About Us:

IIMT Consulting combines deep financial, forensic, economic, technology and

communications experience with extensive industry expertise throughout the world.
We have a unique integration of talent serving clients among the top bank holding
companies, top law firms and top Fortune 100 companies.
The operating environment for the global organizations is rapidly getting complex.
Now IT is no longer a support function for the organization, transformation of
functional areas needs to be in harmony with their business strategy too. Today
'change' is became the new normal in this business world, organizations need to
reinvent their ways in order to excel in this competitive world.

Our Experience:

We are in the consulting industry from past 5 years and are

getting better and bigger every year.

Previous Projects with:

Bradford Technologies, Samsonite Corporation, etc.

IIMT-Consulting helps you to achieve and sustain the success through strategic,
functional and process transformation that enables you to improve performance,
increase effectiveness, reduce costs and enhance resilience.
Clients retain us because we combine unparalleled expertise with innovative
thought leadership to address critical challenges, in both event-driven and longterm scenarios. FTI Consulting delivers an unmatched combination of breadth and
depth of expertise across our worldwide network of more than 4,400+ employees in
27 countries on six continents.
Our Testimonials:
IIMT Consulting was key to making Samsonites ERP software selection and
organizational change management initiatives successful. Their ERP expertise and
methodologies are unparalleled, Nick Macera, CIO, Samsonite Corporation

IIMT Consulting was key to making Samsonites ERP software selection and
organizational change management initiatives successful. Their ERP expertise
and methodologies are unparalleled, CEO of leading US bank
Problem Statement:
Poor IT governance and misalignment of CBLs strategy with its ICT department
Project Objective

 Identification of service quality improvement areas

Improved user security and customer satisfaction
Foundation for continuous process improvement for all IT process
IT Investments for efficient business productivity services
Proper IT governance
Scope of Work:

Assessment of Banks ICT department through different Governance &

Service Management Frameworks
Evaluation of banks ICT processes against industry benchmarks
Develop a strategic plan for implementing IT governance and service
management in CBL
User Training and cost implications

Bank of Lesotho needs to move towards the Technological

Transformation Alignment model

Technology Potential: This perspective views business strategy as the driver,

however involves the articulation of an IT strategy to support the choosen business
strategy and the corresponding specification of the required IS infrastructure and
process. The top management should provide technology vision to articulate the
logic and choices pertaining to IT strategy that would best support the choosen
business startegy, while the role of the IS manager should be that of the technology
architect - who efficiently and effectively designs and implements the required IS
infrastructure that is consistent with the external component of the IT srategy
(scope, compeences and governance)
Business strategy is the driver for Bank of Lesotho and this model seeks to
identify the best possible I/T competencies and corresponding internal I/S
architecture
The top management should have a technology vision and I/S Management
team are expected to play the role of technology architect and the
performance criteria would be technology leadership

Bank of Lesotho would move to the Turnaround Strategy and later shift
back to Support mode in the Strategic Grid

A banking firm like Bank of Lesotho is expected to be in the Support mode

where even with a few minor interruptions, there would not be any major
consequences, and it is possible to quickly revert to manual processes.
However currently, with their poor I/T, they are not in any of the modes,
and they need to go for a turnaround strategy

With the need for urgent new and sophisticated technology with low to
moderate reliability, Bank of Lesotho, on implementation, will move to the
Turnaround mode

Post successful implementation and after considerable monitoring,

gradually they would return back to the Support mode of operations

OVERNANCE FRAMEWORK:
ICT GOVERNANCE RECOMMENDATION
Weill & Ross Governance Framework

This framework provides an improved understanding of ICT governance and to

illustrate how it can be used to better alignment ICT with business strategy
for CBL. The framework diagram illustrates the requirement for harmonization of
organization with ICT governance arrangements and the CBL goals.
Information Technology Governance is a key requirement that greatly enhances the
success of an organization. It is a management way of directing, measuring and
evaluating the use of IT resources within an organization to support the strategic
goals of an organization. The central bank of Lesothos (CBL) business dependence
on the quality and reliability of IT services is increasing. To achieve this, the CBL
need effective IT governance and service management strategy that addresses the
changing business requirements and support the long term business goal.

IT GOVERNANCE IN CENTRAL BANK OF LESOTHO SHOULD BE FOCUSED ON

1. IT principles clarifying the banking role of IT
2. IT investment and prioritization choosing which initiatives to fund, how much to

fund and where to invest in IT including project approvals, justification techniques,

and post implementation
3. IT Architecture defining integration and standardization requirements

4. IT infrastructure determining and enabling shared services

5. Business application needs specifying the business need for purchased or

internally developed IT applications.

IT GOVERNANCE ARCHETYPES FOR DECISION RIGHTS OF CENTRAL BANK OF

LESOTHO
There is a need to address the five decision domains namely IT Principles, IT
Infrastructure, IT Architecture, Business Applications and IT Prioritization and
investment. To address this IT governance across five decision domains, an IT
Governance and Service management strategic planning is studied with the help of
IT governance archetypes for decision rights to specify who has the decision rights,
and who should be accountable for the decision.
IT GOVERNANCE ARCHETYPES FOR DECISION RIGHTS

Business Monarchy
In business monarchy, the IT department as a whole makes the decisions. Therefore
it is the corporate office that should make decisions for IT principles, process
business applications and manage IT prioritization and investment. The CEO of
Central bank of Lesotho works with a small team of top executives to ensure that IT
aligns with corporate objectives
IT Monarchy
In IT Monarchy, the decision rights rests with the individuals or group of IT
executives. The Architecture office should be responsible for taking rights in IT
infrastructure. The CIO IT leaders are responsible for IT Architecture.

Federal
It consists of C-level executives and business groups. Therefore the decision rights
for business applications should be handled by business leaders, business process
owners of CBL.
Duopoly
Duopoly consists of IT executives and one other group (e.g., CXO or business unit or
process leaders). Therefore the business leaders, IT leaders are responsible for the
input rights of IT principles, IT Infrastructure and IT prioritization and investment.
This IT governance framework strategic implementation are scheduled based on
priorities determined from the process gaps of existing IT governance to implement
an effective IT governance of Central bank of Lesotho. The respective departments
need to effectively implement the above IT services for effective governance
assessment.

Vigneshs Part
Strategic Alignment Model
Strategic alignment is an intense hands-on business redesign process, in which we
align your strategic goals, your business model and processes, and your company
culture with your key business purpose and core values.
The model involves the following five levels of Strategic Alignment Maturity
1.
2.
3.
4.
5.

Initial/Ad-hoc process
Committed process
Established Focus process
Improved/Managed process
Optimized process

Each of the five levels of alignment maturity focuses on set of six criteria. These six
criteria are:
1.
2.
3.
4.
5.
6.

Communications Maturity
Competency/Value Measurement Maturity
Governance Maturity
Partnership Maturity
Scope and Architecture Maturity
Skills Maturity

The procedure for assessing maturity is as follows:

1. Each of the criteria was assessed individually by a team of IT and business
unit executives to determine the firms level of strategic maturity on this
criteria.
2. The evaluation team converged on a single assessment level for each of six
criteria.
3. The evaluation team used the results to converge on the overall assessment
level of the maturity of the firm. Based on the analysis, the team said that
CBL is currently on LEVEL 1.

CBL should get into LEVEL 2. In this level, CBL should focus on specific functions
or organizations. Gain some limited understanding between business and IT
functions of each others role. Relationships between IT and business should be
relaxed at some levels, with some opportunities to share knowledge and
information. The management style tends to be few continuous improvement
programs. Benchmarking is still informal. There are ments are technically
oriented and business metrics. Service level agreement cost oriented, but is still
not linked to and information. Technology standards and architecture have begun
to be defined at Enterprise level with some early attempts at cross- functional
integration.

Cost Components
The Cost Heads or the Cost Components involved in this project are listed below
and explained in detail.
Consulting Cost
As the scope of work has been defined clearly, the clients and consultants may
go ahead with the fixed pricing model, whereas if it were unclear, a T&M model
would have worked out best for both parties.
Training Cost

The role of employee training and development is becoming more important as

companies are increasingly relying on the knowledge, skills and abilities of their
human capital to drive firm performance. Since training is a major component in
enhancing employee competencies, tracking the training-cost-per-employee
metric helps determine the investment in training at an individual level. This
metric can be computed by dividing the total training cost for an organization by
its headcount.
Training cost per employee = Total training costs / Headcount

TRAINING COSTS Development costs (e.g., salaries and benefits of personnel, equipment).
Direct implementation costs (e.g., training materials, technology costs,
facilities, travel, equipment, instructors salary and benefits).
Indirect implementation costs (e.g., overhead, general and
administrative).
Compensation for participants.
Lost productivity or costs of backfilling positions during training.
INVESTMENTS
IT Investment Management portfolio alternatives consist of discretionary
(Optional), strategic and mandatory requirements and the mount of investment
% in each portfolio should be driven by business needs and will change from
year to year. Apart from this there will be a one-time initial cost and other
periodic costs such as Up-gradation cost, new product cost, Infrastructure cost
Extra man power costs.
Also, size can be used as a metric to measure the cost. The below mentioned
metrics can be used to determine the cost drivers:
Size of the organization: The size of an organization reflects its inertia, its
ability to resist change. The assumption is that the larger and more cumbersome
an organization, and in consequence the more inert it is, the more an
implementation effort will cost.
Size of the configuration: The size of the configuration effort is expressed in
terms of process maturity levels that are to be implemented. The assumption is
that effort will increase with the increase in maturity levels to be implemented.
Size of the implementation: Implementation effort is expressed by the number
of users involved, since these indicate training and reorganization effort.

AMC
This cost will be charged by the vendor. Software maintenance is most often
used to fund areas such as development, help line support, program fixes and
the like. General rule of thumb is 8-12% of the purchase price would be
considered a fair deal. We take a conservative estimate of 15% for the sake of
estimation.
Different companies follow different strategies on this. The following are the
common ones:
1. % cost on the purchase price of ERP ---- This means that if a company has
purchased an ERP package for 'x' amount then around 8-12 % of 'x' amount
will be charged as the AMC.

2. % cost on the list price of ERP --- This is nothing but the price is calculated
as a percentage (8-12%) on the list price.
3. Fixed amount --- They charge a fixed amount every year. This will be
increased every year based on certain criteria's.
The most important thing that we need to take into consideration the
deliverables in AMC (Like upgrade support, SLA, Technical support etc.)

METHODOLOGY
The need for a cost model is given by the fact that it is necessary to identify the
cost for each product or service in order to identify the profitability of IT
activities and processes. Traditionally, it is believed that a busy IT Department
(Information Technology Department) of an organization, with many services
offered for other departments is very profitable, or at least cost-effective. A
real and precise calculation of costs per product or service have unveiled that
the above is not necessarily true. In this project we suggest Activity-Based
Costing for costing model so that we can assign precise costs to our services.
Key elements of this method are activity and cost driver. Activity is defined as a
set of complementary tasks, which are done with a specific purpose. Cost driver
express the relation between an output (product or service) and the activities
consumed by it.
Cost objects represents batches, activities, processes, products, services,
customers and suppliers.

This method was developed because the traditional accounting system has a
weakness with the assignment of indirect costs. Indirect costs are the expenses
that dont directly generate profit, but are necessary for an organization (or
department) to continue activity. Traditional accounting method arbitrarily
allocates indirect costs to cost objects. Therefore, as the indirect costs increase,
the traditional method will yield a less accurate result for the true cost of a cost
object. 15

The ABC method solves this problem by transforming indirect costs to direct
ones. It traces, rather than allocates, each expense category to a cost object.
This method is applicable when indirect costs are greater than direct costs with
20 percent or more. Essentially, this method groups the costs in activity pools
instead of collecting them as indirect costs of a department. Similar processes
or activities, which are driven by a common factor, are grouped in the same
pool. Next step is to distribute collected costs to each product or service, by
using a cost driver .A cost driver is the common factor that groups activities or
processes in a specific pool. Examples of cost drivers include: number of setups,
number of tests, number of inspections, number of uptime hours for servers or
computers, number of failures, number of cycle times, cost of providing
resources, etc.. The total cost for each pool is distributed to products or services
using the volume of cost driver assigned to the pool. For example, if testing a
server requires 30 percent of the testing activity and the cost driver is the
number of tests, then the cost of the testing a server activity is 30 percent of
the testing costs.
Estimation of Costs

Estimated Costs
(in Maloti)

Estimated # days = 750

Billing Rates
Senior Consultant: 150
per hr
Consultant: 100 per hr
Analyst: 60 per hr
Up gradation Cost
20,000,000
New Product Cost
10,000,000
Infrastructure
25,000,000
Training/Recruitment
10,000,000

Total Cost =
88,549,440