Chapter 6 6-1©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall 6-2 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall 6-3 Traditional and hierarchical IT organization is now in retreat, and there is a growing recognition that IT organizations must do a better job of inculcating leadership behaviors in all their staff. ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall Top-Line Focus – New technologies and applications drive the enterprise to differentiation and transformation strategies to deliver top line growth. Strong IT leadership teams are needed to take on roles to influence business leaders. 6-4 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall Credibility – IT must consistently deliver on results. IT must demonstrate the skills and competencies to deliver what it says it will do. 6-5 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall Impact – IT staff must have stronger organizational perspectives, decision- making, entrepreneurialism, and risk- assessment capabilities at lower levels because even small IT decisions can have a major impact on the organization. 6-6 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall Flexibility – IT staff and organizations are expected to be responsive to changing business needs. IT staffs must be proactive, have strong technical skills and the ability to quickly act in the best interests of the organization when the need arises. 6-7 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall Complexity – IT is expected to offer change and innovation leadership, low- cost services and lead the way through ever changing new technology opportunities. 6-8 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall New Technology – Staffs are increasingly mobile and their interactions with their managers are mediated by technology. New technologies change how information is acquired and disseminated, how communication takes place, how people are influenced and decisions made. 6-9 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall • Self-knowledge • Awareness of individuals approaches to work • Adapt to different situations ••• ••• •• Personal Mastery • Motivation & team building • Collaboration & communication • Risk assessment & problem solving • Coaching & mentoring •• •• •• •• Leadership Skill Mastery 6-10 ©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall 6-11 • Strategic Vision • Solid understanding of current operations • Solid understanding of future direction •• •• •• Business Understanding • Ability to Execute Enterprise Transformation • Ability to Integrate Technology with People & Processes • Political Savvy & Effective Use of Governance Structures ••• •• •• Organizational Understanding ©© 20155 Pearson Educat.

1. Chapter 6
6-1©© 20155 Pearson Education, Inc. . Publishing as Prentice
Hall
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6-2
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6-3
Traditional and hierarchical IT
organization is now in retreat, and there is
a growing recognition that IT
organizations must do a better job of
inculcating leadership behaviors in all their
staff.
©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall
Top-Line Focus – New technologies and
applications drive the enterprise to
differentiation and transformation
strategies to deliver top line growth.
Strong IT leadership teams are needed to
take on roles to influence business

2. leaders.
6-4
©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall
Credibility – IT must consistently deliver
on results. IT must demonstrate the skills
and competencies to deliver what it says
it will do.
6-5
©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall
Impact – IT staff must have stronger
organizational perspectives, decision-
making, entrepreneurialism, and risk-
assessment capabilities at lower levels
because even small IT decisions can have
a major impact on the organization.
6-6
©© 20155 Pearson Education, Inc. . Publishing as Prentice Hall
Flexibility – IT staff and organizations
are expected to be responsive to changing
business needs. IT staffs must be
proactive, have strong technical skills and

3. the ability to quickly act in the best
interests of the organization when the
need arises.
6-7
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Complexity – IT is expected to offer
change and innovation leadership, low-
cost services and lead the way through
ever changing new technology
opportunities.
6-8
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New Technology – Staffs are
increasingly mobile and their interactions
with their managers are mediated by
technology. New technologies change
how information is acquired and
disseminated, how communication takes
place, how people are influenced and
decisions made.
6-9
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4. • Self-knowledge
• Awareness of individuals
approaches to work
• Adapt to different situations
•••
•••
••
Personal
Mastery
• Motivation & team building
• Collaboration & communication
• Risk assessment & problem
solving
• Coaching & mentoring
••
••
••
••
Leadership
Skill Mastery

5. 6-10
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6-11
• Strategic Vision
• Solid understanding of current
operations
• Solid understanding of future
direction
••
••
••
Business
Understanding
• Ability to Execute Enterprise
Transformation
• Ability to Integrate Technology with
People & Processes
• Political Savvy & Effective Use of
Governance Structures
•••

6. ••
••
Organizational
Understanding
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6-12
Create an environment of:
• Trust
• Accountability
• Empowerment
Creating a
Supportive
Working
Environment
• Ability to concentrate on
biggest payoff areas
• Recognize where resources
should not be used
• Enhance people’s abilities
•••

7. •••
•••
Effective Use
of Resources
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6-13
• Know where and how to
exercise leadership
• Adjust style to suit the situation
•••
••
Flexibility of
Approach
• Ability to articulate contributions in
business terms
• Ability to interact with business
leaders
• Ability to educate and guide business
leaders in the use of technology
••••
••••

8. •••
Ability to Gain
Business
Attention
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Commanding –
“Do What I Tell You”
Pacesetting –
“Do as I Do Now”
Visionary –
“Come with Me”
Affiliate –
“People come First”
Coaching –
“Try This”
Democratic –
“What do You Think”

9. 6-14
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6-15
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Well articulated and instantiated values
A climate of trust
Empowerment
Clear and frequent communication
Accountability
6-16
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Activities such as planning, budgeting,
conflict resolution, service delivery, and
financial reviews should be well defined
and documented.
Establish job rotations and mentoring
programs.
6-17

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Can be internally developed or externally
purchased.
Requires a time commitment to ensure
staff can take advantage of training.
Training is perceived as a tool for helping
individuals make their best contributions
and achieving success.
6-18
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Elements of value can be achieved by implementing
a leadership program that asks:
What is the value?
Who will deliver the value?
When will the value be realized?
How will the value be delivered?
6-19
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11. Senior IT leaders must make IT
leadership development a priority if IT is
going to contribute to business strategy.
Management must take a comprehensive
approach to integrate culture, behavior,
processes, and training to deliver business
value.
6-20
STUDENT'S JOURNAL ENTRY
As I progressed in this class I tried applying what I was
learning to the world around me and open my eyes to things I do
not see or take for granted. I never really considered myself part
of the dominant group as I felt separate from it growing up
homeschooled in a Romanian immigrant community. Looking
back in retrospection I now that I have benefited from being
white in ways I never even realized. By learning how others
have struggled to gain access to treatment I never had to think
twice about was eye opening.
I look white and have no accent, therefore there is
nothing to set me apart from the dominant white culture around
me. I never realized I was no different from them in their
perspective but also from the perspective of other immigrants
and minorities. I can relate to the struggle to fit in and find a
place in society because in my childhood we were different. We
had an accent, dressed differently, and were poor. However, I
could not relate to how difficult it is for others to assimilate
because as we lost our accents and entered the middle class the
dominant group practically invited us in with open arms.
I have opened my eyes to things I’ve never seen and
see how much further we have to go to create a truly open and
fair society. There is so much injustice around us that I have
never seen before and I feel ashamed for my lack of empathy for

12. those around me.
Just to illustrate how blind I was to racism I have a
little story. I have a Hispanic girlfriend, she is a Mexican
immigrant in fact. Before taking this class she would
occasionally express frustration with how she and her family
were treated by hospital and school officials in her
neighborhood. At the time I processed this as just people having
a misunderstanding and that my girlfriend was probably
overreacting. However as I started learning what racism in
America really looks like, and that its not just hillbillies in
pointy hats I began to notice things I never thought about.
I could see how my girlfriend would sometimes get
different service in a negative way that was racially motivated. I
finally understood why she wanted me to go with her to certain
places like the DMV or car dealerships. She has been talked
down to by others because see is a Mexican immigrant. As my
eyes opened to her plight I saw how different her immigration
story was to mine. I asked her about the time she spent in Texas
where she said her family was the most mistreated by whites. I
understood why she had angst towards the idea of visiting my
family in Tennessee because she is somewhat traumatized by
her childhood experience of crossing into a new land and being
mistreated and seen as a second class person because she was
different.
In hindsight I even noticed while taking this class that
my treatment has changed because of her. Looking back at dates
I have had in previous relationships I would occasionally
receive sloppy service but always just assumed it was an
overworked waiter, or just a grumpy one. Looking back at my
current relationship there has definitely been considerable spike
in bad service. I noticed more events where we would receive
less attention that I was normally accustomed too. I do not want
to over exaggerate, this is not a constant occurrence, however
when comparing past relationships to this one there is a real
tangible increase in bad service and in the number of times a
waiter or waitress would pay less attention to my table than I

13. was use too. The funny thing is that when I brought this up to
my girlfriend she said that unlike me she noticed a considerable
increase in her level of service since we started dating.
I never noticed this because I thought when people
were racist against interracial couples that it would be more
vocal and vulgar. I assumed it would be blatant because that is
what I thought racism looked like. Now I see that the prejudice
that leads to racism is much more intricate and subtle in most
people. I think most people casually discriminate in a passive
way. That is why most people cannot identify it when it happens
all around them. I think in general we need to be more tolerant
and understanding. I think we culturally lack compassion and
blind ourselves to the plight of others because we assume
everyone has the same opportunities we do. I now see that is not
the case, and I am glad to be able to apply what I have learned
to see the things that used to be unseen by my eyes. I hope to
keep these eyes open and hopefully do my part to build the type
of society I’d want to live in. One that is as open and fair as can
be made, where every person has equal opportunities to build
their dreams.
Instruction:
1. Please read the three articles. (Takaki Chapter 8&10&11)
2. Please choose some of the topics covered in each chapter,
provide a brief summary (2-3 sentences) of those topics.
3. Then add your reflections, insights, or relevant experiences,
etc. to help illustrate or expand upon the course.
4. This journal should be at least 400 words.
Lesson 3
1-1

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as Prentice Hall
Chapter 7
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Hall
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Hall 7-3
“collaborative strategy in which a subset of
existing business functions are concentrated
into a new, semi-autonomous business unit
that has a management structure designed to
promote efficiency, value generation, cost
savings, and improved service for the internal
customers of the parent corporation, like
a business competing in the open
market.”(Bergeron 2003)

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Hall 7-4
Involves more than just centralization or
consolidation of similar activities in one
location.
Must embrace a customer orientation.
Sufficient management discretion and
autonomy must exist within this type of
organization.
Must be run like a business in order to
deliver services to internal customers.
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Hall 7-5
Shared services promise:
Parent organization’s perspective
Reduce cost and improve services.
Reduce distractions from core activities.
Potentially create an externally focused
profit center.
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Hall 7-6
Shared business unit’s perspective
Increased efficiencies
Decreased personnel requirements
Improved economics of scale

16. Professionalism
Uniformity of service
Personnel development
Control
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Hall 7-7
Shared business unit’s perspective
Becoming a disruption to the service flow
Moving work to a central location thereby
creating wasteful handoffs, rework, and /
or duplication
Instilling an “us” versus “them” mentality
within the provider-consumer relationship
Lengthening the time it takes to deliver a
service
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Hall 7-8
Additional costs associated with
bureaucracy
Loss of control experienced by
independent business units
An increased communication burden
Extraordinary one-time costs at start-up
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17. Hall
The push for shared services can come
from IT or the business.
Motivations from the business are for
example:
-- Become a “globally integrated
enterprise”
-- Outsource noncore activities
7-9
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Hall
Motivations from IT are for example:
-- Cost savings and/or control
-- Drive agility
-- Create a rationalized and simplified
application portfolio
“The differences between the business
vision for shared services and the IT vision,
unless aligned, is a recipe for disaster”
7-10

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Hall 7-11
Business Unit Business Unit Business Unit
Security Mgmt
Usage Mgmt
SLA Mgmt
Security Mgmt
Server Mgmt
Storage Mgmt
Desktop Mgmt
Network Mgmt
Multi-Tenant
Business Services
Common Business
Service Delivery
Processes
Common Supporting
IT Infrastructure

19. Components
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Hall
Create a transparent process for goal
alignment:
The centralization process alone should
produce sufficient economy of resources
(i.e., IT goal) to enable enhanced quality
of services (i.e., business goal).
7-12
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Hall
Develop a comprehensive investment
model:
-- These investment models require sophistication,
understanding, and a commitment from the business
as well as IT to make it work.
-- “Shared services model is a viable option when the
savings from reduction in staffing are greater than
the added overhead of creating a management
structure to run the shared business unit.”
7-13

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Hall
Redraft the relationship with the business:
A customer service orientation must therefore be
instilled within the shared services organization to
guarantee satisfaction of the client remains the key
goal.
“Shared services model must build ”internal sales and
marketing” competencies, which require resources
focused on communicating with current and
prospective customers.
7-14
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Hall
A shared service model for IT arises from
the desire of business for a more
customer-centric and responsive IT
organization.
IT shared services model can satisfy IT
and business goals but key challenges
arise during the development and
implementations of the shared service.
7-15