It Alighnment10 V3.1

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  • 1. CIO Roundtable - Alignment with the CEO & Business - Robert Bobojco January, 14 2010 © 2010 Robert Bobojco. All rights reserved.
  • 2. Agenda Introduction The Current State of IT Strategic Alignment From Strategy to Execution Open Forum 2
  • 3. Alignment Today’s economic climate, perhaps more than ever, prompts us to re-evaluate IT’s alignment with the Business. The current business challenges present an OPPORTUNITY to pro- actively evaluate IT’s role and contribution to top-level business objectives and engage in proper adjustments (i.e. alignment). The CIO’s alignment with the CEO is largely a “battle” at two fronts: • Actionable/measurable Initiatives (direct control) • Perception (in-direct influence)
  • 4. Alignment  How to become aligned?  How to develop a strategy in alignment?  How to get agreement between CEO and CIO?  What is the best way to get a statement of direction?  How to document/record alignment? … the current economic context makes IT alignment with CEO/Business very challenging, but very necessary!
  • 5. Alignment – What is “alignment”? • Established, repeatable process Process • Methodology & Tools • Top-down Perception • Bottom-up • How to assess Measure alignment/progress • Benchmarking Alignment is the continuous process of implementing and adjusting Technology-based solutions and processes in DIRECT support of ever evolving and changing prioritized business requirements.
  • 6. Repercussions of “poor” Alignment IT is viewed a “Cost Center” or infrastructure only, not a business enabler Executive-level discussions of IT focus mostly on cost reduction IT is designated “Scapegoat” for business performance issues IT has an inward focus (i.e. operations), is not externally focused on customers
  • 7. Business & IT – Strategic Alignment Business Strategy • Growth & Customers • Market & Competition • Operational Efficiency • Performance Analysis & Decision Support IT Strategy • Platforms • Budget & TCO • Vendors • Initiatives & Projects • Resources & Skills 7
  • 8. Alignment – “Translation” .. making Strategy tangible Strategy Objectives Initiatives Projects / Solutions Capabilities
  • 9. IT Strategy - Drivers IT Strategy is primarily driven and impacted by:  Business Strategy, imperatives, goals, targets and business initiatives  Market & Customer requirements  Technology enhancements & capabilities  Software/Hardware vendor release strategy 9
  • 10. Alignment – Business Strategy Strategy Customers Operations • Growth • Acquisition • Process • Acquisitions • Service • Flexibility • Products • Proc. Integration • Cost • Service • Self-Service • Visibility • Markets / • Pricing • Performance Channels • Retention • Etc. • Etc. • Etc. 10
  • 11. Alignment – Shift to “outward” focus Customers (Sales & Product)  What are our real business drivers? ? Change in customer behavior/expectations -> shift to WEB ? Improved self-service / customer service ? Process Automation / Lower transaction costs ? Pressure by competitors ? Growth opportunity (channel sales) ? Customer experience & loyalty ? Account Management capabilities ? Direct tie-in with Marketing and Advertising 11
  • 12. Alignment - Process Strategy Customers Operations • Growth • Service • Process • Acquisitions • Integration • Flexibility • Products • Self-Service • Cost • Service • Pricing • Visibility • Markets / • 5 • Performance Channels • 6 • 6 • 6 • 7 • 7 • 7 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring 12
  • 13. Alignment – Process Step 1 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring CEO VPs IT 13
  • 14. Alignment – Process Step 2 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring Business Objectives IT Solutions 14
  • 15. Alignment – Process Step 3 • Break-down & Translation Alignment • Prioritization • Solution Picture Vision • Technology Integration • Initiatives / Projects Execution • Execution & Monitoring Alignment Execute Review Refine Solution 15
  • 16. Alignment – From Strategy to Execution CEO VPs IT 1-on-1: Top strategic objectives Understand objectives & requirements Understand priorities & timeframes 16
  • 17. Alignment – From Strategy to Execution CEO VPs IT Breakdown of objectives & Initiatives/Project Definition Partnering & Collaboration (Ownership/Stake) Joint Execution (Responsibility & Resources) 17
  • 18. Alignment – From Strategy to Execution CEO VPs IT Develop a thorough understanding of the business objectives Develop & evaluate solution options that support the business objectives Develop detail plans & designs and execute projects 18
  • 19. Alignment – Outcome (CEO) CEO VPs IT Input, feedback and validation sessions: 2x per Year Company updates: 4x per year Company newsletter: frequent updates & articles 19
  • 20. Alignment – Outcome (Executives - VP) CEO VPs IT Input, feedback and validation sessions: 2x per Year Company updates: 4x per year IT Vision updates: 2x per year 20
  • 21. Alignment – Outcome (IT Organization) CEO VPs IT IT Vision updates: 2x per Year Business/IT Translation: project prep, kickoffs & reviews Staffing & Education: 2x per year 21
  • 22. Alignment - Outcome Re-active Pro-active organization organization Perception- Tangible based (Activities) Inward focus Outward focus Business Cost Center Enabler Business “Scapegoat” Partner 22
  • 23. Alignment – Documentation IT Strategy Presentation The Master Plan Project Estimates Project Plans 23
  • 24. Alignment – Breakdown & Translation (EXAMPLE) No. Strategic Business Goals IT Initiative / Solution Objective 1 Profitable Growth Increased Market Share CRM – Pre-Sales, Marketing & Sales Analytics * Awareness * Coverage Increased Profitability CRM – Gross Profit Confirmation for incentives Reduce Errors via CRM product configurator rules Business Performance Enhanced analysis & reporting capabilities Transparency (BI / Pro-forma reporting prior to quote approval) 2 Cost Reduction Business Transaction SAP Dealer Portal: Efficiency * Order & Vehicle Mgmt. life-cycle CRM: Streamlined quoting and transition to order management * DBMS Integration * Offline Productivity * TMQS * CRMToday Shared Services IT Shared Services Utilize Global Licensing Balanced IT Resource Model (in-house vs. consulting) Standard IT Application Consolidation of customer and partner websites onto Platform single Enterprise Portal platform 3 Mergers & Acquisitions Standardized Processes & Expandable and open (integration) technology 24 Flexible IT Platform platform
  • 25. Alignment – The “Master Plan” (EXAMPLE) 25
  • 26. Pre-requisites of Alignment – Are you ready? IT Operational Organization Excellence Information is an asset 26
  • 27. Alignment – Current State & Evolution Kaizen – Optimization and support of External changing Integration: business Customer, Vendor, environments and Sales Channel  Rapid Business Integration (i.e. Response Intelligence: external process integration) Performance transparency The “connected” enterprise Management by exception Operational Excellence: Decision support Internally Information worker focused Process efficiency 27
  • 28. Alignment – Key Takeaways  You must take the initiative in the alignment process  You must meet crucial pre-requisites for successful alignment  The most challenging step of alignment is the translation of high-level business strategy/objectives into actionable initiatives & solutions  Document all agreements and outcome of the alignment process (Visibility of Alignment)  Successful alignment involves all levels of the organization  Alignment is a continuous, repeatable process 28
  • 29. Questions? Contact: Robert Bobojco rbobojco@rjtcompuquest.com 949-466-6388 (c) © 2010 Robert Bobojco. All rights reserved.
  • 30. Introduction Robert Bobojco A dedicated, results-oriented executive management consultant with over 19 years of IT & SAP experience. Predominantly focused on IT transformation initiatives, systems improvement and process integration projects – ranging from middle-market to global, large-scale clients – using ERP/SAP software portfolios including the ECC, mySAP.com and SAP Business Suite solution platforms. Background includes senior management positions with a major “Big 6” professional services company, a German Management Consulting Company and international ERP implementations/ solution roll-outs. Major roles and areas of expertise include: * Trusted advisor to senior executives (CEO, CFO, CIO) * Effective, hands-on solution-oriented IT & Team Mgmt. * Alignment of business & IT strategy * SAP Implementation Methodologies & Tools * Program-, Project & Integration Management * Business case, Program-/Project budgeting & controlling * Process Improvements & Optimization * SAP application portfolio consulting in ECC, CRM, BI, * IT operations management Portals & XI/PI integration technology 30 © 2010 Robert Bobojco. All rights reserved.