Is your IT Organization just a “cost center” ?

How does senior management of your company view your IT organization?

Do they see you as simply a cost center, , , an organization that spends lots of money, , , something that’s probably necessary but hard to identify the value they get from such expenditures?

Do they understand what your IT organization is spending money on and why?

Do they think you and your IT employees have an insatiable desire for technology, , , new toys that are pretty darn expensive but may not contribute to the well being of the company?

If you haven’t asked yourself these questions you need to. It’s vitally important for your success to learn how your senior management team views the company’s IT organization. IT is an investment and you hope they view your organization and what you are doing as a very good investment.

It’s very easy for senior management to see you as simply a cost to the company. Over 90% of all IT organizations do not create revenue for the company so every dollar you spend truly is a cost to the company.

The question is this, “Is the IT expense incurred a good investment or not?”

Another question of sorts is that you should realize how much most senior management teams want to spend in IT. Do you know the answer?

It’s pretty simple, , , most senior management teams want to spend $0.00, , , nothing, , , nadda. Most senior management teams would spend no money in IT if they could.

The problem is that your company needs technology for people to do their jobs, , , and technology has to be supported, , , so we need an IT organization. But what’s more important is that your IT organization needs to provide so much real value for the company that senior management wants to find ways to take advantage of the leverage IT offers the company.

That’s right – leverage.

Your IT organization gives your company more leverage than any other organization in your company. IT is the only organization that can positively impact every other organization in the company. Providing technology solutions can improve productivity or help reduce cost in every organization of your company, , , real leverage.

But, , , if your senior management team sees your IT organization as a cost center, they don’t understand the leverage possibilities you offer. And if that’s the case, they look for ways to limit spending in IT, , , not for ways to take more and more advantage of the leverage possibilities you offer.

How do you find out?
Simple, , , go ask them. Ask your senior managers how they view their IT organization – a value add, a tangible business value, a necessary expense, or a drain on resources?

Can they articulate and define the business value your IT organization provides in quantifiable and specific terms?

If they can’t, it’s very possible they don’t really have a good indicator as to what the value is that you bring to the table, , , and they probably see you as a cost, , , or “cost center.”

Better yet, , , can you define the business value your IT organization provides to your company? Not in a general way, but in very specific terms that identify quantifiable and tangible business value resulting from the work IT is doing. If not, there is much work to do.

Do you know what business value is? If not, I recommend you read the post titled, Business value is key right now.

IT can be a super star
Become an IT organization that does three things consistently and you are golden.

  1. Your IT recommendations always have tangible and quantifiable business value objectives.
  2. Every IT recommendation can be clearly cost justified.
  3. Your IT organization delivers what you commit to deliver.

Every day you must earn your company’s respect.

Every day you must help your company understand the business value IT is providing. If you don’t communicate this to managers of your company, they won’t know – GUARANTEED !!

Create this understanding and gain their respect by delivering what you say you will do and senior management will help you do more for them by funding more and more IT initiatives. It’s the key way to becoming a partner with the senior management team of your company.

Don’t allow your organization to be considered just a “cost center”. You and your staff deserve a lot more, and the ball is in your court to do something about it.

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