KEY POINTS TO REMEMBER | The Budgeting Process

The budget:

• Understand the IT budget in detail.
• Consider shifting allowable costs between operating and capital budgets.
• Manage the budget on a regular basis.

Financial options:

• Use zero-based budgeting to understand and justify every cost.
• Evaluate the impact of leasing versus buying.
• Charging back IT costs may not be the best answer.

Communication:

• Your relationship with finance and the CFO is critical for surviving the budgeting process.
• Surprises or assumptions hurt your credibility.
• Communicate the budget in acceptable terms so the business has control of the decisions.
• Base the budget on projects that you align with the business, are driven by the business, and are supported through the governance process.
• Communicate the impact of budget cuts to the business.

Perspective:

• Keep the budgets and the budgeting process in perspective. It is not everything.