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Information Systems Management and Budgeting
Presented by
Jim McKenna
Technology Services Manager, Morrison & Foerster LLP
Goals of Information Systems, Management, and Budgeting
• Continually influence management through past performance, progress in the present, and future deliverables.
• Demonstrated excellence at whatever your technology department is focussed upon.
• To always know what has happened, what is happening, and what will happen.
Why use them?
• What you don’t know, will hurt you.
• Surprises in business are rarely positive.
• Sometimes the bigger cat does not hear “uncle”.
What are information systems?
• Any mechanism which provides data.
• They account for activity.
• Help identify trends
• Offer a glimpse of the future.
What’s a budget?
• Summary of spending activity.
• Tool to help allocate time, talent, and priority.
• A financial foundation for the future.
How do you combine the two? Think of building a house.
• What will it’s selling price be?
• What’s the location like?
• What fits into the existing neighborhood?
• Draw out the finished product first.
What happens when you combine the two?
Past Present FutureWhat
happenedKeeps you on
trackPredict
When did itoccur
Focuses yourdecisions
Justify
How much itcost
Realtimeadjustments
Always readywith answers
What happens when you don’t?
• If they don’t work together, you may be missing the “big picture”.
• It is possible to have different systems fully operational, but not integrated properly.
Budgeting Methodologies:what will work best for you?
• Singular bucket
• Multi bucket
• Time based
• Top down
• Bottom up
• Zero based
How do you create a budget from scratch?
• Zero based
• Spanning years
• Ratio based– qualified FTE’s– number of devices
• COLA budgeting
• Percent of revenues
• Model best practices
What is Predictive management and budgeting?
• Multi year budget
• Staffing
• Budgetary expenditures/cash flows
• Ranking of deliverables
• “What if” flexibility
Where can you get data?
• Financial reports
• Existing budget
• Formal and informal feedback
•H.R. reports
•Vendors/Web
•Tickets/Tags
•Best Practices
Assembling your Information Systems
• Think “Chinese Menu” of results– Funding of this
amount– Delivers these results
• Start simple, grow where necessary, and prune regularly.
• Chart of accounts
• Standard vocabulary
• Standard time reference
• How will you measure “time and talent”?
What type of metrics should you look at?
• Cost per employee
• Cost per supported device
• Uptime
• Internal informal R.O.I.
• Ratio of I.T. folks to employees
• Cost per initiative (measure of value)
• Cost per lawyer
What do you use at your Firm?
• Everything must work together.
• Look out for interdependencies.
• Practice your processes before they are needed.
Make sure to look at both function and process
What should you track?
• Expense• Capital• Projects• Talent• Time• Failures, impediments,
scope creep
“You never want to come up short”
How do you classify work?
Critical HighValue
Enhancements,not critical
Maintenance
Admin
Development
Construction
How often should you deliver?• A magic number is 12:
– 2 Home runs
– 1 Triple
– 3 Doubles
– 6 singles
• Ideally one happens each month.
Either be on base or scoring
Turning data into information• Effective
summaries.
• Graphics.
• Web access.
Always be able to answer “what am I getting for my money”?
•Consistently updated.
•Standard reporting mechanisms.
•Regularly delivered
How to make plans reality
• Equipment Standards• Dedicated Project
Manager• Regular standardized
reports and presentations
• Staff development– 50% of time/$ to
improve skills in existing job
– 30% for assignment du jour
– 20% for next job
Have the answer before the question is asked
Activity Time: Group Solutions• Break into groups, introduce yourselves,
and become best friends.
• You will be assigned an objective, strength, and weakness.
• Create your solution.
• Share “how, why, when, cost” etc.