Doing a quick spreadsheet on tangible benefits--and nonbenefits when appropriate, like the "saving 15 minutes of bootup time" scam--can pay off big time. But doing a "dollars and cents" comparison doesn't mean you have to chuck your judgment out the window. One interesting example that Kennedy cited combined business judgment and cost comparisons. He went through a cost-savings exercise much like many of us do, showing how embarking on a new telecom contract could save his company significant dollars, both immediately and over several years.
The spreadsheet, however, did not ignore the business risk: One of the company's locations might be closing, and the telecom contract didn't have an exit clause for this possibility. However, the immediate savings were so compelling that embarking on this contract was a clear win.
Doing a quick spreadsheet on why you should get rid of an IT system can cure a headache and make you look good to boot. Consider United 1st Federal Credit Union's five-year-old "Loan Line" IVR (interactive voice response) system. It cost $10,000 over five years, which sounds reasonable. However, the bank was getting fewer and fewer calls on the system, and more important, the folks calling in seemed to have no hope at all of getting a loan. Kennedy asked the loan officer what the approval rate was on this system; it turned out to be just 10 percent. Kennedy then created a spreadsheet based on internal costs, and it turned out the IVR system cost the bank around $150 per successful loan, a much higher cost than the other methods the bank used. Naturally, 20 minutes after this spreadsheet was created, the death warrant was signed (see chart "A Compelling Argument for Decommission").
Geek Skills
Lest you think that we're discounting your hard-won IT skills, let us assure you that pure-geek--such as infrastructure sizing--absolutely do matter, both from a dollar standpoint and a business credibility standpoint.
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