Financial (Billing, Revenue, GP, Cost) Management

A Jñāna Optimized Unified Delivery Model utilizes Financial Management Systems that provide Senior Managers the skills and confidence they need to analyze and interpret financial information for improved decision making.

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• To be able to fully account for the spend on IT services and to be able to assign these costs to the services delivered to the organization’s customers
• To assist management decisions on IT investment by providing detailed cost analysis regarding changes to IT services

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The Objective of The Process:

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• To provide cost effective stewardship of the IT assets and resources used in providing IT services

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Sample List of Benefits:

• Improved Attainment of Revenue, GP, and Cost targets.
• Improve Budgeting process that can establish future requirements to deliver IT services.
• Improved Accounting of cost expenditures to support IT services.
• Improved Chargeback process to allow IT to charge for services provided.

Sample List of Observations:

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• Propercost management system not in place.
• Tracking Of labour and non-labour costs not in place.
• Utilization Targets not established.
• Utilization Rates inconsistent.
• Procurement Process for HW/SW not fully defined or executed consistently.

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Sample List of Recommendations:

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• Develop reports and system to track labour and non-labour costs.
• Ensure annual plans are developed to track financial performance against targets.
• Establish utilization targets and ensure alignment.

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Assessment Questions:

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1. Do you have a process for managing Labour and Non-Labour Costs?
2. Do you have Annual Interlocks with the appropriate teams?
3. Do you Establish utilization targets to drive financial targets attainment?
4. Do you have a process to manage procurement of HW/SW/Labour?
5. Do you Review Revenue against plan/target?
6. Do youReview GP against plan/target?
7. Do you Review Costs (Labour/Non-Labour) against plan/target?
8. Do you Compare forecast against plan/target?
9. Do you Compare actuals against plan/target?
10. Do you Review gaps to target for Revenue, GP, Cost?
11. Do you Provide Roadmap items to close gap to targets?
12. Do you Provide current status of financials?
13. Do you Provide next steps in meeting financial objectives?
14. Do you Provide help needed in meeting financial objectives?
15. Do you Review forecasting models for Revenue, GP, Costs?
16. Do you Build Annual Fall Plans?
17. Do you Build waterfall plans?
18. Do you Review financial performance weekly in cadence meetings against Monthly/Quarterly/First Half/Second Half, Full year plans/targets?
19. Do you Provide Cost Take-out options?
20. Please provide details on your financial management responsibilities.
21. Please provide details on how you are held accountable for achieving the financial management objectives for your department.
22. Please provide details on whether your department is currently operating within the prescribed Cost Model/financial parameters.
23. Please provide details on whether the current Cost Model/Interlock provide adequate resources to provide support for the key deliverables and expectations.
24. Please provide details about the process for developing your Annual Budget.
25. Please provide details about your process for comparing actuals to outlook. [Variance Analysis]
26. Please provide details on how financial implications are considered when choosing the best way of delivering services and products or carrying out operations.
27. Please Provide details on the process of getting advice on the financial viability of proposals involving significant expenditures.
28. Please Provide details if the financial elements are properly reviewed before you submit your plans and proposals for approval.
29. Please Provide details about your plans and proposals meeting the expectations of those who review and approve them.
30. Please provide details on the usage of your operation plans to adjust your resourcing requirements.
31. Please provide details on how your spending decisions reflect good cash management practices.
32. Please provide details about your asset management practices and how they result in getting the best possible value.
33. Please provide details on the financial information you receive from your organization to help you to better plan your financial plan.
34. Please provide details regarding the financial reports that you receive and if they enable you to make better decisions.
35. Please provide details about the accuracy and completeness of your financial management information.
36. Please provide details about the availability of support and advice to help you to execute your financial management responsibilities.
37. Please provide details about the level of authority delegated to you.
38. Please provide details about financial audits and reviews that take place to help youto build and manage your financial plan.
39. Please provide details on any Cost Take Out Initiatives that you are actively involved in implementing.