Manage IT Budgets & Cost

1. Manage IT Budgets & Cost World Class Operations - Impact Workshop

2. Beyond Practical Research – Workshops Get You To Results Workshops: Leverage Best-Practices Research & Get to Action • Unlike other Research firms, we believe it’s important to help our members implement improvements. • An on-site 40-hour workshop, which allows you to make systematic improvements to your core processes. • Workshops are designed to help focus attention, create alignment, and ensure best practices are put to work at your organization. • Our workshops help you get to immediate impact and results, and are tailored to your situation and needs. Workshops: Focused on You Implementing Improvements • The goal of each Capability Optimization Workshop is to create tangible benefits and clear improvements as a direct result of the workshop. • Specific deliverables, goals, metrics, and outcomes are established for each workshop. • Successful workshops will leverage Info-Tech’s years of analyst experience and written research, to provide an engaging experience that focuses on implementing and getting to measurable results. • Each workshop begins by diagnosing the current state, and then focuses on designing high-impact improvements based on best-practices research. • Three & Six Month follow-up will occur to ensure benefit realization. Info-Tech Workshops provide the best-practices and implementation support necessary to help an IT leader build a World Class IT Operation Diagnose Current State Capability Optimization Workshop Right-sizing Process Measuring Benefits Process Design Implementation Support

3. What is IT Budget & Costing? Immature or poorly executed IT budget and costing causes: Wasted investments in non-critical IT initiatives. Inability to secure funding for important projects. Low levels of business satisfaction with IT service and performance. Poor visibility into IT resource usage amongst the organization. Large variance between budgeted and incurred costs. A formalized IT budget and costing process results in: Specific criteria for assessing the relevance of IT investments to business objectives. Documented and prioritized list of IT initiatives for the coming year. Rigorous evaluation of the benefits and costs of upcoming initiatives, relative to corporate objectives. Increased alignment and support from the business. Increased budget availability. A formal process for managing IT spending to ensure alignment of IT services with strategic business objectives.

4. Workshop Schedule & Core Deliverables

5. Day 1: Manage Finance & Accounting 1.1 Review High-Level Goals 1.2 Collect Documentation 1.3 Determine Stakeholder Budget Goals 1.4 Define High-Level Financial Process Define current processes for budget planning, resource allocation, cost allocation, and cost optimization Discuss agenda and complete introductions Gather financial information Discuss overall goals of the IT budgeting process to address pain points, alignment, funding, and the current approach Understand the organization’s processes for budgeting Review reasons for undertaking this process Outline high-level roles and responsibilities for the current process Familiarize the group with the final deliverables Review Organizational budget deadlines, reporting, responsibilities, and IT chart of accounts

6. Day 2: Prioritize Resource Allocation 2.1 Uncover Issues & Opportunities 2.2 Decide on a Process for Prioritization 2.3 Decide on a Points Tracking System Whiteboard the current process for prioritizing IT-related projects Establish responsibility by creating a committee Develop criteria to ensure business alignment Decide if a points tracking system is beneficial Decide on a procedure for collection and sponsorship Create a process for ranking projects Create a points tracking system Assess and discuss where improvements can be made to the current process Decide on communication and review process for ranked initiatives Create an IT steering committee to govern points tracking Define thresholds for projects to be reviewed by committee Develop criteria to right-size and improve business cases Decide on a process for incorporating change Establish how cost cutoffs will be determined for initiatives Decide on a budget submission process

7. Day 3: Create & Maintain the IT Budget 3.1 Identify Issues & Opportunities 3.2 Manage Budget Decision Makers 3.3 Build the Budget 3.4 Document & Communicate Discuss the current budget process and identify where improvements can be made Establish responsibility for each step in the process Capture committed IT spend Determine how the budget will be documented Capture approved project estimates Determine how the budget will be communicated to IT and the CFO Align Expectations with budget stakeholders Decide how the budget will capture workload and staff size requirements Decide how the budget will capture IT initiatives Decide how contingency funds will be allocated

8. Day 4: Create a Cost Allocation System 4.1 Evaluate Need for a Cost Allocation Model 4.2 Decide on a Cost Allocation Model 4.3 Conduct a Historical Study of IT Usage 4.4 Create an Improved Capture System 4.5 Communicate the Cost of IT Usage Discuss the organization’s current state of allocation Analyze the current cost capturing system Right-size a cost allocation model for the needs of the organization Take a snapshot of historical usage for departments and services Determine how IT usage will be communicated with stakeholders Determine necessary changes and opportunities Determine how changes will be implemented to the system Analyze trends and current usage patterns to identify areas of change Identify Issues and Opportunities with the current system Determine a timeline for review Analyze the effectiveness of the current IT chart of accounts in relation to the model Determine business unit accountability Ascertain the need for and interest in allocating IT costs

9. Day 5: Manage IT Costs 5.1 Discuss Goals & Issues 5.2 Create a Cost Management Process 5.3 Optimize Costs Outline roles, timelines, and metrics Discuss the need for a procedure for reducing and optimizing costs Discuss issues and opportunities in managing IT costs Create a cost analysis process to identify and address significant budget variances Establish goals for managing costs Discuss budget and cost reduction targets Develop a strategy for IT cost cutting Outline a benefit realization process to capture true benefits of initiatives Define the reporting methods for cost and benefits analysis

10. Client Testimonials The twists and turns that the workshop took to personalize it to us, exceeded my expectations, and we actually ended up overall exceeding because we created things that I hadn’t anticipated doing. -University I thought there was a real product delivered out of this week... that, longer term, could mean significant improvements for us. -University

11. IT Budget Workshop Primary Deliverable:Best Practice Approach to IT Budgeting Customized to your Process • Build a system that is transparent and repeatable, and utilize it each year. • Align resource allocation with organizational strategy and goals. • Promote IT as a partner in the business, instead of as a cost center. • Establish a right-sized process for tracking the achievement of costs and benefits, as outlined in business cases, over time. Establish a Cost Optimization Strategy Project Prioritization Process and Tool Assess and Right Size Your Business Case

12. IT Budget Workshop Core Deliverables • Eight Key Deliverables will be completed during the Workshop: Financial & Accounting Process Outline • Define and understand the financial and accounting processes in the organization. • Outline goals, processes, responsibilities, and timelines. Project Prioritization Process and Tool • Complete a full walk-through of the decision making process and create a draft process manual for prioritization detailing best-practice activities. • Align resource allocation with organizational strategy and goals. 1 3 • Business Case Template • Review all proposals through a standard business case template. • Right-size the business case template or co-design a template with an ITRG analyst. • Points Tracking System • Create a points tracking system and steering committee for smaller initiatives. 2 4

13. IT Budget Workshop Core Deliverables • Eight Key Deliverables will be completed during the Workshop: • Budget Evaluation Process • Complete a full walk-through of the budget process and create a draft process manual detailing best-practice activities. Cost Allocation Process & Model • Create a cost allocation process, which includes a right-sized cost allocation model, an updated method of classifying costs, and an optimized cost capture system. 7 5 • Cost Management Strategy • Establish a right-sized process for tracking the achievement of costs and benefits as outlined in business cases over time. • Cost Optimization Strategy • Complete a full walk-through of the process for optimizing costs, and create a draft process manual detailing best practice activities. 6 8

14. Manage IT Budgets & Cost Workshop:Built on World Class Research, Experience, and Standards • 139 page Research Report • 19 in-depth activities and exercises • Ability to accommodate 100 of your top projects Research Process Tools & Templates • Team with over 30 years experience. • Over 2,800 hours of research. • Based on primary and in-field research. • Process Guide • Investment Mix Visualization • Business Case Assessment • Business Case Prioritization • Points Tracking System • Milestone Report • Portfolio Metrics Evaluation • Benefits Summary & Analysis COBIT Driven • Grounded in open international standards. • APO06 Manage Budgetand Costs.