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Representative POMs are described for Accounting Policy and Cost Recovery Model at each level of maturity.

1Initial

• Practice

  Use an ad hoc accounting model on a best endeavour basis.

2Basic

• Practice

  Establish a basic accounting and allocation model.

  Outcome

  Basic resource management and IT accounting can track IT assets, expenses, and capital expenditures.

  Metric

  % of IT spend categories covered by accounting model.

• Practice

  Make basic IT costs visible for some business units.

  Outcome

  Chargeback can be introduced at the BU level.

  Metric

  % of IT spend covered by chargeback.

3Intermediate

• Practice

  Align with the organization accounting model defined by Finance.

  Outcome

  IT spend is aligned with planned high-priority business initiatives.

  Metrics

  • IT Productivity: [Cost per standard IT output].
  • % of IT costs charged back to business by projects and services.

4Advanced

• Practice

  Embed the IT AA model in the cost model of Finance and other business functions.

  Outcomes

  • The AA model is fully reconciled with business/Finance cost models.
  • More sophisticated accounting practices e.g. capture of software development labour capitalization are in place.

  Metric

  Relative Value Added: [IT attributable Value Added per IT Resource Unit (VAITRU)].

5Optimized

• Practice

  Optimize the IT accounting model to enable business units to fully control their costs, i.e. volume and quality.

  Outcomes

  • Business units can quantify, evaluate, and compare the value provided by IT.
  • Business units are able to steer IT service usage based on the required quality/volume and price.

  Metrics

  • % of relevant costs directly charged back to BUs.
  • Absolute Value Added: [IT attributable Value created (ITVA) per IT Resource Unit (ITRU)].
  • Net Present Value (NPV) of IT projects.