IT leaderships talk about increasing pressures of lower budgets, reduced staff, more systems to support, the need to keep systems up to date, the need to introduce new technology, and the need to innovate and contribute value to the core business. As a leader, I faced the same situation. How do you introduce new technology with no budget?
Here’s two ways that I have successfully funded new technology projects.
Top Down
Top down funding is the traditional model of “getting stuff paid for” in IT. But I’ve always approached it differently. Typically, you know something you need, you get a quote, you ask for the money. Here’s a new approach: ask people what they want. I would try to meet with 1 or 2 department heads a week and talk about “how is my team doing?” but I would always end the meeting with a question:
What’s your teams biggest pain point right now?
Most of the time it wasn’t anything that I could influence but occasionally I’d have a conversation like this:
VP of Operations: Our kanban system is killing us. We have runners that restock with assembly lines and sometimes lines will shut down because they are waiting for a runner to show up, see the empty kanban, fetch the part, and bring it back. I may have to hire another runner which is going to kill the labor budget.
Me: What if the runner knew about the empty kanban before he was at the line? Like he was back at the inventory warehouse, fetching parts for line 1, and he just knew that line 2 just ran out of some part? Would that help?
VP: That would be incredible!
Me: How much would that be worth?
VP: Easily the salary of a runner plus another 1-2% efficiency on most lines. Maybe $250,000 a year?
And that funded wireless VoIP…
Bottom Up
Bottom up is the funding methodology for highly scalable solutions like the cloud. I wanted to implement Lync as a corporate messaging solution. I knew that Lync would immediately improve collaboration across the engineering, design, and manufacturing teams but couldn’t find the metrics to support the actual improvement of efficiency and the CEO didn’t see the vision.
So I did “bottom up funding”. I bought 4 Lync licenses with my discretionary funds for me and my senior system admins. Then I invited the Director of Engineering to my office and arranged for one of my system admins to Lync me during the meeting.
Director of Engineering: What’s that?
Me: That? Lync. It’s really cool. It’s a chat, video, audio instant messaging service my team uses for collaboration. Let me show you.
Director: Sweet. Can I get that for my team?
Me: Yup. It’s only $4.00/month per user.
Director: I’ll take it.
A few weeks later, I get a call from the Design Manager.
Design Manager: Hey, I saw engineering using this new chat thing, Lync. Can I get that?
Me: Yup. It’s only $4.00/month per user.
A few weeks later, HR wants it… then accounting… pretty soon, we are using Lync. The CEO tells me that he’s glad he supported the project. So am I.