 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Subject: Information Technology Budgeting
Tutorial: What Every Manager Needs To Know About Budgeting
Five Common Misconceptions
IT-Business Articles, Tutorials & Webcasts
Free gateway to global IT-business skills knowledge.
Subject: Information Technology Budgeting
Tutorial: What Every Manager Needs To Know About Budgeting
No. 5: Senior Management Doesn’t Care What We Have To Say
One of the most serious problems that many organizations are experiencing is a communication gap between the IT organization and senior management. For most senior managers, the language of IT is a foreign language. When IT professionals describe the need for, and benefits of, technology, they frequently communicate this information in technical terms that don’t have a great deal of meaning for non-technical managers.
Information technology is a significant cost to organizations; often, IT is cited as the number two expense following personnel. Senior management wants and needs to know about IT; but, they need to know about it in terms that they understand - the language of business, not technology.
The problem is not that senior management doesn’t care what IT professionals have to say; it is that senior management don’t understand what they are saying. IT organizations are learning to solve this problem by:
- writing better budget justifications
- implementing IT budget planning processes that complement their organization’s budget process
- taking the view that IT is an investment rather than an expense, and demonstrating this to senior management in clear and compelling business terms
The gap can be closed; but, it requires the initiative of forward-looking IT management to do it.
What Every Manager Needs To Know About Budgeting, Lesson 6 of 14
 |
 |
 |
 |
Return To: