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11 
Organizing IT beyond 2014 
ENSEAD Advisory 
IT Strategy, Architecture, and Governance 
Version 2.1 
www.ensead.com| in...
Disclaimer 
While every precaution has been taken in the preparation of this deck, ENSEAD 
Advisory assumes no responsibil...
To know how to organize IT 
is to know what happens around you.
So… 
what is happening around us? 
4
What happens around us: Board-level 
Executive Board members today are: 
• Increasingly IT savvy 
• Starting to give direc...
What happens around us: Board-level (2) 
Here’s some of the questions Board members are told to ask or think 
about when i...
The one question that really counts for the Board 
Will it help us make more 
or spend less ? 
7
What happens around us: business trends 
2014 and beyond 
• Business no longer needs an IT department (they 
think); anyth...
What happens around us: IT Governance trends 
• Business process outsourcing (BPO) / BPaas 
• Shared Service Center (SSC) ...
Well, do you see a need to bring your IT organization to the 
…or do you believe you can just keep 
on doing things as you...
Questions IT Leadership are to ask 
themselves when organizing IT 
• Are we ready for receiving more direction on IT from ...
Questions IT Leadership are to ask 
themselves: where does IT need to be? 
12
Once those IT strategy questions have been answered… 
…ask yourself if you have the right IT 
organization and governance ...
IT strategy drives the IT organization and 
governance model 
“Successfully implementing an IT strategy requires an 
organ...
When organizing IT beyond 2014 IT leadership 
needs to look at Lean IT to be able to respond to 
swiftly to continuously c...
Lean IT organizations deliver substantial 
benefits across timeliness, quality, and 
productivity 
• IT executives often s...
New IT landscape reality demands for a lean 
approach to organizing IT 
17
Which leads to the concept of Lean IT 
Agile Teams are centered 
around a specific domain 
© 2014 – ENSEAD Advisory
Once you know where-to-go, how can you 
succesfully implement changes to 
an IT organization?
How to implement changes to an IT 
organization successfully 
• Step 1: Build the case for change 
• Step 2: Create a guid...
Typical obstacles for implementing change: 
Change Readiness Indicators 
Indicator Underlying question 
Leadership style H...
Change Readiness Indicator rating 
Rating Explanation 
22 
Strong enabler SE 
Really helps to change an organization 
succ...
Change Readiness Assessment 
23 
Indicator S 
E 
E N B S 
B 
Underlying question 
Leadership style 
How is leadership perc...
The outcome of the Change Readiness Assessment 
should be used to define your Organizational 
Change Management (OCM) Stra...
Key take away’s for organizing IT beyond 
2014 
• Understand what is happening around you 
• Responding to change at lowes...
FOR ANY FURTHER QUESTIONS YOU 
CAN CONTACT ENSEAD ADVISORY 
26 
INFO@ENSEAD.COM
Best-positioned to help you get and stay in control over the 
IT Solution & Services Lifecycle. 
Impossible is an opinion....
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Organizing IT beyond 2014

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The IT Organization and Governance Model beyond 2014:
- What is happening around you?
- What is more important than ever influencing IT?
- What does that mean for your IT strategy?
- How to derive your Lean IT Organization and Governance Model from your updated IT strategy?
- How to implement your Lean IT Organization and Governance Model?

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Transcript of "Organizing IT beyond 2014"

  1. 1. 11 Organizing IT beyond 2014 ENSEAD Advisory IT Strategy, Architecture, and Governance Version 2.1 www.ensead.com| info@ensead.com | +31 (0) 487-502238
  2. 2. Disclaimer While every precaution has been taken in the preparation of this deck, ENSEAD Advisory assumes no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein. The opinions expressed herein are subject to change without notice. Trademarks SAP® is a registered trademark of SAP AG, Germany. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. 2
  3. 3. To know how to organize IT is to know what happens around you.
  4. 4. So… what is happening around us? 4
  5. 5. What happens around us: Board-level Executive Board members today are: • Increasingly IT savvy • Starting to give direction to IT, and • Expecting the IT department to be able to swiftly adapt Source: McKinsey & Company, 2013 5
  6. 6. What happens around us: Board-level (2) Here’s some of the questions Board members are told to ask or think about when it comes to IT: • How about our competitive position • How to use IT and exceed customer expectations • Do our business plans reflect the full potential of IT to improve business performance • Are IT investments aligned with business opportunities and threats • How will IT improve business agility • Do we have the right capabilities to deliver value from IT • Are we comfortable with our level of IT risk 6 Source: McKinsey & Company, 2013
  7. 7. The one question that really counts for the Board Will it help us make more or spend less ? 7
  8. 8. What happens around us: business trends 2014 and beyond • Business no longer needs an IT department (they think); anything is available as-a-service • Boundaries between suppliers / partners are destroyed; supply chains are renovated because of automated response to demand, 3D printing, open data,… • Business demand ‘throw-away IT’ e.g. for viral marketing, using temporary sites, social media, apps, … • Business processes are reinvented due to ‘smart machines’, process intelligence, intelligent business operations • Competing on analytics becomes daily practice: using unusual data sources in nontraditional ways 8 Source: Gartner, December 2013
  9. 9. What happens around us: IT Governance trends • Business process outsourcing (BPO) / BPaas • Shared Service Center (SSC) / (Global) Business-integrated service company • Pace-layered application management. Differentiating between o Systems of Record o Systems of Differentiation o Systems of Innovation • Sourcing strategies are moving constantly o Off/near/on-shoring o Out/insourcing • Lean IT • ‘IT’ people outside the IT department 9 Source: Gartner, December 2013
  10. 10. Well, do you see a need to bring your IT organization to the …or do you believe you can just keep on doing things as you do today? 10 level … next
  11. 11. Questions IT Leadership are to ask themselves when organizing IT • Are we ready for receiving more direction on IT from the Board along with their high expectations on delivery? • Why is an internal IT dept still required? Can we answer that question? • Do we know what IT trends are going to ‘hit’ us and are we ready for them? Better yet: can we advise the business on how new technology can help sell more, operate cheaper, or can we even come up with a complete new business model? • How long before a global shared service center, a business-integrated service company or business process outsourcing will be decided upon by the higher-ups? 11
  12. 12. Questions IT Leadership are to ask themselves: where does IT need to be? 12
  13. 13. Once those IT strategy questions have been answered… …ask yourself if you have the right IT organization and governance model in place to turn strategy into action. 13
  14. 14. IT strategy drives the IT organization and governance model “Successfully implementing an IT strategy requires an organization and governance model tailored to the IT strategy.” 14 McKinsey & Company, 2014
  15. 15. When organizing IT beyond 2014 IT leadership needs to look at Lean IT to be able to respond to swiftly to continuously changing circumstances “IT is the next frontier for the application of Lean in business. This powerful methodology has significant impact without being capital intensive“ © 2014 – ENSEAD Advisory 15 Source: McKinsey & Company, 2011
  16. 16. Lean IT organizations deliver substantial benefits across timeliness, quality, and productivity • IT executives often struggle to gather data needed to fine-tune productivity and performance. • Lean approaches can provide a framework to standardize IT work practices, balance workflows, and monitor progress. • Lean can relieve capacity constraints by prioritizing and routing incoming work and by minimizing interruptions. • Applied across specialized IT environments, lean can give leaders clearer performance data and a better way to communicate with the business. © 2014 – ENSEAD Advisory 16 Source: McKinsey & Company, 2011
  17. 17. New IT landscape reality demands for a lean approach to organizing IT 17
  18. 18. Which leads to the concept of Lean IT Agile Teams are centered around a specific domain © 2014 – ENSEAD Advisory
  19. 19. Once you know where-to-go, how can you succesfully implement changes to an IT organization?
  20. 20. How to implement changes to an IT organization successfully • Step 1: Build the case for change • Step 2: Create a guiding coalition • Step 3: Shape vision and strategies • Step 4: Mobilize commitment • Step 5: Align tools and structures • Step 6: Create and reinforce wins • Step 7: Monitor progress • Step 8: Sustain results 20 Source: change-management.com
  21. 21. Typical obstacles for implementing change: Change Readiness Indicators Indicator Underlying question Leadership style How is leadership perceived by teams? 21 Loyalty How loyal are team members towards leaders? Trust Do the teams trust their leaders? Organizational commitment Do teams feel their opinion matters? Core values Do teams believe the organization has execution power? Change minded How supportive are the teams when it comes to change Knowledge management How do teams share their knowledge? Communication How informed do teams feel? Source: change-management.com
  22. 22. Change Readiness Indicator rating Rating Explanation 22 Strong enabler SE Really helps to change an organization successfully and must be leveraged Enabler E Helps to change an organization successfully and must be leveraged Neutral N Not of much help, but no showstopper either Blocker B Point of attention when wanting to change an organization, must be addressed Strong blocker SB Sever showstopper when wanting to change an organization, must be addressed carefully
  23. 23. Change Readiness Assessment 23 Indicator S E E N B S B Underlying question Leadership style How is leadership perceived by teams? Loyalty How loyal are team members towards leaders? Trust Do the teams trust their leaders? Organizational commitment Do teams feel their opinion matters? Core values Do teams believe the organization has execution power? Change minded How supportive are the teams when it comes to change Knowledge management How do teams share their knowledge? Communication How informed do teams feel? Source: change-management.com
  24. 24. The outcome of the Change Readiness Assessment should be used to define your Organizational Change Management (OCM) Strategy and Plans. 24
  25. 25. Key take away’s for organizing IT beyond 2014 • Understand what is happening around you • Responding to change at lowest possible cost and highest possible quality is more important than ever • Adjust your IT Strategy accordingly • Derive your IT Organization and Governance Model from your IT strategy adopting Lean practices • Prepare and execute your Organizational Change Management Strategy and Plans © 2014 – ENSEAD Advisory 25
  26. 26. FOR ANY FURTHER QUESTIONS YOU CAN CONTACT ENSEAD ADVISORY 26 INFO@ENSEAD.COM
  27. 27. Best-positioned to help you get and stay in control over the IT Solution & Services Lifecycle. Impossible is an opinion. www.ensead.com IT Strategy, Architecture, and Governance 27 www.ensead.com | info@ensead.com | +31 (0) 487-502238

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