Copy of shared roundtable workshop the dollars & sense of it budgeting

The Dollars & Sense of IT Budgeting

HELLO!

We’re the RoundTable Technology Team Here to share nonprofit expertise Joshua Peskay Dawn Gallery-Khan Karim Beldjilali

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ICE BREAKER / MOVING EXERCISE Let’s start by moving around

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The light at the end of the tunnel has been turned off due to budget cuts. ~ Anonymous

▫ Why Bother?

OUTLINE FOR TODAY:

▫What is measured, improves ▫More planning = More options

▫ Deconstructing the IT Budget

▫Types, Categories & Classes of Expenses

▫ Budget Considerations:

▫IT Lifecycle, Planning & Risk ▫On-going Costs ▫ROI

▫ Strategies for Reducing Costs ▫Grants & Fundraising ▫Crowdsourcing & Pro-Bono ▫Managed Service Providers ▫Cloud vs. On-site

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Exercises FOR TODAY:

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▫ Moving Survey ▫ IT Budget ▫ ROI & Funding ▫ Shark Tank

WHY BUDGET FOR IT?

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WHY BUDGET FOR IT?

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▫ IT is not “set it and forget it” ▫ IT is key to a high-functioning nonprofit’s operations ▫ Understanding how IT aligns with a nonprofit’s priorities is critical to budgeting ▫ Assessing risk and preparing for the unexpected helps reduce “surprise” expenditures ▫ Differentiate between mandatory and discretionary IT costs

WHY BUDGET FOR IT?

Better Planning More Options

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CLEAR BUDGETING Let’s look at the parts of a budgets to make informed planning decisions 10

Types IT EXPENSE COMPONENT MATRIX

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Categorie s

▫ Personnel ▫ Salaries ▫ Capital ▫ Benefits ▫ Operating ▫ Non-Personnel ▫ Project ▫ Hardware ▫ Software ▫ Subscriptions ▫ Services ▫ Warranties

Classes ▫ Run ▫ Optimize ▫ Innovate

EXPENSE TYPES

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▫ Personnel ▫Salaries ▫Benefits ▫ Non-Personnel ▫Hardware ▫Software ▫Subscriptions ▫Services ▫Warranties

EXPENSE CATEGORIES

▫ Capital

▫Hardware: PCs, Network, Telephony ▫Bulk Software License Purchases ▫Significant Repairs

▫ Operating

▫Subscriptions ▫Maintenance ▫Hardware / software support

▫ Projects

▫One-time efforts for specific objectives

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EXPENSE CLASSES

▫ Run

▫Spending that keeps the organization running at its current level of service

▫ Optimize

▫Projects and initiatives that improve organizational efficiencies and effectiveness ▫Optimize spending can reduce run costs

▫ Innovate

▫Investment in new capabilities, products or services

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BUDGET CONSIDERATION S Let’s look at the technology to make informed budgeting decisions 16

TECHNOLOGY LIFECYCLE

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▫ Hardware ▫Assets risk failing as they age ▫Consider the criticality of the asset and ease of replacement

Item

Low Risk

Mediu m Risk

High Risk

Server / Switch

<5 Yrs

5-7 Yrs

>7 Yrs

Desktop / Wi-Fi

<4 Yrs

4-5 Yrs

>5 Yrs

HARDWARE TOTAL COST OF OWNERSHIP

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▫ Purchase price is typically much less than 50% of the direct costs ▫ Direct costs ▫Setup ▫Support ▫Maintenance ▫ Indirect costs ▫Lost or reduced productivity because of downtime

TECHNOLOGY LIFECYCLE

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▫ Software ▫Costs are more predictable ▫Can include upgrade fees ▫Subscription models ▫ Assess continued use ▫Does it still meet your needs ▫End date for vendor support ▫Interoperability with other software

TECHNOLOGY LIFECYCLE

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▫ Services ▫Contract / subscription model ▫Platform maintenance varies ▫Reduced or donated costs ▫ Projects ▫Finite timeline & deliverable ▫Finding / minding the gap ▫Communications is primary

TECHNOLOGY PLANNING

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HIGH EXPENSES: PART 1 TRANSITIONS

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The Beginning

The End

The “Chasm” ▫ Assessment ▫ Planning ▫ Implementation ▫ Training ▫ Go-Live

Going Gracefully ▫ Troubleshooting ▫ Inefficiencies ▫ Operational Impact ▫ Next Steps / Iteration ▫ Transition planning

HIGH EXPENSES: PART 2 - RISKY BUSINESS

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Risks to Plan For

Risks to Mitigate

The “Hurricane Sandy” What-ifs ▫ Remote Working ▫ Business Continuity ▫ Disaster Recovery Plan ▫ Emergency Training

Remove / reduce single points of failure ▫ Cloud Systems ▫ Backups ▫ Redundancies ▫ Remote Working ▫ Documentation ▫ Cross-training

To grow, you must leave your comfort zone.

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Change Curve

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Exercise IT Budget

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ACCOUNTING FOR ON-GOING IT COSTS Getting your arms around true cost

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TRADITIONAL BUDGETING PROCESS

Assessment

Feedback

Documentation

Implement

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AGILE BUDGETING PROCESS

Assessment

Feedback

Documentation

Implement Iterate

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FREE & LOW-COST TECHNOLOGY

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Hardware

FREE & LOW-COST TECHNOLOGY

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Software

PRO-BONO

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Crowdsourcin g

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Technology Funders

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Hyde and Watson Booth Ferris Knight Foundation

Way to think about ROI...

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More Stuff

Way to think about ROI...

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Less Work

Way to think about ROI...

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Better Work

Way to think about ROI...

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Reduced Risk

ROI EXERCISE

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TIME TO FEED YOUR BUDGET TO THE SHARKS

CREDITS

Special thanks to all the people who made and released these awesome resources for free: ▫ NPCC for hosting and coordinating ▫ Donny Shimamoto of IntrapriseTechKnowlogies ▫ Presentation template by SlidesCarnival ▫ Photographs by Unsplash ▫ ROI for Workflow by IBM

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RoundTable Resources Resources

IT Budget Template ROI Worksheet Technology Funding for Nonprofits Project Management for Nonprofits webinar Tame Your Inbox webinar Merchant Advocates (credit card services audit)

Resources from Others

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ROI for Process Improvement (IBM) IT Budgeting for Nonprofits (Donny Shimamoto) ROI for Digital Investments (Capgemini Consulting) Nonprofit IT Staffing Report (NTEN)

THANK S

Go to our survey page to give us feedback and download materials http://feedback.rtt.nyc

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