
Cross-Functional SAP License Governance Through the Employee Lifecycle
SAP licensing is complex and costly, but a cross-functional governance team can dramatically reduce risks and expenses.
By uniting IT, procurement, and HR, CIOs ensure that SAP licenses are managed proactively throughout each employeeโs hire-to-retire lifecycle, preventing waste and avoiding compliance surprises.
SAP Licensing: High Costs and Hidden Risks
SAP software is mission-critical, and so are its licenses. Enterprises spend millions on SAP named user licenses (e.g., Professional, Limited, Employee) and annual support fees (typically ~20โ22% of license cost).
A single SAP Professional user license can cost around $3,000 upfront (with ~$660/year in maintenance), while a more limited user license might be ~$1,000.
Multiply these by hundreds or thousands of employees, and the stakes become clear. Without active management, organizations often over-license by 20โ30%, paying for users who donโt need full licenses or for former employees who are no longer with the company.
Besides wasted spend, license mismanagement risks compliance: SAPโs audits can impose hefty true-up fees if youโre under-licensed or not following contract terms.
In short, the current status quo of siloed license handling โ where IT tracks usage, procurement handles contracts, and HR remains unaware of software implications โ leaves money on the table and invites audit trouble.
Organizations require a more comprehensive approach that addresses these challenges holistically.
Read SAP License Optimization Through Periodic User Classification Reviews.
Breaking Down Silos with Cross-Functional Governance
The solution is a cross-functional SAP license governance team that bridges departments. This team brings together IT, procurement, HR, and often Finance or business unit reps, to collaboratively oversee SAP licensing.
By breaking down silos, the governance group ensures that everyone involved in the employee lifecycle is aligned on license management and administration.
For example, HRโs data on new hires and leavers gets fed directly into ITโs user provisioning process, and procurement is alerted in advance of any license shortfall or excess.
This collective approach creates single-point accountability for SAP license compliance and spend.
Itโs akin to a steering committee that meets regularly (e.g., monthly or quarterly) to review license usage, upcoming changes (such as projects or organizational changes that add SAP users), and strategies to optimize costs.
The tone is collaborative and proactive rather than reactive . Instead of discovering at audit time that you had 50 unused licenses or a new interface causing indirect usage, the cross-functional team catches these early.
In essence, governance turns SAP license management from a once-a-year scramble into a continuous business process.
Roles and Responsibilities in the License Team
A successful SAP license governance team clearly defines each stakeholderโs role:
- IT (SAP & Asset Management): Owns visibility into license usage and user access. IT tracks the deployment of licenses, conducts internal SAP user audits, and ensures users have the correct roles. IT will implement the technical side of licensing policies โ for example, using SAPโs user management tools (SU01, License Administration Workbench) to classify users, lock accounts, or run usage reports. IT also identifies opportunities to reclassify users (e.g., downgrading a userโs license type if their role changes) and flags any compliance issues (such as potential indirect access from new integrations). Essentially, IT provides the data and execution for license optimization.
- Procurement (and Finance): Handles the contract and cost aspects. Procurement monitors license entitlements vs. actual use, manages the relationship with SAP or resellers, and negotiates any new purchases or renewals. With input from IT, procurement can determine when the company has surplus licenses (potentially allowing for maintenance to be dropped) or needs additional licenses (enabling volume pricing to be negotiated upfront). This team ensures youโre not overpaying for maintenance on unused licenses and that any contract terms (like audit rights, price escalators, or cloud subscriptions) are favorable and aligned with actual usage. They also coordinate internal chargeback or budgeting for licenses. Procurementโs involvement means SAP sales teams canโt easily upsell unnecessary users โ every addition goes through a rigorous justification.
- HR: Manages the people and events that drive license changes. HRโs role is crucial in a โjoiners, movers, leaversโ process for SAP access. HR provides advance notice of new hires, employee transfers and promotions (movers), and terminations (leavers) so the team can act on licenses. For a new hire, HR and IT collaborate to determine if the role requires an SAP account and what type of license is needed. If so, procurement ensures that a license is available (or signals the need to purchase if necessary). Forย internal moves, HRโs data (e.g., a promotion from analyst to manager) triggers a license review โ perhaps the employee now needs a higher-level license, or conversely, they can be downgraded if moving to a less SAP-intensive role. For leavers, HRโs offboarding checklist includes notifying IT to immediately deactivate the SAP user account and free up that license. HRโs involvement ensures no one falls through the cracks; you โdonโt pay for an SAP license any longer than you pay the personโs salary.โ Additionally, HR can help forecast staffing changes (e.g., a planned hiring spree or outsourcing plan), allowing the team to proactively adjust license counts.
By clearly delineating these responsibilities, the governance team ensures that all bases are covered.
IT provides usage intelligence, procurement controls, and cost and contract management, while HR links the process to real-world personnel changes.
This checks-and-balances system makes it far less likely to overshoot license needs or get caught under-licensed.
Aligning Licensing with the Employee Lifecycle
SAP license governance should be embedded into the employee lifecycle from day one to the last day.
A robust JoinerโMoverโLeaver process is the backbone:
- Joiners (New Hires): When a new employee joins, the team evaluates if their job role requires SAP access and assigns the appropriate license type before they start using the system. This often means mapping job profiles to license categories. For example, a warehouse clerk may only require anย Employee Self-Serviceย license to clock in or view payslips. In contrast, a financial analyst typically requires a Professional license to conduct transactions. By coordinating with HRโs onboarding process, the team avoids delays (new hires receive the necessary access on Day 1) andย over-licensingย (not every hire is assigned a costly Professional license by default). Procurement ensures enough licenses are available, possibly drawing from a โlicense poolโ of freed licenses.
- Movers (Role Changes): Employee promotions, department transfers, or changes to project-based access are reviewed through the lens of the license. The governance team establishes a policy that any internal role change triggers a quick license assessment: does the userโs SAP usage need to increase, decrease, or change category? For instance, if an employee moves from HR to a technical SAP support role, they may need a Developer license instead of an Employee license; if someone moves from finance to a non-SAP role, their license may be downgraded or removed. IT can automate alerts or reports for such changes, but HRโs data is the key input. This continuous alignment ensures that people always have matching licenses for their responsibilities, neither too many nor too few. It prevents both compliance gaps (someone doing heavy transactions on a light license) and cost waste (someone carrying an expensive license they donโt use).
- Leavers (Offboarding): This is one of the most critical phases. The moment an employee resigns or is terminated, a process must be inย place to immediately deactivate their SAP userย and recoup the associatedย license. The cross-functional team sets a strict rule: no SAP account stays active if the person is no longer employed. IT should receive an automated ticket or notification from HRโs system when someoneโs end date is reached. That account is locked or deleted, and the license is marked as available for reuse. This not only frees up a license (saving the company from having to purchase a new one for the next hire) but also removes that user from the next audit count, thereby avoiding the need to pay maintenance or potential compliance penalties for unused accounts. Many companies find they have dozens of โghostโ SAP users โ former employees whose accounts were never removed. The governance teamโs job is to zero out that problem. A well-engaged joiner/mover/leaver process effectively tracks licenses against each employeeโs status, so licenses โroll offโ just as employees do, and go back into inventory.
To illustrate the impact, consider the following scenarios:
Employee Stage | Risk if Not Managed | Governance Best Practice |
---|---|---|
Onboarding (New Hire) | New user isnโt given required SAP access (harming productivity), or is over-provisioned with a costly license they donโt need. Also risk of unplanned license shortage if many joiners. | HR informs IT of every SAP-needed hire in advance. Assign license based on role (use templates). Procurement maintains a buffer of licenses or pre-negotiated terms for growth. This ensures timely access and avoids buying licenses in a panic at full price. |
Role Change (Mover) | Userโs license no longer matches their job: a promoted user might unknowingly operate under an insufficient license (compliance issue), or a demoted/transferred user retains a high-level license (waste). | Governance team reviews monthly HR job changes. If scope of SAP use increases, upgrade the license type to stay compliant; if it decreases, downgrade the license to save costs. Reallocate freed-up high-tier licenses to those who truly need them. Document these changes for audit trail. |
Offboarding (Leaver) | SAP accounts of ex-employees stay active, consuming licenses. Company keeps paying maintenance for idle users and could fail an audit for users who should have been terminated. | HR and IT use an integrated offboarding checklist. On the employeeโs last day, IT locks their SAP account and flags the license as available. Procurement can then cancel maintenance on excess licenses at renewal or reuse the license for new hires. No former employee remains counted in the system beyond their exit. |
Integrating these steps into everyday HR and IT workflows is key. Some organizations formalize this process via an IT service management tool; for example, when HR enters a termination in the HRIS, it automatically triggers an SAP de-provisioning workflow.
The cross-functional team monitors these workflows to ensure compliance (e.g., no accounts missed).
The result is a living alignment between your workforce and your SAP license footprint โ as your company grows, shrinks, or shifts, your licensing adjusts in lockstep.
Continuous Monitoring and License Optimization
Managing SAP licenses is not a one-time project โ it requires ongoing monitoring and optimization.
The governance team should establish a regular review cadence (quarterly or at least biannually) to assess license utilization across the organization.
In these meetings, IT presents data from SAPโs tools (like USMM/LAW reports) or third-party SAM analytics, showing who is using what.
Key activities include:
- License Audits & Clean-Up: Regularly perform internal license audits. Check for inactive users (employees who havenโt logged in for, say, 90 days) and users with very low activity. These are prime candidates for removal or reassignment. For example, if 50 users havenโt used SAP in months, the team can retire those accounts and reclaim their licenses. An internal review by a Fortune 500 company identified over $3 million in unused SAP licenses; such findings directly translate into savings by avoiding new purchases and reducing maintenance costs. Similarly, check for misclassified users: e.g., someone with a Professional license who only runs a few queries (they could likely be downgraded to a cheaper license type). By continuously โright-sizingโ licenses to actual usage, the team trims excess fat.
- Usage Dashboards: Implement dashboards or reports that provide the team with visibility into license consumption versus entitlements. This might break down usage by module, by department, by license type. Trends are important โ if you notice a spike in new users in a region or a drop in usage in another, investigate the reasons. Visibility across all SAP environments (ERP, BW, CRM, etc.) is crucial; the team needs a consolidated view to catch duplication (one person with two accounts in separate systems counting twice against licenses). Modern SAM tools, such as SAPโs measurement tools, can help link these. The governance team champion should ensure such tools are in place and properly configured.
- License Recycling: Make it standard practice to check the pool of existing licenses before purchasing any new SAP user licenses. Often, due to employee churn or upgrades, unused licenses become available for redeployment. The procurement lead on the team can maintain a simple ledger of โlicenses on shelfโ โ e.g., 10 Professional and 25 Limited licenses currently unassigned. When a new demand arises from a project (โwe need 15 new SAP users in the warehouse moduleโ), the team first checks if existing licenses can cover those requirements due to attrition. Only if thereโs a true shortfall do you go to SAP for more, ideally bundling needs together to negotiate a better deal. This reuse approach can yield significant savings; itโs not uncommon for organizations without governance to continue purchasing licenses while 10โ15% of their previous purchases remain idle.
- Indirect Usage Monitoring: The team should also monitorย indirect SAP usageย โ cases where external systems or non-SAP applications access SAP data (e.g., a sales portal creating orders in SAP, or employees accessing SAP via a third-party application). Indirect access can quietly expose you to compliance risk if those users or actions arenโt licensed properly. IT needs to inventory integrations and work with business units to understand data flows. The governance team can determine whether an SAPย Digital Accessย license model (document-based licensing) or external user licenses are required, and procurement can then negotiate these. This cross-functional oversight ensures new integrations or software projects arenโt introduced without considering SAP license impact (the team can establish a rule: โthe license governance group must review any project integrating with SAPโ). By doing so, you avoid scenarios like the infamous case where a company was billed tens of millions for unlicensed indirect use.
Continuous monitoring isnโt just about catching problems โ it also prepares you for SAPโs official audits. SAP typically asks customers to perform a system measurement annually and can audit every 2-3 years. With a governance team in place, those audits become far less daunting.
The team will have already cleaned up dormant users, ensured proper classifications, and documented all relevant information.
When SAP auditors come knocking, youโll have confidence that your license position is accurate and defensible, with far less scrambling.
In fact, by self-auditing first and addressing issues, some companies turn the audit into a non-event (or even avoid audits because SAP sees theyโre well-managed).
Leveraging Governance for Cost Savings and Negotiation
An often overlooked benefit of a cross-functional license team is better leverage in contract negotiations with SAP.
When CIOs and CTOs have IT, procurement, and HR unified on licensing data, they can approach renewals or new purchases armed with facts and a clear strategy:
- Data-Driven Negotiations: Procurement can use detailed usage data from IT to counter SAPโs sales proposals. For instance, if SAP suggests buying 100 extra Professional licenses โfor growth,โ the team can respond with actual HR hiring forecasts and current utilization rates, perhaps showing that only 70 will be needed and that reassignments can cover the remaining 30. This prevents overselling. Moreover, showing SAP that you have a governance process (with audits, clean data, and documentation) improves credibility; SAP reps know they canโt easily push shelfware on you, and youโre aware of your entitlements. Companies that approach SAP with an internal โlicense dossierโ often negotiate better discounts because SAP sees you as an informed customer.
- Optimized License Mix: Over time, the team may identify opportunities to adjust the mix of license types you own. Perhaps you have too many Professional licenses but a shortage of lower-tier ones, or vice versa. SAPโs policies sometimes allow license swapping or conversions if done strategically (for example, trading a bundle of unused Professional licenses for a larger number of Limited licenses to suit actual needs, potentially with a small fee or at renewal time). With IT providing analysis of user patterns and HRโs input on how roles might evolve, the team can approach SAP to restructure the license portfolio. The result can be significant savings: youโre aligning what you pay for with what you use.
- Contract Flexibility Clauses: The governance team should push for contract terms that accommodate real-life changes. Since HR can forecast headcount changes and IT can predict project-driven user additions, procurement is empowered to negotiate flexible terms and conditions. Examples include: annual โtrue-upโ provisions (so you only pay for additional users once per year at a predetermined rate, avoiding surprise charges mid-year), ramp-up schedules (e.g. if you know youโll go from 500 to 800 users over 2 years, negotiate to pay gradually as you add, instead of 800 from day one), and carry-forward of unused licenses (if you downsize, perhaps you can apply credit to other SAP products โ not always possible, but negotiable for large customers). Additionally, insist on caps for maintenance fee increases and clarity on the ability to terminate or reuse licenses in the event of business conditions changing (such as mergers, divestitures, etc.).
- Cloud Transitions and New Products: Many SAP customers are moving to S/4HANA or cloud solutions (like SuccessFactors, Ariba). A cross-functional team is extremely valuable during these transitions. HRโs input on which modules or cloud services are needed for which users can prevent over-scoping a contract. IT provides the inventory of existing licenses that might be retired. Together, they help procurement negotiate migration credits (e.g., converting existing license investments into cloud subscriptions) and avoid buying cloud subscriptions for users who wonโt use them. The governance team essentially acts as an internal checkpoint to ensure you only buy what you need.
In real terms, this governance-driven negotiation approach pays off. Companies have saved hundreds of thousands of dollars by eliminating unnecessary maintenance on unused licenses and securing better pricing on new ones.
For example, if you free 100 unused licenses via cleanup, that could be approximately $ 300,000 in license value โ you might negotiate with SAP to apply that value toward a new initiative (rather than paying cash).
Or by demonstrating disciplined internal license management, one enterprise negotiated a 15% discount on a renewal that otherwise would have come at full price.
The key is for IT, procurement, and HR to be on the same page, so your organization knows its exact SAP license needs and usage, and can confidently push back on boilerplate offers.
SAP sales teams are far more willing to be flexible when a customerโs governance team presents a well-substantiated case for what they require.
Finally, the governance team should maintain an ongoing SAP roadmap alignment, working closely with HR and business leaders on upcoming changes (such as new offices, new business lines, or acquisitions) to ensure that license planning is integrated into these strategic moves.
This avoids last-minute scrambles where a sudden project needs 200 new SAP users โyesterdayโ.
Instead, the team will have anticipated it, budgeted for it, and possibly even pre-negotiated terms for it. In essence, SAP licensing becomes a planned investment rather than an unwelcome surprise.
Recommendations
To establish effective cross-functional SAP license governance, CIOs and CTOs should consider the following actions:
- Form a Dedicated License Governance Committee: Create a team that includes IT (SAP administrators or asset managers), procurement/licensing specialists, and HR representatives. Assign clear ownership and meet regularly to review SAP license status and upcoming needs.
- Integrate HR Processes with IT Licensing: Align the joiner/mover/leaver HR workflow with ITโs user provisioning. Ensure every new hire, role change, or departure triggers a license review or update. Automate this linkage where possible (through IAM or service desk systems) so nothing is missed.
- Implement a License Inventory and Pool: Keep a centralized record of all SAP licenses owned, assigned, and available. Track this like inventory โ when someone leaves, mark a license free; when planning new hires or a project, check this pool first before buying more.
- Conduct Quarterly Internal License Audits: Donโt wait for SAPโs audit. Have IT run usage reports every quarter and flag inactive or low-use accounts. Reclaim and reassign licenses continuously. Also, verify that each userโs license classification still fits their role.
- Optimize License Types and Usage: Analyze if users have the right license types. Downgrade overly high licenses and upgrade any under-licensed critical users. Match license types to job roles to standardize this (with exceptions handled via the governance team approval).
- Monitor Indirect Access and New Integrations: Establish a policy that requires any new system integration or third-party app that interacts with SAP data to be reviewed for potential licensing impacts. The governance team should approve and plan for any additional licenses (or SAPโs digital access documents) needed for such scenarios.
- Prepare for Audits and Negotiations Early: Before an SAP audit, the governance team should perform a โmock auditโ using SAPโs LAW tool and correct any issues (duplicate users, misclassified users, etc.). Maintain documentation of your compliance efforts. Likewise, start internal discussions 12+ months before contract renewals โ use your usage data to formulate negotiation targets (like eliminating unused licenses, locking in discounts, or adjusting license counts).
- Leverage External Expertise and Tools: If needed, use SAM tools specifically for SAP or engage consultants to benchmark your license usage. An external perspective can validate your approach and uncover hidden optimization opportunities. The governance team can then implement these insights.
- Foster Executive Support and Awareness: Keep the C-suite and finance leadership informed about the SAP licensing strategy and its successes. For example, report on savings achieved from reclaiming licenses or avoiding audit fees. Executive buy-in will ensure this governance remains a priority and gets the necessary resources (like tools or training for the team).
- Continually Educate and Adjust: SAP licensing rules and products evolve (e.g., new license models for S/4HANA or cloud metrics). Keep the governance team up-to-date through regular training or industry forums. Update internal policies accordingly. The team should also solicit feedback from business units โ are users getting the access they need? Use that to balance cost optimization with user productivity.
By following these recommendations, CIOs and CTOs can establish a culture of proactive SAP license management that aligns with business operations, keeps costs under control, and ensures compliance.
FAQ
Q1: What exactly is a cross-functional SAP license governance team?
A1: Itโs a dedicated group drawn from multiple departments โ typically IT, procurement, and HR โ that collectively manages SAP licensing. This team oversees license allocation, usage monitoring, and compliance throughout the employee lifecycle. By having all key stakeholders at the table, decisions about SAP licenses (such as who needs which license and when to purchase more) are informed and aligned with both technical needs and business realities.
Q2: Why involve HR in software licensing?
A2: HR is crucial because employee changes drive the need for licenses. HR is informed about new hires, departures, and role changes promptly. By involving HR, the team can ensure that when someone joins, they are promptly granted the correct SAP access, and when someone leaves, their access is removed immediately. HRโs input also helps forecast staffing trends, allowing you to plan license requirements proactively rather than reactively. It essentially connects people’s data to license management, ensuring that no one is overlooked.
Q3: How can this governance team reduce our SAP costs?
A3: A cross-functional team will identify and eliminate waste in your SAP licensing. Theyโll recycle licenses from former employees instead of purchasing new ones, downgrade unused expensive licenses, and prevent over-purchasing by sharing licenses across the company. Over time, these optimizations have significantly reduced costs, both by avoiding unnecessary license purchases and by trimming annual maintenance fees for unused licenses. Additionally, with better internal control, you have more leverage to negotiate discounts or flexible terms with SAP, further reducing expenditure.
Q4: What processes or tools do we need to support this team?
A4: First, you need well-defined processes that tie into HR and IT workflows (for onboarding/offboarding and role change license checks). A centralized tracking mechanism for licenses (even a simple spreadsheet or an IT asset management tool) is important. SAPโs own LAW/USMM tools will help gather usage data, but many organizations supplement this with a SAM tool (such as Snow or Flexera) for more advanced analytics and alerts. Automation is key: for example, an identity management system that automatically assigns or revokes SAP access based on HRโs input can enforce policies consistently. Regular reports to the team (dashboard of license usage vs entitlements) will help them make decisions quickly.
Q5: How often should we review SAP license assignments?
A5: At minimum, have a thorough review quarterly. In these quarterly meetings, check for any unused accounts, validate that license classifications still match user roles, and address any upcoming changes (like new projects or restructures that affect SAP use). Some companies conduct lighter reviews monthly, especially if theyโre large or operate in fast-changing environments, to catch issues early. The idea is to make license monitoring an ongoing routine rather than an annual panic before an audit.
Q6: What are the risks if we donโt have this kind of governance?
A6: Without cross-functional oversight, you risk both financial waste and compliance problems. Financially, you might be paying for 20% or more licenses than you need (common in companies without active management) โ thatโs money straight down the drain, year after year. On the other hand, you may also be unknowingly under-licensed in certain areas (for example, if roles change and no one updates the license type, users may perform unlicensed activities). This under-licensing will surface in an SAP audit and could result in an unbudgeted bill or penalty. Additionally, lack of governance often means surprise costs โ suddenly finding out you need 50 more licenses right now, and having to buy at list price, because no one planned. And operationally, not having the right stakeholders involved can delay user access (new hires waiting for accounts) or leave terminated employees active (a security risk, too). In short, youโd be flying blind, which is dangerous given the complexity and cost of SAP.
Q7: Who should lead the SAP license governance team?
A7: Leadership can vary, but often itโs someone in IT asset management or the CIOโs office who coordinates the effort, since they have visibility into technology usage. Procurement and licensing managers can also co-lead, especially when it comes to negotiation and contract management. Whatโs important is that the lead has the authority to enforce process changes across departments. Many organizations choose a senior IT manager (like a SAM lead or SAP platform owner) as chair, with procurement and HR leads as co-sponsors. Ultimately, it should be a person who understands the importance of license compliance and cost, and can communicate effectively in both technical and business language to align everyone.
Q8: How does this team help with SAP contract renewals?
A8: By uniting insights from IT and HR, procurement enters renewal discussions with SAP fully informed. The team will have an accurate count of the licenses that are truly needed, as well as any that are unused (to potentially be dropped or swapped), and future needs based on hiring or projects. This means you can right-size your renewal โ for example, not renewing maintenance on 100 unused licenses saves a huge amount. The team can also strategize on new license types (for example, you may plan to adopt a new SAP module and can negotiate it as part of the renewal rather than reactively later at a higher cost). And because the team tracks issues such as indirect use or compliance, you can preemptively address them in the contract (e.g., negotiating an appropriate digital access package rather than waiting for an audit surprise). In short, the governance team ensures you only pay for what you need and gives you bargaining chips (like demonstrated good compliance or bulk purchase planning) to get better terms from SAP.
Q9: What about SAP cloud products โ does the same governance apply?
A9: Absolutely, though the mechanics differ slightly. SAPโs cloud offerings (SuccessFactors, Ariba, etc.) are usually subscription-based per user. The same cross-functional approach is valuable: HR ensures user count accuracy (so youโre not paying for ex-employeesโ subscriptions), IT ensures users are de-provisioned and added correctly, and procurement negotiates subscription terms (such as the ability to adjust for growth or decline at renewal). In the cloud, you often canโt reuse a โlicenseโ in the same way, but you can avoid over-subscribing. The team may monitor monthly active user counts against your contracted amount to avoid overages or identify unused subscriptions that can be dropped at renewal. And, as with on-premises, any new cloud module rollout should go through governance to confirm the actual number of users needed. So, while the licensing model (subscription vs perpetual) changes, the governance principle โ multiple departments aligning to prevent waste โ remains crucial in the cloud era.
Q10: How can we get started with implementing this governance approach?
A10: Begin by securing executive buy-in โ explain the potential savings and risk mitigation to the CIO/CFO. Then, convene a kickoff meeting with key players from IT, procurement, and HR. Map out the current process (or lack thereof) for onboarding, changing, and offboarding users in SAP. Identify the gaps and pain points. From there, define a simple governance charter: who will do what when. You might start with a pilot: for the next quarter, have the team meet and focus on one aspect, say cleaning up legacy accounts and establishing an onboarding checklist. Show quick wins (e.g., โwe freed 50 licenses in a month, saving $Xโ). Use those wins to formalize the process and schedule regular meetings to maintain momentum. Gradually introduce more elements like periodic audits and contract planning sessions. Additionally, document the processes โ even a basic flowchart, such as โHR notifies IT -> IT updates license -> procurement checks license pool,โ can help institutionalize the practice. Starting small but visibly is often the best approach: once others in the organization see that, for example, new hires get access faster and software spending is decreasing, theyโll support and participate in the governance efforts more actively.
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