Your Chief Financial Officer (CFO) is responsible for the financial health and prosperity of the company. In very simple terms, the future of the company depends on more income and outgoings.
These days IT is a major cost center, underpinning many aspects of the business. So if the CFO comes to visit, thumping the table to reduce our IT costs – what can we do?
In an ideal world, all of our IT costs would be closely aligned and paired with the IT services they enable.
Each of our services would be quantified in terms of value, and the components parts required to deliver the service (partners, services, people, assets, and so on) would be measured and quantified against the value they deliver.
In this case, when the CFO says cut costs, we can reply and say “what services do you want cut or reduced?” Reducing the number or quality of services would theoretically reduce costs.
Back down here on earth, IT management is not usually that closely aligned or organized, and many organizations lack the maturity and management controls to manage value closely.
If your IT Value and IT Services are not yet aligned, the best target to aim for - to reduce IT costs in this short term - is to identify WASTE.
Here are three tactical projects to eliminate waste and save money. These projects are ‘low hanging fruit’; they can be acted upon even when your company is not spending big money on new projects and growth.
They just need a bit of planning, perseverance, and people power!
By working on these tactical projects IT staff can free up IT budget and demonstrate savings. This can build momentum for longer term IT Asset Management initiatives and efficient IT spending.