Financial Planning

Building a budget for your digital workplace plan

Building a realistic budget is a key ingredient in determining the long-term success of your digital workplace. The budget should identify: capital requirements, estimate expenditures, and anticipate revenue and/or cost savings. Think about organizing the budget in stages: planning, build, launch, and ongoing operations.

Creating a Budget

Getting your budget started

The complexity of your budget will depend on the goals, objectives, and requirements outlined in your digital workplace plan. To help you get started, consider these key questions:

  • When do you want the digital workplace launched? 
  • Who will own the launch project? 
  • How many team members will manage the launch project (full and part-time)?
  • Do you plan to use a consultant at any time during the entire lifecycle of your digital workplace?
  • Do you plan on creating a dedicated team to support your digital workplace solution after launch?
  • Technology - build or buy? 
  • On-premise or cloud solution?
  • Security costs due to industry and/or compliance? 
  • How many users will be accessing the site?
  • What are the long-term growth plans for the digital workplace?

Technology costs

Create a section in your budget which summarizes the projected technology costs for your digital workplace project. Cloud solutions like Igloo leverage a yearly subscription licensing model which includes most, if not all, the underlying technology costs for your digital workplace solution. Typical technology costs for a digital workplace include:

  • Software licenses
  • Hosting fees
  • Maintenance and upgrades
  • Optional modules
  • Support services
  • Data storage
  • Disaster recovery

Implementation costs

The duration of implementation varies based on the complexity and priority of the project. Generally, implementation timelines range from 8 to 16 weeks. Costs associated with implementation should be fairly straightforward and are usually allocated as "one-time" costs in the budget. Typical implementation costs include:

  • Set-up
  • Configuration
  • Design
  • Consulting
  • Customizations
  • Accelerated development
  • Training
  • Quality assurance/testing
  • Legal fees

Be sure to allocate all costs (e.g. including technology infrastructure, leases, rent, etc.) associated with internal resources, staff, and technology. This should include both full and part-time staff allocations, such as:

  • Project manager
  • Key business stakeholders
  • IT resources
  • Corporate communications
  • Human resources
  • External consultant

Launch costs

Whether you launch gradually or at once, you should execute a communication campaign around the project to build excitement and encourage usage. Depending on the scale of your launch, you may incur costs associated with:

  • Creating and printing of collateral
  • Running promotions or contests (e.g. prizes)
  • Gifts (e.g. for your advocates and sponsors)
  • Staff time

Operations and governance costs

Once the digital workplace is live, you need to budget for the ongoing operational costs to manage, govern, and evolve your digital workplace. We strongly recommend, at a minimum, to have a digital workplace manager and a steering committee in the budget, along with future technology costs as you scale the solution. Some operational costs to consider include: 

  • Digital workplace manager
  • Steering Committee
  • Engagement programs
  • Subscription license fees (e.g. projecting growth)
  • Support and maintenance fees
  • Staff allocations outside of the core team such as advocates, subject matter experts (SMEs), consultants

Sample Budget

Below is a sample budget template. It divides the budget costs into five distinct categories:

  1. Planning
  2. Technology
  3. Implementation
  4. Launch
  5. Operations

Template - Digital Workplace Budget (Costs Only)

COST ITEMS

MONTHS

COST/ MONTH

ONE-TIME COST

TOTAL COST

PLANNING





Research

2

$

$

$

Employee Salaries

4

$

$

$

Consulting

4

$

$

$

Printing

4

$

$

$

Communications

1

$

$

$

TECHNOLOGY





Software Licenses


$

$

$

Hosting Fees


$

$

$

Support & Maintenance


$

$

$

Data Storage


$

$

$

Disaster Recovery


$

$

$

IMPLEMENTATION





Set up & Configuration


$

$

$

Design


$

$

$

Customizations


$

$

$

Training


$

$

$

Quality Testing


$

$

$

LAUNCH





Collateral


$

$

$

SPIFFS


$

$

$

OPERATIONS & GOVERNANCE


$

$

$

Staffing


$

$

$

Licensing


$

$

$

Support Fees


$

$

$

Professional Services


$

$

$

Engagement Programming


$

$

$

ESTIMATED BUDGET




$xxxxx


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