Скачать презентацию Full Cost Budgeting Defending the IT Budget JL Скачать презентацию Full Cost Budgeting Defending the IT Budget JL

04b718604c500053d335e258474fe4c4.ppt

  • Количество слайдов: 30

Full. Cost Budgeting Defending the IT Budget JL Albert, Associate Provost for Information Systems Full. Cost Budgeting Defending the IT Budget JL Albert, Associate Provost for Information Systems & Technology / CIO Mary Jane Casto, Director, Planning & Strategic Initiatives James Amann, Business Analyst Georgia State University Copyright Georgia State University 2009. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

Agenda I. Georgia State and IS&T II. Predicament and Vision III. Solution Search IV. Agenda I. Georgia State and IS&T II. Predicament and Vision III. Solution Search IV. Solution steps and output V. Results VI. What’s next? VII. Q/A

Georgia State University • Georgia State University – Founded in 1913 – Urban research Georgia State University • Georgia State University – Founded in 1913 – Urban research institution in the heart of downtown Atlanta – Mission of excellence in teaching, research and service – Enrollment of 28, 238 FTE and ~40, 000 headcount – 2 nd largest university in GA – Students from every county in GA, every state in the nation and from over 145 countries – GSU Panther Football starts in Fall 2010! GO PANTHERS!

Information Systems & Technology • Information Systems and Technology (IS&T) – Full-service technology provider Information Systems & Technology • Information Systems and Technology (IS&T) – Full-service technology provider – Offering networks, telephones, business applications, research computing, desktops, IT Security, instructional technology and classrooms – Roster of 180 staff – Budget of $23 M

As a new CIO in 2004, I found: • Predicament: – Inconsistent customer focus As a new CIO in 2004, I found: • Predicament: – Inconsistent customer focus – Clients perception that “IT is a budgetary black hole” and the resulting mistrust • My Vision: – Consistently and predictably keep our focus on our customers needs and expand services as requested – Budgetary transparency and defined rates so our value is clear

As a new CIO in 2004, I found: • Predicament: – No information about As a new CIO in 2004, I found: • Predicament: – No information about cost of specific services or products and who uses them – Budget pressures – needs and wants exceed available resources – we were saying “No” a lot • My Vision: – Comprehensive business plans complete with sales forecasts throughout the IT organization – Budgets arrayed by products and services; let clients decide what we do and what they buy But what services are you providing and how much do they cost?

As a new CIO in 2004, I found: • Predicament: – Internal stovepipes and As a new CIO in 2004, I found: • Predicament: – Internal stovepipes and duplicated services – No internal understanding of cost or cost containment • My Vision: – Eliminate internal redundancies due to stovepipes – Budget managers who have the data needed to make sound business decisions

Solution Search • We wanted – – Business and budget planning Product and service Solution Search • We wanted – – Business and budget planning Product and service costing, with rate setting Identification of duplicate services Methodology in addition to software • Answer - NDMA’s Full. Cost® – Integrated business and budget planning process with Excel®-based software – Annual budget, with the full cost of proposed products and services – Business plan that explains how the proposed budget will be delivered – Product/service catalog with rates

James Amann • • Solution steps Solution output James Amann • • Solution steps Solution output

Solution Steps • • Gathered a team of direct reports, plus the next level Solution Steps • • Gathered a team of direct reports, plus the next level reports With facilitation by NDMA, we stepped through the process: 1. Identify all of our lines of business 2. Build product/service catalogs 3. Plan all deliverables, a forecast of our “sales” – to whom and how many 4. Record external direct and indirect costs 5. Integrate the staffing plan to fulfill the sales 6. Execute internal and overhead sales

Step 1 – Identify all lines of business Structural Cybernetics Functional Building Blocks Step 1 – Identify all lines of business Structural Cybernetics Functional Building Blocks

Step 1 – Identify all lines of business • Identification of lines of business Step 1 – Identify all lines of business • Identification of lines of business is driven by what the Budget Managers and their groups sell, for example; Systems Supervision (Of and for subordinate budget units) Consultancy (Client relationship management, sales, etc) Production, Machine-based, Services (Applications, Hosting, Computer time, Storage, etc) Application Development, Repair, Tuning, Enhancements and Support (Engineered application solutions and expert level support) Base Tech Development, Repair, Tuning, Enhancements and Support (Database, System, Storage, Network Print, etc)

Rainbows of gaps and overlaps NDMA’s “Rainbow Exercise” Rainbows of gaps and overlaps NDMA’s “Rainbow Exercise”

Step 2 – Product / service catalogs • Budget managers build their own catalogs Step 2 – Product / service catalogs • Budget managers build their own catalogs – – Catalog items, units, and includes Take ownership of their businesses Responsibility for the products within 800+ catalog items

Step 3 – Plan all deliverables Catalog Item Details Revenue Proponent Prime Hours Checkbook Step 3 – Plan all deliverables Catalog Item Details Revenue Proponent Prime Hours Checkbook EUC Client Prov Y 10 FFS Banner Client F&A Y 50 GIL Web Client Pres Y 5 BOR Prod Internal SYS Y 100 FFS Dev Internal TB N 20 Core Voip Overhead SBM Y 20 Core Wiki Venture Y 200 Cap. Fund • • 9400+ Deliverables 5000+ Prime contracts 31 External clients (Deans, VPs, etc) 64 Internal customers (peers)

Step 3 – Plan all deliverables The operational plan for each budget unit Step 3 – Plan all deliverables The operational plan for each budget unit

Step 4 – External costs Deliverables External Indirect Costs Details Tag Amount Item Details Step 4 – External costs Deliverables External Indirect Costs Details Tag Amount Item Details Tag Cost DB License DBL $4, 000 Red. Dot Editors CMSL $1, 136 DBA Training DBT $1, 500 Red. Dot Admin CMSL $1, 136 CMS License CMSL $3, 000 Red. Dot Admin CMSL $1, 136 CMS Training CMST $700 Banner Student DBL $2, 136 Educause $350 Banner Faculty DBL $2, 136 Travel $100 Support, L 2 Red. Dot CMST $836 Cell Service $500 Support, L 2 Banner DBT $1, 636

Step 5 – Build Staffing Plans • All staff and their compensation rates are Step 5 – Build Staffing Plans • All staff and their compensation rates are entered into the model • Includes contractors that may be needed to augment staff • Billable hours estimates on deliverable rows will drive staffing needs • The model “hires” staff and contractors as needed • Compensation costs now in rates

Step 5 – Build Staffing Plans • Build a sustainable staffing plan with all Step 5 – Build Staffing Plans • Build a sustainable staffing plan with all unbillable time: appropriate training, development, vacation, supervision etc, built-in • Contractor costs are included in blended compensation costs for each unit

Step 6 – Internal and Overhead Sales • All budget managers present their proposed Step 6 – Internal and Overhead Sales • All budget managers present their proposed internal and overhead sales based on past consumption • Exercise in clarity, relevance and readability of catalog items and includes

Step 6 – Internal Sales Internal and overhead sales costs now in rates Step 6 – Internal Sales Internal and overhead sales costs now in rates

Process output • Service Catalog with rates that include – Compensation – Internal direct Process output • Service Catalog with rates that include – Compensation – Internal direct and indirect costs – External direct and indirect costs – Overhead – Headroom which includes contractors • Budgets by client, product set, product, project, budget unit, more …

Catalog with rates Might I suggest the digital overhead camera with that sir? The Catalog with rates Might I suggest the digital overhead camera with that sir? The rates for services provided today and in the coming year

Budget by proponent Mmm-boy! Now that’s good data! Budget by proponent detailing total revenue Budget by proponent Mmm-boy! Now that’s good data! Budget by proponent detailing total revenue and revenue sources (core budget vs. fee for service)

Project costs by prime code Project costs with breakdown of prime and sub revenues Project costs by prime code Project costs with breakdown of prime and sub revenues / costs

JL Albert • • • Results What’s next? Q/A JL Albert • • • Results What’s next? Q/A

External Results • Faculty committee turns from reviewing IS&T to looking at decentralized IT External Results • Faculty committee turns from reviewing IS&T to looking at decentralized IT costs • We can now truly “negotiate” the budget with University clients • Clients can clearly see what we’re doing and what it “costs”; trust is being built • FY 10 budget cuts are imminent; due to our efforts, informed decisions can replace slash and burn

Internal Results • We have a process to continually plan our business and to Internal Results • We have a process to continually plan our business and to make sound business decisions • Team members developed a sense of entrepreneurship, ownership and accountability • Stronger leaders with focus on teamwork and general excitement about the future • We have insight into organizational effectiveness and efficiency • Asset Management information with depreciation built into rates

What’s Next • IS&T has initiated an organizational restructuring with NDMA as the facilitator What’s Next • IS&T has initiated an organizational restructuring with NDMA as the facilitator • Consolidate redundancies • Improve focus (specialization) • Eliminate gaps in service • Be prepared for the future of the business or the technology

Questions? • • JL Albert: jlalbert@gsu. edu Mary Jane Casto: mjcasto@gsu. edu James Amann: Questions? • • JL Albert: [email protected] edu Mary Jane Casto: [email protected] edu James Amann: [email protected] edu NDMA: http: //www. ndma. com – Dean Meyer: [email protected] com