An Executive Summary:
Identifying IT Needs and Personnel Requirements
Recent PIP interviews with Private Equity managers suggest optimism with respect to 2011 deal flow, portfolio company profitability and investors’ return on investment. All that being said, there will be a cautious approach to approving major capital investments.
It’s also becoming increasingly clear most companies realize technology is an important element of organic portfolio growth. However, to time-pressed executive management teams, it remains a world full of mystifying terminology, unlimited options, mach speed change, and premium priced personnel with a different-drummer mindset.
It’s in that spirit that we offer, in plain English the three-minute executive summary to technology spending.
1. Identify “required” needs from “optional needs.” Make sure technology projects and initiatives will enhance business efficiency…now.
2. Insist upon an IT Roadmap to insure current technology is aligned to business priorities.
3. Identify and prioritize areas based on the return on investment.
4. If an IT upgrade is warranted, consider modifying or re-implementing existing technology assets before agreeing to a costly new system implementation.
5. When it comes to staff additions, take the time to define job requirements and hire the right person at all levels of IT.
6. Decide if you need a permanent staff addition or merely a contract job assignment.
7. Always insist on a thorough analysis and identify implementation options in clear business terms before you invest.