Template Bisl Best Practice

Template Bisl Best Practice

Name of Best Practice / Financial Management Process Description
File Name / BiSL_BP026
Date modified / dd-mm-yyyy
Description of contents
Type of document / Example
BiSL Processes / Financial Management
Comments

ASL BiSL Foundation

P.O. Box 9769

3506GT Utrecht

The Netherlands

T +31(0)30753 1424

F +31(0)30755 1502

I

Financial Management Process Description
Example
Place / Place
Date / dd-mmm-yyyy
Author / Author
Status / Status

Summary

Objective /
  • The purpose of the process is to provide, maintain, and monitor an information provision system that is cost-effective from a financial and operational management perspective, as well as cost-effective allocation of ICT resources for support and execution of the organization’s business processes for information systems.

Reason / Reasons for starting the Financial Management process are:
  • To answer the question of whether the change in information provision would bring adequate benefits from a business point of view
  • Justification from the ICT service provider to the client/budget owner

Target Group / The target group for the financial management process consists of:
  • the application manager of the application in this information provision
  • the business information manager responsible for financial management
  • the budget owner
  • the IT infrastructure managers for the application in this information provision

Scope /
  • The process makes, maintains, and monitors the cost-effectiveness of the information provision system

Result / The output from this process has the following applications, among others:
  • The annual financial plan
  • Budget reporting
  • Financial frameworks

Contents

1Financial management process
1.1Objective
1.2Reason (Trigger)
1.3Target Group
1.4Scope (activities)
1.5Result
2Process Description
2.1Process diagram
2.2Process Description

Version Management

Version / Date / Author / Description

Distribution List

Version / Date / To

1Financial management process

1.1Objective

The purpose of the process is to provide, maintain, and monitor an information provision system that is cost-effective from a financial and operational management perspective, as well as cost-effective allocation of ICT resources for support and execution of the organization’s business processes for information provision.

1.2Reason (Trigger)

Reasons for starting the Financial Management process are:

  • To answer the question of whether the change in information provision would bring adequate benefits from a business point of view
  • Justification from the ICT service provider to the client/budget owner
  • To receive the strategy/portfolio (trigger for Cost Planning subprocess)
  • To receive invoices (trigger for Cost Control subprocess)
  • To receive evaluations (trigger for Cost Evaluation subprocess)

1.3Target Group

The target group for the financial management process consists of:

  • the application manager of the application in this information provision
  • the business information manager responsible for financial management
  • the budget owner
  • the IT infrastructure managers for the application in this information provision

The application and infrastructure managers are involved because they provide the input for the invoices.The budget owner is involved because s/he receives periodic reporting on the investments and returns.

1.4Scope (activities)

The process makes, maintains, and monitors the cost-effectiveness of the informationprovision system.This pertains to the cost-effectiveness of the information system as well as execution of business information management itself.

1.5Result

Results of the financial management process are:

  • Annual financial plan
  • Management information
  • Budget reporting
  • Financial frameworks
  • Key figures
  • Issues/problems

2Process Description

2.1Process diagram

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2.2Process Description

Input Data / Subprocess / Output Data
Process/Data / Data Flow / Subprocess:Cost planning / Data Flow / Process/Data
User organization / Budget/benefits (projected).
The user organization indicates the available budget and the projected benefits. / This subprocess uses the input data to determine the amount of budget needed over the coming budget period (typically the next calendar year).
The request for this budget is submitted to the user organization.
On the basis of this request, the user organization will allocate a budget.
An annual financial plan can then be drawn up on the basis of the allocated budget and the other input data.
This annual financial plan includes the projected costs and profits, which are recorded in an entity set.
This process is triggered as soon as the budgets for the next budget period need to be drawn up.This trigger may originate from the strategicprocesses, or it can even simply be given once a certain date is reached. / Desired budget.
This process prompts the user organization to release budget and indicate corresponding benefits. / User
organization
Process:“Strategic processes” / Strategy/Portfolio.
The strategic processes provided the strategy for information provision. / Management Information.
The financial management information is forwarded to the other management processes. / Process:“Management processes”
Process:“Other management processes” / Management Information.
Information on:
  • planning and timelines
  • demand, resources, and quality requirements
  • agreements with supplier
/ Annual financial plan.
This is input for the costs/profits (projected) entity set. / Data:“Costs/profits (projected)”
Process:“Change management” / Resources/demand.
Change management will provide information on the demand for financial resources. / Annual financial plan
Costs are monitored using the annual financial plan. / Subprocess:“Cost control”
Data:
Key figures / Key figures.
The key figures entity set is consulted.
Data:
Costs/profits (projected) / Projected costs/profits.
The entity set delivers the projected costs and profits.
Process/Data / Data Flow / Subprocess:Cost control / Data Flow / Process/Data
Subprocess:“Cost planning” / Annual financial plan.
The projected costs are retrieved from here. / This subprocess uses the input to monitor the costs actually incurred and set them off against the financial plan.
Here, the projected costs (from the financial plan) are compared to the costs actually incurred.
The results of this comparison are used to draft the financial framework and reports on specific changes and on the budget in general.
Subprocess has 2 kinds of triggers:
The regular trigger is a periodic (monthly) invoice flow from the ICT supplier.
The other trigger would be an escalation from within the “Change Management” process.Escalation is enacted when the prescribed framework is exceeded within the process. / Financial framework.
Here, the (possibly updated) financial frameworks are forwarded to the change management process. / Process:“Change management”
Process:“Change management” / Escalation (ad hoc trigger)
Change management will initiate an escalation if the framework is exceeded. / Realization progress.
The invoices are used to provide a progress report to the change management process. / Process:“Change management”
ICT Supplier / Invoices (standard periodic trigger).
The costs actually incurred are invoiced by the ICT supplier. / Budget reporting.
On the basis of the invoices, reporting is provided to the budget/system owner on a monthly basis. / User organization
Process:“All processes” / Realization costs.
Here, the costs of running the BIM processes themselves are indicated. / Financial framework.
The financial frameworks for running the processes themselves are forwarded to all processes. / Process:“All processes”
Process/Data / Data Flow / Subprocess:Cost evaluation / Data Flow / Process/Data
Process:“All processes” / Evaluations.
The processes forward the evaluations for the implementation costs. / This subprocess conducts an evaluation of the costs and benefits on the basis of the benefits attained and evaluations (including costs).
This not only involves evaluations for (the costs of) ICT, but also (the costs of) executing the business information management processes themselves.
The key figures may need to be adjusted after this evaluation.
The evaluations provided by all of the processes can be used to bring issues or problems to the fore, which are then reported to demand management.
The trigger for this subprocess is not obvious.
It is a good idea to run this subprocess after each delivery (transition). / Evaluations.
Evaluation results are forwarded from here to demand management. / Process:“Demand management”
User organization / Benefits attained.
In order to evaluate whether the projected benefits were in fact attained, the user organization will conduct an evaluation of these benefits. / Financial status.
The financial status is forwarded to the strategic processes. / Process:“Strategic processes”
Data:“Costs/profits (projected)” / Projected costs and profits.
Serves as input for comparison with the actual costs and profits. / Amend key figures.
If the evaluation justifies amending the key figures, then this is reported to the Key Figures entity set. / Data:“Key figures”
Data:“Key figures” / Key figures.
If applicable, key figures are amended based on the cost evaluation.The new key figures then become input for future evaluations.
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