Talking about FinOps is talking about culture

The transformation proposed by FinOps goes beyond metrics and reports; it is a cultural change that promotes financial and operational efficiency throughout the organization.

To truly understand the impact of FinOps culture within organizations, it is necessary to revisit the teachings of W. Edwards Deming. In 1982, Deming revolutionized management thinking with the introduction of his 14 principles, which continue to serve as a guiding light for businesses in their challenging business journeys today.

Deming’s principles establish a framework for continuous improvement and total quality, aligning perfectly with the goals of FinOps, which is to maximize the value of the cloud.

For example, when considering the principle that discourages reliance on inspection to ensure quality, we can draw a parallel with the proactive approach of FinOps. This practice encourages the integration of cloud financial management from the early stages of development to delivery, enabling real-time predictions and decisions to avoid unnecessary costs and optimize investments.

The Human Essence in FinOps In practice:

FinOps is driven by people within the organization. Technological control tools are supportive instruments for monitoring and management, but it is people who drive the process, based on knowledge and Deming’s principles, to build quality and efficiency from the outset.

The centralization of the FinOps culture within a team is crucial for establishing the rules and guidelines to be followed. However, technological and product decisions should be decentralized, as the teams responsible for each product are better positioned to implement efficient adjustments.

The success of FinOps does not reside in an isolated department but rather in the collaboration of the entire company. Executives, technology teams, finance, and other sectors must be committed and engaged in this initiative to maximize the company’s value.

Sharing Responsibilities Among Teams

• Executives and Leadership: Senior management must endorse the FinOps initiative, providing credibility and encouraging involvement at all levels.
• Engineering and Development: These professionals are crucial in the daily application of FinOps, taking direct responsibility for the financial impact of their actions and providing detailed reports of usage and cost forecasts.
• Finance: The finance team benefits immensely from FinOps, allowing a clearer and more accurate view of the costs associated with technology, facilitating more efficient financial decisions.
• Purchasing and Supplies: These specialists maintain strategic partnerships with suppliers, ensuring that internal savings are not eroded by external inefficiencies.
• Product or Business Teams: Cost optimization should be a collaboration between engineering and the product owner, whose business vision is crucial for assessing changes in technical capacity without compromising the product’s value.
• FinOps Practitioners: These professionals act as facilitators of the initiative, having a comprehensive view and directing efforts efficiently, connecting the executive level to all levels of the organization.

In the end, the focus of each team should be on the value delivered. With each training and continuous improvement, the pursuit of effectiveness and excellence in delivery becomes increasingly achievable.

This article aims to provide a macro view of how teams and their cultures can structure around FinOps. The transformation proposed by FinOps goes beyond metrics and reports; it is a cultural change that promotes financial and operational efficiency throughout the organization