Financial Manager
From IT frameworks
Contents |
Job Description for the position of Financial Manager
Financial Management is a discipline in IT service management.
The role of Financial Manager is to ensure the goals of the Financial Management process are achieved. The main goal is to ensure IT services are financially transparent and provide management information to validate decision making. Financial Manager will also provide information on profits and revenue, costly services, efficiency of services and planning confidence.
Key Concepts
- Service Valuation
- To determine the value of a Service to which a Business considers realistic
- The Direct costs of a Service compared to the indirect costs
- This also includes an activity to calculate labour cost wages for staff to produce the service
- Variable Cost Drivers need to be considered with levels of negative threat and positive opportunity
- Translate Utility and Warranty to monetary values
- Provisional value = Actual costs to produce the Service
- Service Value Potential = Potential Financial value based on the customers own value perception which is also based on Customers own assets
- Demand modelling
- Anticipation of the financial market and the risks it poses in terms of uncertainties
- Service Portfolio Management
- Financial Management provides cost information and cost structures to services to compare service prices in the market
- Service Provisioning Optimisation
- Based upon actual service delivery, Financial Management can investigate alternative solution to optimise service delivery
- Planning Confidence
- Demand consumption should also provide information to Financial Management to provide confidence and validate decision making
- Investment analysis
- Models and analytical technology to assess expected value from Services
- Accounting
- Financial Management can act as a bridge between Organisational Financial Management and ITSM Financial Management
- Variable Cost Dynamics
- Financial Management should analyse present costs and possible future costs based on factors such as: number of users, licenses costs, number of people needed to deliver and support the service
- Business Impact Analysis
- Financial Management should in relation to IT Service Continuity have a financial estimation over interruption of normal business operations
The job
The Financial Manager is a position within the scope of Financial Management ITILv3 process. In short, The Financial Manager is responsible for managing an IT service provider's budgeting, accounting and charging requirements.
This document provides a good description of the position but is not complete for every organization. Adjust as necessary.
Position
- Immediate seniors are Service Strategy Manager and ITSG.
- Immediate juniors are staff triggering the Financial Management process.
- "Users" are all users of internal and external IT services.
- "Customers" are users of IT services internally in the organization and external paying customers that use the companies IT Services.
- "Suppliers" are parties defined by Service Design Supplier Management key process for each IT Service.
Production
Key Performance Indicators (KPIs)
- Show me: Cost of Services today
- Show me: Up to date Business Impact Analysis of present Services
- Show me: Up to date Variable Cost Dynamics for present Services
- Show me: Up to date Business understandable IT Service costs based on Services on the Service Catalogue
- Number of bypasses to the process
- Number of times Financial Management has been triggered by other ITSM processes
- Number of Services with up to date Valuations, VCDs, BIAs and TCO (Total Cost of Ownership)
Responsibilities
Financial Manager is responsible for:
- Tasks
- Ensuring the defined KPIs are available, maintained and kept up to date.
- Making recommendations for Service Improvement Plans
- Ensuring the Financial Management process is performed as designed.
- Developing a Financial Management process model for the role of Financial Manager.
- Ensuring the Financial Management process is fit for purpose.
- Ensuring process description meets objectives
- Sponsorship, design, and continual improvement of the process and its metrics.
- Following the organization's policies relating to employment.
- Personnel
- Leading and supporting the Financial Management team.
- Motivate the employees you are responsible for. Help them thrive in a challenging work environment.
- Understanding the full scope of the Financial Management process.
- Ensuring that all your co-workers in projects understand and follow all procedures they are involved with.
- Ensuring any disagreements with employees have the opportunity to become RfCs.
- Reporting
- To Process Manager (To ensure optimal process interaction)
- To Service Strategy Manager (To deliver Financial reports)
- To Service Owner (To deliver cost analysis of a specific Service)
- To ITSG (To ensure all IT goals are aligned to business goals)
Authority
- Service Design design tools and technology to support the Financial Management process.
- Service Design designs Financial Management Models with pre-defined activities. Any changes to these activities must be transitioned.
- An escalation plan to the Service Strategy Manager must exist.
Resources
Internal resources
- The Financial Manager has internal resources available as defined by the organization for process owners.
External resources
- The Financial Manager has external resources as appropriate to ensure the fulfilment of the objectives of the Financial Management process.
Qualifications
It is expected that the Financial Manager has the competence required to competently manage the Financial Management ITILv3 process.
It is expected that he/she constantly acquires knowledge necessary to continually manage the Financial Management ITILv3 process better so that expectations are continually met.
Advancement
As Financial Manager you have the possibility to apply for positions as Service Strategy Manager and other key positions in the Service life cycle phase. You are also encouraged to apply for other positions in Application and Technical Management.
