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Northrop Grumman’s Bernie McVey Looks Beyond Cost Allocation

ExecutiveBiz spoke with Northrop Grumman’s Bernie McVey to get his take on a “consumption-based chargeback model.”

“McVey’s focus on cost efficiency goes beyond mere cost allocation. “We’ve developed a services catalog that defines standard services … we’ll be delivering [that] across the company, ” he says. Those services, he adds, encompass a wide spectrum: client computing (laptop, desktop), BlackBerry devices, cellular phones, cybersecurity, and application hosting.

“Each one of those will have its own kind of services orientation and consumption— that will be the model that we’ll use to charge users for services, ” McVey said. “The idea, ” he adds, “would be to manage them at the enterprise level and drive efficiency into that service delivery, and, therefore, lower costs.”

All of which spells a win for shareholders, employees, and government customers alike. “We’re really on the path to getting this in place and agreed to by the government in terms of the way we want to charge IT going forward, ” McVey said, who projects the system will be fully implemented by the beginning of 2012.”

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