financial management for the service desk

www.servicedeskinstitute.com

Surprise | Delight | Inspire

Financial Management for the

Service Desk

Lynne Nash, L B Nash (Consulting)

@lb_nash_uk


Introduction

• Over 25 years in the Service Desk industry• Experienced Service Desk Manager• SDI educator• APMG examiner• SDI Standards Committee member


Objectives

• The importance of Financial Management• Building your financial network• Talking the Talk - financial terminology• Budgeting, Accounting and Forecasting• The Power of Unit costs


Importance of ITFM

• Manage the cost of providing IT services

• Align IT service costs to business processes

• Support the customer and the business by delivering value for money

• Assisting the organisation achieve its objectives


Importance of SDFM

• Operationally– Costs need to be managed– Efficiencies need to be realised

• Strategically– Demonstrate sound financial management– Obtain stakeholder investment


Financial Networking

• Who has the knowledge?– Line manager– Peer group– Finance department

• How can you get the knowledge?– Courses, books, websites– Coaching & mentoring


Talk the Talk• What is your funding model?– Centrally funded– Some central funding, some billed (cross charged)– All billed

• What type of accounting?– Financial– Management


Talk the Talk

• Income– Revenue– Budget

• Expenditure (costs)– Operating– Capital

Income – Expenditure =


Talk the Talk

• Costs – Fixed…salaries– Variable…overtime– Direct…mobile phones– Indirect…utilities


Budgeting

• Staff Costs– Salary– Pension Contributions– Employer’s NICs– Life Insurance– Other Benefits

Add 25% to 30%


Budgeting

• Other staff costs – Temporary/Contract staff– Overtime– Recruitment– Training– Recognition and rewards (non salary)

• Marketing & Promotions


Budgeting

• IT services– Provisioning (Capital)– Support & Maintenance (Operational)– 3rd Party Contracts (Operational)

• Facilities• HR, Finance & Legal services


Accounting


Forecasting

• Reactive – Reduction in income– Impact of unplanned changes

• Proactive– Impact of proposed changes– Making a business case


Unit Costs

• Purpose– Charging– Scaling– Decision Making

• What Unit?– Call– Incident / Request– Customer– Time

Average costs or detailed?


Unit Costs

Time = Money

Cost of SD / Man hours = Cost per man hour

Man hours = Working time x No. Staff

Working time = No. Working days x Hours in Day

Working days = (52 x 5) – holidays, training, sickness


To Conclude

• Be on good terms with your Finance dept.• Know your funding model & budget• Get to grips with forecasting• Track your unit costs, Time = Money• Keep finance on the agenda• You are running a business…

It’s all about the bottom line!

financial management for the service desk

Business

service costs

unit costs time

power of unit costs

working time x

sound financial management

financial networking

working days x hours

service desk lynne nash