new year. Many of these articles are insightful and can provoke some interesting and thoughtful discussions. Nevertheless, the one-size-fits-all approach can limit their usefulness. Companies, like snowflakes, are unique. In this case, that uniqueness is result of many factors including: Industry Sub-Industry Focus Development state (startup, growth, downsizing) Operating status (pending sale, M&A, legal complications, etc.) Access to capital Talent base Each of these factors can shift priorities, and collectively their impacts can be substantial. Consequently, I view these yearly priority articles as generalized recommendations that may or may not be relevant in my circumstance. To be sure, the often contained points have great value, bu

The topic of Cloud Computing currently ranks in the top-five of IT articles published for IT professionals. Daily we hear about the benefits of this new world, the range of exciting new services now available, and of course how to make the transition. Even with the valuable insights provided by these articles, there is one critical aspect given too little attention or even overlooked entirely. Specifically, how to plan for a breakup. If one accepts the old dictum that change is the only universal constant, then ask yourself why most people do not plan as carefully for unwinding a cloud / SaaS arrangement as we do in setting one up. The details of ending an arrangement can be tricky and not immediately self-evident. These issues are beyond standard legal provisions for exit clauses, terms/conditions, and related matters. It deals with practicality and preparedness. Take this as an example, imagine you use a SaaS system to implement secure e-mail for corresponding with people outside yo

Recently, misfortune struck when a key system failed at a rather inopportune moment.  Fortunately, a replacement was quickly obtained, and I thought it would be up and running quickly.  My hope the matter would be resolved quickly faded when I turned on the machine.  To my disappointment, Windows 8 was pre-installed, and that is when the fun began. My first reaction was one of minor annoyance, but I comforted myself thinking I would learn a few new things during the restoration process.  I certainly learned a lot, far more than I wanted or expected.  The key lesson for me: avoid Windows 8 unless you have a lot of time to invest. The degree of change, particularly with the new interface, Metro (now called "modern UI style") is substantial.  Personally, I did not find the interface intuitive, and it seemed poorly structured.  This caused me to spend a lot of time searching online for guidance to accomplish even the most basic tasks.  Moreover, in an effort to unclutter th

The WSJ published an article today regarding a DOJ antitrust lawsuit over e-book pricing. The case alleges five of the largest publishers in the US conspired to limit competition for the pricing of e-books. Apple appears to be at the center of this mess with an agreement they made with publishers. Apparently this was done prior to the launch of the first iPad. Some key points of the lawsuit surround allegations the publishers sought to limit competition in the retail arena while concurrently driving up the price of e-books. A win-win for Apple and the publishers; not a good outcome for everyone else. So much for the Internet securing better deals for shoppers. This lawsuit is another example of why both individuals and organizations (e.g. their CIOs) need to follow and understand developments in this space. Beyond the basic economic considerations, the shifting sands around the terms and conditions associated with the sale of e-books may have important implications. As noted in

I n an effort to improve overall efficiency, it is not uncommon for organizations to consider embracing some form of outsourcing.  When properly conceived and executed, outsourcing models can provide significant value.  Sadly, these efforts often fall short or take far longer than expected to deliver sought after benefits. Many drivers contribute to this shortfall, but I suspect the most consistent is the implementation strategy. An organization's outsourcing transformation typically evolves through a series of engagement models.  The initial phase often looks like a simple subcontracting engagement with a transaction company to supplier relationship model.  From this model, a more general outsourcing arrangement develops.  More expansive outsourcing is next and often an offshoring component might be added.  Also at this point, the relationship matures to the point that the service provider becomes a partner.  In this role, the outsourcing partner can offer value based on their o

I have been spending a lot of time recently reading material in the e-book format.  I must admit, I am a paper diehard in many ways.  For books, particularly technical books, I really prefer the printed hardbound editions.  Not only do I seem to “bond” with the book, but I also highlight sections, write notes on pages and on some occasions even flag a page.  For long e-mails, I tend to print them as well.  I seem to absorb the material I am dealing with more effectively that way. Final editing is another occasion when paper is also a preferred medium for me.  Errors that seemed invisible on the printed screen just seem to jump out on a printed page.  I better cover myself here and say I did not print this posting before doing a final edit ;-) J.H. Newman once said, “Growth is the only Evidence of Life,” an observation that I have found remarkable insightful on many levels over the years.  It is part of my motivation and passion for continuing to be a lifelong learner across a

There has been a lot written about Bring Your Own Devices (BYOD) along with both the challenges and opportunities they present for organizations.  Throughout all these discussions, one element is consistent: organizations need comprehensive and pragmatic strategies for embracing and managing these devices. Based on recent conversations with people from organizations spanning multiple industries, it is clear to me that tablets (slates), as wells as other personal devices, are already well embedded into the organizations. In some cases, this has been done in partnership with the IT organization. However, in most it has been done under the radar by one or more groups. These devices, personal or otherwise, may already provide critical capabilities to the organization. A wise CIO, Rob Cohen, who I had the good fortune to work for, once told me “that in organizations, as in life, innovation generally occurs on the edges. Over the years, I have seen this observation validated time and time ag