IT Strategic Business Partnership


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Case study of making IT a strategic business partner

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  • IT Strategic Business Partnership

    1. 1. Strategic Business Partnership Ayelet Baron WW Sales Strategy & Planning March 2003
    2. 2. Agenda Case Studies Strategies For Success Q&A About Cisco Becoming A Strategic Partner
    3. 3. About Cisco
    4. 4. History of Cisco Systems Started at Stanford IPO; 192 Employees End-to-End Solutions Provider Cisco Routers Power the Internet; LAN/WAN Switching, Remote Access #1 Communications Equipment Supplier Shipped First Router $18.9 Billion Revenue; 34,000 Employees; IP Telephony, Security, Wireless, Networked Home 1998 1984 1986 1990 1994 2002 2003
    5. 5. Cisco Products <ul><li>Industry’s broadest product line </li></ul><ul><li>Leadership products in each category </li></ul><ul><li>R&D = 16.9% of revenue </li></ul><ul><li>Enables end-to-end network services </li></ul>
    6. 6. Cisco Audience <ul><li>33,000+ employees in 68 countries </li></ul><ul><li>Average years of service 4.5 </li></ul><ul><li>1/3 Engineering/IT, 1/3 Sales, 1/3 all others </li></ul><ul><li>All connected to common Internet tools </li></ul><ul><li>Most are Cisco shareholders </li></ul>Presentation_ID © 2001, Cisco Systems, Inc. All rights reserved. Updated 01/04
    7. 7. Foundational Principles Profit Contribution Market Transitions Open Communication Empowerment Trust/Fair/Integrity/Giving Back Teamwork Drive Change Fun
    8. 8. CEC: Cisco Culture and Business Ownership Cisco University The New Cisco Employee Connection (CEC) – worlds coming together: Content, Tools, Communication and Technology
    9. 9. Executive Communication – Senior Leaders Are Seen and Heard <ul><li>Integrated media: </li></ul><ul><ul><li>IP/TV, Video on demand, email, portal support sites </li></ul></ul><ul><li>Consistent Message </li></ul><ul><li>Candid, Personal, & Open Communication </li></ul><ul><li>Posted Q&As </li></ul><ul><li>Benefit: Speeds Alignment & Results </li></ul>Video on Demand
    10. 10. Global Communication Portals Inform All Employees <ul><li>Consistent messaging to all employees </li></ul><ul><li>Customized, geographical content </li></ul><ul><li>Global self-authoring tools and standards </li></ul><ul><li>Geography-based dashboards </li></ul>
    11. 11. Multiple Role-based Portals for Varying Audience Needs <ul><li>Executive Dashboard </li></ul><ul><li>Managers Dashboard </li></ul><ul><li>Director and VP site for special programs </li></ul><ul><li>New Hire site </li></ul><ul><li>Organization-specific sites </li></ul>Benefit: Ensures access to information for each role and function
    12. 12. Key Cisco Frameworks © 2003 Cisco Systems, Inc. All rights reserved.
    13. 13. “ I’m never having kids. I hear they take nine months to download.”
    14. 14. Cisco’s Financial Benefit from IT Financial Impact FY ’95 FY ’03 FY ’96 FY ’97 FY ’98 FY ’99 FY ’00 FY ’01 FY ’02 <ul><li>Communications </li></ul><ul><li>Internal Directory </li></ul><ul><li>External Web Site </li></ul><ul><li>Support Self-Service </li></ul>$1B Departmental $3B <ul><li>Virtual Supply Chain </li></ul><ul><li>Online Collaborative Support </li></ul><ul><li>E-Treasury </li></ul>$1.9B $2.1B $1.7B Inter-Enterprise $2B <ul><li>E-Commerce </li></ul><ul><li>E-Procurement </li></ul><ul><li>E-Learning </li></ul><ul><li>E-HR </li></ul><ul><li>Virtual Close </li></ul>$900M Enterprise
    15. 15. Core and Context Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Contributes Directly to Competitive Advantage Required to run the business and fulfill commitments Shortfall risks company's operations
    16. 16. Out-Tasking Versus Out-Sourcing <ul><li>A whole function (IT) </li></ul><ul><li>Manage contract and SLAs </li></ul><ul><li>Separate IT Systems with reporting </li></ul><ul><li>Process redesign requires contract renegotiation </li></ul><ul><li>Elements of a function </li></ul><ul><li>Real time visibility and active management </li></ul><ul><li>Shared systems/web services; common data, network standards </li></ul><ul><li>Allows process redesign and continuous innovation </li></ul>© 2004 Cisco Systems, Inc. All rights reserved.
    17. 17. Investment and Partnering Strategy Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Invest Retain In-house Drive Productivity Strategic Partners (Few, Tightly Coupled) Focused Investment Specialist Partners Control Costs Vendor Management (SLAs Driven)
    18. 18. Relative Cisco Functional Out-Tasking Manufacturing Sales HR Finance % Out-Tasked © 2004 Cisco Systems, Inc. All rights reserved. 8712_09_2003 IT Customer Service <ul><li>Inside sales </li></ul><ul><li>Advertising </li></ul><ul><li>Lead qualification </li></ul><ul><li>Payroll processing </li></ul><ul><li>Travel </li></ul><ul><li>Investment Management </li></ul><ul><li>Temp contracting </li></ul><ul><li>Benefits admin </li></ul><ul><li>Global mobility </li></ul><ul><li>Desktop mgmt </li></ul><ul><li>Remote office WAN </li></ul><ul><li>E-commerce apps </li></ul><ul><li>Board manufacturing </li></ul><ul><li>Final assembly & test </li></ul><ul><li>Logistics & delivery </li></ul><ul><li>Level 1 help desk </li></ul><ul><li>Order admin </li></ul><ul><li>Field logistics & repair </li></ul>
    19. 19. Becoming A Valued Partner
    20. 20. What is A Strategic Business Partner? Business Alignment Strategy Process Change Agent Trusted Advisor Productivity Customer, Employee and Shareholder Value
    21. 21. Necessary Transition Order Taker <ul><li>Respond to requests </li></ul><ul><li>Fire fighting role </li></ul><ul><li>Not invited to the strategic discussions </li></ul><ul><li>Responsible for tools and vehicles </li></ul><ul><li>Focus on achievement of function objectives </li></ul>Trusted Advisor <ul><li>High business impact </li></ul><ul><li>Viewed as a partner in success or failure—skin in the game </li></ul><ul><li>Data-driven </li></ul><ul><li>Leverages process </li></ul><ul><li>Risk taker </li></ul><ul><li>Provides business solutions </li></ul>© 2003, Cisco Systems, Inc. All rights reserved. Change Agent Language Relationships Business Impact
    22. 22. Roadmap Set It up Right Prove the Value Get Invited Create the vision, determine the approach and get the right people on board Show success through bottom line results Be there when the strategy & initiatives are decided and scoped Change the Way You Work <ul><li>Gradually educate and communicate across various levels of the organization </li></ul><ul><li>Create business metrics, targets and incentives to achieve desired results </li></ul>© 2003, Cisco Systems, Inc. All rights reserved.
    23. 23. Case Study #1 Collaborative Problem Resolution
    24. 24. Business Problem Inconsistent global methodology to identify, prioritize and address complex business problems resulting in inefficiency, productivity loss and lack of cross-functional teaming, and issues not getting resolved Our Opportunity: Having the methodology in place to solve complex, cross functional business issues in a short window of time © 2003, Cisco Systems, Inc. All rights reserved.
    25. 25. WW CPR Team <ul><li>Committed Business Sponsors (3) </li></ul><ul><li>Cross-functional representation </li></ul><ul><li>Global team </li></ul><ul><li>Directors/Senior Managers </li></ul><ul><li>Experimented with the methodology, while creating it </li></ul><ul><li>Piloted in APAC </li></ul>© 2003, Cisco Systems, Inc. All rights reserved.
    26. 26. What is the Collaborative Problem Resolution (CPR) Process? <ul><li>Collaborative Problem Resolution (CPR) is a problem-solving methodology, enabling business leaders to address complex, business challenges quickly </li></ul><ul><li>It produces better and faster business decisions by: </li></ul><ul><ul><li>Focusing on tangible business results , including productivity and profitability </li></ul></ul><ul><ul><li>Engaging sponsors who are committed to action </li></ul></ul><ul><ul><li>Identifying the right people —geographically and organizationally </li></ul></ul><ul><ul><li>Eliminating redundancy by focusing on prioritized issues </li></ul></ul><ul><ul><li>Develop breadth and depth of leadership </li></ul></ul>© 2003, Cisco Systems, Inc. All rights reserved.
    27. 27. Key Elements of CPR The 4P’s P latform P roblem P rocess P eople
    28. 28. Key Components of CPR Identifying the Right Problems to Focus on the Highest Prioritized Business Challenges <ul><ul><li>Business issue is identified as one of the top 5 for WW Sales, the Theatre, Country or area with a committed sponsor </li></ul></ul><ul><ul><li>Project has the highest business impact for Cisco </li></ul></ul><ul><li>Participants bring some domain expertise with an understanding of the business challenge and possible </li></ul><ul><li>solutions </li></ul><ul><li>Participants are passionate about addressing the issue </li></ul><ul><li>Participants are stretched by the project </li></ul><ul><li>SLDP participants and other high potentials </li></ul><ul><li>Small core team for each project – process should allow flexibility for different team sizes </li></ul><ul><li>Executive sponsor (for active guidance; roadblocks; VP+ level) </li></ul><ul><li>Business partner (for day-to-day engagement; Dir+ level) </li></ul><ul><li>Extended team to include functional analytical support </li></ul>Getting the Right People Organized in the Right Way is Key © 2003, Cisco Systems, Inc. All rights reserved.
    29. 29. Key Strategic Drivers Results and People Should Be Showcased at the Right Platforms <ul><li>Global Platforms </li></ul><ul><li>SVP Quarterly Staff meetings </li></ul><ul><li>Business Sector Councils </li></ul><ul><li>Executive councils </li></ul><ul><li>Chambers’ senior staff </li></ul><ul><li>Theatre Platforms </li></ul><ul><li>Theatre Staff Meetings </li></ul><ul><li>Theatre Ops Reviews </li></ul><ul><li>Creating a global and local governance process </li></ul><ul><li>Prioritizing and tracking the top business issues and their resolution </li></ul><ul><li>Using a consistent framework and methodology to identify and resolve business issues </li></ul><ul><li>Integrating the process in how we do business at Cisco </li></ul>Getting the Right Process in Place that Can Be Leveraged and Scaled Globally is Critical © 2003, Cisco Systems, Inc. All rights reserved.
    30. 30. CPR Benefits © 2003, Cisco Systems, Inc. All rights reserved. <ul><li>CPR Enables Teams to Focus on the Most Important Issues identified with executive involvement </li></ul><ul><ul><li>Ensures engagement and commitment from executive management </li></ul></ul><ul><ul><li>Provides a showcase opportunity </li></ul></ul><ul><li>CPR Clears the Path for Complex Problem Resolution </li></ul><ul><ul><li>CPR tools—structured brainstorming, idea prioritization and action plan development—are ideal for making improvements </li></ul></ul><ul><ul><li>Deploying CPR teams on these problems saves time by identifying the systemic problems requiring resolution </li></ul></ul><ul><li>CPR Leverages Internal Cross-functional Knowledge </li></ul><ul><ul><li>CPR taps into our internal knowledge by having cross-functional representation on key issues </li></ul></ul><ul><ul><li>CPR teams provide the ideal vehicle for engaging those who must live with the solution through ownership and accountability for results. Nothing cuts through resistance to change faster than results </li></ul></ul><ul><li>CPR engages Leaders to Build Improvement Priorities </li></ul><ul><ul><li>CPR helps align leadership teams on priorities for decision-making and execution </li></ul></ul><ul><ul><li>CPR should help sort out the &quot;mountain vs. foothills&quot; opportunities before resources are committed </li></ul></ul>
    31. 31. Business Problem Checklist <ul><li>Relevant? Top 5? </li></ul><ul><li>Incremental value-add to audience? </li></ul><ul><li>Focused? </li></ul><ul><li>Quantifiable results? </li></ul><ul><li>Not duplicative? </li></ul><ul><li>Crisp Recommendations? </li></ul><ul><li>Implemented for FY04? </li></ul><ul><li>Do-it, or clean hand-off? </li></ul>© 2003, Cisco Systems, Inc. All rights reserved.
    32. 32. Case Study #2 Cisco IT
    33. 33. Cisco’s IT Evolution <ul><li>IT works independently of business </li></ul><ul><li>Seeing as non value adding </li></ul><ul><li>IT seen as “high” cost </li></ul><ul><li>Focus on technical performance </li></ul>IT as Cost Center CFP& ERP Internet Enabler Outcome Defined Trusted Business Partner Value Creation Proactive Reactive 2000 1997 1993-95 1991 IT Supports Business Strategy IT Enables New Capabilities and Roles Business Value <ul><li>Supports business strategy </li></ul><ul><li>IT seen as a support process </li></ul><ul><li>Focus on Return on Investment </li></ul><ul><li>Supports and enhances business strategy </li></ul><ul><li>IT seen as a critical process </li></ul><ul><li>Focus on cycle time, cost reduction, service quality </li></ul><ul><li>Enables business strategy and integral part of the business </li></ul><ul><li>Effective use and leverage of technology and “virtual” resources </li></ul><ul><li>Focus on Shareholder value </li></ul>
    34. 34. Business Challenge <ul><li>From : A service delivery organization… </li></ul><ul><li>To : A Consultative Business Partner offering: </li></ul><ul><ul><li>Strategic Solutions </li></ul></ul><ul><ul><li>A Catalyst for Change </li></ul></ul><ul><ul><li>Technology Leadership </li></ul></ul><ul><ul><li>Breakthrough Productivity </li></ul></ul>
    36. 36. IT Strategic Plan <ul><li>Taking Partnerships to New Heights </li></ul><ul><li>The Way We Work </li></ul><ul><li>Leading Internet Capabilities </li></ul><ul><li>Ongoing Assessments </li></ul><ul><li>Cascading Workshops </li></ul><ul><li>Ongoing Engagement </li></ul><ul><li>Internal Communication Capability </li></ul><ul><li>Cross-functional Team: IT & Business </li></ul><ul><li>Online solutions: IT & Cisco </li></ul><ul><li>Ongoing Communication </li></ul><ul><li>IT Senior Staff </li></ul><ul><li>Internal Clients </li></ul><ul><li>IT: 75 Interviews Worldwide </li></ul><ul><li>Strategic Off-site </li></ul>Stages Transform Implement Plan & Engage Assess 1999 2002 2000 Focus & Investment
    37. 37. Client Feedback IT Performance vs. Business Need Example 0.8 0.9 0.7 1.1 0.8 1.0
    38. 38. Change Readiness Assessment—Internal Key Risk Areas <ul><li>Strong belief that IT senior staff supports the changes we need to make </li></ul><ul><li>Some concern about IT senior staff sharing common goal around Business Partnership </li></ul><ul><li>Caution around leadership by example - walking the talk </li></ul><ul><li>Management has a history of losing focus on important projects when other problems or issues compete for its attention </li></ul><ul><li>Failure to involve middle managers in planning change has resulted in their indifference and opposition to initiatives </li></ul><ul><li>Managers in past changes said they supported a change but their behavior often suggested the opposite </li></ul><ul><li>Employees understanding of how Cisco’s business goals translate into specific things they can do in their jobs </li></ul><ul><li>In deciding to support a change, people do what they think will please their boss rather than what is best for Cisco </li></ul><ul><li>There will be some difficulty in explaining BP to employees </li></ul><ul><li>Communication in IT is open and candid </li></ul><ul><li>IT’s usage of rewards, measurement and other processes to communicate its seriousness and signal a change </li></ul><ul><li>A compelling reason to change has not been clearly communicated </li></ul><ul><li>Employees will not easily understand the costs associated with not implementing BP </li></ul><ul><li>Employees expect change to happen at Cisco </li></ul><ul><li>Employees will not be motivated to achieve Business Partnership </li></ul><ul><li>Employees will need to be invested in the new way of operating </li></ul><ul><li>Employees will not feel a sense of control in implementing Business Partnership </li></ul><ul><li>BP will be regarded as requiring employees to make substantial changes to their own day-to-day activities </li></ul><ul><li>Employees do not have the assimilation capacity for Business Partnership </li></ul><ul><li>IT Senior Staff has the skills and abilities to execute and deliver Business Partnership </li></ul><ul><li>Managers already possess Business Partnership skills </li></ul><ul><li>Employees already possess Business Partnership skills </li></ul><ul><li>Employees have the skills and abilities they need to accomplish this change </li></ul>S P O N S O R S H I P RESISI TANCE COMMUNICAT ION SKI LLS
    39. 39. Internal Assessment Risk Area: Sponsorship IT Senior Staff ... IT Senior Staff Supports This Change... Example
    40. 40. Behavior Change Commitment <ul><li>Awareness </li></ul>Understanding Translation Commitment Internalization
    41. 41. Communication Plan <ul><li>IT Connection </li></ul><ul><li>IT e-Communities </li></ul><ul><li>IT Client Portal </li></ul><ul><li>Best Practice Website </li></ul><ul><li>Meetings & Off-sites </li></ul><ul><li>Chats with CIO </li></ul><ul><li>Manager Weekly e-alert </li></ul><ul><li>Meeting-in-a-Box </li></ul><ul><li>Client Feedback </li></ul><ul><li>MBO Alignment </li></ul><ul><li>Quarterly IT Business Partnership Award  IT Champion Award </li></ul><ul><li>Performance Reviews </li></ul><ul><li>CAP Awards </li></ul><ul><li>Training Program </li></ul><ul><li>IT Communication Function  Centralized company-wide </li></ul><ul><li>Training for Sr. Staff </li></ul><ul><li>Delivery of BP Workshops </li></ul><ul><li>Quarterly IT All-Hands/IPTV </li></ul><ul><li>Sr. Staff Meetings </li></ul><ul><li>Management Staff Meetings </li></ul><ul><li>Chats with CIO </li></ul><ul><li>CIO Corner </li></ul><ul><li>IT Connection </li></ul><ul><li>Sr. Staff Forums </li></ul><ul><li>BP Team </li></ul>SYSTEMS/PROCESSES MEDIA LEADERSHIP
    42. 42. IT Connection Mission <ul><ul><li>IT Connection will become the number one business communication tool in supporting IT through knowledge sharing and innovative methods of increased productivity across geographic boundaries, creating a collaborative environment of informed and interdependent IT employees </li></ul></ul>
    43. 43. IT Connection Roadmap <ul><li>Leadership </li></ul><ul><li>IT Senior Staff engagement in e-business efforts in IT </li></ul><ul><li>IT Portal becomes an every day mindset/expectation—how we work </li></ul><ul><li>Technology </li></ul><ul><li>Flexible application and data architecture for quick delivery </li></ul><ul><li>Scalable infrastructure </li></ul><ul><li>Portal software </li></ul><ul><li>Integration of disparate DBs </li></ul><ul><li>Governance </li></ul><ul><li>Clear MBOs/metrics that drive execution </li></ul><ul><li>Dedicated resources </li></ul><ul><li>Identify overlap </li></ul><ul><li>Competency </li></ul><ul><li>Ruthless execution on “quick hits” </li></ul><ul><li>Globalization of e-business solutions and team </li></ul><ul><li>Speed and agility in opportunity </li></ul>
    44. 44. Collaborating Across IT
    45. 46. Client Satisfaction Mean 4.2 Mean 3.8
    46. 47. Success Strategies
    47. 48. Partnership Model <ul><li>Situation analysis/Change Readiness Assessment </li></ul><ul><li>Gap analysis </li></ul><ul><li>Global team </li></ul><ul><li>Identify quick wins </li></ul><ul><li>Leadership buy-in </li></ul><ul><li>Define sponsor roles </li></ul><ul><li>Strategic direction </li></ul><ul><li>Benefit analysis </li></ul><ul><li>Best practice sharing—integrate </li></ul><ul><li>Change management &communication plan </li></ul><ul><li>Establish metrics </li></ul><ul><li>Get buy-in </li></ul><ul><li>Set up teams </li></ul><ul><li>Deliver plan </li></ul><ul><li>Identify new needs </li></ul><ul><li>Monitor results </li></ul><ul><li>Assess business results </li></ul><ul><li>Integrate and leverage </li></ul>Sponsorship & Communication Where are we now? Where do we want to be? How will we get there? Who must do what? How are we doing?
    48. 49. Engagement Model Business Partnership is a relationship of mutual trust and influence built on shared ownership of and complementary contributions to business results Ensure Successful Implementation Assess Business Needs & Gaps Identify key Initiatives Leverage Resources Create Actionable Game Plans
    49. 50. The New Agenda <ul><li>Create value-added business change – not simply support how we do business </li></ul><ul><li>View your clients as the business and the customers—how do we help make them more effective? </li></ul><ul><li>The outcome of communication is more aligned strategy and business results </li></ul><ul><li>Communication is not just another support organization that takes orders—it has earned the right to be a key driver of the business </li></ul>
    50. 51. Questions to Consider <ul><li>If your team were freed </li></ul><ul><li>from what you are doing now, </li></ul><ul><li>what could you do to align and increase your impact on the business? </li></ul>
    51. 52. Questions to Consider <ul><li>What does your team do today </li></ul><ul><li>that you would be willing to surrender, </li></ul><ul><li>provided you were assured </li></ul><ul><li>the work would be handled correctly? </li></ul>
    52. 53. “… chance favors only the prepared mind.” — Louis Pasteur FY’04 FY’05 FY’06 FY’07
    53. 54. Q and A © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID