Investing Intelligently In The IT Function

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Describes an approach to defining the competencies and capabilities required of the IT function and to use current levels of competence and importance of competency across all activity areas of the IT function to identify those areas at which getting better will yield the greatest return, allowing for targeted investment of resources to get good at what matters

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Investing Intelligently In The IT Function

  1. 1. Investing Intelligently In The IT Function Alan McSweeney
  2. 2. July 17, 2013 2 • Doing – Run The Business − Business as usual activities (BAU) related to administering and operating production IT systems and providing service to users • Managing The Doing – Run The Business − Managing the BAU function and its service delivery • Doing – Change the Business − Implementing projects and delivering new services and systems • Managing The Doing – Change The Business − Managing the projects and associated changes Activities of IT Function
  3. 3. July 17, 2013 3 • Four sets of activities 1. Doing – Run The Business 2. Managing The Doing – Run The Business 3. Doing – Change the Business 4. Managing The Doing – Change The Business • The “Magic Quadrant” so beloved of consulting organisations Change The Business Run the Business Doing Managing The Doing Generic Structure and Activities of IT Function
  4. 4. July 17, 2013 4 • Not all activities are of equal weight – it is not the beloved “Magic Quadrant” • Balance between activities and required resources and expenditure depends on many factor: − Maturity of IT function and organisation − Level of change − Historical legacy of under or over investment in IT − Growth profile − Market changes • However, Run The Business will always dominate IT resources and activities • But Change The Business activities get disproportionately large and undeserved attention to the detriment of Run The Business activities Generic Structure and Activities of IT Function
  5. 5. July 17, 2013 5 Doing – Run The Business Doing – Change the Business Managing The Change – Run The Business Managing The Doing – Run The Business Actual Average Relative Balance of Resources Across Activity Areas
  6. 6. Doing – Change the Business Managing The Change – Run The Business July 17, 2013 6 IT’s All Too Common Version of Investment Beer Goggles
  7. 7. • IT changes are inevitable – in response to factors such as: − Market changes − Business changes − Technology changes − Regulatory changes • But change needs to be balanced and the organisation needs to be capable of absorbing change July 17, 2013 7 Changes
  8. 8. Change The Business Run the Business Doing Managing The Doing Having An Efficient And Effective Run The Business Function … … Means The Changes Introduced By Change The Business Activities Can Be Absorbed More Easily and Quickly July 17, 2013 8 Effective Run The Business Function Is An Enabler Of Change
  9. 9. Change The Business Run the Business Doing Managing The Doing Change The Business Function Pushes New Systems And Processes To The Run The Business Function Where They Must Be Supportable And Operable Effective Run The Business Function Is An Enabler Of Change
  10. 10. July 17, 2013 10 Change The Business Run the Business Doing Managing The Doing Relative Proportions of Resources And Expenditure Across Activity Areas
  11. 11. July 17, 2013 11 Σ{ } >> { } Doing – Run The Business + Managing The Doing – Run The Business Doing – Change The Business + Managing The Change – Run The Business The IT Investment Equation
  12. 12. July 17, 2013 12 Range Of IT Investment Profiles
  13. 13. July 17, 2013 13 • Relative split of resources across activity areas can range across a spectrum Standard profile of organisation with balanced level of activities across all areas Profile of organisation with significant under- investment in IT changes Profile of organisation with high levels of change and IT investment in projects Balance of Resource Allocation Across Activity Areas
  14. 14. July 17, 2013 14 Much of the focus of the IT function is on the areas of change and managing change … Unbalanced Focus on Change-Related IT Activities
  15. 15. July 17, 2013 15 … While most of the resources and expenditure occurs in Run The Business activities Unbalanced Focus on Change-Related IT Activities
  16. 16. July 17, 2013 16 • IT function tends to have an unbalanced focus on areas of change and new projects, assigning them a relatively higher priority than justified Unbalanced Focus on Change-Related IT Activities
  17. 17. July 17, 2013 17 • Key areas where the IT function needs to maintain significant levels of competence, skill and experience and practise • Not all activity areas require all the key capabilities • Use to identify what is important for your IT function based on your current and desired/necessary activity profile • Quantify gaps in your skills levels in competence areas • Use this to define programme of improvement and increased capability IT Capabilities and Areas of Competence
  18. 18. July 17, 2013 18 1. IT Leadership and Governance 2. Strategic and Business Planning 3. Demand and Supply Management, Capacity Forecasting and Planning 4. Sourcing and Supplier Management, Acquisition, Procurement 5. Innovation 6. Accounting, Funding, Financing, Budgeting and Planning 7. Programme Management, Portfolio Management, Project Management 8. Relationship Management and Business Engagement 9. Organisation Design and Planning 10. Enterprise Architecture 11. Infrastructure, Networks and Communication 12. Business and Process Analysis 13. Solution Architecture and Design 14. Benefits Assessment and Realisation 15. Service Provisioning, Service Delivery and Service Management 16. Testing 17. Security, Continuity and Disaster Recovery 18. Solution Development and Delivery 19. People Asset Management 20. Knowledge Asset Management 21. User Experience Design 22. Change and Change Management IT Capabilities and Areas of Competence What the IT function needs to be good at:
  19. 19. • General sets of skills required of the IT function • Transcend specific technical and technology skills and trends − Technology change is a constant • It is about having the overarching skills to handle change, adopt suitable and appropriate new technologies and deliver a service and value to the underlying business July 17, 2013 19 IT Capabilities and Areas of Competence
  20. 20. July 17, 2013 20 IT Is Not About …
  21. 21. Be Careful About Jumping on Bandwagons The Ride Can Be Uncomfortable And Unpleasant July 17, 2013 21
  22. 22. IT Is About … July 17, 2013 22
  23. 23. July 17, 2013 23 Capability D/RTB MTD/CTB MTD/RTB D/CTB IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communications Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information, Knowledge Asset Management User Experience Design Change and Change Management IT Capabilities by Activity Area
  24. 24. July 17, 2013 24 IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communication Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information and Knowledge Asset Management User Experience Design Change and Change Management Colour Coding of Key Capabilities Sample representation of capabilities
  25. 25. • Represents the required competencies for activity areas July 17, 2013 25 IT Competence Skills Radar
  26. 26. July 17, 2013 26 Doing – Run The Business M anagingThe Doing – Run The Business M anagingThe Doing – Change The Business Doing – Change The Business
  27. 27. July 17, 2013 27 IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communication Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information and Knowledge Asset Management User Experience Design Change and Change Management Doing – Run The Business - Key Competencies
  28. 28. July 17, 2013 28 • Doing – Run The Business activity area involves keeping operational systems function and providing service to users Doing – Run The Business Doing – Run The Business - Key Competencies
  29. 29. July 17, 2013 29 IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communication Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information and Knowledge Asset Management User Experience Design Change and Change Management Managing The Doing – Run The Business - Key Competencies
  30. 30. July 17, 2013 30 • Managing The Doing – Run The Business activity area involves managing the delivery of business as usual services, operations Managing The Doing – Run The Business Managing The Doing – Run The Business - Key Competencies
  31. 31. July 17, 2013 31 IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communication Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information and Knowledge Asset Management User Experience Design Change and Change Management Doing – Change The Business - Key Competencies
  32. 32. July 17, 2013 32 • Doing – Change The Business activity area involves implementing new projects and the changes they introduce into the organisation Doing – Change The Business Doing – Change The Business - Key Competencies
  33. 33. July 17, 2013 33 IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communication Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information and Knowledge Asset Management User Experience Design Change and Change Management Managing The Doing – Change The Business - Key Competencies
  34. 34. July 17, 2013 34 • Managing The Doing – Change The Business activity area involves managing the implementation of new projects and the changes they introduce into the organisation Managing The Doing – Change The Business Managing The Doing – Change The Business - Key Competencies
  35. 35. July 17, 2013 35 • Where are your organisation’s skill, experience and practical application of key competencies? • How good are you at what is actually important rather than what is perceived to be important? • What do you need to get better at? • Can you identify what improvements will generate the greatest benefits? Highly skilled, experienced and consistently well applied Poorly skilled, experienced and consistently not well applied Measuring Your Skills in Key Competency Areas
  36. 36. • Where is your organisation on the IT Competence Skills radar? July 17, 2013 36 IT Competence Skills Radar
  37. 37. July 17, 2013 37 Doing – Run The Business M anagingThe Doing – Run The Business M anagingThe Doing – Change The Business Doing – Change The Business
  38. 38. July 17, 2013 38 Use current levels of competence and importance of competency across all activity areas to identify those areas at which getting better will yield the greatest return Targeted investment of resources Get good at what matters Get the biggest bang for your buck
  39. 39. Current Activity Profile Desired Or Necessary Activity Profile Evaluate Core Competency Levels Prioritised Improvement Competency Areas Define Improvement Programme Deliver Improvement Programme Systematic Approach To Increasing Skills In Competencies July 17, 2013 39
  40. 40. July 17, 2013 40 The wheel is not getting any rounder
  41. 41. July 17, 2013 41 It does not need to be reinvented So use existing well- proven frameworks and methodologies to systematically improve skills, experience and practise in key competency areas The world does not need new frameworks and methodologies – it needs existing ones well- implemented r d πd πr2 1800 900 2700
  42. 42. Capability Sample Existing Frameworks and Methodologies IT Leadership and Governance COBIT, OEGC Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning COBIT, ITIL Sourcing and Supplier Management, Acquisition, Procurement ISPL, eSCM, CMMI-ACQ Innovation Accounting, Funding, Financing, Budgeting and Planning Val IT Programme Management, Portfolio Management, Project Management PMBOK, Prince2 Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture TOGAF, DODAF, MODAF, NASCIO EAMM Infrastructure, Networks and Communications Business and Process Analysis and Design BABOK Solution Architecture and Design ITABOK Benefits Assessment and Realisation VMM, Val IT Service Provisioning, Service Delivery and Service Management ITIL, ISO 20000 Testing ISTQB, AST Security, Continuity and Disaster Recovery ISO 27002, ISO22301, ISO 22399, ISO 24762 Solution Development and Delivery CMMI, ISO 9000, ISO/15504 People Asset Management People CMM Data, Information, Knowledge Asset Management DMBOK User Experience Design ISO 9241, CIF, ISO/AWI 23973 Change and Change Management ITIL Sample Frameworks And Methodologies For Competencies July 17, 2013 42
  43. 43. July 17, 2013 43 There Is No Silver Bullet At Getting Better Just a bunch of regular bullets to fire at the problem
  44. 44. July 17, 2013 44 Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney More Information

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