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Avoiding ITstrategies and investment disasters


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Richard Moulds discussed business IT strategies. How to lead multi functional teams and sevarl case studies within the public and particular healthcare sector were used.

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Avoiding ITstrategies and investment disasters

  1. 1. Avoiding IT Strategy and Investment Disasters Richard Moulds Warwick London Alumni Group 2nd May 2012
  2. 2. IntroductionMoulds Management Consulting Ltd
  3. 3. ObjectiveTo enable you to identify at least 1 lesson and 1resource – Publications – Organisations & Case Studies – Methodologies – Fellow Alumni to act on Moulds Management Consulting Ltd
  4. 4. Agenda• Introduction• Objective• IT Disasters• Identify your 1st lesson• Findings – Research – Lessons Learned – Making Decisions• Identify your 2nd lesson• IT Management Capability• Summary Moulds Management Consulting Ltd
  5. 5. Agenda• Introduction• Objective • Individuals• IT Disasters Capability• Identify your 1st lesson Focus • Teams• Findings • Research • Lessons Learned • Making Decisions• Identify your 2nd lesson • IT Management• IT Management Capability Capability Focus • Business• Summary Moulds Management Consulting Ltd
  6. 6. IT Disasters• 1983 Faulty Soviet early warning system nearly causes WWIII• 1990 The AT&T network collapse• 1996 The explosion of the Ariane 5• 1998 Mars Climate Observer metric problem• 1997 Siemens and the passport system• 1999/2000. The two-digit year-2000 problem• 2004 EDS and the Child Support Agency• 2006 Airbus A380 suffers from incompatible software issues• 2006 When the laptops exploded• 2007 LA Airport flights grounded Moulds Management Consulting Ltd disasters-of-all-time-39290976/
  7. 7. IT Disasters - Crash• Overambitious• Pride• Presumption• Pusillanimity• Credulity• Consultancy• Tailored Software• Concealment• Buck Passing• Lawyers Moulds Management Consulting Ltd
  8. 8. Identify your 1st lesson in pairs1. Describe a recent IT disaster from your own experience2. Use the handout to identify up to 3 Sins that you feel were relevant to this disaster3. Choose one of these Sins and discuss the likely root cause of the problem Moulds Management Consulting Ltd
  9. 9. Tony Collins in 2012 Moulds Management Consulting Ltd
  10. 10. Tony Collins & David Bicknell in 2012 Moulds Management Consulting Ltd
  11. 11. Research Top 10 Practices H% L% Diff.%Transferral of lessons learned 73 32 41Quantification of benefits 52 14 38All benefits identified 56 19 37Organisational change reviews 62 30 32Overstating benefits 22 51 -29Benefits delivery planning 45 19 26Benefits review and evaluation 62 39 23Organisational change planning 44 23 21External reference sites used 45 24 21External benchmarking used 35 16 19 Cranfield University Information Systems Research Centre Moulds Management Consulting Ltd
  12. 12. Lessons Learned• Google searchs • Lessons learned = 39.7 million hits • We fail to LL = 29.2 million hits• Lessons learned = identify lesson & act on it **• Identify lessons by assessing the: – context – event – causes (root causes and critical success factors)• Act on lessons• 6 Case studies - 5 NHS Hospital Trusts & BHF• Published in British Journal of Healthcare Management** Milton N (2010) The Lessons Learned Handbook Based/dp/1843345870/ref=cm_cr_pr_product_top Moulds Management Consulting Ltd
  13. 13. British Journal of Healthcare Management Dec. 2010 Moulds Management Consulting Ltd
  14. 14. 5 lessons identified CapabilitiesBusiness Cases• identify a list of measurable benefits, with named owners , that stand up to objective scrutiny in the business case• list all major risks, issues and lessons identified from at least one reference site visit for each option see slide 15• ensure the mobilisation of staff in future projects includes a role model approach, led by the project sponsor on how to raise and resolve difficult issues see slides 17 & 18Decision Making & Governance• establish decision-making processes for complex, innovative projects that use a proven process see slide 16• establish a similar approach to governance for identifying and acting on lessons as used for corporate and patient risks. Moulds Management Consulting Ltd
  15. 15. Decision Making Risks, Issues & Lessons Complex Decisions Personality Types Business TeamsAccountability & Capability
  16. 16. Risks, issues & lessons Risks- what could go wrong ? Disaster = Multiple, Major IssuesIdentify and act Issues- what has on lessons gone wrong ? Moulds Management Consulting Ltd
  17. 17. Complex DecisionsPeople who Are responsible forRecommend Make a proposal, gather input, provide data and analysis to make a sensible choice in a timely fashion Consulting with input providers-hearing and incorporating their views and winning their buy inAgree Negotiating a modified proposal with the recommender if they have evidence based concerns about the original proposals Escalating unresolved issues to the decider if the A and R cant resolve differencesPerform Executing the decision once it is made Seeing that the decision is implemented effectivelyInput Providing relevant facts to the recommender that shed light on the proposals feasibility and practical implicationsDecide Serving as the single point of accountability Bringing the decision to closure by resolving any impasses in the decision making process Committing the organisation to implementing the decisionHBR Jan 2006 - Who has the D? How clear decision roles enhance organisational performance Moulds Management Consulting Ltd
  18. 18. Personality Types MYERS BRIGGSExtraversion ( E ) Introversion (I)Sensing (S) Intuition (N)Thinking (T) Feeling (F)Judging (J) Perceiving (P) Moulds Management Consulting Ltd
  19. 19. Business Teams• IT and Project Management is still a relatively young profession • Engineers, Lawyers, Accountants, Doctors 1818 -1880 • IT, Project Managers 1957-1975• Balance of Business Teams – What is the frequency of HR, Finance & IT agenda items in the last 12 months? – IT projects or Business IT projects ?• People & project management – Includes role model leadership, conflict management, behaviours, learning and development Moulds Management Consulting Ltd Balanced business teams including IT
  20. 20. Accountability & CapabilityC level sponsor Sponsor/SROon top 10 projects Project Senior User Manager 5 lessons identified – capabilities eg the mobilisation of staff in future projects includes a role model approach, led by the project sponsor on how to raise and resolve difficult issues Moulds Management Consulting Ltd
  21. 21. Identify your 2nd lesson in pairs1. Describe a recent IT disaster from your own experience2. Use the handout to identify up to 3 Sins that you feel were relevant to this disaster3. Choose one of these Sins and discuss the likely root cause of the problem Moulds Management Consulting Ltd
  22. 22. IT Management Capability
  23. 23. Developed by the Innovation Value The IT Capability Maturity Framework Institute (IVI)Optimize value from IT Steering patrons• Defines maturity profiles across IT domains to transform organizations from cost center to value center • 33 Critical Capabilities, each with 5 levels of maturity • Provides a holistic view of maturity, with ability to share amongst peersProvision of improvement roadmaps• Assists CIOs and senior IT decision-makers evaluate their IT organization, industry benchmark trends and clearly identify next stepsResearch base• Based on a framework originally developed • Non-profit, open innovation consortium with by Intel IT membership from leading industry IT end-• Refined and extended by the Innovation users, vendors, consulting firms, Value Institute ( government, non-profit and academic organizations• Reviewed and tested with 300+ CIOs plus latest academic thinking • More than 75 organizations worldwide Moulds Management Consulting Ltd
  24. 24. The Framework Managing IT Like a Managing the Managing the Managing IT for Business IT Budget IT Capability Business Value IT Leadership & Funding & Financing Enterprise Architecture Total Cost ofITG Governance FF EAM Management TCO Ownership Business Process Technical Infrastructure Benefits Assessment &BPM Management BGM Budget Management TIM Management BAR Realization Business Planning Portfolio Planning & People Asset Portfolio ManagementBP PPP Prioritization PAM Management PM Strategic Planning Budget Oversight & Knowledge AssetSP BOP Performance Analysis KAM Management Demand & Supply Relationship AssetDSM Management RAM Management Capacity Forecasting & Research, • Each criticalCFP Planning RDE Development, & Engineering capability hasRM Risk Management SD Solutions Delivery five levels of Accounting & Allocation maturityAA SRP Service Provisioning ranging from Organization Design & User TrainingODP Planning UTM Management ‘Initial’ toSRC Sourcing User Experience UED Design ‘Optimizing’ Innovation programme & ProjectIM Management PPM Management Service Analytics &SAI Intelligence SUM Supplier Management Capability AssessmentSICT Sustainable ICT CAM & Management Increasing maturity improves IT ability to deliver on key priorities Moulds Management Consulting Ltd
  25. 25. IT-CMF: Maturity of discrete Critical Processes Differences in perceived current maturity by Business AreaOptimisingAdvancedInterm-BasicInitial MouldsIM&T Management Consulting Ltd Operations
  26. 26. IT-CMF: Importance of discrete Critical Processes Differences in perceived importance by Business Area 5 4 3 2 1 IM&T Operations Moulds Management Consulting LtdBenchmark: n = 31
  27. 27. SummaryIndividuals & teams – Lessons learned = identify lesson and act – Mitigate risks by acting Risks on lessons to avoid issues Lessons Issues – Better decisions rely on evidence + ideas + MYERS BRIGGS Sensing Intuition objectivity + empathy Thinking Feeling Moulds Management Consulting Ltd
  28. 28. SummaryIT & Business Management – Accountabilities & capabilities - act on lessons & knowledge – Balanced business teams, including IT – Business IT Plans & ambitions > or = or < IT management capability – Determine where you, your business and your IT suppliers are/need to be in the IT capability chain Moulds Management Consulting Ltd
  29. 29. Questions & Comments• Richard Moulds• Moulds Management Consulting Limited• 28 Eggbridge Lane, Waverton, Chester, CH3 7PE•• ardmoulds• M: 07834 320979 Moulds Management Consulting Ltd
  30. 30. SPARE SLIDESMoulds Management Consulting Ltd
  31. 31. Key practices Benefit delivery: to be improved to Delivery Planning - organisational increase maturity change & benefits. level and success 4. Highly Successful Project selection: Portfolio management. Business cases –Life cycle approach identification of benefit management. Benefit and change reviewsDemand led withbusiness ownership of 3. Successfulbenefit delivery plans anda comprehensive review Project delivery:process. Sound business cases Business cases- based on achievable identification of costs. benefits but ineffective Technology and benefit delivery and change planning, with 2. Moderately process change insufficient business Successful planning. TCQ ownership & reviews. involvement. Sound IT methodologies, but ineffective portfolio management and business cases are cost rather than benefit based. IT methodologies dominate with insufficient business involvement in business cases, 1. Unsuccessful implementation and review. Characteristics Inadequate and inconsistent use of of the 4 proven methodologies. Unrealistic business cases, limited business levels of maturity involvement in all practices. Very Moulds Management Consulting Ltd review processes. weak