Implementing FinOps principles requires thoughtful prioritization across various focus areas. In this blog, we’ll explore five critical areas—Robustness, Resilience, Hedging, Agility, and Versatility—and provide guidance on how to prioritize them based on your organization’s phase in the FinOps journey: crawl, walk, or run. Each focus area offers unique benefits and plays a vital role in the successful adoption of FinOps.
1. Robustness
Robustness is about having a clear vision of success and establishing non-negotiable principles. This focus area is crucial in the crawl phase of FinOps implementation.
- Crawl Phase: Start by defining a clear vision and set of principles for cost management and cloud adoption. Establish must-do priorities and non-negotiables to guide your transformation journey. Build a cost-conscious culture that emphasizes financial discipline and optimization. Lay the groundwork for a robust organization by setting measurable goals and implementing strong governance practices.
2. Resilience
Resilience involves maintaining a steady, optimistic vision of success, learning from past experiences, and viewing failure as a learning opportunity. Resilience is essential across all phases of FinOps implementation.
- Walk Phase: In this phase, focus on building resilience by learning from past experiences and incorporating those lessons into your FinOps strategy. Cultivate a culture of continuous learning and improvement, where setbacks are seen as opportunities for growth. Encourage cross-functional collaboration and knowledge sharing to leverage collective intelligence. Emphasize adaptability and the ability to recover quickly from challenges.
3. Hedging
Hedging is about planning for contingencies and investing in alternative approaches to mitigate risks. This focus area is particularly important in the walk phase of FinOps implementation.
- Walk Phase: Prioritize hedging strategies to manage risks associated with cloud adoption and cost management. Consider potential contingencies and develop alternative scenarios. Explore different approaches—such as full cloud, multicloud, or hybrid models—to hedge against risks and optimize resource utilization. Pay close attention to details like contractual agreements and compliance requirements. Evaluate the pros and cons of each approach, and plan for contingencies accordingly.
4. Agility
Agility refers to the ability to adapt quickly to changing circumstances, market dynamics, and customer needs. It’s crucial in both the walk and run phases of FinOps implementation.
- Walk Phase: Start by establishing agile practices and methodologies. Implement iterative approaches like Scrum or Kanban to enable continuous improvement and adaptability. Embrace feedback loops and encourage cross-functional collaboration to respond swiftly to evolving requirements. Leverage automation and DevOps practices to streamline processes and enhance agility.
- Run Phase: As you advance, prioritize scaling agile practices across the organization. Foster a culture of experimentation and innovation, encouraging teams to take calculated risks, test new ideas, and iterate rapidly. Keep a customer-centric mindset and use customer feedback to drive ongoing improvements.
5. Versatility
Versatility involves adaptability, effective stakeholder interaction, and quickly responding to market signals. This focus area is relevant across all phases of FinOps implementation.
- Crawl Phase: Begin by cultivating adaptability and openness to change within the organization. Encourage cross-functional collaboration and value diverse perspectives. Lay the foundation for effective stakeholder engagement by understanding different communication styles and needs.
- Walk Phase: Enhance versatility by developing sensing capabilities and leveraging market intelligence. Build strong relationships with stakeholders and tailor communication to their preferences. Continuously learn and adjust based on market dynamics and customer feedback.
- Run Phase: In this phase, focus on staying agile, engaging with stakeholders, and adapting strategies based on market signals. Utilize AI-powered tools for market intelligence, automated analytics, and versatile communication to maintain a competitive edge.
Conclusion
When implementing FinOps, organizations should prioritize focus areas based on their phase of implementation. In the crawl phase, focus on establishing robustness and clear principles. During the walk phase, emphasize resilience, hedging, and agility. Finally, in the run phase, leverage versatility to stay adaptable to market changes and engage stakeholders effectively. By aligning these focus areas with the organization’s phase, companies can achieve successful FinOps implementation, leading to cost optimization, operational efficiency, and business agility.
