In Business, everything changes eventually.
If you have modeled your Service costs, there are lots of changes that require an update or change to the model.
- Things in your company/service can change:
- Has your company undergone a re-org?
- Are you using a new technology to deliver the service?
- Did you outsource all or part of the service?
- Did you change vendors? Are you changing the billing model for your customers?
Your general philosophy toward service costing may have changed– perhaps you are maturing from a flat allocation to the business to a service consumption model.
You may be changing tools that you use to model the Service costs. – is it time to put an automated model in place?
Whatever the change, there is a likely impact to the actual cost of service and you will need to be able to explain why and how the service costing will change so that the business can be prepared. There is nothing worse that getting a bill and seeing a rate change in the bill for the first time.
Recently at the ITFMA conference in Atlanta, we presented and had great discussion with the group on things to consider to rationalize and socialize a service costing change. It includes things to avoid (all of which are mistakes we have seen real customers make before we start with them) as well as things to be certain to include in your planning.
If you are getting ready to embark on a project that impacts your services costs, please reach out to us for some deeper advice and engagement: