IVI Framework Viewer

Governance and Communication

B2

Apply appropriate oversight and communication approaches to ensure that business unit stakeholders understand and have buy-in to cost allocation and recovery policies.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Governance and Communication at each level of maturity.

1Initial
  • Practice
    An IT accounting model is used on a best endeavour basis.
2Basic
  • Practice
    Commence simple gathering and reporting of IT cost elements to help visualize the overall IT costs, for some business units.
    Outcomes
    • There is basic usage of an IT accounting model.
    • Basic gathering & reporting of some IT costs occurs, e.g. these may be aggregated into 4–8 categories some of which can be clearly allocated to some business units.
    Metric
    Frequency of reporting of IT cost allocations.
3Intermediate
  • Practice
    Ensure participation of both IT and Finance in the AA model.
    Outcome
    A better understanding is promoted across the organization of the IT costs pertaining to particular business units.
    Metrics
    • IT Productivity: [Cost per standard IT output].
    • % of IT costs charged back to business by projects and services.
4Advanced
  • Practice
    Ensure participation of IT and Finance and other business units in the AA model.
    Outcomes
    • There is clear understanding of AA model is established across the organization and this influences consumption.
    • The model is used by IT, Finance, and other business units.
    • A wider understanding of the IT AA model influences consumption.
    • By making the accounting of IT costs visible to business units, end users are encouraged to adapt their resource usage as appropriate.
    Metric
    Relative Value Added: [IT-attributable Value Added per IT Resource Unit (VAITRU)].
5Optimized
  • Practice
    Ensure that IT accounting is used in the strategic decision-making process across the business ecosystem e.g. for budgeting and portfolio planning.
    Outcome
    By using the AA model in strategic decision-making across the business ecosystem the comprehensive and accurate view of IT costs enables the IT function to support strategic decisions and to (re-)prioritize IT investment in line with the shifting priorities of business initiatives.
    Metrics
    • % of relevant costs directly charged back to business.
    • Absolute Value Added: [IT attributable Value created (ITVA) per IT Resource Unit (ITRU)].
    • Net Present Value (NPV) of IT projects.