The First 100 Days for a New CIO - Using the Innovation Value Institute IT Capability Maturity Framework to Define a Roadmap
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The First 100 Days for a New CIO - Using the Innovation Value Institute IT Capability Maturity Framework to Define a Roadmap

The First 100 Days for a New CIO - Using the Innovation Value Institute IT Capability Maturity Framework to Define a Roadmap

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The First 100 Days for a New CIO - Using the Innovation Value Institute IT Capability Maturity Framework to Define a Roadmap Presentation Transcript

  • 1. The First 100 Days for a NewCIO: Using the InnovationValue Institute IT CapabilityMaturity Framework toDefine a RoadmapAlan McSweeney
  • 2. Objectives• To describe how the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Framework) can be used to define an effective business oriented workplan for the first 100 days February 6, 2011 2
  • 3. Importance of the First 100 Days For a New CIO• Important interval in the career of a newly appointed CIO• You will find many issues and problems that were not immediately apparent• Create a plan for the first 100 days that establishes priorities, approach, attitude, focus, tone, culture, standards• Need to set the longer-term agenda and build solid foundation for its delivery• Need to develop a vision for both the IT function and the business• Must not get stuck in analysis paralysis or making quick decisions• Short timeframe to assess current situation and what has to be done• Need to demonstrate progress quickly February 6, 2011 3
  • 4. Achieving the Correct Balance Spend consu ing the fi m rs plann ed with a t 100 days ing na mate activities lysis and rial a nd co with no Comm result ncrete itt long- ing to a de s assoc term pla tailed ia n and m ted organ and roles odel with isational a withi nd accoun defined n the t first 1 abilities 00 da ys• Need to achieve balance between analysis paralysis and making long-term commitments too quickly February 6, 2011 4
  • 5. Information Requirements for First 100 Days Gain understanding of business strategy and linkage to IT strategy Gain understanding of Gain understanding of organisation culture, the status of IT budget reporting lines, role of and financial situation and expectations from IT Information Gain understanding of IT Gain understanding of Requirements for organisational structure, in-flight projects, First 100 Days human resources, skills, initiatives processes and competencies Gain understanding of IT Gain understanding of portfolio, landscape, current problems and suppliers and issues infrastructure February 6, 2011 5
  • 6. Objectives of First 100 Days• Establish strong communications• Establish relationships with business and demonstrate understanding and that you are listening• Develop tactical plan• Start to create strategic plan linked to business strategy• Define success measurement criteria• Initiate the creation of a strategic plan• Demonstrate clarity of thought, vision and delivery• Define guiding principles, governance, processes and methodologies• Define target IT function operating structure and model• Start to address high visibility/priority issues and problems February 6, 2011 6
  • 7. Benefits of Using the IT CMF Framework to Create100 Day Action Plan• Gathers high-level information quickly through structured consultative process• Creates a high-level view of what is important and where deficiencies exist• Demonstrates that you are listening• A rapid engagement that provides quick feedback• Allows an action plan to be established to focus on mix of strategic and day-to-day• Establishes a measurement framework to allow progress be evaluated• Focuses on how IT can deliver value to the business• Focuses on creating a business-focused IT organisation February 6, 2011 7
  • 8. Roadmap for First 100 Days Gather Create Tactical Deliver on Start Information Plan Tactical Plan Perform High Level IT CMF Assessment Address High Perform Visibility/ Optional Create Strategic Priority Detailed IT CMF Plan for IT Problems and Assessments Issues February 6, 2011 8
  • 9. Business Strategy • Business develops a businessBusiness Vision strategy that contains defined high level aims and lower level objectives Business Strategy • Each objective will be subject to challenges that have to be overcome. Business Strategic • Achievement of the strategic Aims objectives needs to be subject to measurements Business Strategic Objectives Critical Success Challenges Measurements Factors February 6, 2011 9
  • 10. Business Strategy Linkage to IT Strategy • IT strategy follows from business Business Vision strategy • Ensure the organisation is making Business Strategy the best use of IT to deliver on its strategy Business Strategic Aims • Ensure the organisation is using IT effectively and efficiently Business Strategic Objectives IT Vision IT Strategy IT Architecture IT Implementation Plans and Business Cases February 6, 2011 10
  • 11. Innovation Value Institute (IVI) and IT-CMF (ITCapability Maturity Framework)• IVI is developing an the IT-CMF as a systematic framework for improving IT capability and identifying and prioritising opportunities, reducing cost and optimising the business value of IT investments (see http://ivi.nuim.ie/) − Based on an Intel framework and initially developed as part of Intel’s IT transformation (see Managing Information Technology for Business Value http://www.intel.com/intelpress/sum_bv.htm) − Reviewed and tested with 200+ CIOs• Objectives of IT CMF − To assess current practices − To understand opportunity and value of increasing maturity − To bridge structural gaps in other assessment frameworks February 6, 2011 11
  • 12. IT CMF High Level Framework Managing IT Like a Managing Business the IT Budget Managing the IT Managing IT for Capability Business Value• IT CMF structured into four high-level processes for value- oriented IT management February 6, 2011 12
  • 13. IT CMF High Level Framework Managing IT Like a Managing the IT Managing the IT Managing IT for Business Budget Capability Business ValueManaging IT like a Managing the IT budget Managing the IT Managing IT for businessbusiness involved using involves effective capability is concerned value involves aligning ITsolid professional financial management to with what information investments to overallbusiness practices and reduce costs to free funds technology and the IT business benefits.applying them to the IT for investment in organisation can dofunction and involves innovative IT solutions collectively for theshifting the focus from that deliver better value organisation. Underlying focus areasproduction and and performance. include value and benefitstechnology to a focus on delivery and portfoliocustomers and services. Underlying focus areas management. Underlying focus areas include traditional IT include budget factory functions likeUnderlying focus areas management and solutions delivery andinclude leadership, performance sustaining services provisioninggovernance, alignment and making newand management investments and portfolioprocesses. planning. February 6, 2011 13
  • 14. IT CMF• IT CMF is a meta-framework that identifies an IT organisation’s maturity in key critical practices − Comprehensive overarching framework that encompasses all relevant IT practices and sits above implementation frameworks − Does not mandate the use of specific implementation frameworks• Identifies the key areas where the organisation wants or needs to improve to deliver business value − Identifies critical gaps in maturity that are preventing IT delivering business value − Identifies appropriate levels of maturity for the organisation for critical IT processes• Contains benchmarks to allow an organisation measure itself against similar organisations• Defines a structure to allow improvements to be measured• Implementation of specific critical practices improvements devolved to implementation frameworks• Objective view of IT competency and maturity across all of IT February 6, 2011 14
  • 15. IT CMF Framework• Contains − Assessment approach to determine an IT organisations maturity − Best practices associated with outcomes and metrics for their measurement• Benefits − A comprehensive and detailed framework to collect and provide management information on critical processes within the IT function of an organisation − Processes designed, selected and defined as those that ensure that IT delivers business value − Provides a view of the level of maturity of the IT function − Identifies areas where effort should be focussed in order to add value − Enable IT to be responsive to business needs February 6, 2011 15
  • 16. IT CMF Framework• IT CMF framework closes the loop on Managing Managing Information IT Like a the IT Technology Business Budget delivering value to the business Closing the Loop Between Cost and Value Managing IT for Realising Managing and Assessing and Value Delivering IT Capability February 6, 2011 16
  • 17. IT Capability Maturity Framework - Standard Framework to Benchmark IT’s Level of Value to Business• Five maturity levels to assess and optimise value of IT Managing IT Like Managing the Managing the Managing IT for• A comprehensive and a Business IT Budget IT Capability Business Value detailed framework to collect and provide management Sustainable Corporate Core Optimising 5 Value Centre Optimised Value information on critical Economic Model Competency processes within the IT Options and function of an Investment Expanded Strategic Advanced 4 Portfolio organisation Centre Funding Options Business Partner Management• Processes designed, selected and defined as Systemic Cost Technology ROI & Business 3 Service Centre those that ensure that IT Intermediate Reduction Expert Case delivers business value• Provides a view of the Predictable Technology 2 Cost Centre TCO level of maturity of the Basic Performance Supplier IT function• Identifies areas where 1 Beginning effort should be Initial focussed in order to add value• Enable IT to be One of the Tools Used to Manage responsive to business Journey to Becoming a Value Centre needs February 6, 2011 17
  • 18. IT CMF Detailed Structure – Comprehensive View of CoreCompetencies Required of an IT Organisation Managing IT Like a Managing the Managing the Managing IT for Business IT Budget IT Capability Business Value IT Leadership & Enterprise ArchitectureITG Governance FF Funding & Financing EAM Management TCO Total Cost of Ownership Business Process BG Technical Infrastructure Benefits Assessment &BPM Management Budget Management TIM Management BAR Realisation M Portfolio Planning &BP Business Planning PPP Prioritisation PAM People Asset Management PM Portfolio Management Budget Oversight & Knowledge AssetSP Strategic Planning BOP Performance Analysis KAM Management Demand & Supply Relationship AssetDSM Management RAM Management Capacity Forecasting & Research, Development, &CFP Planning RDE EngineeringRM Risk Management SD Solutions DeliveryAA Accounting & Allocation SRP Service Provisioning Organisation Design &ODP Planning UTM User Training ManagementSRC Sourcing UED User Experience Design Program & ProjectIM Innovation Management PPM Management Service Analytics &SAI Intelligence SUM Supplier Management Capability Assessment &SICT Sustainable ICT CAM Management February 6, 2011 18
  • 19. IT CMF High Level Assessment Overview• Objective maturity assessment of IT management practices, identifying both gaps and potential over investments Managing Managing IT the Managing the for business Managing IT like a business IT budget IT capability value Risk of competitive 5 Risk of competitive disadvantage due to disadvantage due to below over-investment? below-average maturity? 4 Industry Average 3 Organisation’s Current Maturity Level 2 1 Core Competency ITG BPM BP SP DSM CFP RM AA ODP SRC REM IM PQM SAI FF BGM PPP BOP EAM TIM PAM ICM RAM RDE SD SRP UMT UED PPM SUM VCM CAM TCO BAR PM IAP Area Within IT Can be applied across all IT functions CMF Framework or in a selected set of areas February 6, 2011 19
  • 20. IT Value Contribution Increases with MaturityMaturity Level IT Value Contribution IT enables and drives business value creation and business 5 opportunitiesHigh Optimising IT is fully aligned with business strategy and anticipates business needs 4 IT focuses on business value creation Advanced Value oriented IT management using various industry best practices Increasing 3 IT directly contributes to business value creation in some areas contribution Intermediate IT turns toward focusing on business value creation, but is mostly understood as to business service provider value as the IT mainly provides services allowing business to create value IT 2 organisation Basic IT focuses on delivering solutions for business needs, but not a value creator on its own increases its maturityLow IT disconnected from business value creation 1 Initial IT is not an integral part of value creation Organisation must be able to translate IT maturity into business value contribution February 6, 2011 20
  • 21. IT CMF Provides Framework to Link BusinessStrategy to IT Strategy Business Vision Business Strategy Business Context Business Strategic Aims Business Strategic Objectives Managing IT Like a Business IT Context Managing IT for Managing the IT Managing the IT Business Budget Capability Value February 6, 2011 21
  • 22. Using IT CMF to Define a Business OrientedInformation Technology Strategy Identify Gaps Where Perform High Level Define Overall Plan the Organisation Current State to Achieve Planned Wants or Needs to Maturity Process Maturity Improve to Deliver Assessment Levels Business Value Perform Optional Detailed “Deep Dives” Into Specific Competency Areas, if Required, to Identify Detailed Gaps and Issues February 6, 2011 22
  • 23. IT CMF Assessment Conducted in Three Phases and Takes Around 3-4 Weeks Activity Beforehand Week 1 Week 2 Week 3 Week 4 0 Selection of assessment team 1 Initial kick-off meeting and preparation Complete individual assessment (answering questionnaire) Collect additional data 2 (based on data already consolidated in organisation) Analysis of collected data and questionnaires Conduct individual interviews (for validation of initial maturity estimate) Final Review results and analyse findings workshop Prepare assessment report Identify practices to be implemented for Review initial 3 improving maturity and business value results Workshop to share and discuss assessment results and collect feedback on assessment Milestones of assessment Initial maturity Validated Final assessment maturity results assessment (incl. action plan) Today• Assessments consist of questionnaires that gather information• Supported by best practice documentation and database of benchmarks February 6, 2011 23
  • 24. Sample IT-CMF High Level Assessment: Purpose ofPerforming Survey• Objective was to measure the perceived importance and perceived current level of maturity/skills and desired level of maturity in two years in order to identify areas to focus on to derive the greatest benefit• Measures maturity and importance along 32 critical processes – areas where IT should have good skills, experience and maturity - in order to ensure that the IT function delivers value to the business• Allows comparison to other organisations• Not just about measuring IT but also concerned with measuring how those outside IT view the IT function• Primary focus in on IT delivering value to the business February 6, 2011 24
  • 25. Sample IT-CMF High Level Assessment: IT Posture• Summarises view of − Technology adoption preference − Deployment of IT to support business activity − IT in relation to competitive advantage − IT and outsourcing preferences − IT and business value management − IT and business requirements management − Level of IT investment• Average score is 60• Organisation score is 42• General view is that the organisation do not view that full advantage is not taken of IT − IT lags behind business needs rather than leads the business − Lower than average investment in IT − Not actively seeking innovation − Not using IT for business value February 6, 2011 25
  • 26. Sample IT-CMF High Level Assessment: IT ValuePerformance• Summarises the organisation’s view of the importance and actual perceived performance responses to the following questions − Cost Effective Use of IT − Effective Use of IT for Business Growth − Effective Use of IT for Asset Utilisation − Effective Use of IT for Business Flexibility − Aggregate view of importance is very high – 16.5 out of 20• Aggregate view of performance is much lower – 10 out of 20• Gap between importance and performance Importance Performance Cost Effective Use of IT 4.5 3.2 Effective Use of IT for Business Growth 4 2.4 Effective Use of IT for Asset Utilisation 3.7 2.2 Effective Use of IT for Business Flexibility 4.3 2.2 Total 16.5 10 February 6, 2011 26
  • 27. Sample IT-CMF High Level Assessment: High Level Process Maturity Highest maturity in Consistent aspiration to cost-related• Generally low level 2 increase maturity across all competencies maturity across the four competencies groups of IT competence areas − Shows a low level of maturity across all processes• Aspiring to increase of 1-1.5 maturity levels in all areas − Shows a consistent desire to improve maturity across all processes − A consistent increase of 1-1.5 maturity levels will require a large investment − Need to balance the need to improve with the resources required − Need to focus efforts on those areas that will yield the greatest benefit Low maturity in business February 6, 2011 value competencies 27
  • 28. Sample IT-CMF High Level Assessment: High LevelProcess Maturity• Shows the current and desired maturity and 25th, 50th and 75th percentiles of similar measures on benchmarked organisations• Shows that the organisation is around the 25% percentile in terms of maturity across all processes when compared with other organisations• 75% of organisations are currently more mature• Stated desire is to exceed 75% percentile of maturity when compared with other organisations in two years – how realistic is this? February 6, 2011 28
  • 29. Sample IT-CMF High Level Assessment: CriticalProcesses Maturity February 6, 2011 29
  • 30. Sample IT-CMF High Level Assessment: CriticalProcesses Maturity• Areas where the greatest • Perceived core competency improvement is desired importance 1. Strategic Planning 1. Risk Management 2. Innovation Management 2. Business Planning 3. Enterprise Architecture 3. Portfolio Management Management 4. IT Leadership and Governance 4. Knowledge Management 5. Solutions Delivery 5. Capability Assessment and 6. Enterprise Architecture Management Management 6. Total Cost of Ownership 7. Strategic Planning 7. Benefits Assessment and Realisation February 6, 2011 30
  • 31. Sample IT-CMF High Level Assessment: CriticalProcesses Ranked by Importance February 6, 2011 31
  • 32. Sample Using the IT CMF Assessment Results toAssist in Defining an Improvement Strategy1. Identify and focus on areas of required IT competency classified by their perceived importance and current maturity and prioritised by lack of balance2. Identify and focus maturity gaps in areas of required IT competency prioritised by importance3. Create a mixed approach February 6, 2011 32
  • 33. Sample IT-CMF High Level Assessment: ImportanceVs Current Maturity• Shows the IT CMF Maturity process areas classified by their perceived importance and current maturity and prioritised by lack of balance• Classification of current maturity and importance• Identify overlap between low current maturity and high importance to recognise areas to focus on Importance February 6, 2011 33
  • 34. Sample IT-CMF High Level Assessment: ImportanceVs Current Maturity 5.0Maturity 4.5 PPM 4.0 BOP FF 3.5 PPP SRP 3.0 TIM ODP SD BGM ITG 2.5 BP CFP RDE PM RM RAM BAR PAM UED KM 2.0 AA SUM SRC DSM EAM BPM SP 1.5 CAM IM UTM SAI TCO 1.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 February 6, 2011 Importance 34
  • 35. Sample IT-CMF High Level Assessment: ImportanceVs Current Maturity 5.0Maturity 4.5 PPM FF 4.0 BOP 3.5 SD 3.0 TIM ODP SRP PPP BGM ITG 2.5 BP PM RDE RM CFPRAM PAM SRC KM BAR 2.0 AA SUM DSM UED EAM BPM SP 1.5 CAM IM TCO SAI UTM 1.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Importance February 6, 2011 35
  • 36. Sample IT-CMF Matrix: Importance Vs Maturity Gap• Shows the process maturity gap (difference between perceived current maturity and desired future maturity) classified by perceived importance 1. Risk Management 2. Business Planning 3. Portfolio Management 4. IT Leadership and Governance 5. Solutions Delivery 6. Enterprise Architecture Management 7. Strategic Planning February 6, 2011 36
  • 37. Sample IT-CMF Matrix: Importance Vs Maturity Gap 5.1 Biz Bud Cap Val Secondary Focus Area Primary Focus Area 5.0 More Important / Lesser Maturity Gap RM More Important / Greater Maturity Gap 4.9 PM 4.8 4.7 BP 4.6 4.5 4.4 ITG SD PPM FF SP EAM 4.3 SRP Importance SUM 4.2 BGM PAM RDE 4.1 TIM RAM BAR IM CFP 4.0 SAI UTM ODP 3.9 SRC CAM PPP BOP UED TCO KM 3.8 BPM 3.7 DSM 3.6 AA 3.5 Tolerable Stragglers Tertiary Focus Area Lesser Importance / Lesser Maturity Gap Lesser Importance / Greater Maturity Gap 3.4 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.1 Average Maturity Gap 2010 – 2012 Maturity Gap February 6, 2011 37
  • 38. Sample IT-CMF High Level Assessment: Areas toFocus On• Areas where the greatest • Areas of perceived importance improvement is desired − Risk Management − Strategic Planning − Business Planning − Innovation Management − Portfolio Management − Enterprise Architecture − IT Leadership and Governance Management − Solutions Delivery − Knowledge Management − Enterprise Architecture − Capability Assessment and Management Management − Strategic Planning − Total Cost of Ownership − Benefits Assessment and Realisation February 6, 2011 38
  • 39. Sample IT-CMF High Level Assessment:Recommendations for Action• Based on the analysis the greatest benefits will be derived from initiating projects in the following areas: − Enterprise Architecture Management − Total Cost of Ownership − Benefits Assessment and Realisation• Key building blocks to effective long-term development of professional IT function that delivers projects that create value• Highest priority areas based on current skills and competence and importance to the organisation, now and in the future February 6, 2011 39
  • 40. Sample IT-CMF High Level Assessment: EnterpriseArchitecture Management Overview• Enterprise architecture management provides the necessary models and practices for defining, planning and managing the business and IT capabilities − Models include business, data, applications and technology models and principles that support high-level enterprise assessments and investment trade-off decisions, as well as tactical, project-level designs and decisions − Practices include architecture development, assessments, strategy development, policies, standards and compliance• Value of increasing maturity − Managed complexity by increasing commonality and simplifying architectural design − Improved ROI by reducing development time and increasing speed to market − Enhanced competitive advantage by increasing flexibility and introducing new capabilities − Reduced business, IT and project-level risks by better planning − Improved architecture management practices and governance February 6, 2011 40
  • 41. Sample IT-CMF High Level Assessment: Total Cost ofOwnership Overview• Understand how, why and from where IT is funded − Determine the scale, scope and sources of funding for IT and assign financial resources to IT activities − Establish a balance between Capital expenses and Operational expenses to optimise IT effectiveness• Track and control direct and indirect costs associated with IT infrastructure and systems − Understanding of total cost of ownership better informs budgeting and portfolio management processes• Active, ongoing review and adjustment of the IT spending plan to systematically ensure that allocated budgets are being spent effectively and are within budget parameters and governance model• Periodic offline review of IT spending vs. IT plan, which provides stimulus for re- profiling or reprioritisation of budgets − Ensures that budget targets are being met and improves quality of future forecasts• Policies, processes and tools used for calculating and distributing the costs of IT − Range of methods such as chargeback, transfer pricing, and allocation may be used to manage the cost of IT services and to influence the demand for IT services within an organisation February 6, 2011 41
  • 42. Sample IT-CMF High Level Assessment: BenefitsAssessment and Realisation Overview• Establishing a common language, measurement and valuation framework to express the potential and document the actual business value (i.e., public and private) and business benefits realised through IT-Enabled investments, as defined and recognised by all stakeholders.• Systematic, objective and consistent organisational approaches to the following − Benefits Planning − Benefits Assessment − Benefits Tracking and Measurement − Benefit Realisation reporting − Benefit Culture• Enabling a business value culture where management optimises IT’s contribution to business objectives February 6, 2011 42
  • 43. Benefits of Using the IT CMF Framework in the First100 Days of a New CIO• IT CMF is a comprehensive overarching framework that encompasses all relevant IT practices − Agnostic of specific implementation frameworks• Covers entire landscape of IT competency• IT CMF is business-value oriented• Contains benchmarks to allow an organisation measure itself against similar organisations• Defines a structure to allow improvements to be measured• Identifies the key areas where the organisation wants or needs to improve to deliver business value• Identifies critical gaps in maturity that are preventing IT delivering business value• Identifies appropriate levels of maturity for the organisation for critical IT processes• Ensures the IT strategy is soundly anchored on delivering business value February 6, 2011 43
  • 44. More Information Alan McSweeney alan@alanmcsweeney.com February 6, 2011 44