creating successful partnerships: what business leaders expect from their technology organization
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Creating Successful Partnerships: What Business Leaders Expect From Their Technology Organization. Topics. The IT Dilemma What Executives Are Saying Suggestions When IT Works Discussion. The IT Dilemma. More than ½ of IT projects go over time/budget; 31% are cancelled - PowerPoint PPT PresentationTRANSCRIPT
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Creating Successful Partnerships:What Business Leaders Expect From Their Technology Organization
Topics
The IT Dilemma What Executives Are Saying Suggestions When IT Works Discussion
The IT Dilemma
More than ½ of IT projects go over time/budget; 31% are cancelled
Only 16% of IT projects (9% in large organizations) are completed within original time/budget
Of those completed, only 42% deliver planned benefits
The IT Dilemma
10% of IT teams work on projects with no defined benefits for the organization
IT projects failures account for $75 BILLION in losses
Failure attributed to poor project management 60% time
BUT IT improves productivity
The IT Dilemma
IT budgets are between 2% - 9% of revenue; averaging 3% to 4%
2 out of 13 organizations believe their IT departments are critical
11 of 13 companies believe that their IT is a necessary but burdensome “cost pit”
BUT IT spending continues to rise
The IT Dilemma
“…I don’t know enough about technology to understand the issues and get out of this mess…”
IT Ineffectiveness
What is the level of satisfaction with and confidence in IT?
Do budget problems exist? How well does IT support the
organization’s strategy? How well does IT manage their human
resources?
Signs of Dissatisfaction
Dissatisfaction/lack confidence in IT Lack of control of IT Differing goals and priorities IT left out of decision making Business units hire their own IT Blame IT IT department isolates itself
Signs of Budget Problems Spending more than peers Expansion of IT without expansion
business High level of outside purchasing Emergency IT spending Difficulty forecasting IT budgets Large budget variances IT does not have capacity to support
business initiatives
Signs of Project Ineffectiveness
No clear successes/little progress No consolidated project list No distinction between IT internal and
business projects Large number of projects/no priorities Lack of good project documentation Poor quality & reliability
Signs of HR Mismanagement Lack of ownership of results by IT Troubled IT staff/lots of gossip Large number recent hires High or no attrition Org chart not clear/disparate titles Inexperienced IT managers Poor screening & hiring decisions Poor interaction between IT & business Excessive use of vacation/sick time & working
from home
Root Cause
“…the leadership gap caused by inadequate preparation [of IT staff] for management responsibilities…”
Comparison of Skills
Before Software applications IT Operations Business process
understanding Project management Management of
technical staff Vendor management IT architecture and
standards
After IT org design IT governance Business alignment Business Strategy Standard & policy setting HR management Executive team
participation Financial management &
budgeting
What Executives Are Saying
AlignmentMake sure your focus is our focus
Business FocusThe infrastructure is important but so are the
applications Business Savvy
Get out more to better understand our needs and wants
What Executives Are Saying
CollaborationWork with your peers and support their efforts
CommunicationHelp me understand you without making me
feel or look stupid Commitments
Deliver on your promises as promised
What Executives Are Saying
ConsultingLook around and ahead to make
recommendations to improve our delivery of services
Cost ControlUnderstand and control your costs
Suggestions
YouFind Your FitDevelop Management/Leadership SkillsHire for your weaknesses
ThemTeach Them Your LanguagePress For OwnershipKnow “IT Maturity Level”
IT Hierarchy of Needs
O&I Stability
Physiological Needs
Business Applications
Safety & Security
Effective IT Mgmt
Belonging & Affection
Alignment
Self Respect
Setting Business Agenda
Self Actualization
Suggestions
Your Technology OrganizationWalk in Their Shoes (Planning)Build Relationships Implement Best PracticesHave a Resource Allocation PlanDevelop Consulting Skills
When IT Works
IT LeaderPart of the leadership teamPromoted or given additional responsibilities
that are more general Customers (end users)
Consult IT first/earlyFocus on business needsSeek your guidance
When IT Works
IT StaffFocus on customersAre out in the organizationAsked to participate on organization-wide
committees and projectsRespectful and respected
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Discussion
Resources
CIO as Superhero?, Massey, 2007. www.govtech.com/pcio/articles/104748
The Executives Guide to IT, 2nd Edition, Baschab & Piot, 2007.
Strategic Services for Today’s CIO!
Liza Lowery Masseyliza@ciocollaborative.comwww.ciocollaborative.com702-743-4634