IT Strategic Capabilities - Mary Stacey
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IT Strategic Capabilities - Mary Stacey

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    IT Strategic Capabilities - Mary Stacey IT Strategic Capabilities - Mary Stacey Presentation Transcript

    • IT Strategic Capabilities Aligning Strategy, Capabilities, Services, & People
    • Context Aligning Strategic Capabilities In a recent engagement, we partnered with the In a recent engagement, we partnered with the Executive VP and CIO of an 80M IT organization Executive VP and CIO of an 80M IT organization Bus. Strategy & Bus. Strategy & to design and execute a strategic capabilities to design and execute a strategic capabilities Bus. Capabilities Bus. Capabilities strategy. strategy. IT Strategy We worked with the twenty member leadership We worked with the twenty member leadership IT Strategy team to develop a customized framework and team to develop a customized framework and A A implement an approach to evolve and leverage implement an approach to evolve and leverage S L Strategic Strategic capabilities at three levels of alignment: business capabilities at three levels of alignment: business Capabilities S I Capabilities strategy, service delivery, and people strategy, service delivery, and people R E G development. development. S N Major Services Major Services S The following slides provide a high level view of The following slides provide a high level view of the strategy, the process, and the outcomes. the strategy, the process, and the outcomes. Service Level Service Level Capabilities Capabilities Key People Skills Key People Skills EVOLVE © Context Management Consulting Inc. 2007 © Context Management Consulting Inc. 2007 All Rights Reserved 2
    • Strategic Context IT Vision, Guiding Principles and Strategic Focus The vision for IT… “A collaborative team that delivers and enhances the company’s “A collaborative team that delivers and enhances the company’s Refreshed business capabilities through innovation and thought leadership” business capabilities through innovation and thought leadership” 05-07 ...is guided by our strategy & guiding principles… IT Strategy Company Vision Company Strategy Strategic People Financial Operational Partnership Management Excellence We will be at the table Focus on building Strive to optimize Our operational with the business in leadership and operational costs and excellence is the door the strategic planning capabilities for higher undertake projects to credibility and we and decision-making value IT services. with appropriate are committed to process. returns. continuous improvement of our processes & services. The 2003 IT Strategy was about developing our capabilities to support the company’s business strategy and managing costs through renewal and standardization of our technical environment © Context Management Consulting Inc. 2007 All Rights Reserved 3
    • Strategic Context IT Strategic Framework BUSINESS & IT PLANNING PEOPLE PROCESS • Leadership Programs • Governance Framework • Capabilities Alignment • Process Improvement TECHNOLOGY • Business-Driven Initiatives • Integrated Business and IT Renewal Plan IT STRATEGY IT strategic capabilities are a ‘complex bundle’ of services, skills, and tools (processes and technologies) that support the development, deployment, and management of IT assets consistent with business strategies. © Context Management Consulting Inc. 2007 All Rights Reserved 4
    • IT Capabilities StrategyModel Strategic Capabilities IT Strategic Capabilities Model IT Strategy Business Strategy IT Capabilities Strategy Reporting Sourcing Managed Strategy Sustainability Services Stewardship Management Opportunity Mining Internal Integration Services Team Currency & Alignment Evolution Evolve Growth Career Skills Mobility Tools & Resources Centres of Excellence © Context Management Consulting Inc. 2007 All Rights Reserved Evolving IT capabilities to convert IT investments into business value 5
    • Context Capabilities Principles IT Capabilities Guiding Principles Sound management of strategic capabilities enables IT investments to be Sound management of strategic capabilities enables IT investments to be successfully converted into business value across the Enterprise successfully converted into business value across the Enterprise IT exists in an increasingly complex retail environment. Focus is key. A capabilities strategy creates focus, simplifies complexity, and enables IT to continuously adapt with speed and agility. IT strategic capabilities are dynamic and evolve to keep pace with longer term business strategies. They are simultaneously current and future focused, yet should not be too closely aligned with current business priorities. As a strategic partner IT must focus on business outcomes. Technology needs to be placed in a business outcome context. As much as possible, capabilities should be defined using business language. Capabilities are dispersed across the IT organization in services, skills, and tools and need robust integration processes to ensure they remain current and aligned. A Capabilities Model is an integrating mechanism that guides stewardship (strategic leadership and governance), management, and growth of IT capabilities. Organizations need a full view of capabilities (strategic capabilities, major services, key skills) so that they can be used effectively at the strategic, operational/service, and employee levels. Capabilities stewardship is more tied to business strategy and IT planning cycles. Capabilities management is most tied to operational cycles and service delivery. Capabilities growth is more tied to HR performance and development cycles. Well defined capabilities create a common language between the business and IT. The business understands what IT is doing, and this builds credibility. A capabilities strategy well communicated in IT drives an understanding of the business agenda to the front lines of the IT organization, so that every employee understands how what they do on a day-to-day basis contributes value to the business. © Context Management Consulting Inc. 2007 All Rights Reserved 6
    • Reporting Capabilities Principles Sustainability Stewardship Guiding Principles Opportunity Stewardship Mining Currency & Alignment • Stewardship involves both the strategic leadership & governance of IT capabilities. • Strategic leadership of IT capabilities encompasses the Enterprise, and supports business growth through Enterprise opportunity mining. • Capabilities governance is an integral component of the Enterprise Governance Framework. • An annual strategic capabilities refresh is carried out to ensure currency and alignment to corporate strategy. • IT capabilities are sustained and evolved through clear ownership and dynamic integration processes. Ensure that capabilities are current and business aligned. Find opportunities to create efficiencies. Ensure that capabilities are current and business aligned. Find opportunities to create efficiencies. Build processes to ensure capabilities are sustainable. Build processes to ensure capabilities are sustainable. Measure and report how well IT capabilities support business growth and productivity. Measure and report how well IT capabilities support business growth and productivity. © Context Management Consulting Inc. 2007 All Rights Reserved 7
    • Sourcing Capabilities Principles Strategy Managed Services Management Guiding Principles Management Internal Services • If IT does not have a full view of its capabilities, it cannot effectively manage them. • Management of IT capabilities ensures effective deployment and delivery of services. • IT delivers strategic capabilities to the business through a combination of internal and external sourcing. • A sourcing strategy guides decision making about what services are sourced internally and externally—and how they work together. • Sourcing conversations are ‘business as usual’—services are continually re- visited as part of the annual refresh process. • Well integrated services provide a seamless customer experience. • Capabilities management supports business productivity by mining for synergies and efficiencies. Develop a sourcing strategy that supports business growth and productivity Implement a managed services plan. Implement an internal services plan. © Context Management Consulting Inc. 2007 All Rights Reserved 8
    • Capabilities Principles Growth Growth Guiding Principles Evolve Skills Career Mobility Tools & Centres of Resources Excellence • Capabilities growth is about growing services to the desired level of maturity • Maturity assessments provide a strategic focus for growing services, which are later evaluated through governance metrics and reporting processes • Capabilities growth also about creating a balanced opportunity for employees to contribute value in exchange for the opportunity to develop their skills and career. • IT is committed to growing services that support its strategic capabilities, and investing in Centres of Excellence across the Enterprise. • To evolve their skills and enhance career mobility employees need high- quality jobs, tools and resources. Assess and grow services. Evolve Skills. Invest in Tools & Resources. Build Centres of Assess and grow services. Evolve Skills. Invest in Tools & Resources. Build Centres of Excellence. Enhance Career Mobility. Excellence. Enhance Career Mobility. © Context Management Consulting Inc. 2007 All Rights Reserved 9
    • Strategy Approach High Level Approach 2007 2008 2009 The IT Capabilities Model & Capabilities Refresh Framework will guide activity. They will provide support for establishing priorities, identifying integration points, and continuously evolving IT’s ability to effectively manage its capabilities. Work will be undertaken in a continuous assess-evolve-align process that is focused on longer term business strategies. Capabilities will evolve in many ways as a result of strategic imperatives, annual processes, deliverables from strategy projects, and employee development. Capabilities initiatives are: Networked. This strategy will be implemented as a network of activities across the 3 IT spheres. For example while Enterprise IT is refining capabilities governance processes, IT Shared Services will be implementing a sourcing strategy, and Retail IT will be establishing a Centre of Excellence. Integrated. Networks of activity require strong linkages. Sustainable growth of IT capabilities will depend on the extent to which efforts are meaningfully integrated from a strategy-to-skill perspective, as well as though sound governance, management and development processes. Innovative. “In order to be seen as innovative IT must break the status quo by radically transforming the way tasks, processes, and interactions occur.” (Forrester) The next phase of capabilities work will challenge stakeholders to look at IT’s relationship to the business differently, and transform the way they think about IT capabilities. © Context Management Consulting Inc. 2007 All Rights Reserved 10
    • Approach 2007-2010 Detailed Approach Context Management Strategy Definition Capabilities IT Strategy Refresh Assessment Stewardship Org Design IT Capabilities Strategy Management Evolution & Skills Internal Growth Development IT Services Capabilities Sourcing & Integration Program Centres of Strategy Managed Execution Excellence Managed Services Business Risk Program RFP Issuance Services Case Assess- Definition & Vendor(s) Approach Analysis ment & Design Selection Assessment Infrastructure Benchmarking (Enterprise Architecture Analysis Governance) Assessment © Context Management Consulting Inc. 2007 All Rights Reserved 11
    • 2007 Assessment Introduction Engagement Timeline* April May June June June June July Leadership Team Director Individual Review Workshop 1 Review Leadership Results Business Director Team SBU Consolidation Stakeholders Engagement Engagement & Pre-Work Review In Results Results Director Individual Workshop 2 Review Check Results Against Other Data Sourcing Decisions & Managed Services Results for Final Capabilities Services with Implications & Final Services, & OUTCOME Descriptors Gaps Review Mandates Internal Growth Plan & CoE Identification * does not include skills refresh © Context Management Consulting Inc. 2007 All Rights Reserved 12
    • Results Assessment Results 2007 2007-10 Strategic Capabilities and Major Services Business Strategy IT Strategic Capabilities Business & Change Enterprise IT Value & Risk Information Relationship Technology Portfolio Leadership Planning Management Management Management Management Major Services Measurement & Data Strategic Strategy & Business & IT Innovation Reporting Partner Planning Consulting Management Management Solution IT Policy & Operational Transformation Lifecycle Knowledge Integration & Standards Vendor Services Management Management Delivery Governance Management People Competitive Project Leadership Compliance Collaboration Development Intelligence & Management Management Services Organizational Enterprise Change Enterprise Service Delivery IT Security Architecture Information & Management & Management Standards Analytics IT Resource Management Customer Support Capabilities Management © Context Management Consulting Inc. 2007 All Rights Reserved 13
    • 2007-10 Capabilities Results Change Leadership Services Change Leadership Leverage new technologies to support business growth and productivity, Innovation and mine opportunities for enterprise synergies in technology Transformation Drive business process improvements through leveraging IT’s business Services knowledge and incorporating advancements in technology People Develop and execute plans and programs to build IT’s functional team Development customer focus, leadership, and other people capabilities at all levels Organizational Lead the planning and support the execution of organizational change Change strategies that result from solution delivery initiatives Management IT Resource Manage IT resource capacity (human, processing power, memory, etc.) to Management meet current and future business requirements in a cost-effective manner Capabilities Manage IT’s strategic capabilities and services to ensure the effective Management deployment, delivery and growth of services © Context Management Consulting Inc. 2007 All Rights Reserved 14
    • 2007-10 Capabilities Results Enterprise Planning Services Enterprise Planning Strategy & Develop a strategic vision and practical implementation plan for IT investments Planning to achieve enterprise business objectives and goals Manage the evolutionary lifecycle of technology components, from Lifecycle introduction to disposal across all applications and infrastructure domains to Management achieve high-level productivity, stability and cost effectiveness Competitive Collect and understand relevant technology best practices, directions and Intelligence trends as input to Strategy & Planning and Lifecycle Management Provide future-focused, business enabling technology leadership for the Enterprise enterprise through the development of strategies and the establishment of Architecture principles, rules and guidelines © Context Management Consulting Inc. 2007 All Rights Reserved 15
    • Results 2007-10 Capabilities Business & Technology Portfolio Management Services Business & Technology Portfolio Management Business & IT Collaborate with the business and IT to advise on, and leverage technology Consulting investments and IT services for current and future solutions Solution Design, develop and implement people, process, and technology solutions in Integration & response to business and technology needs Delivery Project Plan and deliver programs and projects, through project leadership and Leadership management & Management Deliver operational services and support through monitoring and managing Service Delivery the technical environment, leveraging problem, incident, change, and & Management service management and BCP/DRP strategies Customer Provide front-line support directly to our customers Support © Context Management Consulting Inc. 2007 All Rights Reserved 16
    • 2007-10 Capabilities Results IT Value & Risk Management Services IT Value & Risk Management Measurement Enable IT to support the business by reporting on IT’s performance and & Reporting business value realization IT Policy & Develop and deliver the policies, frameworks, standards and processes Standards necessary to govern IT Governance Compliance Enable, monitor and manage policy, standards and regulatory compliance Management Define the information protection standards and sustaining processes required IT Security for the protection of information assets and for ensuring compliance with Standards regulations © Context Management Consulting Inc. 2007 All Rights Reserved 17
    • 2007-10 Capabilities Results Information Management Services Information Management Facilitate data ownership, manage enterprise data integration and stewardship, Data and provide tools, knowledge, and resources required to ensure consistent data Management quality and use Provide the tools, processes, and skills necessary for the identification and Knowledge distribution & application of knowledge across the enterprise to support Management performance and competitive advantage Collaboration Provide strategies, tools and processes to enable collaboration across the Services organization and among vendors, stores, suppliers, and customers Enterprise Provide the technology, processes, and resources to transform enterprise data Information into actionable business information & Analytics © Context Management Consulting Inc. 2007 All Rights Reserved 18
    • 2007-10 Capabilities Results Relationship Management Services Relationship Management Develop mutually beneficial alliances with services and technology providers Strategic to extend IT’s core competencies, execute strategy, and manage vendor Partner relationships, from identification and selection, through contract creation, Management negotiation, and management Operational Manage, coordinate, monitor and integrate vendor provided services to Vendor ensure seamless delivery of IT capabilities to our clients Management © Context Management Consulting Inc. 2007 All Rights Reserved 19
    • Application ofResults Applying the Results Distribution of Services Almost half of the identified services are common to Corporate IT and Retail IT. Service growth and evolution should be coordinated across both groups. Corporate IT Services Common Services Retail IT Services Enterprise Architecture (EP) Innovation (CL) Organizational Change Management (CL) Service Delivery & Management (BT) Transformation Services (CL) Project Leadership & Management (BT) Data Management (IM) People Development (CL) Knowledge Management (IM) IT Resource Management (CL) Collaboration Services (IM) Capabilities Management (CL) Enterprise Information & Analytics (IM) Strategy & Planning (EP) Strategic Partner Management (RM) Lifecycle Management (EP) Strategic Capabilities CL - Change Leadership Operational Vendor Mngmt. (RM) Competitive Intelligence (EP) EP - Enterprise Planning Measurement & Reporting (VR) Business & IT Consulting (BT) BT – Bus. & Tech. Portfolio Mngmt. IT Policy & Standards Governance (VR) Solution Integration & Delivery (BT) VR - IT Value & Risk Management (VR) Compliance Management (VR) Customer Support (BT) IM - Information Management RM - Relationship Management IT Security Standards (VR) © Context Management Consulting Inc. 2007 All Rights Reserved 20
    • Application of Results Services Maturity Levels A rough assessment of service maturity levels shows that 9 services are at the low maturity level, requiring investment in growth and development. Corporate IT Services Maturity CTR IT Services Maturity Enterprise Architecture (EP) H Organizational Change Management (CL) L Service Delivery & Management (BT) H Project Leadership & Management (BT) H Data Management (IM) M Knowledge Management (IM) L Common Services Maturity Collaboration Services (IM) L Innovation (CL) L Enterprise Information & Analytics (IM) M Transformation Services (CL) M People Development (CL) H Strategic Partner Management (RM) M IT Resource Management (CL) M Operational Vendor Management (RM) L Capabilities Management (CL) M Measurement & Reporting (VR) L Strategy & Planning (EP) M IT Policy & Standards Governance (VR) M Lifecycle Management (EP) L Compliance Management (VR) M Competitive Intelligence (EP) L IT Security Standards (VR) L Business & IT Consulting (BT) H Solution Integration & Delivery (BT) H Customer Support (BT) H © Context Management Consulting Inc. 2007 All Rights Reserved 21
    • Application of Results How can we use the results? Business & Be a Strategic Partner to the business. IT Strategy IT Capabilities Evolve IT capabilities to convert IT investments into business value Strategy Agenda: Ensure that capabilities are current and business aligned (June, 2007) Capabilities 2. Find opportunities to create Enterprise efficiencies 3. Build processes to ensure capabilities are sustainable Stewardship 4. Measure and report how well IT capabilities support business growth and productivity. 2007 Strategic Capabilities Refresh Sourcing Strategy Capabilities Capabilities Management Growth Agenda: Agenda: Develop a sourcing strategy that supports business 1. Implement an internal growth plan growth and productivity (June, 2007) A. Assess the maturity of IT services 2. Implement a managed services plan B. Invest in Tools and Resources 3. Assign ownership for major services C. Build Centres of Excellence 4. Facilitate the integration team. D. Enhance Career Mobility © Context Management Consulting Inc. 2007 All Rights Reserved 22
    • 2007-10 Activity Streams Phase 3 Integrating Infrastructure: Ensure Sustainable Evolution of IT Capabilities IT Capabilities Strategy & Framework (Phase 3 in progress) • Sub-set of CTC & IT Strategies; guides all capabilities plans and activities Core Group (Phase 3 in progress) • Executive sponsor, sustaining sponsors, Phase 3 director & consultants, HR & Communications advisors Integration Team • Integrate stewardship, management & growth activity streams and represent capabilities work to stakeholders Capabilities Stewardship: Strategic Leadership and Governance Currency & Alignment (Phase 3 in progress) • Annual Strategic Capabilities Refresh Opportunity Mining • Optimizing enterprise synergies for growth and productivity Sustainability • Strategic focus and processes that create a capabilities culture, integrate capabilities activities, and support evolution and alignment Reporting • Metrics such as Customer Satisfaction Survey, Employee Satisfaction Survey; Capabilities Scorecard (maturity and sourcing information) Capabilities Management: Manage Internally and Externally Sourced Capabilities, Services & Skills Sourcing Strategy (Phase 3 in progress) Services & Skills Assessment (Phase 2) • Principles, drivers, decision criteria, and approach for internal and external sourcing • Strategically align strategic capabilities, services, and skills Managed Services (Phase 3 in progress) • Manage externally sourced services Internal Services • Manage internally sourced services Capabilities Growth: Support IT Employees as they Grow their Skills and Careers Evolve Skills • Focus on and investment in skills based on maturity assessment results, business-IT strategic agenda Tools and Resources (Phase 2) • Invest in growth ‘portals’ such as Canadian Tire University, IT Capabilities Directory, IT Capabilities Resource Centre, Career Development Guide Centres of Excellence • Invest in internal services based on results of opportunity mining, business-IT strategic agenda Career Mobility (Phase 2) 23 • HR Career Development Guide, HR Performance Systems