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How CIOs Can Reliably Deliver Business Innovation

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How CIOs Can Reliably Deliver Business Innovation

  1. 1. opitConsultinghttp://www.opitConsulting.comNYC:    +1  (212)879-­‐1621TLV:    +972  (9)765-­‐8602Copyright © 2013 opitConsulting. All rights reservedIT Powerhouse FrameworkHow CIOs Can Reliably Deliver Business Innovation
  2. 2. Executive SummaryDue Date Performance index stands for % of projects delivered on-time, within budget and in full-scope.Overall, Information Technology organizations deliver below 35% Due Date Performance index,which means that Information Technology organizations do not deliver projects as per their promiseto the business.Within any enterprise there is no other organization that knows better than the InformationTechnology organization how to provide value in terms of creating products and services, and thereis no other organization that can effectively cope with the required technological advances to growthe enterprises competitive edge. However, low Due Date Performance indices brought ChiefInformation Officers influence down, and the C-suite has come to regard Information Technologyorganizations as slow, costly, error-prone, and unresponsive to business needs1.The IT Powerhouse Framework provides a clear path to achieve 90+% Due Date Performance, andit is designed for easy adaptation to ever changing business environments by implementing focused,modular and short cycle operations. The result is providing Information Technology organizationswith the ability to deliver business innovation projects on-time, within budget and in full-scope. Within the first three months the framework implementation organizations typically experiencematerial improvements in project delivery.The return on investment for taking this path is significant based on cost of delays in addition tobusiness $ value of projects delivered either on-time or ahead of time.opitConsulting’s proposal is to present to you the details of this framework and work with you todesign a Powerhouse Framework for your firm.About opitConsultingThe failings of Information Technology organizations to deliver on-time results and the excuses usedto justify such shortcomings can be summarized in the form of RESULT = NO RESULT + A GOODSTORY2. That repeating phenomenon triggered a five years odyssey of education, research andexperience to establish the IT Powerhouse Framework aimed to break the constraint of low DueDate Performance.opitConsulting expertise is in IT Delivery, Operations and Service Management, and the company ishighly respected for its IT/Business strategy for accelerating projects and products delivery andinspiring teams to attain high performance and greater levels of success. It is about effectiveexecution in reaching the goal of 90+% of IT Due Date Performance index, providing the rightleverage for the enterprise to promote its business outcome in an optimal profitability rate.opitConsulting provides mission critical systems applying advanced technology solutions throughproject management excellence while getting business alignment to meet the corporate goals.opitConsulting has a strong and longtime technical industry expertise in software development and business/solutions architecture in the areas of Publishing, Telecommunications and 21 The  Innova*ve  CIO  by  Andi  Mann  et  al2  Crucial  Confronta*ons  –  Kerry  Pa>erson  et  alCopyright © 2013 opitConsulting. All rights reserved
  3. 3. IT Powerhouse FrameworkThis framework provides a step-by-step process to identify organizational, process-related andtechnology root-causes, solutions and actions to break major constraints and find the path toachieve 90+% Due Date Performance. It should be noted that opitConsulting never says it’s easy,however it provides focus and clarity of what actions need to be taken at every juncture; you willclearly see and understandthe tradeoff of any decisionyou take. Lets begin bye x p l o r i n g t h e I TDashboard:Use of the IT Servicesdashboard, usually drivenfrom a Project PortfolioManagement tool, providesmanagement with a real-time view of what is going on within the enterprise’s IT projects and production operations. Thisview provides management with the ability to know where the acute issues are. However, it does notgive the reasons for an issue or show you how to fix a problem.Sample of IT Governance DashboardProject Health1. Status  of  ac,ve  projects2. Open  high  priority  (P1&P2)  issues  and  risks3. #  of  milestones  missed4. Current  due  date  performance  index5. #  of  projects  that  changed  ,me  to  deliver6. #  of  ‘at  risk’  milestones7. Commitment/under-­‐commitment  of  resourcesBudget1. #  of  ac,ve  capital  accounts  per  quarter2. Budget  spent(Opera,ons,  OPEX,  CAPEX,  Consul,ng)3. Project  $  Days  -­‐  cost  of  project  delaysHuman Factors1. Mee,ng  aVendance  factors2. #  of  weekends  worked3. Professional  employee  sa,sfac, 3Copyright © 2013 opitConsulting. All rights reserved
  4. 4. Analysis and resolution3Based on the vast success of Theory of Constraints applications in Supply Chains, Manufacturing andProject Management with an overall of 73% growth of combined financial results, opitConsultingtargets the IT Delivery Operations space.The Theory of Constraints says that every system has atleast one constraint that blocks the enterprise throughput. Only when you deal head-on with thatblocking constraint, then you will achieve throughput improvements. Used in the IT PowerhouseFramework combined with advanced business and service management methodologies, it ensuressuccess in reaching the Due Date Performance index goal.Current Reality TreeBuilding a Current Reality Tree is a world-class analytical tool that drives to a deep understanding ofroot-causes and brings different agendas together to discuss issues openly and honestly. It identifiesPart  of  Current  Reality  Tree 43  Inspired  by  the  Thinking  Process™  from  Dr.  Eli  Goldra>Copyright © 2013 opitConsulting. All rights reserved
  5. 5. the undesirable effects and a structure of a logical tree of cause and effect. Itis never personal. Once complete it is the reflection of your reality which allagree to, 100%.This step provides a detailed review of your development life-cycle to identify root-causes for a low Due Date Performance index.Conflict/Dilemma ResolutionThis is a sub-process that helps resolve conflicts which are part of the Current Reality Treestructure, when conflicts surface during the analytical phase.A common conflict could be Stability vs.Growth - one group needs stabilization, while for the other it is imperative to grow, however bothdo agree on the common goal of the enterprise.Conflict/Dilemma 5Copyright © 2013 opitConsulting. All rights reserved
  6. 6. Future Reality TreeFuture Reality Tree takesthe Current reality andinjects solutions andspecific actions. It turnsundesirable effects todesirable effects to achievethe goal. It is done incollaboration with yourleadership team to receiveagreement on the logicthat leads to the commonsolutions and actions inorder to reach the 6Copyright © 2013 opitConsulting. All rights reserved
  7. 7. Critical Chain Project Management4Critical Chain Project Management is a practice that stems from theTheory of Constraints. It has the ingredients to overcome common problems in technicalproject management. It is the center for project planning and project execution. Theadvantages are significant because of the following reasons:1. Estimation management, a structured way to manage uncertainty2. Focus on the project’s critical path that accounts for critical resources availability3. Avoiding of bad-multitasking, adding collaboration to accelerate work and finish early4. Use of full-kit directive to ensure smooth flow of task activities on the critical path5. Use of project level buffer management to provide early indicators on project issuesUncommon Service Design5The purpose of this final step is to keep IT moving forward and never draw back into bad oldroutines. At the point that IT has already restored confidence with the business, its time to designservices that are most important to the business and excel in them, at the expense of services thatdo not matter as much, and you can be “bad” in them.Why? Because deciding on being excellent ateverything guarantees mediocrity.Also, being excellent requires funding, and the funding comes fromthe area(s) you decide to be bad at. How can such an approach affect your corporate DNA? 74  Cri*cal  Chain  Project  Management  -­‐  Dr.  Eli  Goldra>  the  creator  of  Theory  Of  Constraints5  Uncommon  Service  -­‐  Francis  Frei  -­‐  Harvard  Business  SchoolCopyright © 2013 opitConsulting. All rights reserved
  8. 8. The Human FactorWe all do understand that the human factor is at the epicenter of all actions,however in many cases we’re failing to properly deal with the situation when other people aren’tdoing what they are supposed to be doing, or to deal with broken promises, failed expectations, andgenerally bad behavior - in many cases we are just drawn into silence.To move beyond that, one hasto know how to influence, motivate and hold confrontations to empower the individual to excel atall times.This is not about a great speech, it is continuously asking why a reasonable and professionalperson does what he or she does? Becoming curious about the source of influences that lead tosuch a behavior6. Such a path almost guarantees stepping out from top-down commands and intomore collaborative interactions and bottom-up engagement and alignment with what needs to beachieved.Want to know more?Please contact us at so that we can arrange a presentation, a workshop ordetailed everyday project management mentoring to ensure success.NYC Office Israel Office230 Riverside Drive, Suite #11PNewYork, NY 10025Tel: +1 (212) 879-16216 Manor Ehud Street, Suite #49Netanya 42659Tel: +972 (9) 86  Influencer,  crucial  confronta*ons,  crucial  conversa*ons  tools  by  Kerry  Pa>erson  et  alCopyright © 2013 opitConsulting. All rights reserved