Established Enterprise Capital Allocation Process

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Summary: Client engaged FPG because IT spend continued to rise with declining business results and progress across key strategic areas of focus.

Main (quantifiable) Outcome: Built model and process to link IT spend to business outcomes. Reduced waste and duplication of efforts and aligned all investments against strategic priorities enabling full support of business objectives for less than the allocated budget.

Context and Complexity:

  • Poor definition, alignment and communication of strategic priorities

  • Multiple capital budgets spread across the organization (both IT and Business)

  • Minimal IT portfolio management capabilities and process

  • Funding commitments made in silos without rationalization against enterprise business or technology priorities.

Actions:

  • Worked with executive team to identify "big 5" strategic areas for allocating capital and % of spend targeted for each area

  • Built and implemented end to end process for capital allocation from intake through monitoring for results

  • Defined and implemented prioritization process

  • Worked with the business and IT to construct capability model to link business process with technology

  • Centralized all capital budgets across the enterprise into newly defined process

  • Shifted from annual funding allocation to monthly funding meetings for target capital budget

  • Established funding milestones for allocated capital to ensure/monitor delivery of results

Outcomes

  • Ability to meet demands of the business well below the targeted $400M budget

  • Improved visibility to IT portfolio of technologies and duplication of capabilities across silos

  • Established language (capability model) improving communication between business and IT

  • Prioritization model highlighted and communicated key metrics across all project teams and stakeholders improving organizational focus toward business outcomes

  • Cemented a culture of accountability

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