The 5 'i's of the CIO
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The 5 'i's of the CIO

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The 5 'i's of the CIO provide a rapid assessment of the IT Function's ability to deliver business value, looking at: ...

The 5 'i's of the CIO provide a rapid assessment of the IT Function's ability to deliver business value, looking at:
- inspiration
- impact
- information
- integration
- individuals
You can run this as a set of workshops over 5 days, to see where there are issues, gaps, and actions to improve the business value of the IT department

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    The 5 'i's of the CIO The 5 'i's of the CIO Presentation Transcript

    • www.hitachiconsulting.comThe 5 ‘i’s of the CIOA Different perspective on delivering success as a CIO Peter Bricknell Director Hitachi Consulting © Copyright 2009 Hitachi Consulting
    • When the market is tough CIOs need to look at their business withnew eyes … More than ever – CIOs are being Being Market Responsive asked to demonstrate IT value to Revenue Competitive the business Enhancement Positioning They are being asked to cut costs, The CIO is instrumental in be more agile and transform the Surviving in bringing the right Springboard today‟s business operating model for the market services, from the for the future right sources to future. respond to the changing market Hitachi Consulting offers a Cost Adaptive pragmatic alternative perspective Control Business Model for CIOs to help inspire their people, and set a direction to survive in today‟s market and also provide the springboard for the future. The 5 I‟s of the CIO. © Copyright 2009 Hitachi Consulting
    • Why the 5 I‟s? There are many frameworks and standards out IS Staff there:  ITIL  CMMI  SixSigma  ISO 9000 etc The five „I‟s of the CIO provide a shorthand to balance direction, delivery and engagement, covering:  Inspiration CIO  Impact  Information  Integration  Individuals The 5 day challenge uses these headings with a set of tools to provide a rapid healthcheck of the overall CIO function. IS Customers Commercial in Confidence © Copyright 2009 Hitachi Consulting 3
    • The 5 „I‟s stop the CIO getting bogged down in the detail or being pigeonholed as the „techy guy‟ Inspiration i • Define and drive a vision that motivates the IT/IS team to “make a dent in the universe”. Impact i • Identify your critical value to stakeholders and deliver on it with quality and consistency. Information i • Create an indispensable information pipeline to business decision makers. Integration i • Construct a roadmap to take your best current IT and build on it to deliver the business benefits which support the strategic vision Individuals i • Engage stakeholders in a true two way conversation and measure your IT staff on the contribution they make to customer‟s goals. © Copyright 2009 Hitachi Consulting 4
    • THE 5 DAY CIO CHALLENGE Set up one hour each day to take 1 „I‟ at a time  Take each diagram, and build one specific for your company Reflect on:  How easy it was to do?  What didn‟t you know?  What information didn‟t you have at hand?  How well did you know what your stakeholders think?  How complete is that picture?  How easy was it to build within an hour?  Are there Gaps?  Does this raise questions to take to the business or delivery team  Is your project portfolio addressing those gaps? Commercial in Confidence © Copyright 2009 Hitachi Consulting 5
    • Day One Challenge:Are business/IT strategies aligned?Inspiration What do you want to be famous CIO Vision Corporate Vision for? What makes it worth getting out of bed for (for the team)? What is IS/IT doing to meet the corporate vision? Does the CIO vision match the needs of the rest of the business? Are the goals measurable? Strategic Strategic Strategic Strategic Imperative Imperative Imperative Imperative Is it easy to describe the vision? Architectures Plans Budgets Deployments Programs Resources © Copyright 2009 Hitachi Consulting 6
    • Day One Challenge:Are business/IT strategies aligned?Inspiration : So WhatObservation Consequence CIO vision not aligned to strategic  Team role is marginalized with IT treated imperatives. as a cost centre. CIO strategic goals align to most  Possible to start calculating the business corporate strategic goals. impact of IS/IT and looking for ways to create more value. Takes more than a day to find or agree  Team goals unclear or poorly defined. on the CIO vision. Projects unlikely to be aligned to goals. Majority of CIO imperatives are in  The Business is unlikely to see the value infrastructure. of the IT projects to their day to day work. Few measurable goals with metrics  Difficult to demonstrate success. A missing or qualitative in nature performance measure assessment may help define the vital few CIO, team and personal measures within the CIO Vision. Commercial in Confidence © Copyright 2009 Hitachi Consulting 7
    • Day Two Challenge: Are stakeholders getting outputs from the CIO that they value?i Impact  Who are your customers?  What are the key outputs that they want?  Are there measures of success for each output?  Do the outputs match the vision?  Does the CIO team contain more than technical roles?  How can IT be agile and responsive to market change? © Copyright 2009 Hitachi Consulting 8
    • Day Two Challenge:Are stakeholders getting outputs from the CIO that they value?Building the Business Interaction Model Business Interaction Model Suppliers CIO Team Customers Information Advanced Relationship Business IS Strategy Services Technology Management „buyer‟s Supplier IS Project Roll out Consultants Management Architecture Training teams Business Project Project Project Users Teams Requirements Development Support IT Financial IT Special Finance Controller HR Specialist Projects Applications Suppliers Influencers, Regulators, Competitors Hardware Quality Tech. The Board Security Suppliers Assurance Standards of directors Telecoms External „Secret‟ Auditors Shareholders Suppliers IT Suppliers IT TeamsBased on the Gartner Responsibilities of the Office of the CIO Commercial in Confidence © Copyright 2009 Hitachi Consulting 9
    • Day Two Challenge:Are stakeholders getting outputs from the CIO that they value?Inspiration - So WhatObservation Consequence Not all stakeholders linked to CIO  Are their expectations not being met? Team.  Why are they a stakeholder? Performance Measures do not exist for  Difficult to demonstrate success – each link that crosses a boundary. hearsay will drive perceptions. Does the output from the CIO Team  The stakeholder is not getting what s/he match the expected deliverable to each values and CIO team perceived as not stakeholder? delivering. The deliverables between stakeholders  The CIO Vision or the strategic vision will do not match performance measures or not be achieved so even though the CIO strategic imperatives in the vision. team is working hard they are not moving the business forward. Does the CIO team spend sufficient  Non value-add work is taking precedence time on the deliverables to external and team should look at ways of stakeholders compared to other work in simplifying, automating or eliminating it. the team? Commercial in Confidence © Copyright 2009 Hitachi Consulting 10
    • Day Three Challenge: Does the business have the information tomake the decisions that count?Information Does the business know what the key operational and strategic Process decisions are? Offer Mortgage Does the business have the structured and unstructured Decision Will we offer the customer a mortgage? information to make those Value of the decision to the business decisions? Cost / Revenue of correct / incorrect decision making ₤€ Corporate goals/measures it supports Is it clear what the cost/value of Speed to make decision those decisions are? ¥$ Quality of decision making – percentage „correct‟ What-if impact of better information, speed, quality. Is both structure, and unstructured information being proactively Information Required for decision managed?  Structured Data - “Business Intelligence” Unstructured Data – “Knowledge Management Is information managed through Source of data, quality and completeness people, process, and behavioural Recommendations to improve decisions change (beyond systems)?  People and culture Process and information Technology © Copyright 2009 Hitachi Consulting 11
    • Day Three Challenge: Does the business have the information tomake the decisions that count?Information : So WhatObservation Consequence Deciding on what are the  IT needs to understand the business process better. key decisions in the Shadowing on the „shop floor and building a picture of business and determining „the day in the life„ of the business will demonstrate IS/IT the information needed to listening to how the business runs. This will serve to support them was difficult. identify both quick and longer term improvement opportunities. The only information  IS/IT is pigeonholed to find and advise on technical described is around answers when other options have been exhausted. The structured data (databases). opportunity to show IS/IT as a trusted and valuable business advisor is lost. Recommendations are  The stakeholder is not getting what s/he values and CIO solely technology based team perceived as not delivering. improvements. Cost/Value of making the  The business value/business case for IT investments decisions is hard to may be hard to quantify too. Building the skills to quantify. analyse and quantify cost/value in the business will help IS/IT - then demonstrate its contribution Commercial in Confidence © Copyright 2009 Hitachi Consulting 12
    • Day Four Challenge: Do you have a roadmap to deliver businessbenefit?Integration : Is it clear what is locally managed and what is centrally controlled? Is the architecture used as a tool for decision making? Is the portfolio managed as a benefits delivery plan (versus a deliverable delivery plan? Are the changes required for success outside IS/IT clear? defined locally Training HR Benefits Human Policies & Parameters Resources Payroll Sales & Marketing CRM Supply Finance Chain Manu- facturing Helpdesk Interfacing Security defined centrally Datacenters Implemented Implemented Centrally Locally Systems & Services Balancing Local and Central IS Services © Copyright 2009 Hitachi Consulting 13
    • Day Four Challenge: Do you have a roadmap to deliver businessbenefit?Integration: Example Benefits Delivery PlanMonths  0-3 4-6 7-9 9-12 OutputsCorporate GoalsCIO GoalsBusiness BenefitsProject Delivery Commercial in Confidence © Copyright 2009 Hitachi Consulting 14
    • Day Four Challenge: Do you have a roadmap to deliver businessbenefit?Integration: So WhatObservation Consequence IT project plans contain technical  The business benefit is not obvious and the delivery alone. business may not be bought into delivering allied people and process change Benefits based deliveries are not  The business may not see the value of IS/IT being delivered every 3 or 6 months. being regularly delivered. The benefits dont link explicitly to  The CIO vision and the corporate strategy are each of the CIO and/or the unlikely to be delivered. It„s important to balance corporate strategy maps. urgent with important. The list and status of IS/IT projects  IS/IT program is not sufficiently coordinated is difficult to find and hard work to raising the risk of unexpected knock-on effects or collate. focusing only on noisy projects rather than important ones. Commercial in Confidence © Copyright 2009 Hitachi Consulting 15
    • Day Five Challenge: Are you having a productive dialogue with yourpeople?Individuals : Communications Plan The Vision is nothing unless it is implemented Treat your stakeholders as individuals Ensure a clear two-way communication between stakeholdersKey Stakeholder IS/IT Staff Business Rollout Users Directors Auditors Starters LeaversMessage buyers teamsYour Goals Message ► Progress on goals by the teamTheir Goals Channel ► Team Building Meeting Frequency ► QuarterlySuccesses / Results Feedback ► Questions & AnswersComplaints / FailuresImprovement Ideas Message ► Lessons learnt from each stage ofBest Practices roll out Channel ► Searchable ‘Blog’ Frequency ► Ad-hoc / WeeklyHow to do the job. Feedback ► Monthly ‘top-tips’ e-mailCompetitor Comparisons © Copyright 2009 Hitachi Consulting 16
    • Day Five Challenge: Are you having a productive dialogue with yourpeople?Individuals : So WhatObservation Consequence IS/IT staff have gaps in the grid.  Potentially higher staff turnover or growing demands for higher compensation due to a lack of „feeling valued„. Communication channels are only  IS/IT seen as uncooperative and unresponsive one way or do not visibly act on with the added risk of potential improvement feedback. ideas lost. Complaints/Failures/Improvement  Potential knock-on impact to customers. IS/IT ideas are not acted upon. see as unresponsive and not a business partner. Your goals and their goals are not  IS/IT may not be responsive to the changing regularly communicated. business environment, and your stakeholders don‟t know what IS/IT is trying to achieve. Commercial in Confidence © Copyright 2009 Hitachi Consulting 17
    • Putting it all together Completing the five day challenge will give you a better idea how the IS/IT community in an organization helps delivery business benefit.  For some organizations the answer for each challenge should be an existing document that people believe in and work to.  For others, when they come to the end of the five day challenge, they may not have completed any of the challenges and created more discussion than output. B  oth scenarios are a positive end to the challenge. Both results illuminate where to spend more time in creating balance and where to demonstrate business value. Your final workshop might be to group and prioritise the issues and actions raised during the week. The five „i„s give a different perspective to the CIO„s role. The table on the next slide provides ideas for actions against each of the five „i„s in terms of work that could be done in days, or in 6-8 weeks or a project which can significantly transform the business. Commercial in Confidence © Copyright 2009 Hitachi Consulting 18
    • Bringing it together Business Value Immediate Actions Example Follow-on Projectsinspiration  Improved reputation  Assess if the team have a vision they  IT Operational Effectiveness  Top line growth believe in.  Cultural Change Management  Staff retention  Test if IS/IT program, products, services  Refine a programme portfolio as a benefits align to the business goals and identify any delivery portfolio.  Better delivery of strategy gaps.impact  Increased trust in IS/IT and  Use the business interaction model to  Create a Stakeholder Management Plan and the organisation ensure IS/IT is delivering the outputs its Communications Plan.  Improved reputation customer‟s value.  Develop a Customer Relationship Strategy.  Improved business/IT  Check that sufficient effort and quality is put  Optimise existing IS functionality/ spend. alignment into the customer outputs of IS/IT.  Improve customer adoption.  Improved customer serviceinformation  Improved decision making  Identify ways to improve the value adding  Corporate Performance Management  Competitive advantage decision making processes in the business Assessment. – help deliver quick wins.  Perform a Knowledge & Information audit.  Customer retention  Understand the impact of IS projects and  Business Intelligence / Performance  Better regulatory services on the corporate performance  compliance  Management measures.  Top line growth  Enterprise Data Warehousingintegration  Speedier processes  Ensure that the program portfolio links  Strategic Information Systems planning.  Reduced duplication directly to business goals, performance  Service Oriented Architecture (SOA) strategy. measures and benefits.  Reduced costs  Cloud Strategy  Identify ways to bring structured and  Continuous improvement  Architectural Roadmap unstructured data together for decisions.  Straight through processing.  Business Process Managementindividuals  Top line growth  Understanding who are the real heroes in  Workforce improvement plan  Cost reduction the IS/IT team and reward behaviour that  Organisation Effectiveness review. supports the CIO/ Corporate strategy.  Staff retention  Incentive alignment Workforce Analytics.  Personal Performance management and career planning. © Copyright 2009 Hitachi Consulting
    • More Information Hitachi Consulting can help you run your 5 day challenge. It also has a range of services in Europe, USA and Asia to help businesses become market responsive For more information on this presentation please contact  Peter Bricknell, Director Consulting Services  pbricknell@hitachiconsulting.com  http://www.hitachiconsulting.com/itStrategy.cfm Commercial in Confidence © Copyright 2009 Hitachi Consulting 20