References Robbins, S. P., & Judge, T. A. (2019). Organizational behavior (18th ed.). Retrieved from The University of Phoenix eBook Collection database. Need one reference from Textbook in speaker notes Developing an Ethical Culture Despite differences across industries and cultures, ethical organizational cultures share some common values and processes.100 Therefore, managers can create a more ethical culture by adhering to the following principles:101 Be a visible role model. Employees will look to the actions of top management as a benchmark for appropriate behavior, but everyone can be a role model to positively influence the ethical atmosphere. Send a positive message. Communicate ethical expectations. Whenever you serve in a leadership capacity, minimize ethical ambiguities by sharing a code of ethics that states the organization’s primary values and the judgment rules employees must follow. Provide ethical training. Set up seminars, workshops, and training programs to reinforce the organization’s standards of conduct, clarify what practices are permissible, and address potential ethical dilemmas. Visibly reward ethical acts and punish unethical ones. Evaluate subordinates on how their decisions compare with the organization’s code of ethics. Review the means as well as the ends. Visibly reward those who act ethically and conspicuously punish those who don’t. Provide protective mechanisms. Seek formal mechanisms so everyone can discuss ethical dilemmas and report unethical behavior without fear of reprimand. These might include identifying ethical counselors, ombudspeople, or ethical officers for liaison roles. A widespread positive ethical climate must start at the top of the organization.102 When top management emphasizes strong ethical values, supervisors are more likely to practice ethical leadership. Positive attitudes transfer down to line employees, who show lower levels of deviant behavior and higher levels of cooperation and assistance. Several other studies have come to the same general conclusion: The values of top management are a good predictor of ethical behavior among employees. For example, one study involving auditors found perceived pressure from organizational leaders to behave unethically was associated with increased intentions to engage in unethical practices.103 Clearly the wrong type of organizational culture can negatively influence employee ethical behavior. Conversely, ethical leadership has been shown to improve group ethical voice, or the extent to which employees feel comfortable speaking up about issues that seem unethical to them, through improvements in ethical culture.104 Finally, employees whose ethical values are similar to those of their department are more likely to be promoted, so we can think of ethical culture as flowing from the bottom up as well (Robbins & Judge, 2019). Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Den ...

1. References
Robbins, S. P., & Judge, T. A. (2019). Organizational behavior
(18th ed.). Retrieved from The University of Phoenix eBook
Collection database.
Need one reference from Textbook in speaker notes
Developing an Ethical Culture Despite differences across
industries and cultures, ethical organizational cultures share
some common values and processes.100 Therefore, managers
can create a more ethical culture by adhering to the following
principles:101 Be a visible role model. Employees will look to
the actions of top management as a benchmark for appropriate
behavior, but everyone can be a role model to positively
influence the ethical atmosphere. Send a positive message.
Communicate ethical expectations. Whenever you serve in a
leadership capacity, minimize ethical ambiguities by sharing a
code of ethics that states the organization’s primary values and
the judgment rules employees must follow. Provide ethical
training. Set up seminars, workshops, and training programs to
reinforce the organization’s standards of conduct, clarify what
practices are permissible, and address potential ethical
dilemmas. Visibly reward ethical acts and punish unethical
ones. Evaluate subordinates on how their decisions compare
with the organization’s code of ethics. Review the means as
well as the ends. Visibly reward those who act ethically and
conspicuously punish those who don’t. Provide protective
mechanisms. Seek formal mechanisms so everyone can discuss
ethical dilemmas and report unethical behavior without fear of
reprimand. These might include identifying ethical counselors,
ombudspeople, or ethical officers for liaison roles. A
widespread positive ethical climate must start at the top of the
organization.102 When top management emphasizes strong
ethical values, supervisors are more likely to practice ethical

2. leadership. Positive attitudes transfer down to line employees,
who show lower levels of deviant behavior and higher levels of
cooperation and assistance. Several other studies have come to
the same general conclusion: The values of top management are
a good predictor of ethical behavior among employees. For
example, one study involving auditors found perceived pressure
from organizational leaders to behave unethically was
associated with increased intentions to engage in unethical
practices.103 Clearly the wrong type of organizational culture
can negatively influence employee ethical behavior. Conversely,
ethical leadership has been shown to improve group ethical
voice, or the extent to which employees feel comfortable
speaking up about issues that seem unethical to them, through
improvements in ethical culture.104 Finally, employees whose
ethical values are similar to those of their department are more
likely to be promoted, so we can think of ethical culture as
flowing from the bottom up as well (Robbins & Judge, 2019).
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
Chapter 8
The Business of IT

3. The Horner/Alcoa Story
• High-performing tech worker—almost dismissed
as CIO
• What were the issues?
• What did they expect from him?
• What did he deliver at first?
• What change did he make to become more
valuable to Alcoa?
© 2016 John Wi ley & Sons, I nc. 3
The Alcoa lesson: Business Demands
• IT offerings need to be aligned with business
demands
• IT complexities should be translated to business
needs
© 2016 John Wi ley & Sons, I nc. 4
Merlyn’s Business-IT Maturity Model
© 2016 John Wi ley & Sons, I nc. 5

4. What a Manager Can Expect From
the IT Organization
A manager typically can expect some level of support in
14 core activities (Figure 8.2) – levels in parentheses
1. Developing and maintaining IS (1)
2. Managing supplier relationships (1)
3. Managing data, information, and knowledge (1, 2)
4. Managing Internet and network services (1, 2)
5. Managing human resources (1)
6. Operating the data center (1)
7. Providing general support (1)
© 2016 John Wi ley & Sons, I nc. 6
What a Manager Can Expect From
the IT Organization (Cont.)
8. Planning for business discontinuities (1)
9. Innovating current processes (2)
10.Establishing architecture platforms and standards. (2)
11.Promoting enterprise security (2)
12.Anticipating new technologies (3)

5. 13.Participating in setting and implementing strategic
goals (3)
14.Integrating social IT (3)
© 2016 John Wi ley & Sons, I nc. 7
What The IT Organization Does Not Do
• Does not perform core business functions such as:
• Selling
• Manufacturing
• Accounting.
• Does not set business strategy.
• General managers must not delegate critical
technology decisions.
© 2016 John Wi ley & Sons, I nc. 8
Chief Information Officer (CIO)
The Senior-Most IT Executive
• Responsible for technology vision
• Leads design, development, implementation, and
management of IT initiatives
• Is a business technology strategist or strategic

6. business leader
• Uses technology as the core tool in
• creating competitive advantage
• aligning business and IT strategies
© 2016 John Wi ley & Sons, I nc. 9
CIO’s Focus
• CIO’s focus has shifted:
• From efficiency to effectiveness in a constantly
changing/competitive marketplace
• Formerly: reported to the CFO. Now: reports to
the CEO.
• Shift over time towards helping executive team
formulate business strategy
© 2016 John Wi ley & Sons, I nc. 10
CTO, CPO, and Other Roles
• CIO Can’t have all skills—can’t know everything!

7. • Other roles are important:
• CTO: Chief Technology Officer (tracks technologies)
• CKO: Chief Knowledge Officer
• CDO: Chief Data Officer
• CAO: Chief Analytics Officer
• CTO: Chief Telecommunications Officer
• CNO: Chief Network Officer
• CRO: Chief Resource Officer
• CISO: Chief Information Security Officer
• CPO: Chief Privacy Officer
• CMO: Chief Mobility Officer
• CSMO: Chief Social Media Officer
© 2016 John Wi ley & Sons, I nc. 11
So Who Should Make the Decisions?
• Ross & Weill say
• The CEO should not make those decisions alone
• C-level executives should not even make those
decisions
• Input is needed from both IT and the business units
alike
• Steering (or Executive) Committee solution
© 2016 John Wi ley & Sons, I nc. 12
Building a Business Case -
Components

8. • Executive Summary
• Overview and Introduction
• Assumptions and Rationale
• Project Summary
• Financial Discussion and Analysis
• Benefits and Business Impacts
• Schedule and Milestones
• Risk and Contingency Analysis
• Conclusion and Recommendation
• Appendices
© 2016 John Wi ley & Sons, I nc. 13
© 2016 John Wi ley & Sons, I nc. 14
Sample of benefits in a business case
for adding chat function linked from Facebook page
Busy chat operators; busy Facebook page;
Customers seem happier
Sales improved by $250k; costs
decreased by $50k after change

9. Facebook page likes; number of chats;
Customer satisfaction scores moved from
3.3 to 4.1 (out of 5)
Converted 150 calls per day to chats;
reaching 200 more customers per day
© 2016 John Wi ley & Sons, I nc. 15
IT Portfolio Management
• IT investments should be managed as any other
investment.
• Evaluate and approve IT investments as they relate
to other potential investments of all kinds
• Goals:
• Pick the right mix of investments
• Invest in the most valuable IT initiatives
© 2016 John Wi ley & Sons, I nc. 16
Asset Classes
• Weill and Aral say that there are four asset classes
of IT investments:
• Transactional systems – systems that streamline or cut
costs on business operations.

10. • Informational systems – any system that provides
information used to control, manage, communicate,
analyze or collaborate.
• Strategic systems – any system used to gain competitive
advantage in the marketplace.
• Infrastructure systems – the base foundation or shared
IT services used for multiple applications.
© 2016 John Wi ley & Sons, I nc. 17
Average company’s IT portfolio profile
(See Discussion Question 4)
Transactional
13%
Infrastructure
54%
Informational
20%
Strategic
13%
46%

11. 25%
18% 11%
© 2016 John Wi ley & Sons, I nc. 18
Comparative IT portfolios for different business strategies
(See discussion question 4)
Valuing IT Investments
• Soft benefits, such as the ability to make future
decisions, make it difficult to measure the payback of
IT investment
• IT is expensive, thus under close scrutiny.
• IT is complex; calculating the costs is an art, not a science.
• Payback period for infrastructure is much longer than other
types of capital investments.
• With necessary systems (due to laws, etc.), the payback
period cannot be calculated
• Many valuation methods are available…
© 2016 John Wi ley & Sons, I nc. 20
Valuation Method Description
Return on Investment (ROI) ROI=

12. ������� −����������
����������
Net Present Value (NPV) Discount the costs and benefits for
each year of the
system’s lifetime using present value factor
1
1 + �������� ���� �����
Economic Value Added (EVA) EVA = net operating profit after
taxes
(capital x cost of capital)
Payback Analysis Time that will lapse before accrued benefits
overtake
accrued and continuing costs
Internal Rate of Return (IRR) Return of the IT investment
compared to the corporate
policy on rate of return
Weighted Scoring Methods Costs and revenues/savings are
weighted based on their
strategic importance, accuracy/confidence, other
opportunities
Financial Valuation Methods

13. © 2016 John Wi ley & Sons, I nc. 21
IT Investment Monitoring
• Old saying: “If you can’t measure it, you can’t
manage it”
• Management needs to achieve organizational
benefits from IT investments
• Must agree upon a set of metrics for monitoring IT
investments.
• Often financial in nature (ROI, NPV, etc.).
© 2016 John Wi ley & Sons, I nc. 22
The Balanced Scorecard
• Focuses attention on the organization’s value
drivers (which include financial performance).
• Assesses the full impact of corporate strategies on
customers and workforce, as well as financial
performance.
• Allows managers to look at a business from four
related perspectives:
© 2016 John Wi ley & Sons, I nc. 23

14. How do our
customers see
us?
At what must we
excel?
Can we continue
to improve and
create value?
How do we look
to shareholders?
The Four Balanced Scorecard perspectives
© 2016 John Wi ley & Sons, I nc. 24
The IT Balanced Scorecard
• Using it within the MIS department helps senior IS
managers
• Understand their organization’s performance
• Measure it in a way that supports its business strategy
• Linked to the corporate scorecard
• By ensuring that the measures used by IT are those that
support the corporate goals.
© 2016 John Wi ley & Sons, I nc. 25

15. IT Dashboards
• Snapshot of metrics at a given point in time (often
“right now”)
• Offer “at a glance” idea of how things are going
• Often colors depict conditions:
• Areas with problems (red)
• Areas in good shape (green)
• In-between or average (yellow)
© 2016 John Wi ley & Sons, I nc. 26
Sample Black & White Dashboard
© 2016 John Wi ley & Sons, I nc. 27
ITDashboard.gov
© 2016 John Wi ley & Sons, I nc. 28
Architecture for Dashboards
© 2016 John Wi ley & Sons, I nc. 29

16. Funding the IT department
• How are costs of design, development, delivery
and maintenance of IT systems recovered (or
simply covered)?
• Chargeback
• Allocation
• Corporate budget
• The first two are done for management reasons
• The latter covers costs using corporate coffers
© 2016 John Wi ley & Sons, I nc. 30
Funding
Method
Description Why do it? Why not do it?
Chargeback Charges are
calculated based
on actual usage
Fairest method for
recovering costs
since it is based on

17. actual usage
Must collect
details on usage;
often expensive
and difficult
Allocation Expenditures are
divided by non-
usage basis
(revenues, headcount, etc.)
Less bookkeeping
for IT
Users can
question rates &
basis of allocation
Free riders
Corporate
Budget
Corporate

18. allocates funds to
IT in annual
budget - to
general P&L
No billing to the
businesses.
No rates to
compute.
Encourages use of
new technologies.
Have to compete
with all other
budgeted items
for funds.
Potential for
overspending.
Comparison of IT funding methods
© 2016 John Wi ley & Sons, I nc. 31

19. How to Determine Cost
• Basic method: add up costs of hardware, software,
network, and people involved in IS.
• Real cost is not always easy to determine
• Remains a mystery for many firms
© 2016 John Wi ley & Sons, I nc. 32
Total Cost of Ownership (TCO)
• Has become the industry standard.
• Looks beyond initial capital investments to include
costs often forgotten. For example:
• technical support
• administration
• training
• Estimates total annual costs per user for each
potential infrastructure choice.
• Provide the best foundation for comparing to
other IT and non-IT investments.
© 2016 John Wi ley & Sons, I nc. 33
TCO Component Breakdown

20. • Shared components (servers and printers):
• TCO divided among all users who access each
• When only certain groups of users possess certain
components, segment the hardware analysis by
platform.
• Soft costs, such as technical support,
administration, and training are important to
include
© 2016 John Wi ley & Sons, I nc. 34
Soft Cost Areas Example Components of Cost Source
Technical support Hardware phone support Call center
In-person hardware troubleshooting IT operations
Hardware hot swaps IT operations
Physical hardware repair IT operations
Total cost of technical support
Administration Hardware setup System
administrator
Hardware upgrades/modifications System
administrator
New hardware evaluation IT operations
Total cost of administration
Training New employee training IT operations
Ongoing administrator training Hardware vendor

21. Total cost of training
Total soft costs for hardware
Figure 8.13 Soft cost considerations
© 2016 John Wi ley & Sons, I nc. 35
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
SUMMARY OF AN INTERVIEW 8
Interview on Changing Management Strategies
Sidney Shelton
LDR531
October 14, 2019

22. Dr. Wanda Moore
Interview on Changing Management Strategies
This paper focuses on a phone interview regarding the change of
management strategies in an organization. I selected a company
named XYX and requested an interview with one of the
company’s manager on this topic. I asked three questions to Mr.
X in order to help me understand what the impact of changing
managerial strategies are to an organization.
My first question was, “have you ever managed a group or team
in the changing of initiatives in your organization and what
where the advantages?” Mr. X stated that “change is very
important for an organization. When times change, so do
industries.” Mr. X had to update their company strategies in
order to keep up with those changes and to be more effective in
achieving their organizational goals. Sounds like Mr. X went
from using an autocratic style of leadership to more of a
democratic Style.
Per the second question, “what are the objectives and purpose of
these changes in managerial strategies?” Mr. X explained that
changes in managerial strategies are important because they will
help makes an organization focus on their current situation,
operations, and the performance of its employees. Changes in
managerial strategies also help to achieve the objectives and
goals of an organization. When an organization changes its
strategy, the structure must change as well (Robbins & Judge,
2019).
The third and final question, “what was the biggest challenge in
changing managerial strategies?” He told me his biggest

23. challenge faced was the lack of rapport between his employees
and senior management. This relationship is very important in
order to fuel the need for changing strategies and managerial
functions. If there is a large power-gap amongst both parties,
then this process will be difficult to apply in an organization
(Watson & Harris, 1996). Company XYX’s power-gap can be
reduced by motivating and encouraging their employees to
communicate with their managers.
References
Robbins, S. P., & Judge, T. A. (2019). Organizational behavior
(18th ed.). Retrieved from The University of Phoenix eBook
Collection database.
Watson, T., & Harris, P. (1996). Human resources are strategic
too: managerial career strategies, planned or realized?. Strategic
Change, 5(6), 311-321.