Business Alignment - Part Two

If the Business says “Go West!”, IT needs to get a compass.

Central to many problems and issues facing IT is the disconnect between business goals and IT goals.   It is not an issue of focus; it is an issue of communication.  Ascension has repeatedly observed that when IT sits at the table of high-level business decision, IT tends to move in line with the business.  IT must respect the direction of the business, and the business must respect the ability for IT to help or hinder business.  We advise that IT and business sit at the table together on strategic issues.

Matching IT burns rates with revenues: a marriage made in heaven.

This concept is relatively new. Ascension promotes the concept of a two-tier IT budget. The first tier is ongoing expenses that "keep the ship afloat,”  such as infrastructure, systems maintenance, and base wages for necessary staff. The second tier is a quarterly re-forecasted budget of new projects or initiatives based on last quarter’s revenue performance.  Agile budgeting focuses on access to real funds and involves the business as an integral part of the decision-making.  This is in contrast to the old methods of budgeting.  This new construct forces IT to behave in alignment with the business and forces the business to seek IT's services to directly help increase revenues.

We hope these observation are helpful.  Please let us know if we can help you in your business endeavors. Ascension has experience and a long tradition in technology management, such as

¨ Information Technology and Product Development Management

¨ IT Services and Best Practices

Please call us at 425-750-0760 or email us at info@ascension-tg.com.