JAMES A ROBERTSON AND ASSOCIATES 
EFFECTIVE STRATEGIC BUSINESS SOLUTIONS 
GOVERNANCE AND STRATEGY SUMMIT 
Analysing The Tw...
AGENDA 
THE TWO MOST CRITICAL FACTORS FOR I.T. SUCCESS 
Context 
The factors causing I.T. investment failure 
The critical...
CONTEXT: INFORMATION TECHNOLOGY 
AN INDUSTRY CHARACTERISED BY FAILURE 
Seventy percent of I.T. investments fail TOTALLY 
A...
CAUSES OF INFORMATION TECHNOLOGY 
INVESTMENT FAILURE 
Information technology mythology (30%) 
Lack of executive custody an...
THE CRITICAL FACTORS FOR SUCCESS 
43% 
Executive Custody (25%) 
Strategic Solution Architecture (18%) 
Strategic Alignment...
EVALUATING THE METHODS OF ACHIEVING 
EXECUTIVE CUSTODY 
Engagement 
Prove it works / make it work 
Leadership 
1. 
2. 
3. ...
CRITICAL FOCUS AREAS 
OF EXECUTIVE CUSTODY 
Creating and delivering value to customers 
Differentiating from competitors 
...
MANAGING FOR SUCCESS 
CRITICAL COMPONENTS OF EXECUTIVE CUSTODY 
CEO leadership, clarity, purposefulness, empowerment of 
s...
MANAGING FOR SUCCESS 
AVAILABILITY, EFFECTIVENESS & EFFICIENCY OF EXECUTIVES 
Subordinates at all levels motivated, empowe...
MANAGING FOR SUCCESS 
AVAILABILITY, EFFECTIVENESS & EFFICIENCY OF EXECUTIVES 
Executives focus their attention on activiti...
CRITICAL EXECUTIVE QUESTIONS 
Questions Every Executive Should Answer Before Saying "YES" 
Do I have a clear definition of...
EXECUTIVE CUSTODY 
Role of executives in Strategic Leadership 
"The greatest barriers to strategy are often self imposed a...
EXECUTIVE CUSTODY 
Role of executives in Strategic Leadership 
A key responsibility of executives is innovation that 
will...
ESSENTIAL BUSINESS KNOWLEDGE 
ESSENTIAL COMPONENTS OF STRATEGY 
Core economic driver 
Core human resource driver 
Core mar...
STRATEGIC MAPPING 
Mapping and Managing the Strategic Environment and Objectives 
CORE STRATEGIC 
OBJECTIVES 
Maximize val...
CREATING A PLATFORM FOR STRATEGIC 
ARCHITECTURE 
Define core strategic drivers 
Discover and publish core strategy 
Map th...
CREATING BUSINESS DEFINITIONS TO ENABLE I.T. 
TO SUPPORT HIGH VALUE BUSINESS OUTCOMES 
What is the essence of how the busi...
CREATING BUSINESS DEFINITIONS TO ENABLE I.T. 
TO SUPPORT HIGH VALUE BUSINESS OUTCOMES 
How do we integrate these changes i...
DEVELOPING ROBUST SPECIFICATION 
ANALYSIS & DESIGN FOR DOABLE PLANS 
Analysis of Strategic Environment, Context, Requireme...
DEVELOPING ROBUST SPECIFICATION 
CONCLUSION 
Business determines value proposition = requirement 
Analyse strategic enviro...
21 
THE MOST CRITICAL FACTORS: EXECUTIVE 
CUSTODY AND STRATEGIC ARCHITECTURE 
QUESTIONS ? 
http://www.jar-a.com 
James A R...
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061 Analysing The Two Most Critical Factors for I. T. Investment Success: Executive Custody and Strategic Solution Architecture -- by Dr James A Robertson PrEng

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Executive Custody of large integrated business information system projects is one of the critical weaknesses, this presentation discusses some of the key considerations with regard to this and also discusses the importance of strategic alignment and strategic solution architecture in achieving high value solutions

See also http://www.James-A-Robertson-and-Associates.com/

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061 Analysing The Two Most Critical Factors for I. T. Investment Success: Executive Custody and Strategic Solution Architecture -- by Dr James A Robertson PrEng

  1. 1. JAMES A ROBERTSON AND ASSOCIATES EFFECTIVE STRATEGIC BUSINESS SOLUTIONS GOVERNANCE AND STRATEGY SUMMIT Analysing The Two Most Critical Factors for I. T. Executive Custody and Strategic Solution Architecture http://www.jar-a.com 1 INFORMATION TECHNOLOGY 22 and 23 August 2006 Investment Success: Dr James Robertson Chief Executive Officer James A Robertson and Associates JJAR&A (Copyright : JAR&A)
  2. 2. AGENDA THE TWO MOST CRITICAL FACTORS FOR I.T. SUCCESS Context The factors causing I.T. investment failure The critical factors for I.T. investment success Evaluating the methods of achieving executive custody Assessing the critical focus areas of executive custody Creating a platform for strategic architecture implementation Creating business definitions to enable I.T. to support high value business outcomes 1. 2. 3. 4. 5. 6. 7. JJAR&A 2 http://www.jar-a.com
  3. 3. CONTEXT: INFORMATION TECHNOLOGY AN INDUSTRY CHARACTERISED BY FAILURE Seventy percent of I.T. investments fail TOTALLY Another twenty percent fail to fully satisfy the original business requirement "19 out of 20 E.R.P. implementations do not deliver "what was promised" Ninety percent of strategic plans fail Seventy percent of B.P.R. investments fail "Most organisations are not making better decisions than they did five years ago." 1. 2. 3. 4. 5. 6. JJAR&A McLeod (FM) Gartner http://www.jar-a.com 3
  4. 4. CAUSES OF INFORMATION TECHNOLOGY INVESTMENT FAILURE Information technology mythology (30%) Lack of executive custody and inappropriate policies (20%) Lack of strategic alignment (15%) Lack of an engineering approach (12%) Poor data engineering (10%) People / soft issues (8%) Technology issues (5%) 1. 2. 3. 4. 5. 6. 7. 50% (Remember that I.T. Is value inert) JJAR&A 4 http://www.jar-a.com
  5. 5. THE CRITICAL FACTORS FOR SUCCESS 43% Executive Custody (25%) Strategic Solution Architecture (18%) Strategic Alignment (16%) Business Integration and Optimization (14%) Programme and Project Management (12%) Data Engineering / Information Management (10%) Technology Components (5%) 1. 2. 3. 4. 5. 6. 7. JJAR&A 5 http://www.jar-a.com
  6. 6. EVALUATING THE METHODS OF ACHIEVING EXECUTIVE CUSTODY Engagement Prove it works / make it work Leadership 1. 2. 3. http://www.jar-a.com 6 JJAR&A
  7. 7. CRITICAL FOCUS AREAS OF EXECUTIVE CUSTODY Creating and delivering value to customers Differentiating from competitors Motivating and leading personnel Meeting and exceeding owner expectations Building exceptional partnerships with suppliers Integrating and optimizing the business Day to day operational efficiency and effectiveness 1. 2. 3. 4. 5. 6. 7. JJAR&A http://www.jar-a.com 7
  8. 8. MANAGING FOR SUCCESS CRITICAL COMPONENTS OF EXECUTIVE CUSTODY CEO leadership, clarity, purposefulness, empowerment of subordinates, etc Availability, effectiveness and efficiency of executives Executive team role clarity, commitment, team work, constancy of purpose, etc Business optimization Strategic solution architecture Technology and technical capability Other aspects required to achieve executive custody = ownership "plus" 1. 2. 3. 4. 5. 6. 7. JJAR&A 8 http://www.jar-a.com
  9. 9. MANAGING FOR SUCCESS AVAILABILITY, EFFECTIVENESS & EFFICIENCY OF EXECUTIVES Subordinates at all levels motivated, empowered to act, supported in event of sincere mistakes, leadership by example, facilitation to achieve NOT domination, clear hierarchy and respect for hierarchy, teams NOT committees Effective strategic analysis, design and execution methods, standards, practices, etc Executives have equipped, motivated, trained, loyal, long term personal assistants Effective time management tools, methods, training and practical day to day implementation -- NOT about computer based technology Filing and document management standards consistently applied throughout the organization -- this is about standards, practices, training, etc and NOT about technology 1. 2. 3. 4. 5. JJAR&A 9 http://www.jar-a.com
  10. 10. MANAGING FOR SUCCESS AVAILABILITY, EFFECTIVENESS & EFFICIENCY OF EXECUTIVES Executives focus their attention on activities which create sustainable value relative to: Customers Personnel Suppliers Shareholders ) ) ) ) Executives equipped to think and act strategically and take effective strategic decisions on a continuous basis -- includes knowledge, method, systems, training, etc 6. 7. ALL these factors are vital for success in terms of executive availability, effectiveness and efficiency -- specifically so that executives are freed up to focus on items 6 and 7 which is where executive effectiveness is attained JJAR&A 10 http://www.jar-a.com
  11. 11. CRITICAL EXECUTIVE QUESTIONS Questions Every Executive Should Answer Before Saying "YES" Do I have a clear definition of the value proposition that I own now and can communicate to the rest of the organization? Do I have a clear definition of how the outcome will be accomplished? Is there real acceptance of the real effort and investment required? Is there real business commitment? Am I (CEO / sponsoring executive) willing to be held accountable? Am I willing and able to hold the responsible executive / manager accountable? Am I williing and able to hold the service providers and vendors accountable? 1. 2. 3. 4. 5. 6. 7. JJAR&A Time Cost Effort Overtime Disruption http://www.jar-a.com 11
  12. 12. EXECUTIVE CUSTODY Role of executives in Strategic Leadership "The greatest barriers to strategy are often self imposed and many are internal. Strong leadership by the chief executive officer is almost a necessity if strategy is to be created and implemented" Professor Michael Porter Seen as an important tool of the business FULL responsibility and accountability this is MY business system comparable level to - MY factory / warehouse / etc 1. 2. 3. ) ) JJAR&A 12 http://www.jar-a.com
  13. 13. EXECUTIVE CUSTODY Role of executives in Strategic Leadership A key responsibility of executives is innovation that will generate high bottom line value outcomes that is Strategic outcomes Executives therefore define the role of information technology in creating sustainable competitive advantage JJAR&A 13 http://www.jar-a.com
  14. 14. ESSENTIAL BUSINESS KNOWLEDGE ESSENTIAL COMPONENTS OF STRATEGY Core economic driver Core human resource driver Core market differentiator / value proposition / sales or marketing method Core customer / market / user Core asset / product / natural resource / size / growth Core technology / capability / know-how / distribution Essential reason the organisation exists (generally NOT profit) Core values Other 1. 2. 3. 4. 5. 6. 7. 8. 9. JJAR&A http://www.jar-a.com 14
  15. 15. STRATEGIC MAPPING Mapping and Managing the Strategic Environment and Objectives CORE STRATEGIC OBJECTIVES Maximize value creation minimize value destruction 6. STRAT CAPABILITY JJAR&A 15 Thrive 7. CORPORATE STRATEGIC GOVERNANCE 4. EXTERNAL STRATEGIC ENV Horizon, medium term, short term, immediate incl threats, opp's, etc 2. MARKET AND PRODUCT FACT MAF, CSF, product fact, Market portfolio, etc Countered by alienators (The Solution Map) Ess Q's, realisation (value), StratProc, Crit Fct Success Mgmt of failure factors, etc 5. INTERNAL STRATEGIC ENV Strengths, weaknesses Operation, Systems, Managers, Staff, Workers 1. SHAREHOLDER CSF'S 3. SUPPLIER FACTORS Supplier relationship and other supplier factors CORE STRATEGIC PARAMETERS Strategy and strategic drivers, also what NOT done Revised for Fleet Africa 11 July 2005
  16. 16. CREATING A PLATFORM FOR STRATEGIC ARCHITECTURE Define core strategic drivers Discover and publish core strategy Map the strategic enironment Set strategic objectives in order to maximize value creation and minimize value consumption Enhance strategic capability Implement effective strategic governance Define and execute projects which generate substantial positive value 1. 2. 3. 4. 5. 6. 7. JJAR&A http://www.jar-a.com 16
  17. 17. CREATING BUSINESS DEFINITIONS TO ENABLE I.T. TO SUPPORT HIGH VALUE BUSINESS OUTCOMES What is the essence of how the business creates sustainable value? What are the fundamental functions that are central to creating this value? (not more than seven) What can we do that will leverage the creation of this value? (N.B. strategic innovation) What are the fundamental factors that are most severely hindering the creation of value or consuming value? (not more than seven) What can we do that will minimize the consumption of this value? 1. 2. 3. 4. 5. JJAR&A http://www.jar-a.com 17
  18. 18. CREATING BUSINESS DEFINITIONS TO ENABLE I.T. TO SUPPORT HIGH VALUE BUSINESS OUTCOMES How do we integrate these changes in order to optimize core value delivery? What are the I.T. elements that require attention in order to do this? 6. 7. JJAR&A http://www.jar-a.com 18
  19. 19. DEVELOPING ROBUST SPECIFICATION ANALYSIS & DESIGN FOR DOABLE PLANS Analysis of Strategic Environment, Context, Requirements, Benefits, Value, etc Strategic Gap Analysis Strategic Design Strategic Governance Framework Strategic Action Plan Strategic Project Management Strategic Plan, Business Outcome Auditing, Monitoring, Performance Measurement and Incentives, Journey Management Continuous Strategic Improvement 1. 2. 3. 4. 5. 6. 7. 8. JJAR&A http://www.jar-a.com 19
  20. 20. DEVELOPING ROBUST SPECIFICATION CONCLUSION Business determines value proposition = requirement Analyse strategic environment based on business objectives and opportunities Determine value delivery opportunities Determine opportunities to minimize value destruction Specify what the business must do in order to deliver Take decision Develop I.T. requirements 1. 2. 3. 4. 5. 6. 7. Business case drives I.T. specification Avoid change for the sake of change JJAR&A 20 http://www.jar-a.com
  21. 21. 21 THE MOST CRITICAL FACTORS: EXECUTIVE CUSTODY AND STRATEGIC ARCHITECTURE QUESTIONS ? http://www.jar-a.com James A Robertson & Associates Tel +27-11- 791-2327 / 083-251-6644 P O Box 4206, Randburg, 2125, South Africa
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