GOAL or METRIC: Spend 38% or Less of the Total IT Budget on Labor
RATIONALE: Efficient IT organizations are more streamlined, automated, and simplified. As a result, they spend less on labor. So a goal of 38% of IT spend or less on labor, as noted by Donna Scott, VP and Distinguished Gartner Analyst, is a key measure of IT efficiency
SOURCE: Donna Scott, VP and Distinguished Analyst, Gartner, in Dell video on june 15, 2011
Arbitrary cost goals do not match reality. They also do not take into account the cost of training and retention of qualified IT Staff.
To ensure that all employees are given opportunities to grow and learn, the Bank of Montreal’s Institute of Learning was established at a cost exceeding $50 million. The goal of providing five days of training and education to every employee each year has been met for several years.To focus on performance, each department and every employee have performance targets and measures on such factors as customer service,return on equity, and profitability. Throwing out a percentage of budget to establish an efficiency standard ignores the value of retention of trained, qualified, motivated staff.