Management of Unit Costs
Inform decision-making regarding unit cost adjustments — for example, those relating to pricing and consumption.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Management of Unit Costs at each level of maturity.
- 2Basic
- Practice
- Electively adjust unit costs in a limited number of circumstances based on IT budget performance analysis.
- Outcome
- The IT function is able to adjust budgets, thereby increasing flexibility.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- Practice
- Occasionally use IT budget performance analysis to inform discussion with other business units about their consumption of IT services.
- Outcome
- The IT function is able to adjust budgets based on consumption data.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- 3Intermediate
- Practice
- Consistently and periodically adjust unit costs based on IT budget performance analysis.
- Outcome
- There is a periodic increase or decrease in unit costs via a consistent process.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- Practice
- Routinely use IT budget performance analysis to inform discussion with other business units about their consumption of IT services and prices.
- Outcome
- There is a periodic increase or decrease in unit costs via a consistent process.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- 4Advanced
- Practice
- Continually adjust unit costs based on IT budget performance analysis.
- Outcome
- There is a continual increase or decrease in unit costs, as appropriate.
- Metric
- % of projects that meet their IT budgets. # of changes to project budgets per quarter. $ value of changes to project budgets per quarter.
- Practice
- Use IT budget performance analysis as a basis for agreeing IT service consumption and pricing with the entire organization.
- Outcome
- There is a continual increase or decrease in unit costs, as appropriate.
- Metric
- % of projects that meet their IT budgets. # of changes to project budgets per quarter. $ value of changes to project budgets per quarter.
- 5Optimized
- Practice
- Optimize unit cost management for business value based on IT budget performance analysis.
- Outcome
- Budget analysis is used to identify opportunities and optimize unit cost management decisions for business value.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- Total $ saved by BOP team. Total new revenue enabled by BOP team.
- Practice
- Use IT budget performance analysis to inform levels of IT consumption and optimize pricing decisions for business value.
- Outcome
- Budget analysis is used to inform levels of IT consumption and optimize pricing decisions for business value.
- Metrics
- % of projects that meet their IT budgets.
- # of changes to project budgets per quarter.
- $ value of changes to project budgets per quarter.
- Total $ saved by BOP team.
- Total new revenue enabled by BOP team.