In many organizations, IT budgets have become larger
than they need to be. Cost cutting is a major change and change is never easy
especially when dealing with knowledge workers such as Information Technology
personnel. The challenge is how to make significant cuts while retaining and
motivating not only the most talented IT people but also bringing on board
sponsors of various IT projects in the business units whose projects may be cut.
The challenge becomes bigger if the goal is to increase the benefits to the
business of Information Technology after significant IT budget cuts. To be
successful at meeting this challenge, apply Theory ZYX to cost reduction in IT.
Multiple views of spending fit well within the Theory ZYX framework
:
Projects
Software
Hardware
Salaries
Consultants
Outsourced services
The starting point is usually a Change Audit utilizing Theory ZYX
methodology. Sure of the questions the audit answers include the following:
- Are
procurement practices world class to receive the very best pricing from the
vendors?
- In
procurement decisions, is the concept of Total Cost of Ownership pervasive?
- Is Project
Management Office or equivalent mechanism effective?
- Does IT have
a cost effective strategy to provide maximum benefits to the business units?
- Is the IT
strategy or some critical projects held hostage by one or two business
units?
- Can the costs
of consultants be drastically reduced?
- Can the cost
of maintenance contracts be substantially reduced?
- Can more
hardware and software be standardized?
- Should
certain tasks be outsourced?
- Should number
of employees in IT be downsized?
........ and
more
To reduce IT
spending and simultaneously increase the benefits of IT to the organization,
please contact us.
|
