The IT Financial Analyst and Value Reporting

By: Deb Krueger, Thavron Solutions

“The best financial models are simple enough for anyone to understand, yet dynamic enough to handle complex situations.” — Tim Vipond.

Organizations strive to complete the vision and the mission within the value structure they are given.

Annual goals for organizations and individuals are those that are defined by the CEO. From the CEO’s goals, the remaining C-suite personnel is given their goals. Hopefully, the goals are then cascaded down to the C-suite’s chain of command, until everyone within the organization has goals defined which are meeting the CEO’s vision for the coming year.

Value reporting is designed to define the key performance indicators (KPI), which align best to the organization’s goals for the year. By reporting these KPI’s, the CEO can at a glance decide if the organization is on target or if or where adjustments are needed.

A well designed ITFM solution helps build the KPI report for the IT department, which ultimately will feed into a report for the CEO that includes KPI’s from other departments, such as Human Resources, Marketing, etc.

Reporting from the ITFM office must be varied

Line by line budget to actual reporting is helpful, to the analysts who are putting together a high-level report; however, this report has little utility to the C-suite members. The CIO dashboard must ultimately report on the projects which are the highest priority, the successes or failures of the IT department to meet the needs of internal and/or external customers, the vendors which can be leveraged for volume discounts, the amount of budget which is available to undertake another project (if/when it presents itself) and so on. This dashboard will look significantly different than one that is available to a service provider, who will be interested in how his/her service is performing. A strong, powerful ITFM office can understand that different audiences have very different views of an organization and can meet the needs of the cost accountant, the service provider, the IT management team, the M&A team, and the CIO, along with other customers of the office. Additionally, the ITFM tool allows that every report comes from the same source, the G/L, thus alleviating the painful realization that promised savings are just not obtainable. This isn’t an easy proposition, but this type of value reporting brings the ITFM analyst and office to their fullest potential.

We are a Services Management Consulting company assisting both outsourced service providers and internal corporate service providers drive value