Tuesday, October 6, 2009

Requesting Funding in Tough Economic Times

In these tough economic times how can CIOs get the budget necessary to support key initiatives and application plans. The following steps from Janco & Associates are how to approach a presentation seeking to gain management support for the required funding.

Define the scope, objectives, and requirement - It is not enough to have an objective of getting more funding or gaining executive support. Define exactly how much funding is needed, or exactly what form the executive support should take.

Verify expectations - Define what management's expectations for the meeting are.

Focus on immediate term business impact - It makes more sense to get the commitment for resources to achieve a preliminary objective than to demand the resources for an entire new program and get nothing.

Anticipate objections - Realize that the number one objection is the cost, and prepare accordingly. Let the results of the business impact analysis (BIA) justify the "investment" (not "cost").

Prepare a competitive analysis - Executives care what their competition is doing. Annual benchmark studies and surveys are good sources of information on the investments in IT being made by industry, by size of organization, etc.

Prepare examples of what has happened to others - Remind the executives of the regulations that affect their business, and the impact of not achieving them.

Define the Risk/Reward - Research and develop the request's return on investment.

Get buy-in for key decision makers before you meet to ask for a decision - The effort will have greater success if key decision makers and other departments within the organization support the program. The power of a presentation supported by key executives, marketing, IT security, physical security, human resources, facilities, and risk management is highly significant.

More information on the IT industry can be found at http://www.supportindustry.com/

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