- Management Reference Guide
- Table of Contents
- Introduction
- Strategic Management
- Establishing Goals, Objectives, and Strategies
- Aligning IT Goals with Corporate Business Goals
- Utilizing Effective Planning Techniques
- Developing Worthwhile Mission Statements
- Developing Worthwhile Vision Statements
- Instituting Practical Corporate Values
- Budgeting Considerations in an IT Environment
- Introduction to Conducting an Effective SWOT Analysis
- IT Governance and Disaster Recovery, Part One
- IT Governance and Disaster Recovery, Part Two
- Customer Management
- Identifying Key External Customers
- Identifying Key Internal Customers
- Negotiating with Customers and Suppliers—Part 1: An Introduction
- Negotiating With Customers and Suppliers—Part 2: Reaching Agreement
- Negotiating and Managing Realistic Customer Expectations
- Service Management
- Identifying Key Services for Business Users
- Service-Level Agreements That Really Work
- How IT Evolved into a Service Organization
- FAQs About Systems Management (SM)
- FAQs About Availability (AV)
- FAQs About Performance and Tuning (PT)
- FAQs About Service Desk (SD)
- FAQs About Change Management (CM)
- FAQs About Configuration Management (CF)
- FAQs About Capacity Planning (CP)
- FAQs About Network Management
- FAQs About Storage Management (SM)
- FAQs About Production Acceptance (PA)
- FAQs About Release Management (RM)
- FAQs About Disaster Recovery (DR)
- FAQs About Business Continuity (BC)
- FAQs About Security (SE)
- FAQs About Service Level Management (SL)
- FAQs About Financial Management (FN)
- FAQs About Problem Management (PM)
- FAQs About Facilities Management (FM)
- Process Management
- Developing Robust Processes
- Establishing Mutually Beneficial Process Metrics
- Change Management—Part 1
- Change Management—Part 2
- Change Management—Part 3
- Audit Reconnaissance: Releasing Resources Through the IT Audit
- Problem Management
- Problem Management–Part 2: Process Design
- Problem Management–Part 3: Process Implementation
- Business Continuity Emergency Communications Plan
- Capacity Planning – Part One: Why It is Seldom Done Well
- Capacity Planning – Part Two: Developing a Capacity Planning Process
- Capacity Planning — Part Three: Benefits and Helpful Tips
- Capacity Planning – Part Four: Hidden Upgrade Costs and
- Improving Business Process Management, Part 1
- Improving Business Process Management, Part 2
- 20 Major Elements of Facilities Management
- Major Physical Exposures Common to a Data Center
- Evaluating the Physical Environment
- Nightmare Incidents with Disaster Recovery Plans
- Developing a Robust Configuration Management Process
- Developing a Robust Configuration Management Process – Part Two
- Automating a Robust Infrastructure Process
- Improving High Availability — Part One: Definitions and Terms
- Improving High Availability — Part Two: Definitions and Terms
- Improving High Availability — Part Three: The Seven R's of High Availability
- Improving High Availability — Part Four: Assessing an Availability Process
- Methods for Brainstorming and Prioritizing Requirements
- Introduction to Disk Storage Management — Part One
- Storage Management—Part Two: Performance
- Storage Management—Part Three: Reliability
- Storage Management—Part Four: Recoverability
- Twelve Traits of World-Class Infrastructures — Part One
- Twelve Traits of World-Class Infrastructures — Part Two
- Meeting Today's Cooling Challenges of Data Centers
- Strategic Security, Part One: Assessment
- Strategic Security, Part Two: Development
- Strategic Security, Part Three: Implementation
- Strategic Security, Part Four: ITIL Implications
- Production Acceptance Part One – Definition and Benefits
- Production Acceptance Part Two – Initial Steps
- Production Acceptance Part Three – Middle Steps
- Production Acceptance Part Four – Ongoing Steps
- Case Study: Planning a Service Desk Part One – Objectives
- Case Study: Planning a Service Desk Part Two – SWOT
- Case Study: Implementing an ITIL Service Desk – Part One
- Case Study: Implementing a Service Desk Part Two – Tool Selection
- Ethics, Scandals and Legislation
- Outsourcing in Response to Legislation
- Supplier Management
- Identifying Key External Suppliers
- Identifying Key Internal Suppliers
- Integrating the Four Key Elements of Good Customer Service
- Enhancing the Customer/Supplier Matrix
- Voice Over IP, Part One — What VoIP Is, and Is Not
- Voice Over IP, Part Two — Benefits, Cost Savings and Features of VoIP
- Application Management
- Production Acceptance
- Distinguishing New Applications from New Versions of Existing Applications
- Assessing a Production Acceptance Process
- Effective Use of a Software Development Life Cycle
- The Role of Project Management in SDLC— Part 2
- Communication in Project Management – Part One: Barriers to Effective Communication
- Communication in Project Management – Part Two: Examples of Effective Communication
- Safeguarding Personal Information in the Workplace: A Case Study
- Combating the Year-end Budget Blitz—Part 1: Building a Manageable Schedule
- Combating the Year-end Budget Blitz—Part 2: Tracking and Reporting Availability
- References
- Developing an ITIL Feasibility Analysis
- Organization and Personnel Management
- Optimizing IT Organizational Structures
- Factors That Influence Restructuring Decisions
- Alternative Locations for the Help Desk
- Alternative Locations for Database Administration
- Alternative Locations for Network Operations
- Alternative Locations for Web Design
- Alternative Locations for Risk Management
- Alternative Locations for Systems Management
- Practical Tips To Retaining Key Personnel
- Benefits and Drawbacks of Using IT Consultants and Contractors
- Deciding Between the Use of Contractors versus Consultants
- Managing Employee Skill Sets and Skill Levels
- Assessing Skill Levels of Current Onboard Staff
- Recruiting Infrastructure Staff from the Outside
- Selecting the Most Qualified Candidate
- 7 Tips for Managing the Use of Mobile Devices
- Useful Websites for IT Managers
- References
- Automating Robust Processes
- Evaluating Process Documentation — Part One: Quality and Value
- Evaluating Process Documentation — Part Two: Benefits and Use of a Quality-Value Matrix
- When Should You Integrate or Segregate Service Desks?
- Five Instructive Ideas for Interviewing
- Eight Surefire Tips to Use When Being Interviewed
- 12 Helpful Hints To Make Meetings More Productive
- Eight Uncommon Tips To Improve Your Writing
- Ten Helpful Tips To Improve Fire Drills
- Sorting Out Today’s Various Training Options
- Business Ethics and Corporate Scandals – Part 1
- Business Ethics and Corporate Scandals – Part 2
- 12 Tips for More Effective Emails
- Management Communication: Back to the Basics, Part One
- Management Communication: Back to the Basics, Part Two
- Management Communication: Back to the Basics, Part Three
- Asset Management
- Managing Hardware Inventories
- Introduction to Hardware Inventories
- Processes To Manage Hardware Inventories
- Use of a Hardware Inventory Database
- References
- Managing Software Inventories
- Business Continuity Management
- Ten Lessons Learned from Real-Life Disasters
- Ten Lessons Learned From Real-Life Disasters, Part 2
- Differences Between Disaster Recovery and Business Continuity , Part 1
- Differences Between Disaster Recovery and Business Continuity , Part 2
- 15 Common Terms and Definitions of Business Continuity
- The Federal Government’s Role in Disaster Recovery
- The 12 Common Mistakes That Cause BIAs To Fail—Part 1
- The 12 Common Mistakes That Cause BIAs To Fail—Part 2
- The 12 Common Mistakes That Cause BIAs To Fail—Part 3
- The 12 Common Mistakes That Cause BIAs To Fail—Part 4
- Conducting an Effective Table Top Exercise (TTE) — Part 1
- Conducting an Effective Table Top Exercise (TTE) — Part 2
- Conducting an Effective Table Top Exercise (TTE) — Part 3
- Conducting an Effective Table Top Exercise (TTE) — Part 4
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part One
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Two
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Three
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Four
- The Information Technology Infrastructure Library (ITIL)
- The Origins of ITIL
- The Foundation of ITIL: Service Management
- Five Reasons for Revising ITIL
- The Relationship of Service Delivery and Service Support to All of ITIL
- Ten Common Myths About Implementing ITIL, Part One
- Ten Common Myths About Implementing ITIL, Part Two
- Characteristics of ITIL Version 3
- Ten Benefits of itSMF and its IIL Pocket Guide
- Translating the Goals of the ITIL Service Delivery Processes
- Translating the Goals of the ITIL Service Support Processes
- Elements of ITIL Least Understood, Part One: Service Delivery Processes
- Case Study: Recovery Reactions to a Renegade Rodent
- Elements of ITIL Least Understood, Part Two: Service Support
- Case Studies
- Case Study — Preparing for Hurricane Charley
- Case Study — The Linux Decision
- Case Study — Production Acceptance at an Aerospace Firm
- Case Study — Production Acceptance at a Defense Contractor
- Case Study — Evaluating Mainframe Processes
- Case Study — Evaluating Recovery Sites, Part One: Quantitative Comparisons/Natural Disasters
- Case Study — Evaluating Recovery Sites, Part Two: Quantitative Comparisons/Man-made Disasters
- Case Study — Evaluating Recovery Sites, Part Three: Qualitative Comparisons
- Case Study — Evaluating Recovery Sites, Part Four: Take-Aways
- Disaster Recovery Test Case Study Part One: Planning
- Disaster Recovery Test Case Study Part Two: Planning and Walk-Through
- Disaster Recovery Test Case Study Part Three: Execution
- Disaster Recovery Test Case Study Part Four: Follow-Up
- Assessing the Robustness of a Vendor’s Data Center, Part One: Qualitative Measures
- Assessing the Robustness of a Vendor’s Data Center, Part Two: Quantitative Measures
- Case Study: Lessons Learned from a World-Wide Disaster Recovery Exercise, Part One: What Did the Team Do Well
- (d) Case Study: Lessons Learned from a World-Wide Disaster Recovery Exercise, Part Two
Budgets play a critical role in any type of organization. This is especially true in an IT environment as companies grow more dependent on IT for higher productivity, greater competitive advantage and increased profits. This section provides a brief, high-level insight to the budgeting process from my perspective and experiences as an IT executive.
Many IT leaders feel that budgeting is a long and painful process with very little return on investment for the level of effort made. This feeling often stems from the immaturity of the organization's budgeting process and the lack of its understanding by IT leaders. It is imperative that IT managers recognize and treat IT budgeting as a process, and realize that enhancements to the IT budget process can produce significant rewards.
Factors that Undermine the Budgeting Process
I have worked for many different IT organizations over the years and have observed the following four factors that consistently undermine the budgeting process:
Insufficient time - Most organizations provide insufficient time to plan and prepare a budget adequately. One company I worked at began their annual budgeting process three months into the fiscal year and expected the budget to be completed within two weeks.
Ad-hoc perception – In this case the process is perceived as a one-time 'fire-drill' exercise. A former client of mine had the idea that once the budget was complete, tracking of variances and forecasting trends were not required since the budget already was approved. The thinking was that this exercise was not necessary until next year and further enhancements to the process would be a waste of time and resources.
Undefined expectations – This arise when expectations from senior management are not defined. Specific criteria, timeframes, and approval cycles should be clear and understood. I worked at one firm that developed its budget in a total vacuum. With no direction from the business units as far as strategic initiatives for the upcoming year, expectations were not clearly defined which in turn affected both capital and operating expenditures.
Lengthy expenditure process - Once the budget is approved, you may still be subjected to a long and frustrating process to execute on the approved expenditures. This happened to me at a company that did not utilize the formal budget process effectively. After enduring a long and arduous budget process, a requestor had to endure another lengthy approval process for each purchase order generated.
Enhancing the Budgeting Process
As an IT organization matures with its processes and standards, the budgeting process becomes more continual. The following are some of the enhancements one can make to the budgeting process as an organization matures.
Consistently allow for sufficient time to plan. For example, start your budgetary process in the same timeframe each year enterprise-wide such as the third quarter of your fiscal year.
Establish a standard template and format of the information being requested. For instance, ensure senior management clearly defines the data to collect and the factors to consider.
Gather historical information that pertains to the budget and create a baseline from which to build.
As IT continues to evolve, organizations are realizing that previous budgeting decisions are no longer valid and applicable. The passing of new governance laws and regulations are forcing organizations to implement a more comprehensive financial management methodology framework. In light of recent developments, here are a few suggestions to enhance the IT budgeting process:
Use the investment portfolio approach. – The investment portfolio approach treats IT as a revenue generating entity. The objective is to ensure that IT arrives at optimum decisions and realizes the desired results within the expected timeframes and budgets. The payoff is a strategic and long-term outlook that treats IT as an investment asset instead of an expensive liability; managers compare costs against longer term requirements, needs and benefits.
Develop a consolidated projects list. - The IT budgetary process begins with the organization identifying projects needed to grow their specific business lines. The next steps are to prioritize the projects for IT to perform an assessment, gather requirements, design both physically and conceptually, perform QA testing, and implement into production. The objective is to provide the IT leaders the complete picture of all proposed projects, the cost associated with these projects, and their prioritization. This provides a level of objectivity in the decision-making process that is lacking in many organizations. The payoff is that it enables IT leaders to have all the information needed to demonstrate that the business units, and not IT, are driving the costs.
Identify key costs and resource data. - Managing the IT budget provides key costs and resource data. The objective is to have the ability to view both project related and recurring costs that are essential to formulate budgetary justifications. Managers can monitor these costs against the plan to identify deviations that can be addressed or corrected instantaneously. The payoff, like the previous suggestion above, provides IT leaders and management with a clear picture of initiatives and their total cost of ownership. This enables a more extensive analysis to be performed during planning and implementation. IT leaders gain insights in lieu of subjective or unreliable information.
IT leaders do not have to be subject matter experts when it comes to the budgeting process, but they must understand the basics. Upon acquiring this understanding of fundamental budgeting concepts, IT leaders then have some of the necessary tools needed to improve IT planning and management.