🚀 go-pugleaf

I think Information Technology cost as a fixed percentage of total
budget is a fallacious assumption.
Todays IT costs permeate budgets at all levels, so it's hard to measure.
It can work as a guideline on costs and profit estimates.
It is a leadership decision whether your investment in IT will guide
you toward your goals.
If it is used as absolute law, you will pay the difference in human
terms as you burn out your valuable staff.  (But then if you need some
turnover...)
You might pick a percentage on a year-to-year basis, revising the
percentage figure as needs dictate.  One the other hand you could fund
IT investments on a project-by-project basis (using the percentage as
curiosity figure).  The bottom line is performance, no matter which
accounting practice you choose.

Here is an example:   The Limited Inc. (seven years ago) had a law that
total IT costs could not exceed 2.0 percent of gross sales.  That was
just before they brought personal computers into their offices
worldwide -- so I think things have changed somewhat since.
Three things have not changed, according to my contacts:
 Personnel policies still encourage employees "to stretch" to meet
 assigned goals.  Some folks still burn out in the various divisions
 of the company.   The Limited Inc and its divisions still market the
 best clothing styles, so my common stock has done well. :-)
BTW I don't work there anymore.
Sam Fairchild
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