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Subject: Information Technology Budgeting

Tutorial: What Every Manager Needs To Know About Budgeting

 

Five Common Misconceptions


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

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