Enabling Processes

Align, Plan and Organise
82
: ENABLING PROCESSES
APO06 Process Practices, Inputs/Outputs and Activities (cont.)
Management Practice Inputs Outputs
APO06.05 Manage costs.
Implement a cost management process comparing
actual costs to budgets. Costs should be monitored and
reported and, in the case of deviations, identified in a
timely manner and their impact on enterprise processes
and services assessed.
From Description Description To
EDM02.03 Feedback on portfolio and
programme performance
BAI01.02 Programme benefit
realisation plan
BAI01.04 Programme budget and
benefits register
BAI01.05 Results of benefit
realisation monitoring
Activities
Cost data collection
method
Internal
Cost consolidation method Internal
Cost optimisation
opportunities
APO02.02
1. Ensure proper authority and independence between IT budget holders and the individuals who capture, analyse and report financial information.
2. Establish time scales for the operation of the cost management process in line with budgeting and accounting requirements.
3. Define a method for the collection of relevant data to identify deviations for:
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– The actual trend of service cost for cost optimisation of services (e.g., defined as cost per user)
– Actual vs. budget for responsiveness and predictability improvements of solutions delivery
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4. Define how costs are consolidated for the appropriate levels in the enterprise and how they will be presented to the stakeholders. The reports provide
information to enable the timely identification of required corrective actions.
5. Instruct those responsible for cost management to capture, collect and consolidate the data, and present and report the data to the appropriate
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the analysis provides an explanation of significant deviations and the suggested corrective actions.
6. Ensure that the appropriate levels of management review the results of the analysis and approve suggested corrective actions.
7. Align IT budgets and services to the IT infrastructure, enterprise processes and owners who use them.
8. Ensure that changes in cost structures and enterprise needs are identified and budgets and forecasts are revised as required.
9. At regular intervals, and especially when budgets are cut due to financial constraints, identify ways to optimise costs and introduce efficiencies
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APO06 Related Guidance
Related Standard Detailed Reference
������� ����� 6.4 Budgeting and accounting for IT services
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Personal Copy of: Mr. Dong Hong Wang