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Allocation

A3

Allocate funding to broad categories of IT activity (for example, infrastructure/product improvements, capability development) to align with objectives and derive business value.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Allocation at each level of maturity.

1Initial
  • Practice
    Determine funding allocations on a best endeavour basis.
    Outcome
    There is little understanding of IT funding except as a cost of doing business.
2Basic
  • Practice
    Allocate protected funds for specific projects.
    Outcome
    Prioritized projects are recognized due to dedicated funding allocations.
    Metric
    % projects with allocated funding.
3Intermediate
  • Practice
    Align funding allocations with IT strategy for key operational and development activities.
    Outcome
    Accountability for IT funds is becoming established.
    Metric
    % of IT projects funding aligned to IT strategy.
4Advanced
  • Practice
    Allocate funding to prioritized activities.
    Outcome
    Funding allocations are aligned with IT and business strategy, creating confidence that funds are used for the intended purpose.
    Metric
    % Visibility of IT funding allocation and use to key stakeholders.
  • Practice
    Distinguish between IT operational funding and general business funding.
    Outcome
    Funding allocations are aligned with IT and business strategy, creating confidence that funds are used for the intended purpose.
    Metric
    % Visibility of IT funding allocation and use to key stakeholders.
5Optimized
  • Practice
    Clearly align broad allocations of funding with business priorities for capability development.
    Outcomes
    • Maximize development of business capabilities that drive strategic or operational advantage.
    • Funding allocations are flexible and adaptable.
    Metric
    % of IT operations with allocated IT funding by service.
  • Practice
    Objectively balance funding allocations against operational, business improvement, and innovation objectives.
    Outcomes
    • The funding cost/benefit equation is well understood.
    • Funding allocations are flexible and adaptable.
    Metric
    % of IT operations with allocated IT funding by service.