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

2Basic

• Practice

  Establish a basic IT accounting policy and an AA/cost recovery model.

  Outcome

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

  Metric

  % of IT spend categories covered by the AA/cost recovery model.

3Intermediate

• Practice

  Align the IT accounting policy and AA/cost recovery model with the accounting model defined by Finance.

  Outcomes

  • A standard accounting policy and AA model are fully used by IT, Finance, and some other business units.
  • IT spend can be aligned with planned high-priority business initiatives.

  Metrics

  • % of IT spend categories covered by the AA/cost recovery model.
  • % alignment with the organization's/Finance accounting model.

4Advanced

• Practice

  Fully align and embed the IT accounting policy and AA/cost recovery model with the organization-wide accepted accounting model.

  Outcomes

  • The accounting policy and AA model is fully reconciled with business/finance accounting models and are fully operational across the entire organization.
  • More sophisticated accounting practices (e.g. capture of software development labour capitalization) can be put in place.

  Metrics

  • % of IT spend categories covered by the AA/cost recovery model.
  • % alignment with the organization's/Finance accounting model.

5Optimized

• Practice

  Optimize the AA model to enable business units to fully control their costs (e.g. volume and quality).

  Outcome

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

  Metrics

  • % of IT spend categories covered by the AA/cost recovery model.
  • % alignment with the organization's/Finance accounting model.