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The Financial Management Toolkit The Missing Financial Management Planning Process Theory and Tools Guide ITIL Compliant_5 docx

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3.2 Policies, Objectives & Scope IT Services Policies, Objectives & Scope Process: Financial Management Status: In draft Under Review Sent for Approval Approved Rejected Version: I

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3.2 Policies, Objectives & Scope

IT Services

Policies, Objectives & Scope Process: Financial Management

Status: In draft

Under Review Sent for Approval Approved Rejected

Version: <<your version>>

IT Service Continuity Date:

Trang 3

Policies, Objectives and Scope for Financial Management

The document is not to be considered an extensive statement as its topics have to

be generic enough to suit any reader for any organization

However, the reader will certainly be reminded of the key topics that have to be

considered

Policy Statement

A course of action, guiding principle, or procedure considered expedient, prudent,

or advantageous

Use this text box to answer the “SENSE OF URGENCY” question regarding this

process

Why is effort being put into this process?

Not simply because someone thinks it’s a good idea That won’t do The reason has

to be based in business benefits

You must be able to concisely document the reason behind starting or improving this

process

Is it because of legal requirements or competitive advantage? Perhaps the business

has suffered major problems or user satisfaction ratings are at the point where

outsourcing is being considered

A policy statement any bigger than this text box, may be too lengthy to read, lose the

intended audience with detail, not be clearly focused on answering the WHY question

for this process

The above Policy Statement was;

Prepared by:

On: <<date>>

And accepted by:

On: <<date>>

Refer to Implementation Plan – Project Plan for planning and implementation

guidelines (that includes the Policy, Objectives and Scope statements)

Trang 4

Objectives Statement

Something worked toward or striven for; a goal

Use this text box to answer the “WHERE ARE WE GOING” question regarding this

process

What will be the end result of this process and how will we know when we have

reached the end result?

Will we know because we will establish a few key metrics or measurements or will it

be a more subjective decision, based on instinct?

A generic sample statement on the “objective” for Financial Management is:

The object of Financial Management is to provide stewardship for the cost

effectiveness of the IT Services and the supporting Infrastructure in such a

manner that IT Services can be budgeted for, accounted for, and charged at a

fair and reasonable price In addition to this, Financial Management will

perform iterative optimization activities to ensure constant improvements and

alignment

Note the keywords in the statement For the statement on Financial

Management they are “cost effective” and “budgeting, accounting and

charging” These are definite areas that we can set metrics for and therefore

measure progress

An objective statement any bigger than this text box, may be too lengthy to read,

lose the intended audience with detail, not be clearly focused on answering the

WHERE question for this process

The above Objective Statement was;

Prepared by:

On: <<date>>

And accepted by:

On: <<date>>

Refer to Objectives and Goals for detailed statement of process

objectives/goals

Refer to Reports, KPIs and other Metrics for metrics, KPI’s for Financial

Management

Trang 5

Scope Statement

The area covered by a given activity or subject

The above Scope Statement was;

Prepared by:

On: <<date>>

And accepted by:

On: <<date>>

Use this text box to answer the “WHAT” question regarding this process

What are the boundaries for this process?

What does the information flow look like into this process and from this process to

other processes and functional areas?

A generic sample statement on the “scope” for Financial Management is:

The Financial Management process will be responsible for budgeting,

accounting and charging involving the following aspects of the IT

Infrastructure:

• Hardware

• Software

• System Software

• Etc Financial Management will not be responsible for those components that

exist under the banner of Applications Development

An scope statement any bigger than this text box, may be too lengthy to read, lose

the intended audience with detail, not be clearly focused on answering the WHAT

question for this process

Trang 6

3.3 Communication Plan

IT Services

Communication Plan Process: Financial Management

Status: In draft

Under Review Sent for Approval Approved Rejected

Version: <<your version>>

IT Service Continuity Date:

Trang 7

Communication Plan for Financial Management

The document is not to be considered an extensive statement as its topics

have to be generic enough to suit any reader for any organization

However, the reader will certainly be reminded of the key topics that have to

be considered

This document serves as a GUIDE FOR COMMUNICATIONS REQUIRED

for the Financial Management process This document provides a basis

for completion within your own organization

This document contains suggestions regarding information to share

with others The document is deliberately concise and broken into

communication modules This will allow the reader to pick and choose

information for e-mails, flyers, etc from one or more modules if and

when appropriate

This document was;

Prepared by:

On: <<date>>

And accepted by:

On: <<date>>

Trang 8

Initial Communication

Sell the Benefits

First steps in communication require the need to answer the question that most people

(quite rightly) ask when the IT department suggests a new system, a new way of working

WHY?

It is here that we need to promote and sell the benefits However, be cautious of using

generic words

Generic Benefit statements Specific Organizational example

Improved Customer Service This is important because…

Reduction in the number of Incidents In recent times our incidents within IT

have…

Provides quicker resolution of

Incidents

Apart from the obvious benefits, the IT department in recent times has…

Improved Organizational learning A recent example of … saw the individual

and others in the company start to…

The above Communication module (or elements of) was/were distributed;

To:

On: <<date>>

By:

On: <<date>>

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Financial Management Goal

The Goal of Financial Management

The Goal of Financial Management can be promoted in the following manner

Official Goal Statement: To provide cost effective stewardship of the IT Assets

through a Financial Management process, providing budgeting, accounting and

charging policies

• High visibility and wide channels of communication are essential in this process

Gather specific Financial Requirements from nominated personnel

(Special Tip: Beware of using only Managers to gain information from, as the resistance

factor will be high)

• Oversee the monitoring of process to ensure that the business needs of IT are

not impacted, but taking into account that changes are required to ensure

continued high levels of IT Service Delivery and Support

• Provide relevant reports to nominated personnel

(Special Tip: Beware of reporting only to Managers If you speak to a lot of people

regarding Service Support and Delivery then you need to establish ways to report to

these people the outcomes and progress of the discussions)

Always bear in mind the “so what” factor when discussing areas like goals and

objectives If you cannot honestly and sensibly answer the question “so what” – then you

are not selling the message in a way that is personal to the listener and gets their

“buy-in”

The above Financial Management Goals module was distributed;

To:

On: <<date>>

By:

On: <<date>>

Trang 10

Financial Management Activities

Intrusive & Hidden Activities

Information regarding activities was distributed;

To:

On: <<date>>

By:

On: <<date>>

The list of actions in this module will have a direct impact on end users and IT Staff

They will be curious as to why working with them in this manner, rather than the

historical method of just “doing it” There could be an element of suspicion and

resistance, so consider different strategies to overcome this initial skepticism

• Interview and record the needs from the Business

• Capture any critical areas

• Create Financial Management criteria based on the requirements

2 Budgeting

• Perform an assessment of the critical services from a cost perspective

• Put in place communication guidelines for distributing the budget

• Create the IT Budget Allow accurate scope for predicting costs for the coming

year

3 Accounting

• Create a cost model

• Setup measurements for the cost model based on Service and delivery areas

• Communicate the cost model

4 Charging

• Correct categorization of cost types, elements and units is essential to

determine the right level of charging

• Communicate methods for charging for the IT Services

• Provide a simple, fair and realistic charging policy for IT Services

5 Reporting

• Set appropriate Service Level Achievements

• Agree through Service Level Management the SLA’s for Financial

Management

• Communicate to IT Staff the reason and benefits

• Communicate to business staff the reasons and benefits

Trang 11

Financial Management Planning

Costs

Details regarding the cost of Financial Management were distributed;

To:

On: <<date>>

By:

On: <<date>>

Information relating to costs may be a topic that would be held back from general

communication Failure to convince people of the benefits will mean total rejection of

associate costs If required, costs fall under several categories:

• Personnel – Financial Management staff, database management team (Set-up

and ongoing of the availability database)

• Accommodation – Physical location (Set-up and ongoing)

• Software – Tools (Set-up and ongoing)

• Hardware – Infrastructure (Set-up)

• Education – Training (Set-up and ongoing)

• Procedures – external consultants etc (Set-up)

The costs of implementing Financial Management will be outweighed by the benefits For

example, many organizations have a negative perception of the Financial Management

process as it seems to constantly measure the wrong services To alleviate this,

customers and end-users need to be constantly informed of the activities and services

being provided through Financial Management This provides good customer service and

adds a level of comfort to the users in the sense that they can “see” action taking place

A well run Financial Management process will make major inroads into altering the

perception of the IT Organization

Trang 12

3.4 Financial Management Process Manager

IT Services

Roles and Responsibilities Process: Financial Management

Status:

Version: 0.1

Release Date:

Trang 13

Detailed responsibilities of the Financial Management process owner

The Financial Manager…

1 Will work, at an appropriate level, with representatives of

the organization management and the Finance

Department, to develop the policies of Budgeting, IT

Accounting and Charging

2 Will implement and maintain the IT Financial

Management Process, covering Budgeting, IT

Accounting and Charging

3 Will assist in developing account plans and investment

cases for the IT organization and its Customers

4 Must be capable of managing the IT organization

budget

5 Will prepare budget forecasts and assist Customers in

preparing IT elements of their budgets

6 Will be requires to report regularly to IT managers and

Customers on conformance to budgets

7 Should select suitable tools and processes for gathering

Cost data

8 Will provide guidance for the development of suitable

cost models

9 Will seek agreement for suitable IT Accounting policies,

e.g Depreciation

10 Will assist in developing cost-benefit cases for IT

investments

11 Will provide advice to senior management on the

cost-effectiveness of IT solutions

12 Will identify methods of charging within the

organizations charging policy

13 Will provide justifications and comparisons for charges

Use the notes/Comments column in

different ways If you are looking

to apply for a process role, then you can check yourself against the list (with ticks or look

to update your resume)

If you are looking

to appoint a process manager

or promote someone from within the organization you can make notes about their abilities in the particular area

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