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IT CMF Patterns
 

IT CMF Patterns

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IT CMF Patterns

IT CMF Patterns

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    IT CMF Patterns  IT CMF Patterns Presentation Transcript

    • © Innovation Value Institute 2013 IT Capability Maturity Framework Patterns and Practices: Taking IT-CMF to the next level for best practice sharing and organisational change. Jim Kenneally – Intel Labs Europe – jim.kenneally@intel.com Dr Colin Ashurst - Newcastle University Business School - colin.ashurst@newcastle.ac.uk
    • © Innovation Value Institute 2013 What are the challenges you face when trying to share good practice from project to project & across the organisation? How could IT-CMF assist over- coming these challenges?
    • © Innovation Value Institute 2013 WHAT IS THE FOCUS OF THIS WORKSHOP?
    • © Innovation Value Institute 2013 Today’s Discussion IT-CMF: Blueprint For Making IT Better 1) Diagnose 2) Prescribe 3) Medicate 4) Monitor What should be done? Assistance from: - POMs How could it be done? Assistance from: - Patterns & Practices What & how to monitor? Assistance from: - CC Performance Metrics What’re symptoms & causes? Assistance from: - CCs - CBBs - Maturity Levels - Questions 5) Prevent
    • © Innovation Value Institute 2013 Shape Best-Practices Print Best-Practices Colour Best-Practices Patterns describe the form of good solutions, (shape, size & colours tailored by context and the rationale) 2) Handle – Grip & hold cup 4) Saucer – catch liquid spills 3) Flat bottom – Stabilise cup 1) Concave vessel – Hold liquid What is abstracted from practice is not so much an individual solution but rather the form of good solutions. Patterns & Practices
    • © Innovation Value Institute 2013 WHAT ABOUT AN IT-CMF EXAMPLE?
    • 77 Managing IT Like a Business Managing the IT Budget Managing the IT Capability Managing IT for Business Value ITG IT Leadership & Governance FF Funding & Financing EAM Enterprise Architecture Management TCO Total Cost of Ownership BPM Business Process Management BGM Budget Management TIM Technical Infrastructure Management BAR Benefits Assessment & Realisation BP Business Planning PPP Portfolio Planning & Prioritisation PAM People Asset Management PM Portfolio Management SP Strategic Planning BOP Budget Oversight & Performance Analysis KAM Knowledge Asset Management DSM Demand & Supply Management RAM Relationship Asset Management CFP Capacity Forecasting & Planning RDE Research, Development, & Engineering EIM Enterprise Information Management* ISM Information Security Management * RM Risk Management SD Solutions Delivery AA Accounting & Allocation SRP Service Provisioning ODP Organisation Design & Planning UTM User Training Management SRC Sourcing UED User Experience Design IM Innovation Management• PPM Program & Project Management SAI Service Analytics & Intelligence SUM Supplier Management SICT Sustainable ICT CAM Capability Assessment & Management IT critical capability landscape Defines maturity profiles across IT organisational capabilities to transform organizations from cost-centre to value-centres * Under development
    • © Innovation Value Institute 2013 Benefits Assessment & Realisation
    • © Innovation Value Institute 2013 Maturity Level CBB Category Practices Outcomes Metrics Level 5 Benefits Planning Extend use of standardised BBMs, business case and benefits realisation templates/guidance beyond the enterprise Vendors use the enterprise's language and taxonomy for expressing business value and benefits % of external business partners using common BBMs, business case and BRP templates for investments Level 5 Benefits Process Mandate reuse of historical business value and other BAR data in business case, BRP development and decision making. Proliferate learnings to amplify investment returns and manage business value risk profile % of investments delivering and/or exceeding initial business value forecasts Level 5 Benefits Culture Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training and incentives Business value culture institutionalised across extended enterprise % YoY improvement in other BAR metrics Participation rate across extened enterprise in BAR review Level 4 Benefits Planning Mandate use of standardised BBMs, business case and benefits realisation templates across the enterprise Enterprise-wide approach to investment proposal development exists % across the enterprise using common BBMs, business case and BRP templates for investments Level 4 Benefits Planning Review business case and benefits realisation templates for effectiveness at appropriate intervals Templates stay current with business objectives and leverage best practices Length of time between each review cycle Level 4 Benefits Process Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans Level 4 Benefits Process Establish procedures to accelerate, decelerate or stop in-flight funding of investments from the perspective of enterprise scorecards In-flight investments can react to economic changes and competitor reactions that threaten to erode forecasted benefits % of original investments scaled up % of original investments scaled down Forecasted vs realised value delta Level 4 Benefits Process Track BBMs for investments at appropriate intervals beyond their initial deployment phase i.e. throughout their full lifecycle Understand when to end-of-life/upgrade/replace initial investments % of investments measured against BBMs throughout their lifecycle Level 4 Benefits Culture Make business value database available to consistently capture historical investment performance Accurate and consistent data is available to support and influence strategic decisions Number of times database is interrogated for decision making Level 4 Benefits Culture Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards. Cumulative business value Average business value Forecasted vs actual business value variance Level 3 Benefits Planning Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their relevance to the enterprise's objectives and to also ensure that they align to the business units scorecards. The relevance of BBMs is checked to ensure they cover relevant enterprise objectives % of investments with BBMs that explicitly link to the business units scorecards. Level 3 Benefits Planning Standardise and agree with stakeholders Benefits Realisation Planning (BRP) templates (including review with Finance) for all IT enabled investments Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates Level 3 Benefits Planning Develop guidelines and training on completing Benefits Realisation Planning (BRP) templates The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission Level 3 Benefits Process Agree with stakeholders a standardised methodology, tools and validation process to measure impact of investments on forecasted BBMs Consistent evaluation of forecasted BBMs against actual delivery % of investments with pre and post BBMs measurement Level 3 Benefits Process Agree with stakeholders multiple financial and non-financial business case inputs. Holistic evaluation approach for business cases (i.e. criteria beyond financial are considered) Weighting attributed to financial versus non-financial inputs when evaluating business cases Level 3 Benefits Process Assign accountability for realising forecasted BBMs Benefits have an enterprise stakeholde to troubleshoot issues and improve delivery % of investments with enterprise sponsor(s) Level 3 Benefits Process Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans Level 3 Benefits Process Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme Level 3 Benefits Culture Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals % of cross-enterprise review of Benefit Assessment & Realisation. Level 3 Benefits Culture Establish and make accessible Benefits Assessment & Realisation (BAR) training program One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme Level 3 Benefits Culture Establish business value champions and increase communication across the enterprise Increased breadth of adoption across the enterprise Visibility and communication of good practice/case material Number of projects across enterprise adopting a common and standard approach to managing business value. Number of examples/cases as examplars, awards Level 2 Benefits Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common business value understanding Level 2 Benefits Planning Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational definitions and calculations Investment returns are expressed using a taxonomy understood and agreed with the enterprise % of investment proposals using approved BBMs Level 2 Benefits Planning Standardise business case templates for use with all IT enabled investments Common format for business case submissions allowing fairer comparisons across investment proposals % of investments using approved business case templates Level 2 Benefits Planning Develop and make accessible business case training Formal training on business case development improves adoption of standardised approaches and business case submission % of people trained on business case development Level 2 Benefits Planning Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission Level 2 Benefits Process Define and assign roles and responsibilities for the overall delivery and running of a Benefits Assessment & Realisation (BAR) capability to the enterprise Management has communicated commitment to developing BAR capability within the enterprise % of senior managers sponsoring BAR initatives Level 2 Benefits Culture Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals Number of business unit leaders involved in business case review and approval Level 1 Benefits Planning No formal Benefits Planning practices expected at this level No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level Level 1 Benefits Process No formal Benefits Process practices expected at this level No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level Level 1 Benefits Culture No formal Benefits Culture practices expected at this level No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level Benefits Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common business value understanding Practices Outcomes Metrics
    • © Innovation Value Institute 2013 Business Value Dials - Practice • System EOL • HW / SW Avoidance • Head Count Avoidance/Reduction • Factory Uptime • Unit & Other Cost Avoidance • Head Count Turnover • Head Count Productivity • Materials Discounts • Scrap/Reserve Reduction • Days of Inventory • Days Receivables • Time To Market • Optimize Existing Markets • Open New Markets • Cross-Selling • Risk Avoidance/Business Continuity • Vendor Of Choice Bottom Line Improvements: Efficiencies, Productivity • Measurement is Direct and readily “countable” Top Line Growth • Measurement is not Direct • Create Competitive Advantage Source: Intel
    • © Innovation Value Institute 2013 Value Dial Definition / Valuation Days of Inventory Reductions in days of inventory lead to value in finished goods, work in process, or raw material inventories. (value of 1 day) x (days of inventory removed) x 15% (weighted average cost of capital) Headcount Reduction or Avoidance Solutions the reduce human resource requirements or absorb business growth without growing headcount. Employees can be moved to jobs with greater value. (number of headcount reduced or avoided) x (average burden rate for location and job type) Employee Productivity Gains in headcount efficiencies or effectiveness. Headcount is expected to produce more through these gains due to the additional time efficiencies. (number of employees affected) x (time) x (average burden rate) x (50%) Business Value Dial - Form Value Dials xxxxxx Xxxxxx Xxxxxx xxxxx Intel Vision & Strategies Business KPIs Programme Delivery Major IT Investments Business IT
    • © Innovation Value Institute 2013 Business Value Dials - Pattern Name • What is the value dial capturing? • Concise and to the point • As descriptive as possible • In the customer’s language Common Valuations • What is it worth? • The elements of the calculation should be standard • Measurement and valuation are separate concepts • IT Finance should own the basics and financial tips Definition • One definition • Specific enough that everyone understands • It is not the metric that occurs at the time of use Managing IT for Business Value
    • © Innovation Value Institute 2013 How Could Patterns Add Value to IT-CMF? • Operationalise CC/CBB concepts for maturity improvement - based on experience of repeated application of practices • Guidance on how to resolve problems (direct) or how to organise for solving problems (indirect) • Balance providing guidance and enabling flexibility... scope for improvisation based on the needs of specific contexts Reusable pattern – flexible for differing shapes & sizes, Cognitive amplification & reorganisation tools
    • © Innovation Value Institute 2013 THE CONTRIBUTION OF PATTERNS: A RICHER VIEW OF PRACTICES
    • © Innovation Value Institute 2013 Pattern • a formal way of giving good advice on how to do something • based on experience of repeated application • provides rationale and context • scope for improvisation
    • © Innovation Value Institute 2013 Mrs Beeton’s Family Cookery 1962
    • © Innovation Value Institute 2013 Nigel Slater Real Cooking 1997 “A recipe should be a tune to which you can sing your own song” Rick Stein, chef
    • © Innovation Value Institute 2013 “Learn the patterns, then forget ‘em” Charlie Parker saxophonist
    • © Innovation Value Institute 2013 Christopher Alexander A Pattern Language 1977
    • © Innovation Value Institute 2013 PATTERNS: IMPROVING PERFORMANCE
    • © Innovation Value Institute 2013 Patterns and practices - A practice relates to a specific approach to getting work done in a specific context. • A pattern is a way of sharing advice based on experience of what works in similar situations – it is an abstraction of a practice. It abdicates some of the richness and uniqueness of the practice - to identify and communicate what works. What is abstracted from practice is not so much an individual solution but rather the form of good solutions.
    • © Innovation Value Institute 2013 algorithmic • if you want to achieve Y in situation Z, then perform action X Patterns: ‘is’ & ‘is not’ Has to be translated (by the professional in the field) to a specific problem at hand, problems are always context related - solution concept heuristic • if you want to achieve Y in situation Z, then something like X might help Although problems and situations might be very similar, this is not a guarantee that a solution that worked in situation A also works in situation B The pattern approach is a way that captures and shares how things get done while leaving scope for improvisation and adaptation (for example to reflect different organisational contexts and rationales).
    • © Innovation Value Institute 2013 Maturity Level CBB Category Practices Outcomes Metrics Level 5 Benefits Planning Extend use of standardised BBMs, business case and benefits realisation templates/guidance beyond the enterprise Vendors use the enterprise's language and taxonomy for expressing business value and benefits % of external business partners using common BBMs, business case and BRP templates for investments Level 5 Benefits Process Mandate reuse of historical business value and other BAR data in business case, BRP development and decision making. Proliferate learnings to amplify investment returns and manage business value risk profile % of investments delivering and/or exceeding initial business value forecasts Level 5 Benefits Culture Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training and incentives Business value culture institutionalised across extended enterprise % YoY improvement in other BAR metrics Participation rate across extened enterprise in BAR review Level 4 Benefits Planning Mandate use of standardised BBMs, business case and benefits realisation templates across the enterprise Enterprise-wide approach to investment proposal development exists % across the enterprise using common BBMs, business case and BRP templates for investments Level 4 Benefits Planning Review business case and benefits realisation templates for effectiveness at appropriate intervals Templates stay current with business objectives and leverage best practices Length of time between each review cycle Level 4 Benefits Process Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans Level 4 Benefits Process Establish procedures to accelerate, decelerate or stop in-flight funding of investments from the perspective of enterprise scorecards In-flight investments can react to economic changes and competitor reactions that threaten to erode forecasted benefits % of original investments scaled up % of original investments scaled down Forecasted vs realised value delta Level 4 Benefits Process Track BBMs for investments at appropriate intervals beyond their initial deployment phase i.e. throughout their full lifecycle Understand when to end-of-life/upgrade/replace initial investments % of investments measured against BBMs throughout their lifecycle Level 4 Benefits Culture Make business value database available to consistently capture historical investment performance Accurate and consistent data is available to support and influence strategic decisions Number of times database is interrogated for decision making Level 4 Benefits Culture Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards. Cumulative business value Average business value Forecasted vs actual business value variance Level 3 Benefits Planning Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their relevance to the enterprise's objectives and to also ensure that they align to the business units scorecards. The relevance of BBMs is checked to ensure they cover relevant enterprise objectives % of investments with BBMs that explicitly link to the business units scorecards. Level 3 Benefits Planning Standardise and agree with stakeholders Benefits Realisation Planning (BRP) templates (including review with Finance) for all IT enabled investments Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates Level 3 Benefits Planning Develop guidelines and training on completing Benefits Realisation Planning (BRP) templates The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission Level 3 Benefits Process Agree with stakeholders a standardised methodology, tools and validation process to measure impact of investments on forecasted BBMs Consistent evaluation of forecasted BBMs against actual delivery % of investments with pre and post BBMs measurement Level 3 Benefits Process Agree with stakeholders multiple financial and non-financial business case inputs. Holistic evaluation approach for business cases (i.e. criteria beyond financial are considered) Weighting attributed to financial versus non-financial inputs when evaluating business cases Level 3 Benefits Process Assign accountability for realising forecasted BBMs Benefits have an enterprise stakeholde to troubleshoot issues and improve delivery % of investments with enterprise sponsor(s) Level 3 Benefits Process Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans Level 3 Benefits Process Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme Level 3 Benefits Culture Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals % of cross-enterprise review of Benefit Assessment & Realisation. Level 3 Benefits Culture Establish and make accessible Benefits Assessment & Realisation (BAR) training program One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme Level 3 Benefits Culture Establish business value champions and increase communication across the enterprise Increased breadth of adoption across the enterprise Visibility and communication of good practice/case material Number of projects across enterprise adopting a common and standard approach to managing business value. Number of examples/cases as examplars, awards Level 2 Benefits Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common business value understanding Level 2 Benefits Planning Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational definitions and calculations Investment returns are expressed using a taxonomy understood and agreed with the enterprise % of investment proposals using approved BBMs Level 2 Benefits Planning Standardise business case templates for use with all IT enabled investments Common format for business case submissions allowing fairer comparisons across investment proposals % of investments using approved business case templates Level 2 Benefits Planning Develop and make accessible business case training Formal training on business case development improves adoption of standardised approaches and business case submission % of people trained on business case development Level 2 Benefits Planning Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission Level 2 Benefits Process Define and assign roles and responsibilities for the overall delivery and running of a Benefits Assessment & Realisation (BAR) capability to the enterprise Management has communicated commitment to developing BAR capability within the enterprise % of senior managers sponsoring BAR initatives Level 2 Benefits Culture Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals Number of business unit leaders involved in business case review and approval Level 1 Benefits Planning No formal Benefits Planning practices expected at this level No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level Level 1 Benefits Process No formal Benefits Process practices expected at this level No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level Level 1 Benefits Culture No formal Benefits Culture practices expected at this level No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level Benefits Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common business value understanding Patterns – to provide greater guidance to share good practice and improve performance
    • © Innovation Value Institute 2013 IDENTIFY POTENTIAL PATTERNS: GOOD PRACTICES TO CAPTURE AND SHARE
    • © Innovation Value Institute 2013 Identify Potential Patterns • Work in groups. • Consider a specific Critical Capability: eg 1. Strategic Planning (SP) 2. Business Planning (BP) 3. IT Leadership & Governance (ITG) 4. Solutions Delivery (SD) 5. Service Provisioning (SRP) • Target specific CBB(s) • Share good practices from your organisation and develop a list of potential patterns that you can share with other groups • Note: keep in mind the relevant context and the rationale
    • © Innovation Value Institute 2013 Best Practice Recording - CC: - CBB: - Best-practice Name: - Objective: - Source (if published):
    • © Innovation Value Institute 2013 Using patterns – lessons learned • Emphasise usage (as well as writing). • Can be shared as a book and/or as a community owned ‘living’ resource. • Write for a specific audience (level of knowledge / maturity). • Reflect specific assumptions / principles (eg benefits ‘mindset). • Use an explicit template to capture and structure a pattern • Use an implicit structure (ie formatting text cf ‘corner doors’) to communicate and share a pattern. • Fit with wider roles including education and advisors / coaches.
    • © Innovation Value Institute 2013 pattern language an interconnected web of patterns which may be assembled as advice for a task just what patterns are used and how determined by the user more scope for improvisation
    • © Innovation Value Institute 2013 Conduct driver analysis Stakeholder analysis Establish benefits dependencies Structure benefits Assess project type Phase benefits delivery Plan benefits realisation Design business change governance Create a shared business vision Opportunity based design Business competence based design a pattern language (work in progress) benefits driven planning for a transformation project
    • © Innovation Value Institute 2013 DRIVING ORGANISATIONAL PERFORMANCE USING PATTERNS EMBEDDED IN IT-CMF
    • © Innovation Value Institute 2013 How could we use patterns to: • add value to current IT-CMF practices? • to capture and share good practices? • to help improve maturity / IT capability in your organisation?
    • © Innovation Value Institute 2013 Today’s Discussion IT-CMF: Blueprint For Making IT Better 1) Diagnose 2) Prescribe 3) Medicate 4) Monitor What should be done? Assistance from: - POMs How could it be done? Assistance from: - Patterns & Practices What & how to monitor? Assistance from: - CC Performance Metrics What’re symptoms & causes? Assistance from: - CCs - CBBs - Maturity Levels - Questions 5) Prevent
    • © Innovation Value Institute 2013 THANK YOU Questions & discussion welcomed
    • © Innovation Value Institute 2013 Pattern Template Name should be brief and easily convey the subject Context why and where does the problem arise? Forces problems commonly arise because two or more forces conflict and must be reconciled: the forces are described Discussion sets out the best thinking on the problem and approaches to a solution Solution gives the recommended course of action New context it is unusual for a solution once applied to solve a problem completely, rather a large part of the problem is addressed and the system is left in an improved state, though not without its own problems, and this is described here See also gives links to other patterns which may also be of interest or provide further explanation, though these references are likely to have been given in the Discussion section
    • © Innovation Value Institute 2013 Patterns & Practices: Moving through the maturity levels Level 1 • Adhoc Level 2 • Standard business case template • Clear review and sign off process Level 3 • Benefits Realisation planning • Benefits focus to project lifecycle Level 4 • Creative, workshop based approach to benefits planning • Active leadership / user engagement Level 5 • Flexible approach adapted to specific project context