Page 16 - 2020 January E-issue

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Crunch the Numbers or the Numbers will Crunch You

— by Andrè Godfrey

It’s January! It’s budget time – or perhaps it’s budget man (woman)! Think! What did you do this past
review. In either case 2020 is here and you need to year: enhance security, created a faster network, on
get your IT budget prepped and presented before the boarded a number of new employees, assisted in
other departments claim all of it. You have the same acquisitions, improved your support, and/or upgraded
issues as last year, so I am going to repeat exactly company applications? If you want to add budget, you
what I said last year. MUST demonstrate you can do something with it.

You need a strategy, my friend, because there are a The three areas where most IT Management begin to
number of issues you need to address. Do you ask consider budgeting are staff, hardware/software and
for more than you need, knowing in advance that the projects.
powers that be are going to whittle you down? Do
you look at your IT spend for 2019 and add 15%? People: A good place to start is with your people. Do
Make it flat because that’s the best you can do? Or you need to add staff? Do you need to give someone
do you shrug your shoulders and say whats the use, a raise? Can you justify it? Hardware/software: What’s
knowing from past experience that your well thought old and needs to be new? Whats slow and needs
out arguments will fall on deaf ears? Perhaps you are to be faster? Projects: Can you articulate both the
a bit weary from past experiences but hear me out. technical framework and an immediate and future
Get the budget you want and when you succeed you ROI?
will look forward to the coming year. If your efforts are
in vain, then 2020 is just another year of being asked Now what are you going to accomplish next year?
to do more with less. How will your future accomplishment help senior
management and their goals? If it doesnt translate
Let’s start with industry standards. easily to senior management needs then you may
The average small company (less than $50 million in revenue) want to think again. Got it? Ok, now the pizazz! If
spends 6.9% of their revenue on IT you are considering sending this off in a spreadsheet
Mid-sized (between $50 million - $2 billion) spend 4.1% dont waste your time. You need mindshare. You need
Larger companies (over $2 billion) spend 3.2% C-Level buy-in. Perhaps a champion would help.
Chances are someone on that level shares your vision.
Or ask sales/marketing for presentation help. Then
So how do you measure up? Whether your personal
numbers are higher or lower they will alter your practice your presentation. You got this!
strategy. If you are budgeted below industry standard
then you should be congratulated for keeping costs Think about IT.
down but with the caveat that those efforts come
with a price down the road and that your company Andrè Godfrey is
may have reached that road mark and is currently
running the risk of being left in your competitors President,
technological dust. Whether your comparative number
is high or low it would do you, your department, Entre Computer Services,
and your company a lot of good to reflect on the www.entrecs.com
department accomplishments in the past year. Think

16 | The ROCHESTER ENGINEER JANUARY 2020 get IT done