IT Financial Management (ITFM) has become one of the most important initiatives for any organization. When IT can improve service while lowering costs, everyone benefits. Unfortunately, this is not always the result with ITFM implementation.
Bad implementations happen. In fact, according to Gartner Inc., “Through 2021, 30% of ITFM tool implementations will fail to provide the desired benefit, due to the lack of clear IT leadership mandate/charter, bad data discipline and poorly executed cost-model designs.”1
But with the right planning and roadmap, your ITFM deployment will not only succeed – it will flourish. Long-term ITFM success begins with taking the right steps today.
ITFM IMPLEMENTATION STEP 1: CREATE A CROSS-FUNCTIONAL STEERING COMMITTEE
The success of your ITFM project starts with prudent and informed decisions. To make that idea a reality, it’s critical to create a steering committee composed of multiple perspectives. This allows each affected department to voice its goals and concerns, which fosters consensus for the strategic and tactical choices an ITFM implementation will require and inspires collaboration toward shared objectives.
Ideally, your steering committee will include:
- Executive sponsors from both IT and Corporate Finance, such as the CIO or VP of IT Finance, and the CFO, VP of Finance, or Controller
- Stakeholders from the ITFM group who will be implementing the program, such as the Director of ITFM
- Additional stakeholders from Finance, such as the SVP Financial Planning and Analysis or an IT Controller
- Representatives from IT Operations such as the Director of Infrastructure and Director of IT Operations
- Internal customers and business partners such as the Director of Divisional Operations and VP of E-Commerce Operations
- Project Management Office presence
- Vendor Management Office presence
- Internal Audit presence
A cross-functional steering committee is only the first of many critical steps in a successful ITFM implementation. This team should form in the beginning but must stay connected to ensure the ongoing goals of the business are met with the chosen ITFM tool.
In the next blog, we’ll discuss the importance of clearly defined strategic goals, supported by aligned tactical goals and plans. Don’t want to wait?
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1 Gartner, Five Success Factors for IT Financial Management Tool Initiatives, June, 2017