Transformational initiatives—like optimizing IT cost—impact multiple functional areas and are best carried out with as much organizational support as possible. Whether you’re hoping to implement new technology or change processes to optimize cost (or both), you’ll need to make a strong case at the beginning of the project. By presenting the benefits of a cost optimization project and getting your leadership on board, you’ll be able to effect lasting change that will have a huge impact on IT spend.
Not everyone will agree or even see the benefits of the proposed changes and without formal support to enforce the changes, the cost optimization project may never leave the drawing board.
Influencing Change to Implement Your Cost Optimization Strategy
Policy alone is rarely enough to influence change, however. Lasting impact requires a level of buy-in from the organization and is best achieved using a mix of different influence levers. For each of these influence levers, we’ve identified the message to communicate to both leadership and the rest of the organization.
1. Role modeling: “I see my leaders and peers behave in the new way.”
- Top management recognizes the need for change and express commitment to the cost optimization initiative.
- Launch of pilot implementations demonstrate the potential of the initiative in areas with lower risk or that are more willing to change to the rest of the organization
2. Skills and capabilities: “I have the skills and capabilities to behave in the new way.”
- Provide simple and clear tracking, analysis, and reporting on cost saving achievements to leadership
- Promote and moderate channels for sharing new ideas for cost optimization and demand reduction to the rest of the organization
3. Understanding and conviction: “I know why I need to change and what is required from me.”
- Issue a top-down C-level mandate and communication to all involved parties to make it clear that cost optimization is a priority
- Create concrete targets for business areas on spend and demand reduction based on data from the pilot implementation
4. Formal mechanisms: “The processes and systems support the desired change.”
- Formalize an approval process for going outside agreed standards with regards to provisions and configurations
- Change incentive structures to encourage cost awareness and the ensuing savings
Using this mix of carrots and sticks, you will get the cost optimization off the ground quickly but also start implementing a culture that guarantees lasting impact.
Ready to Stop Wasting 30% of Your Hybrid IT Spend?
Request a live demo of VCM to see how to use the software in a simple, 4-step cost optimization process. You’ll be reclaiming wasted spend in no time.