Proven IT Finance Designs Comprehensive, Transparent Chargeback Process For Fortune 500 Company

Case Study-Transparent Chargeback Process Design

A Fortune 500 company in the public sector desired a more systemic way to manage IT chargeback throughout the enterprise.

Prior to our work, the company was relying on Microsoft Excel and a web of interdependent spreadsheets to identify or estimate how business segments should be charged for their consumption of IT. Traditionally, this was a showback model rather than a chargeback. Wanting to evolve, the business purchased an ITFM software solution but was struggling to get what they needed from the software.

To maximize their investment in the software and mature their ITFM capability, the business needed assistance in creating and implementing a cost model within the tool to facilitate a new chargeback solution. They came to us for a solution.

Our Approach

We began our work by conducting a week-long workshop with key ITFM stakeholders. During this intensive, we were able to help stakeholders identify what types of decisioning they needed to support and what conversations they wanted to drive within the enterprise.

This allowed us to build the chargeback and reporting models that were required to facilitate the outcomes the business wanted to see. We then trained the ITFM team to implement the models properly and got them to the point where they were ready to start presenting data.

Over the next several months, we conducted a series of workshops with key data stakeholders to understand available data and how it would integrate within the solution and cost model. This critical step enabled us to deliver the desired chargeback process.

The Results

The results of the engagement were highly successful. As a result of our leadership, the business was now able to:

  • Successfully implement a comprehensive IT chargeback process
  • Maximize the investment they were making in the ITFM software
  • Facilitate a consumption-based chargeback model
  • Provide business segments with consumption-based IT charges
  • Help each area of the business understand the drivers of their expense footprint

The company’s IT CFO was now able to understand the drivers of IT spend and report on them in a way that would facilitate transparency in a timely manner.