Ilta 2005 successful technology begins outside the computer room   by dave cunningham and alan nathanson - aug 2005
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Ilta 2005 successful technology begins outside the computer room by dave cunningham and alan nathanson - aug 2005

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  • These seven modules constitute the core of ITIL. Its recent revision has improved the structure of ITIL, and the new scope, contents and relationships of the various modules are in essence as follows. Service Delivery: covers the processes required for the planning and delivery of quality IT services and looks at the longer term processes associate with improving the quality of IT services delivered. Service Support: describes the processes associated with the day-to day support and maintenance activities associated with the provision of IT services. ICT Infrastructure Management (ICT IM): covers all aspects of ICT Infrastructure Management from identification of business requirements through the tendering process, to the testing, installation, deployment, and ongoing operation and optimisation of the ICT components and IT services. Planning to Implement Service Management: examines the issues and tasks involved in planning, implementing and improving Service Management processes within an organisation. It also addresses the issues associated with addressing Cultural and Organisational Change, the development of a vision and strategy and the most appropriate method of approach. Application Management: describes how to manage applications from the initial business need, through all stages in the application lifecycle, up to and including retirement. It places emphasis on ensuring that IT projects and strategies are tightly aligned with those of the business throughout the application lifecycle, to ensure that the business obtains best value from its investment. The Business Perspective: provides advice and guidance to help IT personnel to understand how they can contribute to the business objectives and how their roles and services can be better aligned and exploited to maximise that contribution. Security Management: details the process of planning and managing a defined level of security for information and IT services, including all aspects associated with reaction to security Incidents. It also includes the assessment and management of risks and vulnerabilities, and the implementation of cost justifiable countermeasures.
  • Value of a Calf A motorist driving by a Texas ranch hit and killed a calf that was crossing the road. The driver went to the owner of the calf and explained what had happened. He then asked what the animal was worth. “ Oh, about $200 today,” said the rancher. “But in six years it would have been worth $900. So $900 is what I’m out.” The motorist sat down and wrote out a check and handed it to the rancher. “ Here,” he said, “is a check for $900. It’s post-dated six years from now.” The Engineer There was an engineer who had an exceptional gift for fixing all mechanical things. After serving his company loyally for over 30 years, he happily retired. Several years later, his company contacted him regarding a seemingly impossible problem they were having with one of their multi-million dollar machines. They had tried everything and everyone else to get the machine fixed, but to no avail. In desparation, they called on the retired engineer who had solved so many of their problems in the past. The engineer spent a day studying the huge machine. At the end of the day, he marked a small X in chalf on a particular component of the machine and said “This is where your problem is.” The part was replaced, and the machine worked perfectly again. The company received a bill for $50,000 from the engineer for his services. They demanded an itemized accounting of his charges. The engineer responded briefly: One chalk mark …………………..……$1 Knowing where to put it ……….. $49,999


  • 1. Successful Technology Begins Outside the Computer Room… I ntegrating Successful IT with its purpose Dave Cunningham, Shareholder Alan Nathanson, Shareholder Baker Robbins & Company August 25, 2005
  • 2. Today’s Agenda
    • Management/IT disconnects
    • Top 10 IT Success Drivers
    • Defining IT value
    • Setting the agenda
  • 3. Management / IT Disconnects
  • 4. Legal IT Crossroads
    • Disaffection with IT
      • Rapid evolution of technology trend
      • Platform “pacing” problems
      • Awareness of outsourcing trends
      • Profitability pressures
    • Renewed interest in IT
      • Organizational size and complexity
      • Competitive pressures
      • Regulatory influences
  • 5. Top 10 IT Success Drivers
  • 6. Top 10 IT Success Drivers … Derived from “The New CIO Leader”
  • 7. 1. Leading & Managing
  • 8. IT Leadership vs. Management
    • Two entirely different concepts …
    • Leadership qualities …
      • Vision
      • Communication & personality
      • Relationship building
    • IT has a seat at the senior management table
    • Can influence the firm’s style – (three types) …
      • Cost side focus
      • Economy driven
      • Driven by thoughtful investment
    • Can sell innovation and new ideas
    • Does NOT emphasize IT management
    Leadership Identifying change and influencing others to change Management Execution and control 1. Leading & Managing
  • 9. Grouping the Remaining 9 Drivers … Demand Side IT
  • 10. 2. Understanding the Business Environment …
  • 11. The Business & Practice of Law
    • The “ why ” of IT
    • Requires grasp of fundamental legal practice
    • Beyond basics - not as straightforward as we think
    • Focal points …
      • Law firm competitive landscape
      • Business fundamentals
      • Important players in your firm
      • Trends affecting the legal practice
    2. Understanding the Business Environment …
  • 12. Law Firm Competitive Landscape
    • How is your firm branded? What’s it best known for? Who are the firm’s 10 largest competitors? Why?
    • How is the firm competitively different?
    • What client industries are predominant within the firm?
    • How does the firm’s Marketing function work?
    • What types of fee arrangements (beyond simple billable hour) does the firm commonly entertain?
    • How does practice area cross-selling occur?
    2. Understanding the Business Environment …
  • 13. Legal Business Fundamentals
    • How is your firm “really” governed?
    • Which committees are important to IT?
    • What’s the firm’s partner compensation model?
    • How is origination credit calculated? Allocated?
    • How granular are the firm’s profitability measures?
    • What’s the firm’s strategic plan for growth?
    • How are office openings & firm mergers considered?
    2. Understanding the Business Environment …
  • 14. Important Players in Your Firm
    • Practice groups
      • Practice group heads
      • Key rainmakers
      • PSLs & KM managers
    • Important clients
    • Client industries
    • Senior management
      • Firm wide Managing Partner or Chairman - first
      • Executive & Marketing Directors – second
      • Finance, HR, Recruiting, Facilities Directors - third
    2. Understanding the Business Environment …
  • 15. Important Trends Affecting Legal Practice
    • Mergers & consolidation
    • Regulatory compliance & litigation readiness
    • Profitability reporting & strategic information delivery
    • Lock step compensation model
    • Knowledge Management concept and reality
    • Strategic sourcing
    • Matter-centric service life cycle
    2. Understanding the Business Environment …
  • 16. 3. Creating a Vision for IT-Based Success …
  • 17. What constitutes visionary IT activity?
    • Rarely involves:
      • infrastructure (pipes & plumbing)
      • “ must have ” baseline investments (e.g., laptops, Word)
      • associated user support services
    • Ideally involves:
      • New or further growth of a value proposition or ROI;
      • Material cost savings over a pre-existing expense; or
      • A qualitative (i.e., quality) improvement that can be measured
    3. Creating a Vision for IT-Based Success …
  • 18. Examples of Visionary Efforts …
    • Global firm “ Follow the Sun ” transaction documents (2001)
    • Integrated practice area portal (2002)
    • Large firm move to off-site data center & administrative services (2003)
    • Record retention rules integration with DMS (2004)
    • IP litigation defendant claim call center (2005)
  • 19. Emerging Technology Hype Cycle … Modest Visions Can Florish Here Great Visions Can Die Here Source: The Gartner Group Visibility Maturity Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Maturity
  • 20. Popular Theory: Pick Two … Mitigating the Hype 3. Creating a Vision for IT-Based Success … Faster Better Cheaper
  • 21. Budget Accompanying Impact Statements …
    • Description
    • Client Impact
    • Practice Group Impact
    • Cycle Time Impact
    • P&L Impact
    • Ranking
    3. Creating a Vision for IT-Based Success … Initiative #1 Initiative #2 Initiative #3 Initiative #4
  • 22. 4. Shaping IT Constituent Expectations …
  • 23. Translating Business Strategy Into IT Strategy
    • IT initiative impact statements aren’t sufficient
    • Initiatives must be auditably tied to business strategies
    • Process consists of 2 steps
    • Step #1:
      • Define how (in actionable terms) a business goal will be fulfilled based upon no more than six (6) business maxims . For example:
          • Pricing of legal services & economies of scale (e.g., best practices)
          • Value differentiation & Client intimacy
          • Flexibility & agility
          • Business growth (client industries, geographies, existing vs. new client base)
          • Human resource requirements
          • Management requirements
    4. Shaping IT Constituent Expectations … Source: The Gartner Group
  • 24. Translating Business Strategy Into IT Strategy
    • Step #2:
      • For each business maxim, draft IT maxims that identify (by way of example):
        • New or modified technologies that the business goal requires
        • How related information is to be gathered, stored, accessed and used
        • IT architecture and standards requirements tied to the business goal
        • Telecommunications requirements tied to the business goal
        • How users and clients are to be supported
        • IT asset requirements and costs
        • How IT contribution to business goal achievement may be measured
    4. Shaping IT Constituent Expectations … Source: The Gartner Group
  • 25. IT Maxim Examples …
    • IT will be used to reduce costs through elimination of duplication of effort
    • New matter intake workflow must ensure that risk management steps have been taken
    • We must centralize document management libraries across offices to ensure distance collaboration
    • Mobile users must have the same access to information that they have at the desktop
    4. Shaping IT Constituent Expectations …
  • 26. Rules for IT Maxim Development …
    • Develop IT maxims in collaboration with business stakeholders – not within the IT organization
    • IT maxims should always be:
      • Formulated using explanatory sentences
      • Actionable (as opposed to theoretical)
      • Realistic, given culture and existing IT baseline
      • Capable of some form of measurement
    4. Shaping IT Constituent Expectations … Source: The Gartner Group
  • 27. 5. Creating Effective Governance …
  • 28. What Is Governance Anyway?
    • The process of determining how to allocate IT dollars and resources:
      • to the right business needs,
      • in consideration of the right priorities, and
      • having accounted for material risks and rewards.
    • Not synonymous with IT management
    • Requires participation by business stakeholders
    • IT-only or Business Leader-only participation doesn’t work
    • Role traditionally (usually incorrectly) filled by a Technology Committee
    5. Creating Effective Governance …
  • 29. Signs of Good IT Governance …
    • Not all business objectives are considered equally important; energies in fewer more important areas
    • Little drastic change in governance philosophy across plan years
    • Formal process for handling inevitable exceptions
    • Formal communication methods among Governance body members
    • Very senior management participation is evident
    5. Creating Effective Governance …
  • 30. A Well Rounded Governance Council …
    • Chief Information Officer (chair)
    • Managing Partner or Chairman
    • Executive Director
    • Finance Director
    • Marketing Director
    • Practice Area Chairs (or equivalent)
    • Heads of KM, RM, and IT lead managers (varies)
    5. Creating Effective Governance …
  • 31. 6. Weaving Business & IT Strategy Together …
  • 32. How the Weaving Works …
    • Governance body:
      • Defines initiatives with an associated business case
      • Evaluates initiatives using objective criteria based upon:
        • Business impact
        • Financial impact
        • Risk
        • Architectural fit
        • Delivery of benefits
      • Compiles an overall IT Portfolio across initiatives
      • Prioritizes initiatives and balances the portfolio (considerate of knockout factors)
      • Matching initiatives to resources
      • Managing the portfolio actively, following up on costs and benefits
    6. Weaving Business & IT Strategy Together …
  • 33. IT Portfolio Represents:
    • Architecture, platforms & applications having the highest business value across the firm
    • Also takes into account IT-related Opportunities (ITOs) with acceptable risk
    • Focal point for halting low value, conflicting & redundant effort
    • Baseline for all IT action, subject to formally recognized changing conditions
    6. Weaving Business & IT Strategy Together …
  • 34. Sources of Portfolio Funding Include …
    • Firm level funding (typical)
    • Practice Group funding (presumes PG P&L - rare)
    • IT funding with internal chargeback (rare)
    • Client funding (e.g., expense chargeback or case specific litigation support) (decreasing in popularity)
    • Consortium funding (e.g., 1992 financial consortium)
    • Funding through sale of IT services (rare)
    6. Weaving Business & IT Strategy Together …
  • 35. Grouping the Remaining 9 Drivers … Demand Side IT
  • 36. Grouping the Remaining 9 Drivers … Demand Side IT Supply Side IT
  • 37. 7. Building the Right IT Organization …
  • 38. Repurposing Traditional IT …
    • IT’s charter is to deliver promises (IT Portfolio) made on the demand side
    • Through successful delivery, IT creates demand-side credibility by:
      • Doing well what it is supposed to do
      • Measuring its progress and contribution to business goals
      • Communicating its progress
    7. Building the Right IT Organization …
  • 39. Problems With Many IT Shops …
    • Larger firms have both central & decentralized functions with – at times – competing interests
    • Organization is often based on functional silos
    • IT initiatives inevitably involve effort across multiple silos, creating inefficiencies in the IT delivery process
    • Consequently, users suffer
    • Occasional tinkering with org structure doesn’t help
    7. Building the Right IT Organization …
  • 40. New IT Organization Trends …
    • Elimination of organization by platform, skill set, etc.
    • Process-based work – organizing IT resources around cradle-to-grave business and IT processes
    • Adoption of strategic sourcing model …
      • Not to save money
      • Rather, to offload select IT effort of a low strategic focus
      • Helps IT to be more agile & responsive to the firm
    • Embed a portion of remaining IT into the Practice Groups
    • Remainder of IT assumes the following roles:
      • Participation in Demand-Side IT functions
      • Management of IT processes
      • Liaison with sourcing and embedded resources
      • Primary focus on business and practice innovation
    7. Building the Right IT Organization …
  • 41. Illustration of New IT Model … 7. Building the Right IT Organization … Business Innovation Delivering Change Supporting Infrastructure Outsourced to External Service Providers Embedded in the Practice Groups Traditional IT Responsibilities Source: The Gartner Group
  • 42. 8. Developing a High Performance IT Team …
  • 43. IT Team Performance Requires …
    • The right competencies, with new emphasis on:
      • Business needs
      • Leadership
      • Process Management
    • Formal training in support of the above
    • New tools for IT involving:
      • Methodology
      • IT process automation
      • Documentation
    8. Developing a High Performance IT Team …
  • 44. New IT Tool – IT Infrastructure Library (ITIL)
    • “ Best Practice” guidance for IT service management
    • Specifically, a framework for:
      • Structured IT process definition (wide ranging)
      • Application and security management
      • Improved communication both within IT and user community
      • Potential IT operational cost reduction
      • Improved alignment with Demand-Side IT activities
    8. Developing a High Performance IT Team …
  • 45. ITIL Framework 8. Developing a High Performance IT Team …
  • 46. 9. Managing IT Related Risks …
  • 47. Wide Ranging Risk Focus …
    • Virus, spyware, spam, pop-up, etc.
    • Denial of service
    • Theft of data
    • Web access unrelated to business
    • Violation of attorney privilege
    • Business continuity & disaster recovery
    • Regulatory Compliance (HIPAA, SOX, DSBNA, etc.)
    • Litigation readiness
    9. Managing IT Related Risks …
  • 48. IT Role in Law Firm Risk Management …
    • Manage “above the line” IT risk-related efforts
    • Incorporate ITIL Security Management best practices
    • Address “below the line” risks through:
      • Establishment of a risk council or committee (including the firm’s litigation, RM and DR functions as well as in-house counsel if existent)
      • Develop formal security policy (based on COBIT / ISO17799)
      • Prepare and implement a comprehensive record retention policy
    • Prepare and execute with employees a firm policy binder covering their role in all risk-related areas
    9. Managing IT Related Risks …
  • 49. 10. Communicating IT Performance …
  • 50. Premise for Understanding IT Performance
    • Scenario #1:
    • A senior partner in the firm asks:
      • “ What business value are we getting from IT?”
      • What is your response?
        • Do you know the answer to her question from an organizational and investment dollar perspective?
        • Are you prepared to articulate that answer in a meaningful way?
    10. Communicating IT Performance …
  • 51. Premise for Understanding IT Performance
    • Scenario #2:
    • Your IT Governance Council asks:
      • “ Did we achieve the value we expected from project X?”
      • What is your response?
        • Have you established reasonable metrics for project X?
        • Have those metrics been useful in assessing the project?
        • Are governance decisions imminent as a result of the metrics?
        • Are you prepared to articulate the above in a useful way?
    10. Communicating IT Performance …
  • 52. Perception vs. Reality of Value
    • Two stories about value
    • Who has a better grasp on value:
      • The motorist or the rancher?
      • The engineer or the company?
    • The value of an IT-based initiative can only be effectively measured if:
      • The business case for its IT Portfolio inclusion agreed to the value measurements “up front”
      • The measurements are actually taken and assessed
      • A feedback loop is created for the IT Governance Council
    10. Communicating IT Performance … No ambiguity
  • 53. Perspectives on Value & Benefit …
    • Measurements must be practical
    • Plain and simply communication along three lines:
      • Technical benefit (in pedestrian terms)
      • Business benefit (top or bottom line oriented)
      • Partner benefit (client business volume, profit per partner, etc.)
    10. Communicating IT Performance …
  • 54. IT Performance Dashboard Concept …
    • Two sets of IT performance indicators or scorecards
    • Vetted by IT Governance Council
    • Type 1: IT indicators might include:
      • Basic operational performance statistics
      • System availability measures
      • IT support performance indicators
      • Service level effectiveness
      • Delivered projects index (on-time, on-budget)
      • IT cost ratios (function of P&L)
    • Type 2: Business value indicators (tied to Business Maxims)
    10. Communicating IT Performance …
  • 55. Setting the IT Agenda
  • 56. Summary of Action Items to Consider …
    • Tune the focus of your IT leadership (vs. management)
    • Take a fresh pass at understanding the firm’s business
    • Initiate Business & IT maxim preparation efforts
    • Identify IT initiatives where Business & IT maxims converge
    • Recast your firm’s governance model
    • Prepare and evolve a living IT Portfolio
    • Repurpose the IT organization with above in mind
    • Implement ITIL (or something like it)
    • Extend risk management outside the IT boundary
    • Measure and communicate the value of IT on a perpetual basis
  • 57. Questions