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 ERMS WHITE PAPER SERIES
 
 
Creating  an  Intelligent  IT  Plan  
   
 
By  Robert  P.  Green,  CPA.CITP  
Published  by  California  CPA  Magazine,  October,  2002  
 
 
 
Many  business  owners  regard  information    
technology  as  yet  another  of  many  demands  on   Adopt  a  Planning-­‐oriented  Perspective  
their  overhead  budget—a  mountain  of  cost   If  you  examine  the  business  and  its  existing  
without  any  tangible  return—and  in  many  ways   needs,  you  are  more  likely  to  value  IT  as  having  
like  disposable  equipment.  In  reality,  IT  is  an   a  far-­‐reaching  impact.  Sadly,  most  businesses  
integral  part  of  business  operations  that   view  IT  as  not  a  particularly  integral  set  of  
requires  planning,  intelligent  execution  and   fixtures  and  services.  As  a  result,  business  
maintenance.  IT  plans-­‐-­‐similar  to  a  business  plan   owners  deploy  a  Band-­‐Aid  approach  to  IT  
but  emphasizing  IT  initiatives-­‐may  differ  in  their   activities.  They  fail  to  see  how  IT  can  
look  and  structure,  but  they  have  four   dramatically  impact  their  overall  business  
foundational  objectives   effectiveness,  and  allow  for  
in  common  that  you   An IT Strategic Plan Ultimately growth  to  occur  without  
should  keep  in  mind  as   Will Make a Business losing  control.  Often,  IT  
you  move  forward:   More Effective & Prosperous projects  occur  because:  
   
•  Adopt  a  planning-­‐oriented  perspective  to  IT  as   •  An  owner  sees  something  interesting  that  they  
a  whole;   “gotta  have  now,”  and  it  ultimately  results  in  
•  Consider  existing  (and  near-­‐term)  business   nothing  positive  for  the  business;  
needs  and  conditions;   •  A  particular  manager  screams  loud  enough  for  
•  Implement  the  plan  using  suitable  employees,   a  project  that  they  need  for  their  area,  without  
outside  consultants  and  vendors;  and   regard  to  how  it  may  impact  the  priority  list  of  
•  Consider  financial  and  operational  constraints   the  company  as  a  whole;  
and  parameters.     •  Harm  has  occurred,  such  as  a  major  security  
  breach,  requiring  new  devices  (firewalls,  etc.)  
As  a  CPA,  you  are  the  logical  candidate  to  act  as   and  software  (intrusion  detection,  antivirus,  
a  liaison  in  an  IT  planning  effort.  This  doesn't   etc.)  that  should  have  been  present  anyway;  or  
require  you  to  be  an  IT  guru,  or  even  have  an  IT   •  A  customer,  banker  or  influential  outsider  
consulting  practice.  Rather,  as  the  point  person   requires  specific  data,  programs  or  IT  
for  this  strategic  planning  process,  you  will  be   procedures  to  do  business  with  them.  
able  to  ensure  that  the  business'  systems    
support  the  business'  objectives,  and  provide   How  do  you  break  this  norm?  Try  the  three  Ps-­‐-­‐
security  and  integrity  for  the  underlying  data.   prudence,  planning  and  professionalism.  
 Creating  an  Intelligent  IT  Plan  
By  Robert  P.  Green,  CPA.CITP  
ERMS WHITE PAPER SERIES
Recommend  that  IT  projects  occur  as  part  of  a   critical  part  of  the  planning  process.  It  requires  
rational,  prioritized  plan  in  concert  with   participation  of  a  professional  or  internal  chief  
business  objectives,  rather  than  the  result  of   information  officer  (CIO)  or  chief  technology  
crises,  subjective  whims  or  other  factors.   officer  (CTO)  who  has  a  good  understanding  of  
  IT  tools  available  in  the  marketplace  and  how  
Existing  Business  Needs  and  Conditions   they  can  impact  the  business'  operations  and  
Strategic  IT  planning  is  not  a  one-­‐size-­‐fits-­‐all   work  flows.  
process.  Each  business  has  its  own  unique  needs    
and  conditions  and  is  at  a  different  IT  starting   Although  a  tendency  may  be  to  enlist  your  
point.   client's  controller  or  network  administrator  to  
  execute  these  tasks  alone,  they  may  not  have  a  
This  starting  point  is  defined  as  the  business'   broad  enough  perspective  to  adequately  do  the  
current  IT  environment  and  during  the  planning   job.  Your  team  will  need  to  identify  the  
process  it  is  measured  against  where  the   following:  
business  would  reasonably  be  if  it  started  today    
with  a  suitable  IT  environment.   •  Business  functions  and  processes;  
  •  Existing  tools  used  to  support  functions  and  
Other  conditions  exist  that  impact  IT  planning   processes;  
and  implementation.  Each  business  has  its  own   •  Gaps  between  the  tools  used  and  those  
culture,  plans  for  the  future,  spending   available;  
capabilities,  commitment  to  IT,  zeal  for  process   •  Priority  of  "bridging  the  gaps";  and  
improvements,  ownership  structure  and   •  IT  solutions  (e.g.;  hardware,  software,  
management  philosophies.  Most  importantly,   processes,  etc.)  that  solve  the  gap  challenges.  
each  business  has  its  own  mix  of  employee    
experience,  IT  savvy  and  tolerance  for  change.   Clarifying  the  Steps  
  Once  reasonable  solutions  are  conceived,  a  
Only  when  these  and  other  business-­‐specific   strategy  to  implement  them  is  devised.  This  
parameters  are  made  known  and  understood   strategy  should  identify  the  activities  that  need  
can  reasonable  steps  be  taken  to  implement   to  be  undertaken,  when  they  should  occur  and  
broad  IT  initiatives  that  ultimately  will  help  the   what  resources-­‐people,  equipment,  money  and  
business  run  more  effectively  and  prosperously.   time-­‐are  necessary  to  do  them.  
   
In  its  simplest  form,  IT  strategic  planning  begins,   This  task  often  is  daunting.  Many  businesses  
not  by  looking  at  technology,  but  at  the  business   find  the  task  becomes  more  efficient  and  
itself.  The  IT  strategic  planning  process  first   effective  if  they  have  a  knowledgeable  person  or  
considers  the  existing  business,  its  IT   firm  at  their  disposal  to  implement  IT  initiatives  
environment,  its  users,  their  needs  and  the   with  the  least  amount  of  stress  on  the  
business'  plans  for  the  future.   organization.  This  person  or  firm  should  be  
  capable  of  prudent  selection  of  software,  
Mapping  Solutions   hardware  and  vendors  to  support  plan  
After  your  current  environment  is  clearly   initiatives.  
defined,  you'll  need  to  brainstorm  possible    
solutions.  A  multidisciplinary  team  should  be   Further,  this  party  would  be  responsible  for  
part  of  the  solution-­‐creation  phase.  This  is  the   maintaining  and  keeping  to  the  plan  and  

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 Creating  an  Intelligent  IT  Plan  
By  Robert  P.  Green,  CPA.CITP  
ERMS WHITE PAPER SERIES
understanding  that  implementation  must  be  
scheduled  over  a  reasonable  period  of  time,    
supported  by  ample  employee  preparation.    
   
Ultimately,  like  any  good  business  plan,  an  IT    
plan  is  a  living  document  that  is  always  being   Robert  P.  Green,  CPA.CITP,  is  Partner  at  
revisited  and  adjusted  to  handle  changes  in  the   SingerLewak,  a  leading  regional  Accounting  and  
business.  And  like  a  business  plan,  it  is  best   Consulting  firm  headquartered  in  Los  Angeles.  
devised  before  a  problem  develops.   He  can  be  reached  via  email  at  
  BGreen@SingerLewak.com,  or  by  phone  at  
Consider  the  Financial  Impact   818.251.1359.    
An  IT  plan  is  not  worth  the  paper,  or  bytes,  on    
which  it  is  written  unless  it  is  backed  up  by  a   Scott  Cooper,  CMC,  also  contributed  to  this  article.  
suitable  budget,  with  specific  employee    
responsibility  for  such  expenditures.  Doing  so,  it   Reprinted  with  permission  of  the  California  
increases  the  odds  that  a  company  will  move   Society  of  CPAs  and  California  CPA  Magazine.  
out  of  a  crisis  mentality  into  a  more  proactive,    
calmer  mode.    
   
An  IT  budget  should  include  line  items  that  
support  IT  plan  initiatives,  including:  
 
•  New  hardware  and  software  costs;  
•  Upgrade  and  maintenance  costs  (service  and  
product  related);  
•  Staff  and  outside  resource  costs  for  network  
administration,  security  and  costs  not  covered  
by  service  plans  or  warranties;  
•  Employee  training;  and  
•  Internet/Web  connectivity  and  support  costs.  
 
Keep  Your  IT  Message  Clear  
Your  IT  message  is  simple.  As  a  CPA,  encourage  
your  clients  to:  
•  Understand  that  IT  typically  requires  as  much  
commitment  and  resources  as  any  other  aspect  
of  the  business  to  meet  business  objectives;  and  
•  Commit  to  spend  the  human  and  financial  
resources  necessary  to  ensure  IT  does  not  
become  the  Achilles'  heel  of  the  business.  
 
By  communicating  this  message,  your  clients  will  
understand  that  you,  their  CPA,  bring  additional  
enhanced  value  to  their  businesses.