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How to Build a CIO Office
 

How to Build a CIO Office

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/how-to-build-a-cio-office-288

The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective."

Executive Summary:

The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.

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    How to Build a CIO Office How to Build a CIO Office Presentation Transcript

    • . Copyright 2012 COMMUNICATE! Build an effective IT Delivery Model to meet Business Needs! - To deliver to set business strategy and objectives ! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 1  
    • . Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 3  
    • . Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 5  
    • . Copyright 2012 COMMUNICATE! How to build a CIO Office:! - Effective IT Delivery, Meet stakeholder expectations ! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 7  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  •  •  •  •  •  •  Deliver IT Services to Business needs ()! Meet Stakeholder Expectations ()! Execute Business Strategy ()! Ensure stakeholder buy in! Support the IT Strategy with a “Canvass” ()! Design Key Performance Indicators ()! Develop an understanding of the Business (IT) Strategy and how IT department will deliver effectively to support strategy execution! •  Develop a High level picture of the Business (IT) Strategy ()! 9  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! ! ! !! !! •  Deliver IT Services to Business needs ()! ! ! - Focus on business objectives ()! ! - Problem statement ()!! ! - The cause ()! ! ! - The solution (), ! ! ! - Deliver a roadmap ()! ! ! - To demand and cost drivers () ! ! ! - Build the IT Business Model ()! ! ! - For effective strategy execution ()! ! ! - To meet stakeholder expectations ()! 11  
    • . Copyright 2012 COMMUNICATE! To leverage business strategy with IT we need to: ! •  Link IT to the Business Strategy! •  Drive IT strategy into IT operations! •  Set a baseline from which to measure IT performance! •  Measure IT operational performance! •  Improve IT performance and strategic contribution! Problem statement! 13  
    • . Copyright 2012 COMMUNICATE! IT needs to be run as a service business! •  We need to reposition IT as a service business within the business! •  Link IT strategic goals to the business strategic goals! •  Restructure IT around a service business model! •  Develop a baseline from which to measure IT performance! •  Measure IT performance! •  Continuously improve IT performance! The solution ! 15  
    • . Copyright 2012 COMMUNICATE! Cost and contribution is optimised! •  Business strategy drives IT strategy! •  Stakeholder expectations are understood and managed! •  IT is managed as a service business – financially oriented! •  Cost baseline established around service portfolio, Chargeback by service! •  IT value contribution is measured and monitored! •  Services are benchmarked on a competitive basis! •  IT becomes a business partner who can ʻproveʼ its contribution! To demand and cost drivers! 17  
    • . Copyright 2012 COMMUNICATE! Typical Transformation Initiatives! ! ! Mergers and Acquisitions (M&A) ! ! Data room Development! ! ! ! Data Centre Migration, virtualization! ! IT Organisational Transformation: Towards a Service Business! ! ! Shared Service Centres, Outsource, Cloud & Benchmark! ! ! ! GAP (As Is, To Be, ROI)! ! ! Synergies & consolidation options! For effective strategy execution! 19  
    • . Copyright 2012 COMMUNICATE! Define a financial baseline from which to measure IT performance with! •  •  •  •  •  •  ! ! IT Service Portfolio and TCO by service! Customer consumption of IT services – chargeback! IT goals aligned to the business goals and objectives! IT processes evaluated against industry standards! Dashboards to measure KPIʼs! Scenarios for major transformation initiatives! To meet stakeholder expectations! 21  
    • . Copyright 2012 COMMUNICATE! How effective are business (IT) objectives?! Baseline: ! ! To deliver to effective business (IT) objectives! Objectives: ! - Align business to set strategic objectives,! ! - Do we allow IT to successfully deliver to clear, defined and measurable business objectives.! !! !! ! ! Business focus! 23  
    • . Copyright 2012 COMMUNICATE! How well is IT positioned to meet future needs?! Baseline: ! ! To develop opportunities to meet future challenges! Objectives: ! - Train and educate IT staff,! ! !! ! - Build IT staff expertise,! ! !! ! - Research in to emergent technologies,! ! !! ! - Pertinence, scalability, evolutivity of application portfolio.! Competency! 25  
    • . Copyright 2012 COMMUNICATE! And more precisely:! Objectives: ! !! ! - Become the supplier of choice for all information services, either directly or indirectly through supplier relationships,! ! !! !! ! ! - To enable and contribute to the achievement of business objectives through effective delivery of value added information services,! ! !! ! - Deliver timely and effective IT services at targeted service levels and cost,! ! !! !! ! ! - Develop internal capabilities to continuously improve performance through innovation, learning and personal organisational growth.! ! !! ! ! ! ! ! ! ! Develop in to a Business partner relationship! 27  
    • . Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Strategic intent ! Strategic Lever! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Business model! -  -  -  IT Vision! Baseline! Roadmap! IT Value Proposition! Design! Build ! Time to Market (Governance: Performance & Conformity)! Effective IT Performance Management! Execute Business Strategy! 29  
    • . Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate:! -  -  -  Articulate the Business Value Proposition! Translate (Articulate) Business Vision to Business Architecture Vision & Business Architecture! Vision of Business Architecture “to be”: state “where we need to go”, “where we are now” & “how we need to proceed”! Architecture principles! Business principles! Technology principles! -  Articulate! -  -  Build business case & roll out (with Roadmap)! -  Articulate the Business Value Proposition! 31  
    • . Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! IT Vision! IT Vision:! -  -  -  -  -  Translate the Business vision to an IT vision! Vision of IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed”! Regulatory requirements! Technology guiding principles! IT Governance guiding principles (process & organise decisions)! Translate the Business Vision to an IT Vision! 33  
    • . Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Roadmap! Roadmap:! -  -  -  -  -  -  Construct the IT Business Model and Value Proposition! Define IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed” with established KPIʼs! Report gap analysis findings! Design IT plan through a project portfolio! Cost out the plan (budget)! Develop consensus, business case for change! Construct the IT Business Model! 35  
    • . Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Build! Build:! -  -  -  -  -  -  Build the IT Value Proposition! Implement the project portfolio! Engage Organizational change! Control IT (measure outcome to set objectives)! Capture KPIʼs & Measure performance! Enforce governance! Build the IT Value Proposition! 37  
    • . Copyright 2012 COMMUNICATE! The IT service proposition is aligned to the business strategy:! •  ! •  •  •  •  •  Stakeholder expectations are understood and IT propose a ! service portfolio that correspond to Demand and Cost drivers ! Business Contribution, Cost, Consumption & Chargeback identified! Perfect order business transactions focus! Services are effective (demand and cost drivers identified)! Services are competitive (Benchmark Industry Market Forces)! IT delivers service innovations to improve competitiveness! ! IT Contributes to Business Objectives!! To Run IT as a Service Business!! 39  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  Ensure stakeholder buy in ()! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! - Business (IT) Programme Management ()! - Business (IT) Investment Management ()! - Business (IT) Process Management ()! - Captured in a Strategy Map & Canvas () ! - articulated in a Collaboration Theme Scorecard ()! - Captured in a Strategy Map & Canvas articulated in a !Collaboration Theme Scorecard ()! - To execute Business (IT) Strategy ()! - (IT) Service Strategy supports Business Drivers ()! - (IT) Roadmap reflect stakeholder expectations ()! - Conceived in to a solid story ()! - The IT department as effective broker of services?! 41  
    • . Copyright 2012 COMMUNICATE! To get the IT Service Management Fundamentals right:! •  Focus on demand and cost drivers In a business perspective:! –  Run IT as an effective service business! –  Meet your customer needs, where! –  Demand drivers are critical in the roll out of IT Service Management! •  Deliver strategy execution! ! ! Understand Stakeholder Expectations! 43  
    • . Copyright 2012 COMMUNICATE! Priorities from a Business Unit Management Perspective:! ! !! - IT supports the achievement of tactical business objectives! ! !! - IT delivers perceived added value services and at a reasonable cost! ! !! - IT delivers to service level agreements (commitments)! ! !! - IT investments positively affect business productivity and the customer experience! ! !! !! - We have a clear process vision towards which we expect the IT department to ! ! deliver : ISO 38 500, VALIT, COBIT, RISKIT, ITIL! IT delivers to demand and cost drivers! 45  
    • . Copyright 2012 COMMUNICATE! Priorities from an IT Risk Management Perspective:! ! !! - The organisations assets and operations are protected! ! !! - Key business and technology risk is effectively managed! ! !! - Effective process, practise and controls are in place! ! ! !! !! - We have clear security objectives to which we expect IT to deliver: ! VALIT, COBIT, RISKIT, COSO, ISO 20 000 / 27 000! Business Continuity is Ensured! 47  
    • . Copyright 2012 COMMUNICATE! In order to do so we need to:! ! !! ! - Align IT plans and activities with business goals and needs,! ! !! !! ! ! - Align Stakeholder (internal and external) and employee effort toward objectives with clear processes and metrics,! ! !! ! - Establish measures to evaluate the effectiveness of the IT organisation,! ! !! ! - Stimulate and sustain improved IT performance,! ! !! ! - Achieve balanced results across stakeholder groups.! Deliver to Stakeholder Expectations! 49  
    • . Copyright 2012 COMMUNICATE! •  The establishment of informed and committed leadership! •  The definition and implementation of a value governance framework and work processes! •  The definition of portfolio characteristics! •  The alignment and integration of value management with enterprise financial planning! •  The establishment of effective governance monitoring! •  Continuous improvement of value management practices! Business (IT) Value Governance! 51  
    • . Copyright 2012 COMMUNICATE! •  •  •  •  •  •  •  •  •  •  The development and evaluation of the initial business case! An understanding of the program and implementation options! The development of a program plan! The development of full cycle costs and benefits! The development of a detailed business case! The launch and management of the program! Updating of the operational IT portfolio! Updating of the business case! Monitoring and reporting on the program! Retirement of the program! Business (IT) Programme Management! 53  
    • . Copyright 2012 COMMUNICATE! How to align and lever operating, management and support processes through the effective implementation of IT.! - Do we perform them in the right manner? - The architecture question! - The investment:! ! ! ! ! - Is in line with our architecture,! - Is consistent with our architectural principles,! - Contributes to the population of our architecture.! - Do we perform them well? - The delivery question! - We have: ! ! ! ! ! - Effective and disciplined management, delivery and change management processes,! ! - Competent and available technical and business resources to deliver:! ! - The required capabilities,! ! - Organisational change required to lever capabilities.! Business (IT) Process Management! 55  
    • . Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value for all parties.! ! ! ! The strategy canvas allow the teams to articulate and formulate objectives on a project / program basis for improved execution with an extended GAP, risk and added value analysis captured in a DARCI (Decision taker, Accountable, Responsible, Consulted & Informed).! & Canvas, articulated in a! 57  
    • Strategy Execution! IT Infrastructure Portfolio Management! Application Portfolio Management! Service Portfolio Management! Enterprise Portfolio Management:! Process based IT Architecture! Project Portfolio Management ! Performance Management:! Process based Business Architecture ! Product / service life cycle management! Business Strategic Intent! Strategy Articulation! . Copyright 2012 COMMUNICATE! Time to Market! Cost Effectiveness! Cycle Time! Time to Market (Governance: Performance & Conformity)! To execute Business (IT) Strategy! 59  
    • . Copyright 2012 COMMUNICATE! Executive Management! Business Unit Management! IT Management! IT Risk Management! Stakeholder Expectations! Drives! Business (IT) Objectives! Delivers! Business (IT) Road Map! Executes! Employees & Organisation! Strategy Execution! Time to Market (Governance: Performance & Conformity)! Business (IT) Strategy Road Map (How)! (IT) Roadmap reflect stakeholder expectations! 61  
    • . Copyright 2012 COMMUNICATE!  ! The IT department as effective broker of services?!  ! I have previously introduced "non traditional IT" notions such as "Time to Market", "Cloudsource", "Make or Buy", "Cost and Demand drivers", "An IT Business Model and Value Proposition" and "An IT service Strategy". !  ! Within this context I believe that a new notion and function will have to be instored, the IT department as effective broker of services (cost effective and that meet demand drivers). Where most IT department perform well, some decisions are still based on "gut feeling" or external pressure from executive management influenced by vendors / management consultants "as a strategy of survival" rather than on fact based logics. !  ! The IT department as effective broker of services?! 63  
    • . Copyright 2012 COMMUNICATE!  ! "To Cloud source" – Cloud computing is the result of 2 trends. 1) The survival of salesforce.com (that is to outsource data in an application that we have decided not to buy / run on an internal server) 2) the decision of amazon, google and other cloud (external storage space) providers to leverage their capability to buy and run server parks more effectively then an IT department would / could (external cloud). A decision to run applications on a server outside the firewall can be motivated by cost or demand (time to market) where an architecture and applications are set up to rapidly respond to the needs of the business. The "service bundle" can then either be brought inside the firewall and run on an internal cloud or continue to run on the cloud providerʼs server (outside the fire wall). !  ! The IT department as effective broker of services?! 65  
    • . Copyright 2012 COMMUNICATE!  !  ! "An IT Business Model and Value Proposition" – To obtain funds in the business world an investor would require a good business case with a clear “Business Model” and “Value Proposition”. Our experience is that an IT department that does not have a clear “business model” defined as “This is how we deliver IT services to the business” and “Value Proposition” defined as “This is how we support business objectives with services in a time to market perspective” will continuously find it difficult to obtain sufficient funds from executive management and the board for the above mentioned reasons.!  ! "An IT service Strategy" – In order to effectively communicate with the business the IT department need to adopt the notion of services a bundle of applications to be run cost effectively and set up in a time to market logics in accordance to cost and demand drivers where demand drivers are linked to the business emerging needs to support the execution of the business strategy with IT when needed.! The IT department as effective broker of services?! 67  
    • . Copyright 2012 COMMUNICATE! ! ! •  •  •  •  •  Align IT plans and activities with business goals and needs! Align employeesʼ efforts toward IT objectives ! Establish measures for evaluating the effectiveness of the IT organization ! Stimulate and sustain improved IT performance ! Achieve balanced results across stakeholder groups ! IT Value Baseline! 69  
    • . Copyright 2012 COMMUNICATE! •  ! Are we developing the professional competencies needed for successful service delivery? ! •  ! Are we creating a positive workplace environment? ! •  ! Do we effectively measure and reward individual and team performance? ! •  ! Do we capture organizational knowledge to continuously improve performance?! •  ! Can we attract/retain the talent we need to support the business? ! IT Management! 71  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  Design Key Performance Indicators ()! ! ! ! ! ! ! ! ! - Corporate Contribution ()! - User Orientation ()! - Operational Excellence ()! - Future Orientation ()! 73  
    • . Copyright 2012 COMMUNICATE! •  •  •  •  •  •  •  •  •  ! Preferred IT supplier ! ! Percentage of applications managed by IT ! ! Percentage of applications delivered by IT! ! Partnership with users ! ! Index of user involvement in strategic applications! ! Applications index of user involvement in developing new applications ! ! User satisfaction ! ! Index of user friendliness of applications ! ! Index of user satisfaction Process Management! User orientation! 75  
    • . Copyright 2012 COMMUNICATE! •  •  •  •  •  •  •  •  ! Training and education of staff! ! Number of educational days per person ! ! Education budget as a % of total IT budget ! ! Expertise of the IT staff ! ! Number of years of IT experience per staff member ! ! Age pyramid of the IT staff ! ! Research into emerging technologies ! ! % of budget spent on IT research General Business Management! Future orientation! 77  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy ! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: ! ! Objective: To develop a comprehensive understanding of the business environment and future direction in order to identify areas of strategic IT opportunities and as the basis to develop the IT strategy.! ! Benefit: A Clear business vision and direction avoids dispersed, conflicting, non-value added activities and costs and enable a clear focus on the chosen markets / products / services. The establishment of an agreed business vision provides an understanding for how IT can/should contribute to business objectives and how ROI can be driven from IT investments. As you establish the need for and agree on the scope/focus of the IT strategy engagement, it is important to develop a sense of the business environment and future direction. This understanding of the organisationʼs present and future is documented and is used to determine how IT will be leveraged.! ! It should be clearly understood that this activity is not intended to build the business vision but to support the roll out of an established business vision. The purpose of this activity is to understand the business, its internal and external environment and make explicit any unstated or inadequately articulated business values and vision elements to build a firm platform for the project.! 79  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy ! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm business vision ! ! ! ! It is important to understand both the vision and the extent to which it has been communicated throughout the organisation and “bought in to” by Stakeholder, key influencers and end users.! ! In the event of a non articulated vision for the organisation, it should be agreed that a consensus approach is required to build one. A visioning workshop should be conducted with key stakeholders. ! ! ! ! ! ! ! ! 81  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm External Environment !   !   The Business Profile developed should have identified a large number of organisational and industry key issues. These will set the direction and focus of the review of the strategic analysis and highlight material areas which have not been considered/ignored in the development of the Business (IT) Strategy plan. An analysis of the external environment will involve: political, economic, social and technological forces impact the business; suppliers and customers; threat of new entrants; possible substitution effects; the competitive arena and the business relative positioning.! ! ! ! 83  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm IT Value Proposition and Product / Service offer!   The value proposition clearly articulates how value is defined by the stakeholder. It will differ by stakeholder and be defined by cost and demand drivers in regards of business drivers and objectives.! ! Further comprehension of expectations on the “IT Value Proposition” that is how do we (are we expected to) deliver IT services to business needs is achieved by conducting interviews with key executives and an analysis of stakeholder surveys.! ! ! ! ! ! 85  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy! !     Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm Business (IT) Strategy, Objectives and Goals !   The business strategy and plan based on available data follows logically from it. The organisationʼs business imperatives, strategies, goals and objectives with Critical Success Factors within the control of the organisation are identified and documented. ! ! ! !   87  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Validate the Business (IT) Strategy!   Does IT support strategy execution with a clear IT Business Model and Value Proposition articulated in a service strategy?! ! Focus on the validation of the IT strategy and direction. Where certain areas are less focused, dispersed or contradict elements of the Business (IT) strategy it is necessary to undertake incremental strategic analysis. The extent to which this is necessary or desirable depend on if the area of concern is fundamental to the entire Business Strategy & impact on the Business (IT) Strategy. ! 89  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy !   A high level picture of the Business (IT) Strategy contains a description of the Business Strategy with Business Drivers and Objectives, how IT support strategy execution, the needed competencies and resources. This picture is developed as we consider a number of aspects of the Business (IT) Strategy such as the subsequent value chain, process architecture, information/data architecture, organisation charts and skills and competencies. ! 91  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Determine the leverage of IT to support strategy execution !   The extent to which IT is used as an organisational asset is an indication of Key Business Stakeholders Perception of IT as critical lever and drives the value the organisation places on it. This in turn will determine the nature and quality of information technology in use in the organisation. The importance of IT on the boardʼs agenda usually provides a good indication of the value the organisation places on IT. A SWOT analysis could be performed on the IT Strategy to highlight critical “hot spots”.! ! ! 93  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Identify Focus Areas ! ! To identify the areas of the organisation that are critical to the success of the business strategy we focus on business drivers and objectives. This involves to map prioritised IT objectives to high level business drivers and objectives. ! ! 95  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Identify scope/opportunities for improvement ! ! To identify opportunities for improvement and get a first, high level, view of the potential benefits available to the organisation, we map the Business Strategy with Business Drivers and Objectives to the current IT service strategy. ! ! The gap should be used to determine the scope of possible improvements. In addition to the benefits the opportunities are likely to bring in, a preliminary identification of the associated risk and cost is made. The scope / opportunities are validated and recorded on the ʻAs-Isʼ process model to ensure that the widest possible acceptance of this picture is achieved among management and staff not only involved in but are affected by the process. It should be noted that the opportunities identified in this task will primarily have a business focus. This analysis results in the first view of the Business (IT) Strategy business case.! ! ! 97  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Ensure stakeholder “buy in” and sponsorship ! ! To ensure that stakeholders, top management, IT management and other business managers have been involved in and have “bought in” to the output we need to understand stakeholder expectations and deliver to the latter. Adequate buy-in at appropriate levels from all stakeholders is critical to the success of the engagement. If appropriate sponsorship is not visible at all stages, the quality of the work effectuated and the ability to implement the solution will be limited. Appropriate action should be taken to ensure that the interest and sponsorship of top management is sustained throughout the engagement. The key to maintain sponsorship is to keep relevant stakeholders informed and to demonstrate the benefits case as it develops with the delivery of quick wins. ! ! ! ! ! 99  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  Assess the As-Is of the Business (IT) Service Strategy ()! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! - Draw the current Business (IT) Service Strategy with Scope ()! - With an Effective (IT) Business Model () - an IT Review () ! - an Inventory of the existing IT and plan review scope and detail ! to understand and assess overall Alignment of IT to the business () ! - with an IT benefits review ()! - Assess the Business (IT) relationship () ! - An applications portfolio review (), - Assess IT programmes / projects ()! - Stakeholders priorities, maturity and satisfaction () ! - Review of Information Assets () ! - Assess IT talent and organisational skills ()! - Technology Review () ! - Review of External Services (), - Asses IT investment / cost / spending ()! 101  
    • . Copyright 2012 COMMUNICATE! Business Context! Business Strategy! IT Business Model & Value Proposition! Business Operations! Service strategy (ITIL) ! Delivery capability (VALIT, COBIT, RISKIT, CMMI, eSCM, ITDB)! Architecture (TOGAF)! Business Value! Security (ISO 9000, 20/ 27 000)! For Effective Governance, Risk, Compliance! With an Effective (IT) Business Model! 103  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Inventory of the existing IT and plan review scope and detail ! ! As a first step, the IT Value Baseline is set with Demand and Cost Drivers that is how well does IT support strategy execution and the Total Cost of Ownership per user with Cost, Consumption and Chargeback. This information is used to develop a high level picture of the IT organisation. The scope of the review should be established in terms of the components to be included and the depth of analysis to be carried out. The proposal itself should, in most cases, identify the components and the level of detail for the review. IT business issues identified in the stakeholder dialogue should be highlighted . ! ! ! ! ! ! 105  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: IT Benefits Review ! ! Benefits from IT investments can be assessed by reviewing the earlier IT strategy and Business Plans and undertaking an audit of whether the identified benefits were achieved. In the absence of a unified business case, individual business projects undertaken in the past should be assessed for benefits delivery.! ! ! 107  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Applications Review ! ! The review of applications is undertaken in two parts. The first part involves assessment of the functional and technical quality of existing applications. The second part comprises an assessment of the programmes / projects, both existing and proposed, delivering IT applications.! 109  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Assess IT programmes / projects ! ! A review of IT programmes could be undertaken as an independent engagement or as part of an assessment, sourcing or strategy engagement. The first step is to agree to the scope of the review to include programmes and projects and their objectives.! ! Once this has been agreed, the design of the data collection can be carried out to inventory projects in the scope but significantly more information can be collected as well as interviewing the project team members. Typical project information to be collected might include strength of business sponsorship, benefits, progress and cost against plan, resources used, strategic alignment, what would happen if it was stopped, etc. IT management practice definitions could be used to score specific aspects of project management processes.! ! ! ! ! ! 111  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Review of Information Assets ! ! The detailed review of the information assets is used to determine the extent to which assets match the importance that the business attach to them. The review of IT resources of an organisation covers the assessment of the quality, security, accessibility and availability of information.! ! ! 113  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Technology Review ! ! An understanding of the nature of existing and planned technology, how it is organised and the extent to which it is used, contributes to a complete understanding of IT resources. Any assessment of the existing and planned technology should cover hardware platforms, operating systems, systems software and development tools, networks and any other components including third party solutions.! ! The review should be focused on the ability of the technology architecure to support business requirements. This analysis is best undertaken through conversations with relevant IT personnel as we use the technology inventory on the performance of the technologies.! ! ! 115  
    • . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Assess IT investment /cost / spending ! ! ! ! In order to understand and assess the effectiveness of current IT investments, IT spending, and IT cost is collected and reviewed in the context of business priorities to industry best practice with Total Cost of Ownership with Cost, Consumption and Chargeback per user captured in an IT Baseline.! ! The review covers spending on technology, people and services. Spend figures are then benchmarked against similar organisations and current business goals/strategies.! ! ! ! ! ! ! ! 117  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy:! ! Key Questions: How will the business operate in the future and how should the IT Business model operate to meet the identified needs? ! ! Objective: To define how the business will operate in the future and to provide insights into how the proposed IT Business Model and Value Proposition can be developed.! ! Benefit: Identification and quantification of IT enabled business improvements.! ! ! 119  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Set stretch targets ! ! A preliminary benefits case is assembled with stretch targets for a management high level view. The objective of this benefits argument is to provide management with an overview to assess different opportunities. The benefits argument is used by management to prioritise opportunities (technological and other constraints such as resources may limit the range of available alternatives) and categorised into: Quick wins and significant longer term benefit opportunities. Quick wins deliver result in a short timeframe in an early stage of the programme and is necessary to gain the momentum needed to obtain buy-in and commitment necessary for a larger change programme.! ! ! 121  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Service Strategy! ! ! ! The Service Strategy defines how the Business (IT) Strategy will be structured in the future. The Service Strategy perspective provides a basis to identify the projects required to achieve to the desired future state. !  ! ! ! 123  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Architecture !   The ʻTo-Beʼ Business (IT) Model will be enabled by an information and technology infrastructure. In this stage of the engagement, a set of high level principles and guidelines to leverage technology will be established. These will be used to align the information / data architecture and the technology infrastructure. The application and data framework focus on the general strategic direction into specific design principles and guidelines that show how objectives can best be achieved given the strengths and weaknesses of the current systems and infrastructure consistent with accepted best practice.! ! This set of principles and guidelines will define the “vision” for use of information technology. This vision may be impacted by constraints from the existing information architecture and technology infrastructure. It is essential that the business and information technology teams, if separate, work together on this task.! ! ! 125  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Determine competencies/skills required !   The ʻTo-Beʼ IT Service Strategy model and the IT departments role in the strategy execution roll out requires a new set of competencies and skills to deliver the required level of performance that include both business and information technology skills at a management and operational level. An outline of the ʻTo-Beʼ organisation structure identify skills and talent at different levels is developed as part of this task. ! ! Gaps in competencies and skills are identified and are used as an input in the sourcing strategy.! ! ! 127  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  Build the Business (IT) Service Strategy ()! ! ! ! ! ! ! ! ! ! ! ! - Develop the Information Architecture ()! - Develop Applications Architecture () ! - Define Information/Applications Architecture Implementation Policies/ Principles & Standards () ! - Revisit and update business cases () ! ! 129  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Business (IT) Service Strategy! ! Build the Business (IT) service strategy: Develop the Information Architecture! ! The information architecture provides the framework for the organisation and management of information in the organisation.! ! In this step data entities are defined, their relationships are identified, entity process relationships established and a logical model created. Subsequently a physical model can be designed which is influenced by data security and access considerations and constrained by the application architecture and technical infrastructure. Workshops are conducted to identify key information in the business.! 131  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Business (IT) Service Strategy! ! Build the Business (IT) service strategy: Develop Applications Architecture ! ! The applications architecture identifies the applications components and their structure and defines how information will flow and be processed. The two main inputs for this work are the information architecture and the business architecture. Applications are to support a sub-set of the business architecture with a clear demand cost drivers benefit logic. Software availability and industry practice should be clearly linked to the benefits logic. Applications architecture workshops should be conducted around business processes to develop the architecture through the participation of IT business analysts and business representatives. This process may require several iterations of workshops and desk analysis, however, it is important not to go to far in to details, particularly if packaged software is the most likely solution, as this will define the physical architecture.! ! That said a conceptual applications architecture can be a useful start for a package selection process and can help to guide decisions if to an integrated package is required or whether two or more packages interfaced with each other is possible and desirable. As with the information architecture, it is useful to identify application owners consistent with business ownership.! 133  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Business (IT) Service Strategy! ! Build the Business (IT) service strategy: Revisit and update business cases! ! The process to define the information and data architecture can highlight issues that may have an impact on “business cases”. This include package solutions, location / ownership / consistency of information or applications as well as insufficient benefits, service levels and additional cost to the initial estimation.! ! ! ! ! 135  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Govern the Business (IT) Service Strategy! ! Govern the Business (IT) Service Strategy: ! ! Market dynamics and organisational growth result in a continuous demand on the IT business for new technology enabled solutions. As a result the business and IT architecture needs to accompany the roll out of the business strategy. In order to effectively service business strategy needs, it is important to develop a pro-active framework that ensure a focus on business strategy execution, identify new IT enabled opportunities, manage risk and co-ordinate overall IT activities.! ! ! 137  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Govern the Business (IT) Service Strategy ! ! Govern the Business (IT) Service Strategy: Define IT management principles and policies ! ! A framework to steer IT in the organisation will include the involvement of top management in the management of the IT function, the nature and extent of leadership to be provided by the business in specific IT initiatives and the principles of distribution, ownership and management of IT resources. Total Cost of Ownership is an essential part of this equation with cost, consumption and charge back.! ! In addition to the definition of the involvement and responsibilities of the business, management principles and policies will also define the manner in which investment in IT will be managed, standards and processes for investment proposals and policies for the review and approval of proposals. Guidelines for programme / project / benefits management will also be defined with overall organisational principles: how many IT functions should there be and their respective role?! !   ! ! 139  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Govern the Business (IT) Service Strategy ! ! Govern the Business (IT) Service Strategy: Define Critical Success Factors and Performance Metrics! ! Define critical success factors and subsequent performance metrics. Industry best practice is used to identify performance targets and metrics. The performance of the IT function is then measured to the identified metrics.! ! Compensation services can develop a reward and recognition program to encourage and support performance, retention, morale, shared learning and organisational development.! ! It is critical to focus on perfect order transactions. Metrics should be cascaded top down to support strategy execution rather than bottom up.! ! ! ! ! 141  
    • . Copyright 2012 COMMUNICATE! We Build a CIO Office to:! •  Design the Technology Architecture ()! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! - Define architecture framework, design principles and policies ()! - Identify “best practice” and “key trends” () ! - Define technical constraints () ! - Identify technology classes ()! - Define Blue Prints ()! - Define Core Technology ()! - Define Site Technology Models ()! - Define the Enterprise Technology Model ()! - Summarise models and define technology cost and risk ()   ! 143  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies:! ! The technology architecture/infrastructure identifies the different technology components required to support the architecture defined earlier. The technology architecture provides the structure, organisation and integration of the various infrastructure components of information systems across multiple business units, functions, processes and/or geographical areas.! ! A set of blueprints for an integrated set of information system components is derived from the technology infrastructure together with a framework of standards and principles to ensure that components will operate effectively together, and adapt to the evolving needs of the business. Blueprints guides the various project teams engaged in activities such as software development, the implementation of commercial application packages, and the enhancement of infrastructure capabilities, such as networks or system management processes.! ! The Blueprints will serve as the basis for the detailed design, construction, and physical implementation of the full range of information systems components (hardware, software, data, networks, and support infrastructure) required to meet the needs of the existing and future business.! 145  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies: Identify “best practice” and “key trends”! ! The purpose of this activity is to gain a complete understanding of what are considered to be best practices with regard to IT architecture, both from the point of view of the client's industry, and from the point of view of key trends in the IT industry itself. ! ! As we conduct systematic research through relevant public and private sources we identify and assesses key trends in the application of specific information technologies and approaches by competitors and other key players (customers, suppliers, etc.) in the industry. IT trends may be related to a variety of industry-specific factors: Changes in business architecture as a result of process redesign and organisational restructuration; Widespread adoption of specific technologies; Changing industry dynamics requiring closer integration of value chains, etc.! 147  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! !   Define architecture framework, design principles and policies: Define technical constraints ! ! To understand the technology gaps developed we use the As – Is To – Be to identify technical constraints. All relevant factors that may have an impact on the technical architecture are considered: Business/information and data architecture, technology architecture, plans for major enterprise package solutions, vendor/product commitments, legal/regulatory requirements. ! ! ! We identify, analyse, and document constraints on the definition of guidelines and design principles, and the selection of technologies. As we work with project sponsors and relevant stakeholders (primarily in IT management) to identify potential impact we conduct interviews and review existing documentation as necessary to determine what the actual constraints are, how they affect the infrastructure, and under what conditions they might be overcome.! ! ! ! 149  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies: Identify technology classes ! ! If existing policies or contracts specifies the use of predefined products they should be clearly identified, since they may influence the selection of other technologies or products.! ! ! 151  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Design Technology Solutions: Define Blue Prints! ! Blueprints are defined to meet the data storage and communications capabilities required to implement the information/applications solutions to meet agreed objectives in terms of performance, reliability, security and evolution. This is done as we determine the technologies required at each type of site (based on the applications and databases that run on workstations and servers located on site), define the network and communication technologies required to provide needed connectivity. Proof of concept testing will be required to confirm the inter-operability and performance of the various hardware and software components. At this point the team assess how the new technology infrastructure will need to be supported to deliver to set metrics. The final activity in this phase revisits the business case. In the light of what has been learned through the blueprint design process, the team will be in a good position to refine earlier projections and assumptions on the benefits that the new architecture will be able to deliver, cost and risks involved in the construction. This reassessment may lead to modifications in the proposed architecture.! 153  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! ! ! Design Technology Solutions: Define Site Technology Models ! ! As we define the technology at different sites we identify boundaries between technology owned by business divisions and external services. Captured in a blueprint they form the site technology model.! ! As the architecture is completed and describe the functionality, topology, and technology for all of the applications, databases, and common services within the scope of the initiative, we turn to the definition of technology components upon which the applications and data will be deployed across the enterprise. As the architecture describe the "upper" layers of technology, the technology blueprint defines the "lower" layers: Data management, access and security, Operating system, Messaging, Network, Hardware.! ! ! 155  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Design Technology Solutions: Define the Enterprise Technology Model ! ! As we draw the enterprise technology model we present a definition of the way the organisationʼs technology infrastructure will be organised and managed; specific hardware, software and network components and identity responsibilities for maintenance, operation and support together with technology infrastructure components shared with suppliers/customers and/or with outsourced service providers.! ! The enterprise technology model is concerned with connecting the site models developed in the previous sub-task. Once application and database functionality has been bundled in user workstations, and these workstations have been distributed into representative sites and attached to local networks, it is possible to model a network that responds to the aggregate demand for system and network bandwidth resources. The enterprise technology model is also concerned with system and network management requirements as they exist as a result of connecting the sites.! 157  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! Design Technology Solutions: Summarise models and define technology cost and risk! ! We consolidate technology diagrams to assess costs and risks involved with the overall infrastructure and to define boundaries of the infrastructure, identify responsibilities for maintenance and operations of specific applications and technologies including outsourced services. ! ! The original business case should be revisited. In light of what has been learned through the blueprint design process, the team will be in a good position to refine earlier projections and assumptions both on the benefits the new architecture will be able to deliver, and the cost and risk involved in building it.! ! ! 159  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! ! The focus on sourcing as a part of the service strategy is limited to the identification of an optimal sourcing strategy for the IT Service Strategy. ! ! Question: How do we optimally source our IT requirements to execute strategy and business drivers and objectives?! ! Objective: The objective is to create a model to meet the IT services strategy required by the organisation and how it should be packaged for optimal delivery. This leads to a definition of the resources (skills and competencies) required to support and manage defined services effectively. Service levels and key performance indicators to monitor and manage each service ʻbundleʼ are also developed to ensure the effective management services.! ! Benefit: Define the value of services required to support the business requirements and identify the best sourcing options for IT to meet business performance objectives.! ! ! ! ! ! ! 161  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! ! Develop a service architecture:! ! The Service Strategy is developed with input from the IT Assessment, Demand Side Architecture, Technical Architecture and preliminary reflections on governance to structure an architecture of the IT services. The architecture clearly identifies services (in-house and outsourced) required by the organisation with skills and competencies required to effectively manage the required services.! ! ! 163  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! Develop a service architecture: Establish guiding principles! ! To establish guiding principles to take decisions on to in-source or outsource services the key elements considered include available skills and competencies, cost, potential for improved productivity, effectiveness and user satisfaction to meet demand and cost drivers.! ! ! ! 165  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! Develop a service architecture: Evaluate sourcing options! ! All identified sourcing options should be evaluated as we look at the benefits, cost and risk associated with each option. ! ! ! ! ! ! 167  
    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! Develop a service architecture: Outsource, Cloud(source) Effectively! ! The best outsourcing agreement is not necessarily the one with the lowest price. In fact, successful outsourcing contracts are those that strike a balance and focus on the primary goal of meeting business needs on day one and throughout the life of the contract. Five guidelines to help companies align their outsourcing agreements with internal strategies and requirements. 
 ! Five Ways to Strike the Right Balance:
 1. Contract Terms – It is important for you to fully understand the terms and conditions you will live with for many years to come. Governance, delivery locations, and clear termination language are critical pieces of a successful outsourcing agreement.
 2. Statement of Work (SOW) – SOWs should clearly define the roles and responsibilities of the provider as well as the client side. We recommends organizing the SOW into market-based towers, such as Server Management, Contact Center Management, Applications Development, etc. which results in easier ʻapples to applesʼ comparisons of competing providers. Setting up the SOW this way also makes it much easier to benchmark the price of services periodically over the term of the contract. 
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    • . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! Develop a service architecture: Outsource, Cloud(source) Effectively! !   5. Pricing – Expect your outsourcing costs to go down over time. One of the best ways to ensure the long-term success of your outsourcing agreement is to start with an agreement based on market prices. This means you are starting the relationship in the right place, and any future pricing adjustments (such as benchmark adjustments) will not be as extreme or emotional as they otherwise might be. 
 ! ! ! 171  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan! ! ! ! ! ! ! ! ! ! Develop Program Plan: ! ! Question:! How do we sequence tasks needed to support the business strategy and what resources do we need?! What are the capital investments and operating expenses over the next 5 years to implement the plan?! How do we manage risk and change during implementation?! ! Objective:! The purpose of this step is to develop an implementation strategy and plan to effectively manage the transition from the ʻAs-Isʼ to the ʻTo-Beʼ state.! ! Benefit:! Business buy-in, ownership and commitment to the transition plan and its benefits.! ! ! ! ! 173  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Establish Program Management Principles ! ! Program management principles are established to provide guidance to the implementation team of the effective management and administration of all projects in the program. A workshop is conducted to identify all program risks, barriers and critical success factors for successful implementation. Appropriate lifecycle methodologies, work breakdown standards and project management tools are also identified in this workshop.! ! The development of these principles is essential for consistent quality of delivery and effective management of resources. These also provide the program management team with the required flexibility to meet the needs of individual projects.! ! ! ! ! ! 175  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Develop a Change Program to set target!   The IT program is driven to support the Execution of the Business Strategy with a Stage Gate implementation plan with clear objectives. ! ! 177  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! ! Develop the Program Plan !   Develop Program Plan: Identify and plan for required skills and competencies   ! It is important to identify skills and competencies required to deliver the program. The skills and competencies for each major stream and project should be identified separately and synergies to share resources agreed on. This will require a review of priorities. ! ! ! ! ! 179  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Prepare for program implementation ! ! The implementation of the program plan involves a number of activities such as to define roles and responsibilities, the establishment of an appropriate program organisation, the set up of processes for risk management, issue resolution, quality management as well as program governance and communication. ! 181  
    • . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! ! Develop the Program Plan !   Develop Program Plan: Set up program monitoring and management mechanism ! ! ! A program performance monitoring and management mechanism is established to ensure that the benefits identified are delivered on time, to budget and the required quality. This include the establishment of milestones and a set of performance measures that will guide the program roll-out together with processes for risk management, issue resolution, quality management and program reporting and communication.! ! ! ! 183  
    • . Copyright 2012 COMMUNICATE! ! Effective IT Performance Management! ! Effective IT Performance Management: enables the organisation to execute and deliver successful business strategy to set direction (vision). ! ! To execute strategic intent IT need to deliver Performance Management defined as Process based Enterprise Architecture to Interpret, model and articulate the business strategy from a process perspective where business objectives are levered by IT. ! ! Objective: ! - ! !! ! ! To evolve from a provider of IT to the designer of process that will support strategic intent to set objectives for the business levered by IT. ! ! Deliver effective Enterprise Portfolio Management with Process based IT governance solutions that focus on business objectives and on how to execute business strategy that levers formulated operating processes with best in class IT solutions. ! ! ! !! ! -! !! ! ! !! ! ! ! Facilitated by:! !! ! ! !! ! ! !! ! ! ! ! A Stakeholder Strategy Map in order to formalise stakeholder outcomes to deliver value for all parties (partnership) and a The Collaboration Theme Scorecard to set process objectives & Identify : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! “Canvas” the Business (IT) Vision! 185  
    • . Copyright 2012 COMMUNICATE! Map Strategic Themes! 1.  2.  3.  4.  Financial Perspective! Customer Perspective! Process Perspective! Learning & Growth Perspective! Create a High Performance Culture! ! ! !! !! ! ! ! ! Business (IT) Tactics! 187  
    • . Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value.! ! ! Stakeholder Strategy Roadmap:! Objectives: ! !! ! !! ! Which drives! ! !! ! !! ! That deliver! ! !! ! !! ! Executes! ! !! ! !! ! ! !! ! - Formalise stakeholder ! outcomes: To deliver value for all parties (partnership),! - Customer value: For effective and satisfied end users,! - Business processes: Speed, process innovation and growth,! - Employees and organisation: Collaboration that deliver strategy ! execution.! ! !! ! ! Captured in a Strategy Map! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 189  
    • . Copyright 2012 COMMUNICATE! ! ! The Collaboration Theme Scorecard: Sets process objectives, Identifies : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! ! ! Collaboration Theme Scorecard:! Objectives: ! ! !! ! !! ! !! ! - Set process objectives,- Identify levers ! for joint actions and wins,- Identify metrics, Identify initiatives on a short, middle long term basis.! Levers:! !! !! !! ! ! ! ! - Joint: Steering committee, development committee, project teams, cross functional teams, process improvement teams, functional improvement teams.! ! ! ! ! ! ! !! !! Collaboration Theme Scorecard! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 191  
    • . Copyright 2012 COMMUNICATE! The material in this presentation is derived from identified “best in class practise” used by some of the worlds largest groups (Fortune 100 and 1000) and top performers within the IT domain. This walkthrough is a part of a set of reports proposed to provide pragmatic guidance on how to develop and execute your IT Strategy to support the Business Strategy and Business Objectives. Reference! 193  
    • . Copyright 2012 COMMUNICATE! We work with a number of large French and International groups on the Business IT roadmap;  that is how do we (as CIO, IT Department) support business objectives and processes leveraged by IT and an effective IT Services strategy.! .COMMUNICATE! 195  
    • . Copyright 2012 COMMUNICATE! Martin Palmgren, EVP  .COMMUNICATE  – Deliver Business Value with IT / martin.palmgren@pscommunicate.com (mail)! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http://deliverbusinessvaluewithit.wordpress.com /! CONTACT! 197