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Future of Government IT

Adaptive IT

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A LONG-STANDING COMMITMENT TO HELP YOU NAVIGATE THE FUTURE OF GOVERNMENT IT

Rapid Change as Information and Technology Become Ubiquitous

IT’s role becomes “educate and integrate.”

2011Business Engagement 2.0

The Future of Corporate IT

Business Engagement 2.0

IT faces five opportunities to drive productivity and cost avoidance in a changing function.

2013The Future of Government IT

The Future of Government IT


Support business-led IT through coordination and advising.

2014LeadingThrough Infl uence

LeadingThrough Infl uence


How can IT best create value in an era of rapid, broad-based digitization?

2015Adaptive IT

Adaptive IT



Develop New

Services

Deliver Services

DIGITIZATION IMPACTS THE ENTIRE ENTERPRISE

Source: APQC Process Classification Framework; CEB analysis.

< 70% 70–80%80–90%> 90%

Manage Customer Service

Develop Vision and Strategy

Develop and Manage Human Capital

Manage Financial Resources

Acquire, Construct, and Manage Assets

Manage External Relationships

Enterprise Management and Support

Percentage of Processes That Can Be Digitized (Improved through the use of analytics, collaboration, mobility, or process and decision automation)

Delivery Value Chain

Digitization Initiatives Within Government:

■ The Library of Congress' National Digital Library Program

■ Federal Law Enforcement's investigation into the advantages of "wearables" for agents

■ President Obama's appointment of a new Chief Digital Officer


WHAT EXACTLY IS DIGITIZATION?

CEB’s Working Definition of Digitization

Digitization is how enterprises exploit all sources of data and technology to: ■ Create and enhance products and services ■ Boost employee productivity through collaboration and insight from data ■ Enable new and more efficient value chains

“Digitization means the adoption of consumer

technologies.”

3

“Digitization is only relevant in industry.”

1

Source: CEB analysis.

“Digitization is driven by millenials.”

4

“…I joined IT”

“…the dotcom boom”

“…the first ERP rollouts”

5 “Digitization has been going on since…”

2

“Digitization means the use of new technologies throughout the agency.”


DIGITIZATION DECISION MAKING GOES BEYOND ITN

umb

er o

f P

eop

le M

akin

g D

ecis

ions

Ab

out

Tec

hno

log

y

Corporate IT Extended Value ChainLocus of Decision Making About Technology

Source: CEB analysis.a BLS, FedScope.

High

Low

Traditional Approach ■ IT makes technology decisions, guided by business leaders ■ Other stakeholders consume technology, but have little say

Digitization Approach

Customers and Citizens ■ Use new digital channels ■ Expect digital products to integrate

Suppliers and External Partners ■ Propose digital capabilities to benefit the full value chain ■ Provide new sources of data

Employees ■ Use apps and devices they source for themselves ■ Rely on external networks and data to get work done

Business Leaders ■ Take the lead on technology decisions ■ Allocate money to technology outside the IT budget


DIGITIZATION WILL TRANSFORM STAKEHOLDER DECISION-MAKING

Cabinet/HQ

Component

Constituents/Citizens

Constituents/Citizens

Business Partners

Business Partners

IT

IT

Suppliers/Contractors

Suppliers/Contractors



IT FACES MANY BARRIERS TO ENABLING DIGITIZATION

Common Barriers to Digitization

Barriers to responding to emerging digitization opportunities

7. Multi-year planning horizons

8. Risk and compliance issues

9. Overwhelming proportion of IT budget on Operations and Maintenance

Barriers to enabling digitization enterprise-wide

1. Standard processes and technologies

2. Little engagement beyond the C-suite

3. Stakeholders competing for a fixed pool of IT money

Barriers to supporting digitization decision making beyond IT

4. IT success defined as technology delivery

5. Predominantly technical talent base

6. Inability to reallocate non-IT spending to technology

Source: CEB analysis.a IT Dashboard


WHY ADAPTIVE IT REQUIRES MORE THAN A NEW ORG STRUCTURE

Because the most commonly proposed solutions rely on new organizational structures, they will:

■ Lead to a specific end-state that cannot respond to new contexts

■ Ignore interdependencies across IT ■ Become inefficient due to complexity ■ Create engagement problems in the IT team


Agencies Work Toward BYOD Policies Before Issues Arise

FederalTimes, 31 March 2015

Survey Reveals Feds’ Digital Divide

FCW, 15 January 2015

How to Run an Agile Project in GovernmentDigitalGov, 16 January 2015


PRINCIPLES OF ADAPTIVE ITIn an era of ubiquitous technology, IT leaders should apply five principles to help the enterprise maximize returns from its technology investments. Collectively, these principles make IT adaptive.

Excellence Should Be Targeted —IT must focus disproportionate effort in areas where it has comparative advantage and “dare to be adequate” elsewhere.1


Judgment Shapes Process—IT must apply judgment to governance and delivery processes to ensure the level of rigor is appropriate to the business outcome. 3

Role is Context Based—IT must adopt different responsibilities and relationships based on its operating context such as where the ideas and money come from. 2

Speed-to-Market Comes First—IT must increase the priority given to urgency when making trade-offs against cost and risk.4

Technical and Business Talent Isn’t Either/Or—IT must sharpen its technical edge and engagement competencies in parallel so that technology expertise stays ahead of changing business needs.

5


ADAPTIVE IT IN PRACTICE

Principles of Adaptive IT What Being Adaptive Means in Practice

1 Excellence Should Be Targeted

■ Expand IT’s Stakeholders—Create value in all contexts by balancing IT’s interactions with business leaders with direct relationships with frontline employees, end customers, and value chain partners.

■ Offer Multiple “Onramps”—Enable multiple starting points for IT’s engagement rather than always being involved from the beginning.

■ Flex Between Engagement Roles—Shift between delivering technologies, consulting, brokering, and coaching depending on where IT has a comparative advantage.

2 Role is Context Based

3 Judgment Shapes Process

■ Accelerate Governance Clockspeed—Redesign governance processes to devolve decision making, reduce decision makers, and prioritize judgment over analysis for simple decisions.

■ Dynamically Reallocate Resources—Fund and staff new, unplanned initiatives by variabilizing costs, rapidly stopping failing projects, and constantly realizing operational efficiencies.4 Speed-to-Market

Comes First

5Technical and Business Talent Isn’t Either/Or

■ Make Engagement Competencies Universal—Equip all IT staff with competencies such as influence, communication, and learning agility.

■ Replenish IT’s Technical Edge—Build a workforce strategy that gives IT employees the support and incentives to stay ahead of emerging technologies.

■ Develop a Flexible, Risk-Tolerant Climate—Promote behaviors in IT that encourage openness to uncertainty and new ways of working.

Adaptive Strategy

Adaptive Governance and Delivery

Adaptive Workforce











Comes First





Adaptive Strategy


Adaptive Workforce


13© 2015 CEB. All rights reserved. GOV152552PRINT 13

HOW IT’S CONTEXT-DEPENDENT ROLE WORKS

To create value, IT must adapt to many combinations

“Which context does IT face?”

Leading a major initiative

Enabling innovation

Supporting external customers

Adopting cloud services

Promoting business-led IT

Developing new digital productsNovel

Traditional


“When should IT get involved?”

■ Evaluate ■ Test and Learn ■ Develop and Scale ■ Run and Maintain

“What engagement approach should IT take?”

■ Delivering ■ Consulting ■ Brokering ■ Coaching

IT

“Who are the right stakeholders?”

■ Business Leaders ■ Citizens ■ Employees ■ Suppliers and External Partners


BUSINESS LEADERS EXPECT TO PLAY A NEW ROLE IN TECHNOLOGY

1. Business Depends on Specialized Technology

■ 72% of executive suite priorities depend on technology

■ CEOs rank technology first among factors that drive business value

2. Business Leaders Are More Tech Savvy

■ 80% have experience with technology projects

■ Other functions hiring technology-savvy staff

3. Technology Is More Accessible

■ Cloud, SaaS ■ Consumer technologies ■ More vendors ■ Non-traditional vendors

4. IT Has Limited Capacity

■ Limited budgets and capacity

■ Focused on scale and efficiency

■ Rigid governance processes ill-suited to new technologies

Greater business partner willingness to lead technology decisions

Average Percentage of Business Partners Willing to Lead Technology Projects

74% Willing

26% Not Willing

DERF xx-xxxx

Catalog # CIO9769814SYN

Title

n = 181 Business Executives.Source: CEB surveying.Note: Average of “Willing to Lead” for Identifying Capabilities of Tools, Selecting and Procuring Tools, Project Management, and Vendor Management.


BUSINESS-LED IT IS GROWING IN THE BLURRY BOUNDARY Business partners’ priorities depend on technologies that fall between the boundaries that have traditionally distinguished enterprise IT from business-led IT.

Used Narrowly (local, BU, or

functional)

Used Enterprise-Wide

Proximity to Customers and the Product

■ ERP

■ Transaction processing

■ HRIS

■ Expense Management

Process Automation

■ Cross-silo information sharing (EDW)

■ Customer analytics

■ Risk analytics

■ Talent analytics

■ Finance analytics

■ Team collaboration

Information Sharing and

Analysis

■ Digital Marketing

■ Customer effort reduction

Customer Enablement

■ Technology-enabled products

■ R&D platforms

■ Process control

■ Additive manufacturing

Products and Services

Technology Foundations

■ Servers

■ Network

■ Integration

Typically Retained by Corporate IT


The Blurry Boundary Traditionally Business-Led IT

DERF xx-xxxx


Title


IT MUST ADAPT ITS ENGAGEMENT MODEL

IT’s Enduring Comparative Advantages IT Engagement Activities

Service Management Expertise

■ Expertise with managing technology projects

■ Experience with managing technology vendors

■ Service delivery across organizational lines

Cross-Enterprise Perspective

■ Insight into business partners’ priorities

■ Insight into employees’ technology needs and activities

Technology Portfolio Management

■ Knowledge of core enterprise systems, processes, and data

■ Ability to integrate technologies

■ Investment coordination across services

DERF xx-xxxx


Title


Consulting

Delivering

Brokering

Coaching

IT











Comes First





Adaptive Strategy


Adaptive Workforce



SPEED, REDEFINED

Speed to Market Speed to Build New Capabilities

Speed to Reallocate Resources from One Initiative to Another +=

Accelerate Governance Clock Speed

Dynamically Reallocate Investment



DYNAMICALLY REALLOCATE INVESTMENT

Source: CEB IT budget benchmark 2012 to 2014; CEB analysis.

Start of Year Year End

1. Dare to be Adequate Free up money by selectively reducing service levels.

2. Variabilize Costs Migrate to subscription-based cloud services and other variable models.

3. Fail Fast, Fail Cheap Quickly cut under-performing initiatives.

4. Continually Self-Fund Use operational efficiencies to fund new capabilities.

Reallocated Money

Money Spent as Planned

On average, organizations reallocate 15% of spending between IT budget categories.


ACCELERATE GOVERNANCE CLOCK SPEED


Traditional Approach to Governance New Approach for Faster Clock Speed

“Avoiding complexity” “Thriving in complexity”

Multi-year strategies and target architectures to anticipate demand

1. “Moving target” architectures to accommodate emerging opportunities

Centralized decision making to reduce stakeholders

2. Devolved decision making to empower stakeholders

Standardized governance processes to reduce variation

3. Context-sensitive governance to reduce oversight rigor when the context allows

Preferred vendor lists to simplify sourcing decisions

4. Whales to minnows sourcing to rapidly onboard vendors of all sizes, maturity levels, and business models


IT ORGANIZATIONS ARE ADAPTING TO SHORTER, MORE UNSTABLE PLANNING HORIZONSTechnologies by Mainstream Adoption Timeline, Value, and Risk

Empl

oyee

Com

puti

ng a

nd M

ob

ility

NetworkSecu

rity

Ho

sting/Cloud

Storage

< 50% Adoption by 2017

2016

2017+

2015

2014Google BigQuery

In-Memory Analytics

Cloud Operating Systems

Low Energy Servers

Public Cloud-Based Databases

Public Cloud-Based Disaster Recovery

Massively Multi-Core Servers

SaaS ERP Solutions

SaaS Supply Chain Solutions

Massively Parallel Processing (MPP)

Folder-Level Encryption

Runtime Application Self-Protection

Trusted Platform Module (TPM) Chip

Self-Encrypting Drive (SED)

End-User Biometrics

Hypervisor Integrated Firewalls Signature-Less

Detection Tools for Advanced

Persistent Threats

Endpoint DLP

XML Gateway Protection Tools

In-Memory Database Management Systems

Public Cloud-Based Storage

Cloud-Based Archiving for E-Mail/IM

Content-Addressable Storage (CAS)

Network Unified Storage (NUS) Application

Centric Storage

Linear Tape File Systems (LTFS)

Hypervisor-Converged Storage

Cloud Storage Gateways

Object-Based Storage

Software- Defined Storage (SDS)

Big Data Storage Solutions

NoSQL

Bring Your Own PC

Desktop as a Service

Cloud Content Storage

Cloud-Based Office Productivity Applications

Mac OS X for Enterprise Desktops/Laptops

Microsoft Office 365 E-Mail

Mobile Enterprise Asset Management

Apps

Mobile ERP Apps

Mobile Supply Chain Apps

Near Field Communication

Non-Standard Office

Productivity Applications

Wearable Technologies

Network Virtualization Solutions

Virtual Private LAN Services (VPLS)

Software-Defined Networks (SDNs)

Wi-Fi as a Primary Network

Cloud-Based WLAN Management

Voice Over Wi-Fi

802.11ac (Gigabit Wi-Fi)

Application Delivery Controller

OpenStack Networking

Mobile Unified Communications

4G Enterprise WAN

802.11ad

Open Compute Switches

Person-to-Person Mobile Video

Windows 8

Gmail for Enterprise

In-Location Positioning

Public Cloud-Based Infrastructure as a Service

Public Cloud-Based Platform as a Service

Data Center Management Tools (DCIM)

Server Orchestration and Configuration

Management Tools

Hadoop

All-Flash Arrays

Flash Hypervisor/Flash Virtualization

Mobile BI Tools

Virtual Extensible Local Area


Avoiding Multi-Year Commitments: IT organizations’ roadmaps reflect a reluctance to “lock in” multi-year spending commitments in areas where marketplace maturity remains unclear (e.g., software-defined Infrastructure).

Local VDI

A Need for “Rapid Response”: The velocity of change in business demand and market offerings requires IT organizations to develop capabilities to adapt its roadmaps to shorter, more iterative planning cycles.











Comes First





Adaptive Strategy


Adaptive Workforce



HOW TO READY YOUR TEAM FOR ADAPTIVE IT


Common Barriers to Building an Adaptive IT Team

Expand IT’s engagement

competencies

Replenish cutting edge technical

knowledge

“Will”

Develop a climate of openness to

uncertainty, and new ways of working

Wrong mindset

“Skill”

Lack of critical competencies

Limited or dated functional

expertise


DERF 14-2214


Title

MEASURING IT’S CLIMATE OF OPENNESS

Open to Business Collaboration

■ I am expected to help colleagues outside my day-to-day workgroup.

■ I am expected to seek help from colleagues outside my day-to-day workgroup.

Open to Risk and Uncertainty ■ I see failure as a learning opportunity for individuals and the organization.

■ I am expected to be resourceful when facing uncertainty.

Climate of Openness

Open to Business Collaboration

Open to Risk and

Uncertainty

Open to New Ways of

Working

Open to New Ways of Working ■ I agree that employees outside IT should be able to experiment with technology.

■ I am expected to challenge the status quo when or where appropriate.

3

21


DERF xx-xxxx


Title


12 COMPETENCIES FOR HIGH PERFORMANCE IN ITCEB IT Competency Model


Competency Definition

1. Process Orientation Uses practices, processes, procedures, and systems to manage work and to simplify and use resources efficiently

2. Decision Making Considers the relative costs and benefits of potential actions to choose the most appropriate one

3. Teamwork Promotes and facilitates coordination and cooperation among peers

4. Organizational Awareness

Understands the organization’s mission, values, operations, and goals

5. Creativity Applies original thinking to produce new ideas and innovative products

6. Prioritization Self-directs activities and works through goal setting, time management, and planning

7. Business Results Orientation

Seeks to understand the business needs and deliver prompt, efficient, quality service to the business

8. Analytic Ability Can work with data to identify patterns; uses judgment to form conclusions that may challenge conventional wisdom

9. Learning Agility Rapidly acquires new knowledge and learns new skills

10. Relationship Management

Creates relationships with new acquaintances quickly and confidently

11. Communication Conveys complex and technical issues to diverse audiences

12. Influence Applies different strategies to convince others to change their opinions or plans


FEWER THAN HALF OF IT EMPLOYEES DISPLAY PROFICIENCY IN ENGAGEMENT COMPETENCIESIT Employee Proficiency Across CompetenciesPercentage of IT Employees at Least at the “Proficient” a Level

n = 2,957.Source: CEB IT Talent Assessment.a “Proficient” is defined as scoring a 3 on the competency on a 5-point scale. Employees are defined as “at least” proficient if they score a 3, 4, or 5.

> 70% of IT employees are at least proficient

61%–70% of IT employees are at least proficient

51–60% of IT employees are at least proficient

< = 50% of IT employees are at least proficient

Scoring Guide

CompetencyPercentage Showing at Least Proficiency a

Organizational Awareness 76%

Process Orientation 74%

Analytic Ability 72%

Prioritization 69%

Teamwork 67%

Business Results Orientation 66%

Decision Making 64%

Learning Agility 59%

Creativity 58%

Communication 57%

Relationship Management 52%

Influence 48%

A majority of IT employees lack proficiency in the competencies critical to engagement.


REPLENISHING IT’S TECHNICAL EDGE



Breakdown of Projects Requiring Legacy Versus Emerging Technology ExpertiseIllustrative

Key Questions for Strategic IT Workforce Planning

1. Which architectural and development roles require new areas of technical expertise?

2. What is the right balance between replenishing in-house technical expertise and relying on external sources?

3. How should IT manage the retraining or retirement of employees with expertise in legacy technologies?

4. Should IT play a role in developing technical expertise elsewhere in the organization?

Digitization increases demand for expertise in emerging technologies

Legacy Technology Expertise

Emerging Technology Expertise


KEY TAKEAWAYS

Government Organizations Need to Become Adaptive to Respond to Digitization—Digitization is the future of government IT. Agencies risk cost inefficiencies and lack of civilian engagement with federal services if IT cannot deliver in a timely fashion.

1. Adaptive IT Strategy Moves IT from Owner to Broker. IT should focus more on facilitating technology than owning technology as its increasing accessibility to business partners will cause them to own technology decisions.

2. Reorienting Governance and Delivery to Adaptive. Agencies will need to dynamically reorganize their resources in order to deliver IT quicker, this will include “pulling the plug” on projects that will not deliver significant ROI.

3. Understanding New Workforce Competencies. The ability for IT to develop both business-engagement competencies and be willing to fail from time to time is crucial to IT’s new role.


HOW CEB CAN HELP—ADAPTIVE STRATEGY

CIO Applications Infrastructure Project Management Enterprise Architecture Information Security

Shared Resource

Executive Guidance—Harnessing Business-Led IT: Learn about the five key things companies must do harness business-led IT and exploit technology for competitive advantage

Key Resources

From Ideation to Exploitation: Maximize IT’s impact on technology innovation by emphasizing its relative strengths

IT Business Alignment Tool: Understand business partner priorities and close critical performance gaps.

Accelerating Digital Marketing: Dispel the myths and learn how to support digital marketing.

Flexible Interfaces, Foundational Services: Guide integration strategy and architecture development, to improve data provisioning for rapidly changing enterprise demands.

Redefining Demand Management: Learn how to navigate business demands while protecting scale and responsiveness

Supporting Business Ownership of Project Management: Reduce costs for part-time PMs through improved selection and onboarding.

Scaling EA’s Influence: Principles, Skills, and Tools to Drive Adoption of EA Recommendations: Improve acceptance of EA standards by identifying and influencing the right stakeholders to increase EA’s reach.

Understanding and Aligning to Business’ Risk Appetite: Assess and incorporate enterprise risk appetite into risk management decisions.

Risk Management for Business Engagement Diagnostic: Pinpoint improvements in organizational structure, processes, skills, and approaches to business enablement.

https://cio.executiveboard.com/Members/DecisionSupportCenters/Abstract.aspx?cid=101271318


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HOW CEB CAN HELP—ADAPTIVE GOVERNANCE AND DELIVERY


Shared Resources

IT Maturity Diagnostic: Assess the maturity of key IT management and operational activities, identify priority areas for improvement, and shortlist activities that can be scaled back to free up resources.

Accelerating IT’s Clockspeed: Learn the 18 management principles that can be applied across corporate IT to help the function move quickly.

Key Resources

New Model for IT Service Delivery: Learn how to get started with the end-to-end IT service model.

IT Budget Benchmark: Contextualize spending by comparing budget plans to other organizations to increase investment impact.

Agile Handbook: Tools and templates for each of the 20 areas critical to maturity with Agile.

Applications Dashboard Builder: Choose metrics, set thresholds, and create a customized dashboard to monitor key performance attributes.

Emerging Technology Roadmap: Compare technology adoption plans against similar organizations.

Infrastructure Operations Improvement Toolkit: Adapt Infrastructure Operations to a more dynamic business and technology environment.

Resource Bottleneck Impact Calculator: Improve bottleneck detection and resolution to save up to 20% of total portfolio budget.

Key PMO Roles in Portfolio Management: Discover the four key roles the PMO can play in portfolio management.

Governing for Business Agility: Enhance organizational flexibility by tailoring standardization to specific business needs.

Improved Risk Management Through Reduced “Customer Effort”: Identify ways to reduce Information Risk “customer effort” to drive adherence and compliance.

Streamlined Cross Functional Decision Making: Increase efficiency and consistency by defining roles and responsibilities between risk management functions.

Other CEB Offerings CEB IT Roadmap Builder CEB Service Management Bootcamp









https://iec.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101264745



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http://www.executiveboard.com/exbd/information-technology/it-roadmap-builder/index.page

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HOW CEB CAN HELP—ADAPTIVE WORKFORCE


Shared Resource

IT Competency Framework: Identify the 12 competencies that drive high performance in IT staff

Key Resources

Building a Climate of Openness in IT: Learn how to improve IT staff openness to drive improved business value

IT Strategic Workforce Planning Handbook: Create a forward-looking strategy to close skills and competency gaps in IT.

Interactive Business Analyst Competency Model: Match demonstrated skills and competencies to career paths, and identify critical gaps.

Business Analyst Learning Series: Accelerate business engagement competencies through this peer cohort

Emerging Trends in Infrastructure Talent: Ready Infrastructure for the emergence of new roles and skills and the relocation and transformation of traditional IT roles.

Project Manager Effectiveness Diagnostic: Benchmark your project managers across the most effective project management skills and behaviors

Build High-Performing Program Managers: Promote, hire, and develop Entrepreneurial program managers.

Bridging the Architecture Talent Gap: Identify new sources of talent, make structural changes and introduce tools to maximize available skills.

Enterprise Architect Effectiveness Diagnostic: Assess EA technical and stakeholder management skills to prioritize development efforts.

Building the High-Performance Information Security Team: Uncover critical competencies and hiring, development, and planning approaches.

Developing Security Liaisons to Drive Good Business Decisions: Improve business engagement by developing security liaisons to constructively engage with business partners.

Other CEB OfferingsCEB IT Talent Assessment

CEB Leadership Academy

CEB Service Management Bootcamp

CEB Project Management Development



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