20150929 Playbook Transformational IT Run IT as a Business
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Presentation from the first Run IT as a Business Meetup Your CIO decides to build a transformational IT organization. Now what? This playbook explains how to understand the corporate needs, set expectations, balance your budget, look critically at your team, and set the execution plan to achieve objectives.
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20150929 Playbook Transformational IT Run IT as a Business
- 1. WELCOME Run IT as a Business
- 2. Why we are here –Your CIO will think aboutThe Matrix CoreContext Mission Critical Non-Mission Critical Outsource! Out-task! Out-task! Our challenge is to ensure we spend as much of our scarce resources on core as possible, and as little on context
- 3. Who is in the room? 1. In IT, or not, vendor, partner, friend? 2. Industry? 3. Describe your IT organization Additional info: http://www.meetup.com/Run-IT-as-a-Business-South-Bay https://www.linkedin.com/grp/home?gid=6990103 Contact inf0: Paul Hoekstra paul@hoekstraconsulting.com Phone: 408 537 3416 9/30/2015 3
- 4. Today’s Agenda ▪ ITTransformation – a Playbook 45 min ▪ Ask any question at any time ▪ A word from Computer Associates, our host 10 min ▪ Your floor:What is on your mind- ask the room a question As long as it takes ▪ What subject would make you come back? 5 min ▪ Drinks and networking Till 8pm 9/30/2015 4
- 5. My Main Influencers 9/30/2015 5 Michael Hammer Clayton Christensen Alfred Korzybski
- 6. ITTransformation – a Playbook 29 September 2015
- 7. “CIOs must make IT a strategic differentiator, or perish.” Randall Spratt, EVP CIO & CTO McKesson “ATransformational CIO drives business performance.” Ramón Baez. SVP and Global CIO HP “ We need to shatter the delineation between the business and IT. IT is the business and the business is IT.” Janet Sherlock SVP & CIO Carter’s “In this new era of computing, the role of the CIO has never been more strategic.” Jeanette Horan, Managing Director IBM “Business leaders today must disrupt or be disrupted ~ to drive ideas to cast fast” Ashwin Ballal,VP & CIO KLA- Tencor Corporation “Leading and innovating in the C-suite and into the boardroom is key for any transformational CIO.” Hunter Muller President & CEO HMG Strategy LLC “It’s not about technology. It’s about how your business uses technology to win.” Roger Gurnani EVP & CIOVerizon Does this describe your CIO? (or the one you want to work for / be?) 9/30/2015 7 Note:Quotes from http://www.hmgstrategy.com
- 8. When you choose to become aTransformational CIO Pragmatically, do you have: ▪ A plan for your journey? ▪ Are the right people in the right place? ▪ Do you understand and have agreement on the expectations the customers, partners, board, executives, peers and employees have of your IT department? ▪ Mitigation for corporate and security risks? We have developed and proven: ▪ The maturity model to assess where you are ▪ The building blocks which can be adjusted and prioritized to meet your immediate and longer term needs 9/30/2015 8
- 9. Corporate Needs The Outside – In perspective Standard, Commodity Services Business Process Support Product / Service Delivery Network, communication, employee productivity / support, storage, IS security Support all value flows with integrated CRM, ERP (order, finance, HR), business intelligence. Excludes Engineering Productivity typically Highly scalable, highly available production support Revenue generation Drive out operational ineffectiveness and inefficiencies Provide infrastructure aligned with culture. 10% cost reduction / year Corporate Need Employee productivity and IT foundation Minimize inefficiency and ineffectiveness Deliver product / service to customers IT Service (Solution) KeyValue Driver Business Impact 1 2 3 Digital Transfomational companies All Companies 9/30/2015 9
- 10. The expectations are set NowWhat? A Pragmatic Framework forChange A. Corporate Needs B. Create Runway C. Right people D. Execute 9/30/2015 10
- 11. Maturity Model 9/30/2015 11 Stable Strategic Alignment No surprises • Outages within SLA • Budget control • Data Governance • Know what you’re working on • Align with the other functions • Cross functional roadmaps • Joined experiments (e.g. mobile apps, big data, social) • Internal Operational Excellence • KTLO 10% cost reductionYoY • IT is key component of setting and executing corporate strategy • Enables lean business operations • Enables company growth through alliance networks Whole Enterprise Functions IT Board Executive Internal IT
- 12. Elements needed to focus and deliver 9/30/2015 12 Agree on Needs, developVision Right People Create Runway Execute Describe in simple terms what the corporation and it’s customers need from IT Get the right people on the bus – Focus on the right targets, mindset, skills, beliefs Go through the maturity levels fast, deliberate, experiment, learn, adjust, keep the focus, transparent metrics, formalize to get economy of scale Agree with your boss on a multi year roadmap to assure support for the journey A B C D
- 13. Understand the Needs of the Corporation, Growth and it’s Customers Define the Needs, Alternatives to meet them, Set Direction, Articulate what you Enable Standardize on low cost devices Strategy: Minimize Cost Strategic Differentiator to be perceived as cutting edge attracting top talent Strategy: Employees supported with Cutting Edge technology Illustrative Understand the strategic importance of each IT Service • Engage with various levels in the other functions to understand needs and come to agreement on mutual expectations • Cost structure shifts Set the financial, operational, cultural direction early 13 Example of Choices to be Made: Employee Devices A OUTCOME ExecutiveVision statement on ITValueContribution
- 14. 9/30/2015 14 Converge Voice, Video & Social Network BRINGING DIVERSE SOLUTIONS TOGETHER Voice telepresence Video and Voice converge Content Delivery Oracle Video Platform Oracle Social Networking Social Networking Over the next 2+ years, Global IT expects: • Conversion of all video end points to all connect to all internal and external • Voice and video to further converge up to the point where each user will have only one unique ID • We also expect the video solution to integrate with Oracle social network Conference Rooms ExampleVideo Service
- 15. Create Runway ▪ Multi year roadmap ▪ Take accountability: Set direction with measurable checkpoints along the way ▪ Fiscally sound ▪ Headcount strategy and plan ▪ Vendor strategy and plan ▪ Steering Committee ▪ Cross functional focus ▪ Gain and maintain trust, mutual accountability ▪ Articulate how changes will be incorporated: pro-actively ▪ Experiments to be run, hypotheses to be tested ▪ Balance the financial, customer, internal business processes, learning and growth perspectives 9/30/2015 15 B OUTCOME Executive buy-in on multi-year journey
- 16. “Companies get the IT Organization they deserve.” Mark Sunday,Oracle CIO Chaos Order Alignment Strategic Financial Surprises Predictable 10% cost reduction on standard services. Measurable ROI on changes Investment in differentiating capabilities Perception other functions Never commit objective with a dependency on IT Slow, technical, but doesn’t break it all the time IT is key partner in delivering functional objectives IT is a key to the survival of the company Ability to execute Late, over budget, poor quality Predictable. Order takers Deliver on roadmaps Operational Excellence Culture Fire fighters Operators / Order Takers Enablers Drivers Employee satisfaction Low Split Excited Passionate, volunteer time Leadership Depending on critical few Focus on IT effectiveness Shoulder to shoulder with other functional leaders Deliver differentiators Measurements Excel, ad hoc Operational, IT centric Linked to other functions Contribution to revenue, margin, market perspective Systems Systems, what systems? Key processes formalized and supported by central system All IT processes supported by central system Expanding systems into other functions, partners, customers Meet Corporate needs? No Some Operationally Strategically Where are you (to be)? 9/30/2015 16
- 17. Right People ▪ Define a culture that drives the new philosophy ▪ Your workforce is key stone – Assess and make decisions fast. Doubters will kill momentum ▪ Put the best talent where change needs to happen ▪ Don’t be afraid to move people on ▪ Pull from proven frameworks and tools like ITSM and ServiceNow ▪ Invest in alignment with your financial department Be crisp - ▪ Build performance management system directly linking the rewards to the objectives ▪ Articulate the evaluation criteria for each role ▪ People that feel uncomfortable, probably should be uncomfortable 9/30/2015 17 C
- 18. Execute ▪ Translate multi-year into quarterly themes ▪ Set aggressive, realistic financial, customer, internal business process, learning and growth objectives ▪ Implement a routine to review metrics, ▪ Move deliberatly towards required service levels ▪ Drive the right operational and cultural changes ▪ Celebrate reaching concrete measures ▪ Assure results are visible to corporation, customers and employees 9/30/2015 18 D Learning and Growth Vision and Strategy Financial Internal Business Processes Customer
- 19. IT Maturing Path OrderAlignmentStrategic Learning and Growth Vision and Strategy Financial Internal Business Processes Customer Learning and Growth Vision and Strategy Financial Internal Business Processes Customer Learning and Growth Vision and Strategy Financial Internal Business Processes Customer • Regulatory Compliance • Business Relationship Management • Employee Productivity • Service Catalog • Forecast & Cost Control • Asset & License compliance • Budget cycle • Stabilize: Incident, issue, change, problem management • Demand insight: Request mngt, service roadmaps • Standardize operations • Human Capital: Org Design • Information Capital: Centralize and formalize operational systems • Organizational Capital: culture, leadership, team • Business prioritized resource allocation • Increase asset utilization • Supplier optimization • Business prioritized resource allocation • Increase asset utilization • Supplier optimization • Human Capital: company critical vs. outtask vs outsource. Career paths • Information Capital: centralize and optimize financial, customer, HR systems • Organizational Capital: 100% alignment with IT visions and strategy • Human Capital: career paths • Information Capital: centralize and optimize financial, customer, HR systems • Organizational Capital: 100% alignment with corporate visions and strategy 9/30/2015 19 Vision and Strategy: Establish solid foundation. Right people in the right place, engage, control, fundamentals in place Partial example Vision and Strategy: Change the conversation to jointly deliver high value to customers Vision and Strategy: IT is key element of setting and realizing the corporate vision and strategy
- 20. ForwardlookingBackwardlooking Program/Project planning & execution Service Cycle Steering Committees consist of Service Owners and Core team. Decides on allocation of budget and workforces. Escalation path for teams, monitors progress Service capabilities formalize those initiatives making a significant impact on the CSF and service metrics. Allows for technology as well as operational focused. All deliverables needed to create value are defined Roadmaps reflect GIT’s commitment to deliver new and improvements to services (attributes) Build Run Stakeholder Advisory Council Operational Reviews FY13 Budget / HC Prioritized Services Strategic Service Reviews Service Transition and PMO Approved new items and changes Roadmap Desired Future State Service Capability Monitoring Definition, transition, implementation / deployment of new or enhanced Service Capabilities Realized benefits of projects Financial, Customer, Operational performance. Capacity and Availability Service Metrics
- 21. Which subject would make you come back? Topic Description Building a business focused service strategy function How to capture the needs of the corporation in a service catalog, build a strategy and implement Business application innovation, leveraging Lean IT to create value Removing waste in the business processes through innovative implementation of business systems DevOps, a cultural challenge Not the tool, but the culture is your roadblock! M&A integration. Models and applicability IT supports cross functional and is in a unique position to lead during integration. What is the approach depends on the type of integration Cloud Strategy How your business needs drive your cloud strategy Leverage tool implementation like ServiceNow to drive organizational change How to leverage process automation to drive operational change The finances of IT Follow the money – how do you get a good handle on your budget, forecast, actuals? Employee devices and support on steroids How to support the corporate culture through employee productivity tools and devices
- 23. Need to Solution Kickoff Event • Value Case • Stakeholder approval and commitment of resources to clarify requirements, look at options Design Commit • Specific stakeholder use scenarios, business requirements, and success measures validated • Non-functional (e.g. Security, Audit, Compliance, IT Ops) requirements understood; confirm no showstoppers • Commitment to invest in selecting and designing a solution based on a projected cost and schedule (still a major course correction available downstream) Need Stakeholder identifies a need or opportunity. IT consults with Stakeholder(s) to lay out value to be realized, and discuss field of options Clarify Requirements Stakeholder and IT Team defines specific needs and outcomes – Use Scenarios, Business Requirements & Success Measures – while preparing the project plan Approve Design Team designs the To-Be Solution (people, process, technology). Stakeholders participate in demos, prototyping & functional design while IT ensures architectural fit, supportability, compliance Build & Accept Solution Solution is built and tested to specification while the organization prepares for the change (e.g. documentation, training, support prep). Stakeholders (Business and IT) accept the solution before it is approved to Go- Live Build Commit • Solution Design approved, after having been validated to meet success criteria and for architectural fit, supportability and compliance • Commit to build & deploy solution Deploy & Stabilize Solution is deployed and made stable in production, priority stakeholder issues are resolved Value Value assessed by Stakeholder(s) and IT according to success measurement plan and leveraging IT Service Management processes; additional actions may be taken in order to meet success criteria. Project Close Event • Functionality working according to specification • Priority Stakeholder issues resolved or on path to resolution • Organization ready for transition to regular production support • Approved success measurement plan in place Go-Live Readiness & Go-Live • Solution accepted by Stakeholders • Documentation in place and Stakeholder(s) trained • Post Go-Live support process, resources in place • Solution approved for and then deployed to Production (Go-Live) Need Value Clarity Requirements Approve Design Build & Accept Solution Deploy & Stabilize Needs expressed in business outcomes Detailed definition of deliverables by tollgate (expectation) WeeklyTollgate meetings Weekly status reporting • Project, scope, timeline, resources • Risks and Issues • Plan (Milestones and detailed steps) Short escalation path