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Removing the “I” from IT
“An outside-in look at IT as a Customer Service organization”
Keynote Speaker:
Lorenzo C. Hines, Sr.
1
CIO Summit 2015
Opening An Outside-in Look At IT
November 2015
2
The CIO Role – Past and Present An Outside-in Look At IT
• Past – CIOs reported to the COO/CFO (had not
meaningful power)
• Was expected to just keep the lights on
• Present – CIOs are now beginning to have a seat at
“the Big Table” with the other C-level executives
• Expected to be innovative
• Expected to increase revenue/sales/customer base
• Expected to help increase market share
• This plays a significant role in the mindset of the IT
team
• The systems are not IT’s, they are the business
• IT does not own the systems, we are just the keepers
• We are partners with and consultants to the business, not the overseer of
the business
November 2015
3
The Numbers Don’t Lie An Outside-in Look At IT
The Numbers Don’t Lie
• $1.9B in implemented projects go unused annually
• 27% of all projects are not fully utilized by the biz
• 37% of business system users say IT implements
projects without consulting them/their department
• 62% of business system users say they feel like IT
exists in a bubble
• 57% of business system user wish IT would
communication more/better
• 35% of IT executives say they do not consistently
deliver key projects on time
November 2015
*Derived from PEW Research May 2015
4
Food For Thought An Outside-in Look At IT
November 2015
"We can't solve
problems by using the
same kind of thinking we
used when we created
them."
- Albert Einstein
5
Management / IT Disconnects An Outside-in Look At IT
November 2015
6
• Disaffection with IT
– Lack of rapid evolution to technology trends that effect the
business
– Platform “pacing” problems
– Awareness of outsourcing trends and shadow technology
– Profitability pressures
• Renewed interest in IT
– Organizational size and complexity
– Competitive pressures
– Regulatory influences
Definition: Inside-Out Mindset An Outside-in Look At IT
• A “We-will-tell-you-what-is-best-for-you” value
proposition
• Broadcast a message to the business that we
know best
• Subconsciously, push-based thinking
November 2015
7
Problems with inside-out thinking An Outside-in Look At IT
For the Business—
• I (the business) have to do all the work to connect to and
with IT
• I (the business) am the problem and IT is here to save me
• I (the business) do not know what is best for me even
though I am the one that uses the system everyday
For the company—
• Departments are not working together which causes:
• Lost opportunity to leverage company knowledge
• Business units to spend less time on customers and more time on systems issues
• Lost opportunity to increase revenue and customer base
• Increased finger pointing when issues come up
• Individuals working harder than necessary because of lack of team work
• Decrease in employee moral
• Take longer to get new products to market
• Waste and inefficiencies add cost to the system
November 2015
8
Definition: Outside-In Mindset An Outside-in Look At IT
• A “We-understand-your-concerns; lets-work-
together-to-make-it-better” value proposition
• Broadcast a messages that IT is your partner, not
your impediment to success
• Consciously pull-based thinking
November 2015
9
The Benefits of Outside-In Thinking An Outside-in Look At IT
For the business—
• IT helps me opt in or opt out (and I appreciate
that)
For the company—
• Our message really stands out; people are listening
• Better quality systems and shorter development
cycles
• Higher margins in solving their problems
For IT—
• More gain with less pain
November 2015
10
Results of Becoming Business-Driven IT Organization An Outside-in Look At IT
November 2015
11
Increased overall customer satisfaction scores by 20%
Increased issue resolution satisfaction rate to 95%
Reduced process defects by 40% for major account
Established a Customer Loyalty Index for Ricoh leadership
Improved customer experience based on feedback from call
center employees
Reduced employee frustration by empowering employees to
have a voice
The Results of Ricoh’s Change in Philosophy
Source: June 15, 2014 “Study conducted by Ricoh Company Ltd”, Forrester report.
Technology Trends An Outside-in Look At IT
November 2015
12
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
13
Source: October 5, 2015 Gartner Group Report
7
2016 Technology Trends An Outside-in Look At IT
November 2015
14
Source: October 5, 2015 Gartner Group Report
7
2016 Technology Trends An Outside-in Look At IT
November 2015
15
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
16
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
17
Source: October 5, 2015 Gartner Group Report
7
2016 Technology Trends An Outside-in Look At IT
November 2015
18
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
19
Source: October 5, 2015 Gartner Group Report
7
2016 Technology Trends An Outside-in Look At IT
November 2015
20
Source: October 5, 2015 Gartner Group Report
7
2016 Technology Trends An Outside-in Look At IT
November 2015
21
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
22
Source: October 5, 2015 Gartner Group Report
2016 Technology Trends An Outside-in Look At IT
November 2015
23
Source: October 5, 2015 Gartner Group Report
An Outside-in Look At IT
Success in this new world will only occur
when we have a change in our mindset
November 2015
New Customer-Driven Technology Age
24
Top 10 IT Success Drivers An Outside-in Look At IT
November 2015
25
Leading & Managing An Outside-in Look At IT
November 2015
26
Leading & Managing An Outside-in Look At IT
November 2015
27
IT Leadership vs. Management
• Two entirely different concepts …
• Leadership qualities …
– Vision
– Communication & personality
– Relationship building
• IT has a seat at the senior management table
• Can influence the company’s ecosystem
– Cost side focus
– Economy driven
– Driven by thoughtful investment
• Can sell innovation and new ideas
• Does NOT emphasize IT management
Leadership
Identifying change and influencing others
to change
Management
Execution and control
IT Departments Must Evolve An Outside-in Look At IT
November 2015
Source: October 5, 2012 “The Evolution of IT Leadership”, Forrester report.
28
Grouping the Remaining 9 Drivers … An Outside-in Look At IT
November 2015
29
Building the Right IT Organization … An Outside-in Look At IT
November 2015
30
Building the Right IT Organization … An Outside-in Look At IT
November 2015
31
• Elimination of organization by platform, skill set, etc.
• Process-based work – organizing IT resources around
cradle-to-grave business and IT processes
• Adoption of strategic sourcing model …
– Not to save money
– Rather, to offload select IT effort of a low strategic focus
– Helps IT to be more agile & responsive to the firm
• Embed a portion of remaining IT into the Practice
Groups
• Remainder of IT assumes the following roles:
– Participation in Demand-Side IT functions
– Management of IT processes
– Liaison with sourcing and embedded resources
– Primary focus on business and practice innovation
New IT Organization Trends …
Building the Right IT Organization … An Outside-in Look At IT
November 2015
32
Illustration of New IT Model …
Business
Innovation
Delivering
Change
Supporting
Infrastructure
Outsourced to
External Service
Providers
Embedded in
the Practice
Groups
Traditional IT
Responsibilities
Source: The Gartner Group
Communicating IT Performance … An Outside-in Look At IT
November 2015
33
Communicating IT Performance … An Outside-in Look At IT
November 2015
34
Perception vs. Reality of Value
• Two stories about value
• Who has a better grasp on value:
– The motorist or the rancher?
– The engineer or the company?
• The value of an IT-based initiative can only be
effectively measured if:
1. The business case for its IT Portfolio inclusion agreed to the
value measurements “up front”
2. The measurements are actually taken and assessed
3. A feedback loop is created for the IT Governance Council
Communicating IT Performance … An Outside-in Look At IT
November 2015
35
Perspectives on Value & Benefit …
• Measurements must be practical
• Plain and simply communication along three lines:
– Technical benefit (in pedestrian terms)
– Business benefit (top or bottom line oriented)
– Shareholder benefit (client business volume, profit per
shareholder, etc.)
Communicating IT Performance … An Outside-in Look At IT
November 2015
36
• Two sets of IT performance indicators or scorecards
• Vetted by IT Governance Council
• Type 1: IT indicators might include:
– Basic operational performance statistics
– System availability measures
– IT support performance indicators
– Service level effectiveness
– Delivered projects index (on-time, on-budget)
– IT cost ratios (function of P&L)
• Type 2: Business value indicators (tied to Business Maxims)
IT Performance Dashboard Concept …
An Outside-in Look At IT
November 2015
37
Summary of Action Items to Consider …
• Tune the focus of your IT leadership (vs. management)
• Take a fresh pass at understanding the firm’s business
• Initiate Business & IT maxim preparation efforts
• Identify IT initiatives where Business & IT maxims converge
• Recast your firm’s governance model
• Prepare and evolve a living IT Portfolio
• Repurpose the IT organization with above in mind
• Implement ITIL (or something like it)
• Extend risk management outside the IT boundary
• Measure and communicate the value of IT on a perpetual basis
An Outside-in Look At IT
November 2015
38
An Outside-in Look At IT
November 2015
39
An Outside-in Look At IT
November 2015
CUSTOMER CENTRIC TECHNOLOGY SERVICES
Outside-In: Revolutionary Customer First Thinking For The Next Generation Of IT
40
Lorenzo C. Hines, Sr.
Lorenzo@LorenzoHines.org
(469) 879-0406

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Removing the “I” from IT

  • 1. Removing the “I” from IT “An outside-in look at IT as a Customer Service organization” Keynote Speaker: Lorenzo C. Hines, Sr. 1 CIO Summit 2015
  • 2. Opening An Outside-in Look At IT November 2015 2
  • 3. The CIO Role – Past and Present An Outside-in Look At IT • Past – CIOs reported to the COO/CFO (had not meaningful power) • Was expected to just keep the lights on • Present – CIOs are now beginning to have a seat at “the Big Table” with the other C-level executives • Expected to be innovative • Expected to increase revenue/sales/customer base • Expected to help increase market share • This plays a significant role in the mindset of the IT team • The systems are not IT’s, they are the business • IT does not own the systems, we are just the keepers • We are partners with and consultants to the business, not the overseer of the business November 2015 3
  • 4. The Numbers Don’t Lie An Outside-in Look At IT The Numbers Don’t Lie • $1.9B in implemented projects go unused annually • 27% of all projects are not fully utilized by the biz • 37% of business system users say IT implements projects without consulting them/their department • 62% of business system users say they feel like IT exists in a bubble • 57% of business system user wish IT would communication more/better • 35% of IT executives say they do not consistently deliver key projects on time November 2015 *Derived from PEW Research May 2015 4
  • 5. Food For Thought An Outside-in Look At IT November 2015 "We can't solve problems by using the same kind of thinking we used when we created them." - Albert Einstein 5
  • 6. Management / IT Disconnects An Outside-in Look At IT November 2015 6 • Disaffection with IT – Lack of rapid evolution to technology trends that effect the business – Platform “pacing” problems – Awareness of outsourcing trends and shadow technology – Profitability pressures • Renewed interest in IT – Organizational size and complexity – Competitive pressures – Regulatory influences
  • 7. Definition: Inside-Out Mindset An Outside-in Look At IT • A “We-will-tell-you-what-is-best-for-you” value proposition • Broadcast a message to the business that we know best • Subconsciously, push-based thinking November 2015 7
  • 8. Problems with inside-out thinking An Outside-in Look At IT For the Business— • I (the business) have to do all the work to connect to and with IT • I (the business) am the problem and IT is here to save me • I (the business) do not know what is best for me even though I am the one that uses the system everyday For the company— • Departments are not working together which causes: • Lost opportunity to leverage company knowledge • Business units to spend less time on customers and more time on systems issues • Lost opportunity to increase revenue and customer base • Increased finger pointing when issues come up • Individuals working harder than necessary because of lack of team work • Decrease in employee moral • Take longer to get new products to market • Waste and inefficiencies add cost to the system November 2015 8
  • 9. Definition: Outside-In Mindset An Outside-in Look At IT • A “We-understand-your-concerns; lets-work- together-to-make-it-better” value proposition • Broadcast a messages that IT is your partner, not your impediment to success • Consciously pull-based thinking November 2015 9
  • 10. The Benefits of Outside-In Thinking An Outside-in Look At IT For the business— • IT helps me opt in or opt out (and I appreciate that) For the company— • Our message really stands out; people are listening • Better quality systems and shorter development cycles • Higher margins in solving their problems For IT— • More gain with less pain November 2015 10
  • 11. Results of Becoming Business-Driven IT Organization An Outside-in Look At IT November 2015 11 Increased overall customer satisfaction scores by 20% Increased issue resolution satisfaction rate to 95% Reduced process defects by 40% for major account Established a Customer Loyalty Index for Ricoh leadership Improved customer experience based on feedback from call center employees Reduced employee frustration by empowering employees to have a voice The Results of Ricoh’s Change in Philosophy Source: June 15, 2014 “Study conducted by Ricoh Company Ltd”, Forrester report.
  • 12. Technology Trends An Outside-in Look At IT November 2015 12 Source: October 5, 2015 Gartner Group Report
  • 13. 2016 Technology Trends An Outside-in Look At IT November 2015 13 Source: October 5, 2015 Gartner Group Report 7
  • 14. 2016 Technology Trends An Outside-in Look At IT November 2015 14 Source: October 5, 2015 Gartner Group Report 7
  • 15. 2016 Technology Trends An Outside-in Look At IT November 2015 15 Source: October 5, 2015 Gartner Group Report
  • 16. 2016 Technology Trends An Outside-in Look At IT November 2015 16 Source: October 5, 2015 Gartner Group Report
  • 17. 2016 Technology Trends An Outside-in Look At IT November 2015 17 Source: October 5, 2015 Gartner Group Report 7
  • 18. 2016 Technology Trends An Outside-in Look At IT November 2015 18 Source: October 5, 2015 Gartner Group Report
  • 19. 2016 Technology Trends An Outside-in Look At IT November 2015 19 Source: October 5, 2015 Gartner Group Report 7
  • 20. 2016 Technology Trends An Outside-in Look At IT November 2015 20 Source: October 5, 2015 Gartner Group Report 7
  • 21. 2016 Technology Trends An Outside-in Look At IT November 2015 21 Source: October 5, 2015 Gartner Group Report
  • 22. 2016 Technology Trends An Outside-in Look At IT November 2015 22 Source: October 5, 2015 Gartner Group Report
  • 23. 2016 Technology Trends An Outside-in Look At IT November 2015 23 Source: October 5, 2015 Gartner Group Report
  • 24. An Outside-in Look At IT Success in this new world will only occur when we have a change in our mindset November 2015 New Customer-Driven Technology Age 24
  • 25. Top 10 IT Success Drivers An Outside-in Look At IT November 2015 25
  • 26. Leading & Managing An Outside-in Look At IT November 2015 26
  • 27. Leading & Managing An Outside-in Look At IT November 2015 27 IT Leadership vs. Management • Two entirely different concepts … • Leadership qualities … – Vision – Communication & personality – Relationship building • IT has a seat at the senior management table • Can influence the company’s ecosystem – Cost side focus – Economy driven – Driven by thoughtful investment • Can sell innovation and new ideas • Does NOT emphasize IT management Leadership Identifying change and influencing others to change Management Execution and control
  • 28. IT Departments Must Evolve An Outside-in Look At IT November 2015 Source: October 5, 2012 “The Evolution of IT Leadership”, Forrester report. 28
  • 29. Grouping the Remaining 9 Drivers … An Outside-in Look At IT November 2015 29
  • 30. Building the Right IT Organization … An Outside-in Look At IT November 2015 30
  • 31. Building the Right IT Organization … An Outside-in Look At IT November 2015 31 • Elimination of organization by platform, skill set, etc. • Process-based work – organizing IT resources around cradle-to-grave business and IT processes • Adoption of strategic sourcing model … – Not to save money – Rather, to offload select IT effort of a low strategic focus – Helps IT to be more agile & responsive to the firm • Embed a portion of remaining IT into the Practice Groups • Remainder of IT assumes the following roles: – Participation in Demand-Side IT functions – Management of IT processes – Liaison with sourcing and embedded resources – Primary focus on business and practice innovation New IT Organization Trends …
  • 32. Building the Right IT Organization … An Outside-in Look At IT November 2015 32 Illustration of New IT Model … Business Innovation Delivering Change Supporting Infrastructure Outsourced to External Service Providers Embedded in the Practice Groups Traditional IT Responsibilities Source: The Gartner Group
  • 33. Communicating IT Performance … An Outside-in Look At IT November 2015 33
  • 34. Communicating IT Performance … An Outside-in Look At IT November 2015 34 Perception vs. Reality of Value • Two stories about value • Who has a better grasp on value: – The motorist or the rancher? – The engineer or the company? • The value of an IT-based initiative can only be effectively measured if: 1. The business case for its IT Portfolio inclusion agreed to the value measurements “up front” 2. The measurements are actually taken and assessed 3. A feedback loop is created for the IT Governance Council
  • 35. Communicating IT Performance … An Outside-in Look At IT November 2015 35 Perspectives on Value & Benefit … • Measurements must be practical • Plain and simply communication along three lines: – Technical benefit (in pedestrian terms) – Business benefit (top or bottom line oriented) – Shareholder benefit (client business volume, profit per shareholder, etc.)
  • 36. Communicating IT Performance … An Outside-in Look At IT November 2015 36 • Two sets of IT performance indicators or scorecards • Vetted by IT Governance Council • Type 1: IT indicators might include: – Basic operational performance statistics – System availability measures – IT support performance indicators – Service level effectiveness – Delivered projects index (on-time, on-budget) – IT cost ratios (function of P&L) • Type 2: Business value indicators (tied to Business Maxims) IT Performance Dashboard Concept …
  • 37. An Outside-in Look At IT November 2015 37 Summary of Action Items to Consider … • Tune the focus of your IT leadership (vs. management) • Take a fresh pass at understanding the firm’s business • Initiate Business & IT maxim preparation efforts • Identify IT initiatives where Business & IT maxims converge • Recast your firm’s governance model • Prepare and evolve a living IT Portfolio • Repurpose the IT organization with above in mind • Implement ITIL (or something like it) • Extend risk management outside the IT boundary • Measure and communicate the value of IT on a perpetual basis
  • 38. An Outside-in Look At IT November 2015 38
  • 39. An Outside-in Look At IT November 2015 39
  • 40. An Outside-in Look At IT November 2015 CUSTOMER CENTRIC TECHNOLOGY SERVICES Outside-In: Revolutionary Customer First Thinking For The Next Generation Of IT 40 Lorenzo C. Hines, Sr. Lorenzo@LorenzoHines.org (469) 879-0406