How to Enable Lean IT in Your Organization - Page 4

Step No. 2: Establish ongoing IT/business dialogue

IT must sit down with the business groups it supports and start a proactive dialogue about aligning IT services with business value. IT can do this by showing the business leaders the costs and value of IT services consumed by the business units. When business leaders understand that there is a real cost-value trade-off in services and service levels, they'll be motivated to reduce spend and focus on high-value services.

For example, a Fortune 500 financial services company calculated the TCO of the "products" that it offers to its business units. From there, the organization generated a transparent, monthly summary for its business unit leaders, including the cost and consumption of services. The company used this visibility into costs to accelerate infrastructure standardization and reduce demand for low-value and unused IT services. As a result, the company estimates that it identified approximately $100 million in unrecovered IT spend and approximately $10 to 20 million in direct cost reduction.