According to Jonathan Feldman, IT budgeting practices are stuck in the past because, while IT is still predominantly centralized, there is a great deal of technology spending outside of that budget – and many of those technology areas are on track to grow. IT budgeting is not changing to reflect this trend.
InformationWeek’s IT Budget Survey notes that 50 percent of respondents don’t believe their company’s budget process is flexible enough, 75 percent do not have a formal process for addressing unexpected expenses and not even 50 percent believe their company will add enough IT resources to meet changing business objectives.
So, how can you improve budgeting? Here’s what Feldman recommends:
- Build a participatory governance model
- Display agility in IT operations and project delivery
- Utilize benchmark data to showcase comparisons that provide credibility to requests/decisions
- Sing the praises of your department, what you’re doing and how well it’s going
IT budgeting is integral to IT success, as well as in showcasing to the rest of the organization the value of what you are spending on. Regular budgetary assessments are necessary in advancing the organization of IT and allocation of resources.
My work with the IVI working group responsible for examining the financial critical capabilities necessary for running IT like a business has led me to the conclusion that mature IT organizations have advanced best practices in budget management, budget oversight and budget allocation.
The IT-CMF is a framework for establishing and advancing these best practices, and it’s worth taking a look at if you want to improve your organization’s IT budgeting processes.
Access the full article: Same Old Budget Battle.
Do you think IT budgeting needs an overhaul? What are your recommendations?