accelerating transformation hmg - pa

Accelerating Transformation…. with Data

Driving Decisions with Data

HMG Palo AltoPresented by: Matt Mandich, Director

Innovation & Strategy

Info-Tech Research Group 2Info-Tech Research Group 2

A Story….

Billy’s Key Metric

On Base

Percentage


IT’s Key Metric: Return on Business SatisfactionValue Driven Improvement

Innovator - Transforms the BusinessReliable Technology Innovation

90-100% Satisfaction

Business Partner - Expands the BusinessEffective Execution on Business Projects, Strategic

Use of Analytics and Customer Technology

80-90% Satisfaction

Trusted Operator - Optimizes the BusinessEffective Fulfillment of Work Orders, Functional

Business Applications and Reliable Data Quality

70-80% Satisfaction

Firefighter - Supports the BusinessReliable Infrastructure and IT Service Desk

60-70% Satisfaction

Unstable - Struggles to SupportInability to Provide Reliable Business Services

<60% Satisfaction


Lets explore 3 of our Programs & How it affects Your decision making

Focus Area Audience N Count

CIO Business Vision

Stakeholder Satisfaction

• Business Leaders/ Business Divisions

Management & Governance

IT Team Capability &

Effectiveness• IT Team Leaders &

Practitioners 2,500+ IT Staff

Members

29,000+ Business Leaders

CEO/ CIO Alignment

IT/ Business Alignment • 2 Survey’s - CEO/ CIO 250+ CEOs

Business SatisfactionFindings from CIO Business Vision


How Effective is the Process You Use to Measure and ManageBusiness Stakeholder Satisfaction?

Our process is fairly ad hoc. Typically we use conversations

in the hallway or ad hoc meetings” – CIO

“Understanding the business’s needs is important to us like

breathing, but it isn’t something we really have a lot of

processes around” – CIO

“We don’t really have much in place” – CIO


The Overwhelming Majority Of IT Departments Do Not Achieve More Than 80% Satisfaction from the Business

0%

2%

4%

6%

8%

10%

12%

14%

3.75 4 4.25 4.5 4.75 5 5.25 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 9.75 10

73% of firms have an Overall

Satisfaction score between

6.0 and 8.0

Just 16% of firms

score above 8.0 in

Overall Satisfaction

11% of firms score

lower than 6.0 in

Overall Satisfaction

Average Score: 7.4


Wide Ranges in IT Performance

Relationships Satisfaction

71%

71%

70%

Needs

Execution

Communication

Satisfaction

74%

Net IT Support Score: Satisfaction Percentage

+30%

Net IT Support Score: Value Percentage

-2%

Value

72%

Service*Business

Importance Satisfaction Range

Network Infrastructure 1 75% 45% - 91%

Service Desk 2 79% 48% - 95%

Devices 5 75% 56% - 92%

Work Orders 8 75% 45% - 93%

Business Applications 3 72% 41% - 90%

Data Reliability 4 72% 47% - 89%

IT Policies 11 71% 43% - 91%

Projects 10 71% 40% - 91%

Requirements Gathering 12 69% 43% - 94%

Analytical Capability 6 67% 42% - 86%

Customer Facing

Technology7 66% 47% - 83%

Innovation Leadership 9 66% 39% - 93%


More Mature IT Departments Have Drastically Higher Satisfaction Levels

Date Driven

Insight:

Progression up

Info-Tech’s

operating model

tower means

improvement

across every core

service. However,

largest differences

are observed in

work orders

fulfillment, project

satisfaction, and

innovation

leadership.

Most IT departments

score very similarly in

Device Satisfaction.

Service Desk is a

high-scoring core

service at all levels.

Significant variance in

Innovation Capability

and Project Satisfaction


IT Departments in Large Organizations achieve Lower Satisfaction, likely due to Higher Stakeholder Expectations

79%

69%

77%

71%

78%

70%

78%

73%73%

66%

73%

68%

60%

64%

68%

72%

76%

80%

Devices Innovation Leadership Work Orders IT Projects

Co

re S

erv

ice

Sa

tis

fac

tio

n

Date Driven

Insight

Large organizations are the least satisfied due to the

heightened expectations at large firms and the complexity

of managing large-scale IT environments.


Business Leaders Misjudge Which Services Really Matter to Them

Network Infrastructure

Service Desk

Business Applications

Data Quality

Devices

Analytical Capability

Client-Facing Technology

Work Orders

Innovation Leadership

Projects

IT Policies

Requirements Gathering

Projects

Work Orders




Service Desk




Data Quality

IT Policies

Devices

Data Driven Insight:Rethink your priorities; invest

in services with the highest

return on IT satisfaction.

Projects, work orders, and

innovation leadership drive IT

satisfaction.

Ensure projects deliver value, remain on

budget, and finish on time.

Data needs to be good, but truly

spectacular data may go unnoticed.

Investing in state-of-the-art devices won’t

significantly bolster satisfaction.

11

10

12

1

2

4

5

8

9

7

6

3

11

10

12

1

2

4

5

8

9

7

6

3

Info-Tech Business Vision Survey

N = 21,367

Achieve fast turnaround on work requests.

Reported Importance Actual Importance*

Overrated Services Underrated Services


Provide the Right Level of Core Service….but Focus on the Services that Drive Business Satisfaction

Ov

era

ll IT

Sa

tis

fac

tio

n

Satisfaction in Core IT Services

10

9

8

7

6

5

44 5 6 7 8 9 10

Projects

Work Orders


Business Applications Requirements Gathering

Service Desk

Client Facing Technology



Data Quality

Devices

IT Policies

Establishing IT Value

IT Value Threshold

*Created Based on

Correlation Coefficients


Business Leaders below the Executive Level Undervalue IT Innovation, Data Quality, and Customer-facing Technology


Service Desk


Data Quality

Devices


Work Orders

Client-Facing

Technology


Projects

IT Policies



Data Quality


Service Desk




Devices

Projects

Work Orders

IT Policies


Management Level Executive Level

Date Driven

Insight

There is a much larger disconnect between Executives and Manager than

between Managers and their Direct Reports, particularly with regards to Work

Orders and Devices.


Identifying and Serving the Needs of Shadow IT Factions Can Bolster Overall IT Satisfaction

Those among the

“Shadow IT Factions”

are 13% less satisfied

with Project Execution

and Availability than

those among the

Complying Majority.

“Lost-Cause Outliers”

are no more dissatisfied

with IT than their

Shadow IT Faction

counterparts; their more

blatant disregard for IT

policy is not explained

statistically.

Data Driven Insight:

Target the needs of shadow IT factions. The majority of shadow IT is driven by a subset of dissatisfied

individuals with similar complaints. Ask what IT needs to do to meet their needs, and mobilize to enable them.


Building Relationships with Business Stakeholders is a Key Driver Of Overall Satisfaction and Perceived Value

Ove

rall

IT

Sa

tis

fac

tio

n

Perceived Value of IT

Firefighters Operators Innovators

Relationships are 24% stronger

among Innovators than Operators.

Operators score a 71% average

in relationship satisfaction.

Relationships are 22% weaker

among Firefighters than Operators.


N = 21,367

Data Driven Insight:Invest in building

relationships with your

stakeholders.

Stronger relationships will

drive improved satisfaction

across all IT services.

CEO-CIO AlignmentFindings from the Office of the CEO


CEOs And CIOs Rarely See Eye To Eye

of CIOs/CEOs are not aligned on IT’s

current performance49%

67%

are somewhat misaligned

of CIOs/CEOs are unclear on

the target role for IT

33%

34% are highly misaligned


Many CIOs Overestimate the Size of their Next IT Budget

Increase

16–30%

Increase

> 30%

Increase

6–15%

Increase

1–5%

Decrease

1–5%

Increase

16–30%

Increase

6–15%

Increase

1–5%

Decrease

1–5%

Decrease

6–15%

CIO Expectation CEO Expectation

CIOs Accurately

Estimated

CIOs

Overestimated

CIOs

Underestimated

43% of CIOs

overestimate the

size of their next

budget.

23% of CIOs are too

conservative and

underestimate their

future IT budget


CIOs frequently have a stronger appetite for Transformational IT than their CEOs

66% of CEOs don’t

want IT to transform

the business.

38% of CIOs aim

higher than their CEO

wants them to.

We asked CIOs and CEOs to “describe the role of IT in your organization in the future.”

17%

34%57%

26%

19%

42%

5%

% of CIO Respondents % of CEO Respondents

Date Driven Insight:

Come to consensus on what your CEO expects from you. Operating under the false expectation that IT should

strive for innovation can result in wasted resources and unwanted spending.


When does your CEO want involvement?

Frequency IT Strategy IT BudgetingIT Project

Funding

Major IT

Project Review

IT Quality

Management

Vendor

Management

IT Risk

Assessment

Annually 29.2% 55.8% 34.2% 9.2% 28.3% 25.8% 51.7%

Semi-annually 31.7% 20.0% 25.0% 23.3% 30.0% 14.2% 20.0%

Quarterly or

more

frequently

37.5% 22.5% 32.5% 64.2% 29.2% 7.5% 21.7%

Less than

annually1.7% 0.8% 2.5% 2.5% 7.5% 21.7% 5.8%

Never 0.0% 0.8% 5.8% 0.8% 5.0% 30.8% 0.8%

CEOs want to be frequently

involved in IT project planning.

Failure to involve

your CEO in IT

budgeting is risky.

Your CEO may not

want to be involved in

vendor management.


CEOs And CIOs Are Aligned On What IT Issues Impede Innovation…

0

1

2

3

4

5

6

7

Legacy SystemsOverhaul

PoorCommunication

IT StaffResistance

BusinessUnderstanding(IT Leadership)

IT LeadershipResistance

CIO CEO

We asked: “How significant of a barrier to IT-enabled Innovation are the following IT issues?”

IT B

arr

ier

Sig

nif

ica

nc

e

Largest

barrier

Data Driven

Insight:CEOs and CIOs

generally agree on IT

barriers. There is very

high alignment

between CEO and CIO

barrier significance

averages.

Data Driven

Insight:CEOs do not perceive

IT leaders as

resistant. IT leaders

have demonstrated

willingness to improve

and deliver value.

Smallest

barrier


CEOs/ CIOs are Highly Misaligned On What Business Barriers Impede Innovation

0

1

2

3

4

5

6

7

Lack ofDirection from

Business

Inadequate ITFunding

Poor ProjectExecution

EmployeeResistance

BusinessLeadershipResistance

CIO CEO

We asked: “How significant of a barrier to IT-enabled Innovation are the following business issues?”

Bu

sin

es

s B

arr

ier

Sig

nif

ica

nc

e

Data Driven

Insight:CIOs are much more

critical of the

business than CEOs.

There is little value in

pointing the finger. IT

must become proactive

in overcoming business

barriers.

• Seek out direction

from business

leaders.

• Help manage critical

projects.

• make a strong case

for funding.


CEO’s are focused on Delivering Benefits to Align with Business Needs

45%

30%

25%Resource Optimization

Benefits Delivery

Risk Mitigation

“Which business

objectives should

IT be able to

support best?”

Historically, IT

departments have

been mandated to

optimize resources

and mitigate risks.

Today, IT success

means delivering

benefits by

generating revenue

and creating value

for stakeholders.


What IT Metrics do CEO’s want???

Business ValueMetrics

StakeholderSatisfactionReporting

TechnologyPerformance &

OperatingMetrics

Risk Metrics Cost & SalaryMetrics

37%25% 22% 25%

20%

35%

45%45% 38%

42%Some

improvement

necessary

Significant

improvement

required

CEOs consistently demand better

metrics around business value and

Satisfaction reporting.

CIOs must prioritize measuring these.

Cost, Salary, and Risk-related

metrics are typically more well-

regarded by the CEO.


The Importance of Knowing your Stakeholders

Info-Tech’s Perspective:

The most important thing an IT leader can do is understand business

needs and actively measure that business stakeholders are satisfied

If you don’t have a clear understanding of the needs of your

stakeholders, you are flying blind

of C-Suite Executives believe IT

needs to improve how they

measure business satisfaction74%

Management & Governance

Findings from IT Organizations


The IT Management & Governance Program


What we See: Your Team See’s Red


Why? Process Enable the Business –We Have to Be Good at All of Them…. right


Align the Process that Enable the Greatest Business Satisfaction Improvement


Service Desk


Data Quality

Devices



Work Orders


Projects

IT Policies


Projects

Work Orders




Service Desk




Data Quality

IT Policies

Devices

Data Driven Insight:Rethink your priorities; invest

in services with the highest

return on IT satisfaction.

Projects, work orders, and

innovation leadership drive IT

satisfaction.

Ensure projects deliver value, remain on

budget, and finish on time.

Data needs to be good, but truly

spectacular data may go unnoticed.

Investing in state-of-the-art devices won’t

significantly bolster satisfaction.

11

10

12

1

2

4

5

8

9

7

6

3

11

10

12

1

2

4

5

8

9

7

6

3


N = 21,367

Achieve fast turnaround on work requests.

Reported Importance Actual Importance*

Overrated Services Underrated Services


Where do we see the need for Most Improvement?

STRATEGY &

GOVERNANCEAPPS DATA & BI

IT GovernanceApplication Portfolio

Management

Business Intelligence

& Reporting

Effectiveness = 5.7

Importance = 8.3

Effectiveness = 5.4

Importance = 8

Effectiveness = 5.4

Importance = 8.1

IT StrategyIT Management &

PoliciesSecurity Strategy

Enterprise Application

Selection &

Implementation

Data Architecture

Effectiveness = 6

Importance = 8.5

Effectiveness = 6

Importance = 8.3PEOPLE & RESOURCES SECURITY & RISK Effectiveness = 6.3

Importance = 8.7

Effectiveness = 6.1

Importance = 8.3

Effectiveness = 5.6

Importance = 8.2

Performance

MeasurementInnovation

Human Resources

ManagementSecurity Management

Business Process

Controls & Internal

Audit

Application

Development

Throughput

Data Quality

Effectiveness = 5.1

Importance = 7.8

Effectiveness = 5.7

Importance = 7.9

Effectiveness = 6.1

Importance = 8.3

Effectiveness = 6.5

Importance = 8.9

Effectiveness = 5.4

Importance = 7.9

Effectiveness = 5.4

Importance = 7.4

Effectiveness = 5.5

Importance = 8.5

Business Value Stakeholder RelationsIT Organizational

Design

Enterprise

Architecture

Availability & Capacity

ManagementChange Management Risk Management External Compliance

Application

Development QualityPortfolio Management

Effectiveness = 6.2

Importance = 8.4

Effectiveness = 6.2

Importance = 8.7

Effectiveness = 6.3

Importance = 8.3

Effectiveness = 5.7

Importance = 8.2

Effectiveness = 6.2

Importance = 8.4

Effectiveness = 6.1

Importance = 8.5

Effectiveness = 5.9

Importance = 8.3

Effectiveness = 6.4

Importance = 8.3

Effectiveness = 5.6

Importance = 7.7

Effectiveness = 5.4

Importance = 8.1

Cost & Budget

Management

Knowledge

Management

Leadership, Culture &

ValuesService Management Asset Management

Configuration

ManagementRelease Management Business Continuity

Application

MaintenanceProject Management

Effectiveness = 6.7

Importance = 8.4

Effectiveness = 5.8

Importance = 8.4

Effectiveness = 6.5

Importance = 8.5

Effectiveness = 6.1

Importance = 8.4

Effectiveness = 6

Importance = 7.9

Effectiveness = 5.5

Importance = 7.8

Effectiveness = 5.7

Importance = 8.1

Effectiveness = 6.1

Importance = 8.7

Effectiveness = 6

Importance = 8

Effectiveness = 6

Importance = 8.5

Vendor Management Cost OptimizationManage Service

CatalogQuality Management

Operations

ManagementService Desk

Incident & Problem

Management

Disaster Recovery

Planning

Organizational

Change Management

Requirements

Gathering

Effectiveness = 6.4

Importance = 8

Effectiveness = 6.2

Importance = 8.4

Effectiveness = 4.3

Importance = 7.3

Effectiveness = 5.6

Importance = 8.2

Effectiveness = 6.4

Importance = 8.4

Effectiveness = 7

Importance = 8.8

Effectiveness = 6.5

Importance = 8.7

Effectiveness = 6.1

Importance = 8.8

Effectiveness = 5.4

Importance = 8.3

Effectiveness = 5.9

Importance = 8.5

FINANCIAL MANAGEMENT PPM & PROJECTS

Above Average Importance and

Above Average Effectiveness

Below Average Importance and

Above Average Effectiveness

Above Average Importance and

Below Average Effectiveness

Below Average Importance and

Below Average Effectiveness

*Average is based on the overall average

Legend

INFRASTRUCTURE & OPERATIONS

SERVICE PLANNING & ARCHITECTURE

IT Management & Governance Framework

Benchmarking Results for the Management &

Governance Diagnostic


Too many people think they own the same processes, or Too Many Processes


Innovators & Firefighters Agree on Which Processes are Most Important: Security, Risk, and Basic Operations

IT ProcessAverage

Importance Score

1 Service Desk 89%

2 Security Management 89%

3 DRP 88%

4 Security Strategy 88%

5 Incident & Problem Management 88%

6 Stakeholder Relations 87%

7 Business Continuity 87%

8 IT Strategy 87%

9 Leadership, Culture, and Values 86%

10 Requirements Gathering 86%


Innovators are Significantly More Effective at 7 Key Processes

IT ProcessEffectiveness

Surplus*

1 Innovation 9.7%

2 Project Management 9.2%

3 Stakeholder Relations 9.1%

4 Availability & Capacity Management 9.0%

5 Change Management 9.0%

6 Vendor Management 8.9%

7 IT Management & Policies 8.8%

*Gap Between Innovator and Firefighter Effectiveness


There are key Projects/Capabilities that drive maturity


When Performance is Measured it Can be Improved, Dramatically

22%

25%

31%

13%

9%

0% 10% 20% 30% 40%

<1%

1-4%

5-9%

10-19%

20%+

% of Organizations

Satis

fact

ion

Impr

ovem

ent

Improvement after 1 Year

Largest Gain: 24% in One Year

53% of Orgs improved by > 5%

Least Improvement Achieved: - 3%(From 92% to 89% - who are we to judge!)


A few Last Thoughts

• Challenge yourself and your team on how to Change

the conversation from “cost” to “value”

• Leverage tools, standards, and Data to accelerate

decision making

• You can’t do it alone – understand your team and their

capabilities – bring them to the level you need

• Be relentless – dedication, discipline and drive are

more important to success than anything you can buy