5 Things You Need To Get IT Budget Approval
Thinking about presenting your new IT plans to the board? You’ll need to create an IT budget proposal that the board members can stand behind and the secret behind a successful budget approval is presenting the benefits your budget brings to the business. In business terms!
The following five things will help you get your IT budget approved.
Statistics & Analytics
Without the numbers to back up your arguments on upcoming IT plans, you won’t get far. Prepare statistics and your analysis of the current state of business and IT solutions currently in use. This way, the board will have a reference point when you present the impact of IT on departments and the overall business.
Prepare relevant comparisons and how these will affect the bottom line. Your goal here is to present a valid business case that can validate IT spending, especially if you want a green light for new initiatives you might have planned.
To increase your chances, avoid presenting overly complex plans that would drag on for several years. Such comparisons might discourage the board when they see how much money such huge projects eat up. Instead, divide your project into smaller tasks and present and compare only those you wish to implement first. Basically, pick your battles!
Risks & Solutions
Shedding some light on current risks the company is facing – whether it’s outdated backup systems, loops in cybersecurity, or lack of automation in the marketing department – will help the board understand why things have to change.
Then present how implementations of suggested technologies and software mitigate risks. This is how Boardish can help! It helps you quantify your risks and solutions and turns it into a financial risk, something the board understands well.
When presenting your budget and solutions, avoid using overly technical explanations or jargon that only the IT department understands.
The board of directors is comprised of individuals from different departments, and chances are that some of them aren’t tech-savvy. Even if they ask technical questions your answer should focus on the business side of things: how the current and proposed solution affect efficiency, scalability, flexibility, or other factors that matter to them.
Use language that’s easy to understand and present it from a perspective that will be interesting to the board. Focus on explaining what’s in it for the business, how you’ll decrease the risks, and how your solutions will improve the bottom line and increase the value of the company.
For processes that might be harder to grasp, use real-life examples and analogies to get your point across.
Only present the IT budget to the board after talking to chiefs/managers from other departments. They can tell you which operations and processes take time and resources now, and how IT solutions could help reduce the time and cost of these. This will also show the board that the budget you’re proposing is aimed towards improving operations within departments. Basically, it will show them that your solution can help save money, or earn even more.
The success rate of your IT budget depends on the level of preparation you pour into its creation, and how you present it.