Annex 5A - IT Finance Manager - Role, responsibilities and key skills
Some organisations have a dedicated IT Finance Manager. Others may share the tasks amongst the Finance department senior IT managers, especially those with responsibility for other Service Management processes (Service Level Management and Capacity Management, for example) and the head of IT.
The IT Financial Management processes must all have an 'owner', that is someone responsible for developing and reviewing them. The IT Finance Manager may be able to agree that some of these are 'owned' by the main Finance Department. However if this responsibility is split, care should be taken to avoid giving them to people with primarily administrative roles as they are unlikely to have the time or seniority required to manage the required tasks.
The skills list given is an indication of the skills that would be present in an ideal candidate for a post that takes full responsibility for all the topics discussed in this Chapter.
Role
To work, at an appropriate level, with representatives of the organisation management and the Finance Department, to develop the policies of Budgeting, IT Accounting and Charging.
To implement and maintain the IT Financial Management Process, covering Budgeting, IT Accounting and Charging.
To assist in developing account plans and investment cases for the IT organisation and its Customers.
Responsibilities
Budgeting
- manage the IT organisation budget
- prepare budget forecasts and assist Customers in preparing IT elements of their budgets
- report regularly to IT managers and Customers on conformance to budgets.
IT Accounting
- select suitable tools and processes for gathering Cost data
- develop suitable cost models
- agree suitable IT Accounting policies, e.g. Depreciation
- assist in developing cost-benefit cases for IT investments
- advise senior management on the cost-effectiveness of IT solutions.
Charging
- identify methods of charging within the organisations charging policy
- provide justifications and comparisons for charges
- prepare regular bills for Customers
- prepare a price list of Services, if required.
Other
- provide close support to Service Level Management, Capacity Management and Business relationship Management, especially during budget and IT investment planning
- recommend scope for internal audits
- assist external auditors.
Key skills
- sound numerical and financial skills
- ability to interact successfully with all levels of Customer and IT organisation management
- thorough approach to documentation and schedules
- excellent communication and negotiation skills
- good presentational skills.
Relevant knowledge or experience
- understanding of the Customers' businesses and how IT can affect the delivery of their products or services
- accountancy and company financial reporting
- contract or supplier management
- statistical and analytical principles and processes.
