FinOps Assessment Capability
Conducting repeatable, measurable, thoughtful analysis of the maturity of a FinOps Practice in for your organization in the context of the FinOps Framework, for insights into strengths and areas for improvement of FinOps activities.
A FinOps assessment evaluates the effectiveness and maturity of an organization’s financial operations practices. It aims to align these practices with organizational goals and pinpoint areas for enhancement.
FinOps Assessment Definition
Assessment of the FinOps practice allows a FinOps team to measure its own effectiveness, map its activities against the goals of the organization, and identify areas where it will be valuable to mature those activities. Assessment of FinOps Capabilities can be done at every stage of an organization’s FinOps journey.
Assessment enables organizations to benchmark their current capabilities, and pay most attention to the capabilities that are the most impactful to creating cloud value. Assessments are typically done with a Target Group, a subset of the organization consisting of a mix of representative personas. Perceptions and needs of different Target Groups may indicate the need to assess different Capabilities in different parts of the organization. As organizations mature in their cloud use and complexity, they will do more activities in more Capabilities.
It is vital to the success of any FinOps program to measure the effectiveness of its practice in the context of its current requirements, evaluate the level of maturity appropriate for the Target Group, and use this analysis to determine the future strategy and direction of the FinOps practice.
The goal of a FinOps Assessment is to understand the current state of maturity in a particular practice or set of practices, define a goal state that’s aligned to organizational objectives, and create a pathway from the current state to that goal. Attaching KPIs to the goal will enable the FinOps team to more clearly identify where organizational objectives are not being met currently, and to identify areas to Assess and areas where maturity is needed.
Assessments are more effective when assessing a subset of FinOps Capabilities and a small Target Group, rather than trying to assess the entire FinOps Framework. FinOps teams should self-assess before moving out to other Target Groups. By having a more targeted conversation with a smaller audience, the FinOps Assessment enables the assessors to drive deeper dialogue and understanding of the level of maturity and effectiveness today.
An important secondary goal of performing FinOps Assessments is to foster collaboration and understanding across personas and organizational hierarchies. Assessments are a shared activity where the FinOps team can promote good behavior, reinforce common terminology, and promote a culture of cost awareness with teams throughout the organization.
The FinOps Assessment Working Group has published a Guide on Completing a FinOps Assessment and the FinOps Foundation has published a FinOps Assessment Tool to accelerate this capability.