Funding Levels
Set the overall level of IT funding for the organization based on, for example, strategic priorities and competitive benchmarks.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Funding Levels at each level of maturity.
- 2Basic
- Practice
- Base funding levels on last year's budget with some adjustments.
- Outcome
- The annual budget is the same as last years +/- targets.
- Metric
- % of funding based on last year's budget.
- 3Intermediate
- Practice
- Review most funding levels annually and adjust them based on the IT strategy, predominantly cost-only benchmarking, and some defined IT improvement opportunities.
- Outcome
- IT funding levels become more aligned with IT's strategic and opportunistic goals.
- Metric
- % of funding linked to specific IT initiatives.
- 4Advanced
- Practice
- Determine funding levels by analysing IT and business strategies, and by regular cost-quality benchmarking.
- Outcome
- IT funding levels are in line with industry norms.
- Metric
- % of funding linked to external benchmarks.
- 5Optimized
- Practice
- Develop and utilize extensive (industry) benchmarks, directly correlated to risk/return objectives, as a key input for setting funding levels for development and operational initiatives.
- Outcome
- The objective benchmarking of IT funding levels avoids over or under investment based on industry norms.
- Metric
- Funding levels directly correlated to return/risk objectives.