Eileen Feretic, writing in the June 2009 edition of Baseline magazine, reported a recent study by the Hackett Group which forecasts an 8.6% growth in IT demand between now and 2011 with only a 1.3% increase in budget. Surprised?Â No, I thought not. But do you have a plan?Â Are you comfortable that your plan, if it exists, can deliver the implied 7.3 cost reduction? If you answered "No" to either of these questions, where should you start? The answer is simple, you have to start with the business.Â If you don't have one already, you need to develop an IT Governance methodology (DCG has one and it can help you with this if desired) that identifies all the important decisions at the business-IT interface, who makes them and how they are made.Â This is essential for getting the inevitable prioritization exercise right.Â Too often cost saving is arbitrary and causes disproportionate harm to wither the business or IT. Feretic's article quotes Steve Bozz, CIO of 1-800-Flowers, "What we've done is take all the tech stuff and translate it into business language so that its meaningful to our brands and business units.Â Now they can make decisions in a way they never could before."