Interview with Greg Kirkland

Name: Gregory A. Kirkland
Title: Information Systems Manager
Company: Katz, Sapper & Miller, LLP
Years as an IT project manager: 10

Greg Kirkland has earned a BA in computer information science from Franklin College. He started writing COBOL financial applications out of school, then switched to PC and network support. He worked for a Fortune 200 company in that capacity for 5 years. Greg is now working in one of the largest regional CPA firms in the country as an IS manager. He oversees all technology operations, including infrastructure, O/S, support, and training.

Q: What is the best thing about IT project management?

A: I think getting my hands on the new “toys” is the most fun. Trying new technology and making the recommendations to deploy that new technology is very rewarding.

Q: When you begin to create a budget for an IT project, what things do you consider first?

A: I try not to focus on the cost. I work for a CPA firm, and they are going to analyze the proposed budget expenditures to the Nth degree. What I try to do is look at what the best solution to the problem is. I consider the best products and services on the market, because I truly believe that you get what you pay for, and spending a little extra up front can save you additional expenses and headaches later.

Q: How can IT project managers get their visions of superb technology in alignment with company budgets?

Q: Working as an IT professional in an accounting firm must be frustrating at times with your budget. What advice can you offer in regard to preparing budgets for IT projects?

A: When I wrote my first IT budget three years ago, it was a very frustrating experience. I now know that every partner that looks at my budget is going to scrutinize it like they would their clients' financial statements. I'm not an accountant, but I have been trained to think like one.

I've divided my budget spreadsheet into Capital and Noncapital Expenditure sections. That tells us what our out-of-pocket expenses are this year versus what can be amortized over the life of the product, like a PC. Next, I create categories that match the General Ledger numbers for the firm's master budget, such as Hardware, Training, Maintenance, and Supplies. Know this—software and software licenses are handled differently! Software is a capital expenditure that is expensed in the current year and software licenses are noncapital expenditures that can be amortized. Share that with your CFO, and they'll know what you are talking about.

Aligning the categories with G/L allows our managing partners to compare budget numbers to last year's actual numbers. I even do my homework to find out those totals before I propose my budget. It helps me avoid arguments where my recommendations are on target or under last year's amounts. That leaves me with only one battle to fight—new projects where we spent more than last year.

Q: What key component does management want to see in an IT budget?

A: My management is not technically savvy. I can share with the managers RAID-5 this and SCSI that, and they would think that I'm speaking a foreign language. They need to understand the benefit of the end result, not necessarily what hardware or software product allows us to accomplish that result. I accomplish that by using lay terms and save the “geek speak” for when I'm back in my department. What they most appreciate is that my recommendations are well thought out, that I've considered other alternatives, and that we can get it for a fair price.

Additionally, they want to see the spreadsheet printed out in an easy-to-read format, with subtotals and totals that foot (add up) and are easy to follow. I typically improve the readability by highlighting category headings and totals in color and printing the spreadsheet on a color printer.

Q: Why do technology implementation projects always seem to cost more than expected?

A: I think failure to plan for the unexpected results in more time being spent, either internally, or with a consultant. The hardware and software costs should be predictable, so just the implementation costs are what is variable.

Q: What should project managers do when they are about to run over budget?

A: Honesty is always the best policy. Consult with your senior management to let them know what is going on. More than likely, you got their blessing before starting on the project. Help them remember the benefits of the project to get additional funds and time to complete the project successfully.

Q: In what ways can a project manager control cost?

A: Work absurd amounts of overtime by doing it yourself. OK, only slightly exaggerated. I do believe that an IS team should try to do all that it can internally (fixed cost if salaried) before outsourcing. Knowing your system and how to maintain it is very important. Don't hand over all of the control to the outside folks.

Q: How do you show return on investment for technology implementations?

Q: How do you address risk in regard to new technology?

A: We try before we buy. We've got a test lab that we set up to simulate our production environment. Then we can test new products to see how they interact with our setup. We're definitely conservative in our approach. Our IS staff and our internal technology users group will try out the new gear before we roll it out to the rest of the firm. The tech group are the “guinea pigs.”

Q: What is the most expensive part of IT budgets?

A: Capital expenditures for new hardware make up the biggest line item on our budget. New servers, PCs, printers, hubs, cables, and so on, that keep our firm on the leading edge of technology cost more than all of the other categories combined.

Q: How does a project manager defend a much-needed technology implementation when management doesn't agree?

A: I've found that management won't approve a project just because IS says it is “cool.” A typical cost-versus-benefit analysis is normally necessary to help persuade them to see it your way. If they understand and appreciate the benefits, then finding a reasonably priced solution is your last hurdle.

Q: How do you factor variances of cost into your budget planning?

A: I was really fortunate this year in that the cost of the PCs that I put in the budget at the beginning of the year was much lower by the time I purchased them early in the fourth quarter. I look like a genius for saving so much money. I don't recommend padding your budget to get that effect, however. I get real quotes from the vendors I plan to do business with, then hope that prices are the same, if not lower, when I go to buy those items later in the year. In my experience, I've not seen any equipment get more expensive later in the year. I've got this saying, “Better, faster, cheaper,” and it usually works out to my favor.