By Lalo Perez
Chief Financial
Officer
City of Palo Alto
With technology evolving rapidly,
it’s becoming more difficult to make funding decisions and to ensure that
stakeholders back IT projects. During a session at the year’s 2nd Annual ConNEXTions 2014: A Frost & Sullivan
Executive MindXchange, Lalo Perez, Chief Financial Officer for the City of
Palo Alto, talked about the challenges from a CFO’s perspective and offered
advice for determining the right way to fund technology.
IT governance is critical today,
Perez said, because there are many organizational needs but limited resources.
The times have changed – Palo Alto has a smaller budget than it used to, with
less money available to spend on technology and infrastructure. The IT team
also has 10% fewer employees than in past years. Organizations everywhere need
to be more careful with how they spend money and use staff time.
Include All Stakeholders
One important step for improved
decision will be getting more involvement from throughout the organization,
Perez explained. Key stakeholders need to be a part of the technology decision
making process, and this group needs to have a shared, stated vision – it
shouldn’t just be the CFO making the calls.
A team of stakeholders should be
assigned to keep everything organized, and regular meetings need to be scheduled.
A standard assessment and prioritization process should be developed, with a staff
position dedicated to managing IT decisions.
Organizations should also create a
reporting mechanism so everyone can see the status of their IT plans and
projects. Transparency will be key to keeping IT processes aligned to the
organization’s budget and for keeping stakeholder interest high.
Build on Success
Past success is a key factor that
influences funding choices in the future, Perez explained. That’s why it’s
important to measure successes and give decision makers transparent information
about the status of IT projects. Those decision makers will judge the outcomes
of the project versus the cost and staff time that were dedicated.
For Palo Alto, stakeholders
include the taxpayers, so the city created an open budget that gave the public
the chance to see where money was going.
When seeking funding, it’s
important to tell a story, Perez said. CIOs need to describe the problem using
data analytics, establish relationships and understand the culture that they’re
in, and identify potential solutions and their expected impact.
3 Trends Shaping the Future of IT Spending
CFOs also need to watch out for changing
trends in technology, and CIOs can help them understand those ideas.
Perez listed what he sees as the
three most important trends IT and Finance leaders need to look out for:
·
Mobility – People these days are glued to
their iPads and iPhones, so information has to be easily accessed by employees,
customers, and others from these devices.
·
Cloud computing – There was a big push for the
organization to move to the cloud, Perez said, and cloud computing is often
looked at as a cost-reduction tool.
·
Big Data – Instead of older – and more
time-consuming – ways of organizing and viewing data, Big Data will allow
organizations to automatically collect and analyze information from a lot of
different sources.
Final Thought
With less staff and a smaller
budget, the City of Palo Alto – like all organizations – needs to be thorough
in its research on what technologies are best for their organization. Keeping
up with the trends, establishing relationships, and identifying potential
solutions and their expected impact is key for presenting a budget case to
decision makers.
The technology selection process
shouldn’t just be the CFO making the decision – key stakeholders also need to
be a part of the process to share their input.
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