One of the great mysteries in corporate life is where the IT dollars go. Try as you might, your efforts to explain in line item detail where a dollar is spent can make a finance manager’s eyes glaze over. Finance simply doesn’t speak the language of IT. (If it makes you feel any better, they probably don’t speak the language of marketing, HR, or R&D either.)
What’s an IT cost center owner to do? As easy as it might be to shrug and say “Oh well, I guess you're going to have to trust me,” this isn’t the way to build a better business relationship. And it isn’t a great strategy for defending budget decisions either.
Like it or not, their language trumps yours. How can you communicate the value of IT if you don’t speak the language of the business?
“Can’t go over it, can’t go under it, can’t go around it…” Like the children’s story about going on a bear hunt, there’s only one way to get there and it’s straight through. To communicate the value of IT, you’re going to have to roll up your sleeves and learn a few key financial principles. When you do, you'll be able to accomplish more with your budget dollars—minimizing costs and maximizing value to the business.
Here's a quick infographic, summarizing seven essential concepts.
If you found this infographic helpful, take it a step further. Reinforce these financial principles in your office with a more detailed poster (with real-life examples) here.
Need to teach this to your teammates? Download the free Finance 101 kit here, including the poster, an e-book, and a slide deck.