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Labor Financial Management
Bridge the gap between traditional cost center-based budgeting and Agile project & product management
Alignment, transparency, and efficiency with Labor Financial Management
Technology spending includes not only infrastructure, contracts, and cloud services, but also labor – which makes up 40% of IT expenses. Mismanaging these costs can cause 70% of IT projects to fail to meet business goals. To drive growth and gain a strategic edge, it’s become essential to align work with strategy, increase transparency between IT finance and PMOs, and create efficient processes to reduce waste in resources and spending, while increasing accuracy in forecasting.
Apptio’s Labor Financial Management (LFM) solution empowers tech finance teams manage labor costs and optimize expenses. By integrating Targetprocess with IBM Apptio, the industry-leading technology financial management platform, the seamless connection strengthens collaboration, aligns investments with product direction, and delivers business value.
and if misaligned
and unmanaged,
of IT initiatives will fail to deliver
the expected business outcomes1
1. Source: Gartner’s Critical Capabilities for Strategic Portfolio Management Tools, 04/2023, ID G00771224
Labor Financial Management helps you….
Consolidate labor costs with strategic goals, improving budgeting and forecasting accuracy
Show the value of labor investments by linking spending to strategic outcomes in real-time
Track work to financial models, ensuring accurate labor cost reporting for audits
Centralize resource management, helping finance teams build accurate forecasts
Traditional Labor Financial Management challenges
The New Era of Managing Your Labor Financials
Discover how Labor Financial Management (LFM) can bridge the gap between your finance and Agile teams, enhancing transparency and strategic alignment. Our latest eBook delves into practical strategies to integrate LFM into your operations effectively.
Labor Financial Management empowers your organization to:
Automate work allocations with tools like Jira/Azure DevOps for accurate labor forecasts and enhanced planning visibility.
Adjust funding dynamically based on real-time KPIs and value stream performance to strategic financial agility.
Leverage integrations with tools like Workday/Oracle for precise, auditable insights into labor costs, improving accuracy in categorization of CapEx and OpEx.
Optimize resources using capacity-oriented funding to adjust under-utilized or over-utilized areas efficiently.
Connect financials to work metrics like story points, effort, or hours for accurate budgeting and capitalization.
Decoding Labor Financial Management
In this episode of Amplify Agile, we decode LFM by discussing the what, the how, and the business challenges addressed, plus how to idenify – and overcome – potential roadblocks.
“We are making key changes across our planning, portfolio management, resource management, work management and financial control disciplines over the next few years, to gain better visibility & control. Apptio products will fuel our integrated process transformation.”
-Fortune 100 life insurance company
