Increasing your IT department’s budget can be challenging since C-suite executives are often focused on the bottom line and may undervalue the significance of investing in additional IT. However, if you can make a strong case for why additional IT spending is necessary, you may be able to get the funding you need.
Here are seven tips for convincing C-suite executives to approve additional IT budget:
1. Establish a spending plan
Before you even ask for more funds, you need to have a detailed plan of where the money will be spent. Determine what digital initiatives you will pursue and what new hardware, software, services, and personnel will be required to support them. You’ll also need to include the costs associated with implementing and managing any new technologies. For example, if you have plans to streamline hybrid work, your budget must account for the cost of laptops, mobile device management software, and cloud collaboration software. Breaking down your proposed budget into specific line items will make it easier to justify your request to C-suite executives.
2. Align proposed IT spending with company goals
To secure buy-in from C-suite executives, your investment plans should support the company’s goals and objectives. Perhaps the company is focused on improving customer satisfaction rates to drive sales revenue. In this case, your IT budget should include initiatives that will improve the customer experience, such as a new customer relationship management system or live chat software. The more these investments align with the company’s goals, the more likely decision-makers will sign off on the additional spending.
3. Do your research
If you want to convince C-suite executives to increase your IT budget, you need to be able to show that your proposed initiatives will have a positive impact on the business. Look for case studies and research reports that demonstrate how similar initiatives have helped other organisations achieve their goals. If possible, you should get hard figures on how much competitors are spending on IT and how much they’re benefiting from those investments. The comparative study will help you make a strong case for why your proposed budget is necessary.
4. Discuss potential returns
C-suite executives love to see metrics that demonstrate how additional IT spending can generate positive returns. That’s why you should emphasise how the proposed initiatives will contribute to the company’s bottom line. Provide conservative estimates on the return on investment of certain technologies. For instance, if you plan to use the additional budget for cloud-based project management software, calculate the potential revenue and efficiency gains from such an investment.
5. Make your proposal at the right time
Timing is everything when it comes to asking for additional budget. You don’t want to make your request during a cash shortage or right before the end of the fiscal year because C-suite executives may find it risky to invest during these times.
Try to submit your proposal when the company has more wiggle room, like right after a successful quarter. You should also submit your proposal well in advance of budgeting season. This will give decision makers ample time to review your request and make a decision.
6. Develop an engaging presentation and cut the jargon
When presenting your case for additional funds, don’t get too bogged down in unnecessary details. Chances are, C-suite executives don’t have much time to look over every single data point, so make sure your presentation is straightforward and engaging. Use graphs and data visualisations to highlight salient points like projected earnings, time savings, or customer satisfaction rates.
What’s more, avoid using too much industry jargon. If decision makers can’t understand what you’re talking about, your proposal will simply fall on deaf ears. Instead, use an approach that top-level management will understand and focus on how digital initiatives will improve business functions.
7. Walk through the next steps
Don’t just leave the presentation off with no concrete plan! Let your C-suite executives know how you’ll implement proposed initiatives when you do receive the additional budget. This can be a high-level overview of the project timeline that maps out every stage of your investments. This will show how additional funds will be allocated and that you’re committed to making the most of them.
Securing additional IT budget doesn’t have to be difficult, especially if you have the right consultants and support team on your side. At Empower IT, we can find the right technology your C-suite will approve of. Contact us now for IT solutions and services that fit your budget.