It’s not unusual in a small business for the IT administrators to feel beat up over their budgets (or lack thereof), and it’s not without cause. Most small businesses struggle along, especially after the devastating effects of the great recession. In fact, after the 2007 financial crisis small businesses were hit the hardest. Between 2007 and 2012 roughly 60 percent of all the jobs lost were from businesses with fewer than 50 employees. When compared to larger organizations, the job loss was 71 percent worse; small companies lost 11 percent of their jobs compared to only 7 percent from larger companies.
To further compound the problem, executive leadership in these small companies often have unrealistic demands. A study by Bain & Company, about how to make IT spending more effective, found that 70 percent of senior managers believe that IT spending is highly correlated to future business growth. But of those surveyed, 80 percent believe that IT is out of step with their most strategic business objectives.
With limited budgets, soaring demands, and pressure to align closely with business objectives, IT administrators are in a tough spot: How do you deliver more services and better communicate expectations and delivery to senior managers with smaller than needed budgets?
Here are 3 1/2 tips to help you get the most out of your IT budget. In addition to aligning budgets, these tips will help senior managers better recognize your efforts and help you better understand their expectations.
1. Use company-wide task management software
At the risk of sounding cliche or overdone, using task management software such as Trello or Asana to manage IT projects can greatly increase transparency, reduce over expectations and save you budget. Here’s how:
Both of these are free tools, and there are a slew of other free tools out there that do the same thing.
These tools are easy to use and have all the buzz-word-based features your executives love to talk about–collaborative, cloud based, redundant, and secure.
These tools increase transparency by allowing others to see what you’re currently working on, what you have in your backlog, and what you plan on working on next.
Likewise, these tools also increase transparency into all that you’ve done. If you choose Trello, there is a nifty Chrome plugin that allows you to assign time estimates to tasks and easily report time measures and time budgets up to executives or down to those who are submitting requests.
These tools truly empower you to accurately set expectations. Instead of allowing users to email you, drop by your desk, or chat you an IT request, require that they instead put the request into a new task and submit via this software tool. That way they can see how much other work you are currently working on and will better understand why you can’t just drop everything to come help them reset a password.
2. Meet digitally
In small organizations travel can be expensive. If you have sales people who are flying around and meeting with prospective customers, then your executive team is well aware of the costs associated with travel. Instead of simply going with the flow and allowing these travel budgets to eat into the overall company budget you can be proactive and approach your management team with a solution: digital meetings. Be sure to couch the idea as one that will save money but also increase the likelihood of a sale. In our quick-paced world, making time in a schedule for an in-person meeting can delay meetings by days or weeks. Instead, jump on a Google Hangout or Zoom meeting.
3. Purchase nearly new equipment
Equipment purchasing is one of the largest expenses in an IT department. That will probably never change, but it can be throttled considerably, without giving up performance or increasing your hassle. With Moore’s law (computing power doubling every year) being accurate and relevant in today’s age, people are swapping up for new hardware all the time. This leaves lightly used equipment available on Craigslist for the picking. If your organization needs equipment that is even newer, it’s easy to find strong deals by shopping the outlet/refurbished sections of Dell or Apple where you’ll get 15 to 30 percent savings while still getting a new warranty and like-new equipment.
3 1/2. Give up some control
IT administrators are often weary about giving up control, and for good reason. Giving up control often means opening vectors for security breach, over-complicating the network, or increasing time burdens. This tip is an odd one, and one that all organizations may not be ready to adopt, and that’s why we’re making it just a 1/2 of a tip–though we honestly feel like it will bring you some of the greatest cost savings and highest returns in added productivity.
The tip is this: give new employees a budget and allow them to purchase their own equipment before starting at your company. Tech/software company Kuali, a creator of higher education enterprise software, uses this strategy and has seen fabulous results. Their employees hit the ground running, have the hardware they want, and save money over their own “corporate discount” purchase plans extended by Dell and Apple.
At most companies IT staff struggle to find time to purchase equipment for new employees, and often don’t get it set up in time for the new employee’s first day. On their first day in the office they often have considerable downtime due to not having the needed equipment. If your new employees are given a budget with their offer letter they will excitedly purchase their equipment well before they start and they’ll often set up the equipment themselves.
Additionally, these new employees know what their purchase price cap is and often want to impress their new employer so they’ll spend additional time hunting for a strong bargain, time that an IT administrator simply doesn’t have.
These tips and tools will empower you as small business IT administrator to do more with less, and help your executive leadership team recognize you for all that you’re doing.