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    Build an IT Budget

    For IT budgets to be effective, they need to be more than numbers on a spreadsheet. They need to tell an easy-to-understand story.

    IT is perceived as a cost center for many organizations that don’t deliver value. And because finance executives have a limited understanding of IT and its vocabulary, getting spreadsheet budgets approved can be a struggle.

    How it works

    Start by understanding the initiatives your organization's business units are proposing. This knowledge allows you to get a head start on forecasting IT costs.
    Anticipate the questions that will be asked and areas that people will likely focus on or challenge, then build your budget to address these potential concerns upfront.
    Structure your budget so that it’s transparent and easy to understand without overloading the reader with too much detail or complexity. It needs to communicate future needs and how much value will be delivered from the investment. 
    Most importantly, your IT budget needs to help the organization make the right decisions by clearly explaining the implication of its choices. 

    Outcomes

    • The ability to explain how the proposed new initiatives could benefit the organization and deliver value to people with little IT knowledge
    • Builds a solid case to increase the likelihood of approval
    • Ties cost reductions to service reductions and deferred projects