IT Budgetting (2)

These issues should be addressed on the highest levels to update the budget structure in a way that serves the purpose of properly setting and monitoring IT Budget.
There are some key success factors that facilitate the budgeting process and help the department in allocating sufficient budget for the fulfillment of its goals and objectives:

- Having a long-term IT strategy: an IT strategy reflects thoughtful decisions that are made based on experience and long term commitment rather than reactive and random decisions
- Alignment to the business requirements: this does not happen without making the effort from the IT department to properly align with the business, not just by fulfilling its requirements but even to become a success factor and an enabler for the business

- Defining success measures and performance indicators: When success measures and performance indicators are set and reporting on them becomes a habit then budgeting for the future becomes easier and more appreciated since it is built on tangible facts that reflect the true state of the organization

- Succeeding in previous budgets: there is nothing more helpful in negotiating the budget than showing that the previously obtained budgets were utilized successfully

- Continuous and stable growth: reflecting continuous and stable growth in each budget period will reflect stability and maturity in the IT department and show that expansions are made based on determined and well-studied plans