January 1, 2010
    This entry is one in a series of Top 10 lessons learned by Ron Potter in his previous job as the Director of Capacity Planning at a Fortune 100 health insurance provider.


    Short term memory goes first


    For the most part, executives have a short attention span. You have to keep reminding them of your past accomplishments, especially when the benefits span IT and non-IT departments. For example, IT adds an application that automates a process. As a result, a business unit needs 200 fewer people. Management makes a conscious decision to add costs to IT in order to enjoy the benefits of the overall reduction. During the next budget cycle, the CIO is attacked because his costs are up while others are substantially down. What went wrong?


    When we were developing IT Service Optimization (ITSO) processes, we noticed that several successful IT organizations kept a historical log of their accomplishments and the overall benefits the organization enjoyed as a result of the work. Every year the previous year's log would be included in the budget submission. A log reminds management of the decisions made over the past year where tradeoffs between technology expense and business cost reductions were made. Doing so usually results in much more constructive budget discussions. As a result, historical logging has been, and will continue to be, an important part of ITSO.  It is included in Step 5 - Manage service performance.


    For more information on ITSO, please visit our website or you can always contact us.


    Until the next post…


    Ron



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