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Subject: Information Technology Budgeting

Tutorial: What Every Manager Needs To Know About Budgeting

Issue: Budgets are the lifeblood of IT organizations; yet, most managers feel the process is painful, takes too long, and yields little benefit for the effort invested. Two of the factors that contribute to this situation are (1) weak budgeting processes, and (2) inadequate understanding of budgeting by IT managers and staff.

Purpose: This tutorial is designed to provide non-financial managers and staff with a basic understanding of some fundamental budgeting concepts. Once the basics are known and understood, non-financial personnel will be better able to learn to make budgets and budgeting a tool for improved IT planning and management.

Objective: Our aim is to give you a brief, high-level introduction to some important and fundamental budgeting concepts. The issue of budgeting for information technology is explored from the operations and project manager’s point of view. Common misconceptions are discussed, and four fundamental concepts are explained in non-financial terms.

Your Comments: The goal of this web site is to provide useful information to those who must cope with the issues; this tutorial is part of that effort. RMS would appreciate your comments and suggestions to help us make the information as useful as possible. Please take a few minutes to complete the evaluation form at the end of this tutorial.

What Every Manager Needs To Know About Budgeting




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