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© Innovation Value Institute 2013

IT Capability Maturity Framework

Patterns and Practices:

Taking IT-CMF to the next level for best practice sharing and

organisational change.

Jim Kenneally – Intel Labs Europe – [email protected]

Dr Colin Ashurst - Newcastle University Business School - [email protected]


What are the challenges you face when trying

to share good practice from project to project

& across the organisation?

How could IT-CMF assist over-

coming these challenges?


WHAT IS THE FOCUS OF THIS

WORKSHOP?


Today’s Discussion

IT-CMF: Blueprint For Making IT Better

1) Diagnose 2) Prescribe 3) Medicate 4) Monitor

What should be done?

Assistance from:

- POMs How could it be done?

Assistance from:

- Patterns & Practices What & how to monitor?

Assistance from:

- CC Performance Metrics

What’re symptoms

& causes? Assistance

from:

- CCs

- CBBs

- Maturity Levels

- Questions

5) Prevent


Shape Best-Practices

Print Best-Practices

Colour Best-Practices

Identify reoccurring forms across

best practice solutions

Patterns describe the form of good solutions,

(shape, size & colours tailored by context and the

rationale)

2) Handle – Grip & hold cup

4) Saucer – catch liquid spills

3) Flat bottom – Stabilise cup

1) Concave vessel – Hold liquid

What is abstracted from practice is not so much an individual

solution but rather the form of good solutions.

Patterns & Practices


WHAT ABOUT AN IT-CMF

EXAMPLE?

7 7

Managing IT Like a

Business

Managing the

IT Budget

Managing the

IT Capability

Managing IT for

Business Value

ITG IT Leadership & Governance FF Funding & Financing EAM Enterprise Architecture

Management TCO Total Cost of Ownership

BPM Business Process

Management BGM Budget Management TIM

Technical Infrastructure

Management BAR

Benefits Assessment &

Realisation

BP Business Planning PPP Portfolio Planning &

Prioritisation PAM People Asset Management PM Portfolio Management

SP Strategic Planning BOP Budget Oversight &

Performance Analysis KAM

Knowledge Asset

Management

DSM Demand & Supply

Management RAM

Relationship Asset

Management

CFP Capacity Forecasting &

Planning RDE

Research, Development, &

Engineering

EIM Enterprise Information

Management* ISM

Information Security

Management *

RM Risk Management SD Solutions Delivery

AA Accounting & Allocation SRP Service Provisioning

ODP Organisation Design &

Planning UTM User Training Management

SRC Sourcing UED User Experience Design

IM Innovation Management• PPM Program & Project

Management

SAI Service Analytics &

Intelligence SUM Supplier Management

SICT Sustainable ICT CAM Capability Assessment &

Management

IT critical capability landscape

Defines maturity profiles across IT organisational capabilities to transform organizations from cost-centre to value-centres

* Under development


Benefits Assessment & Realisation


Maturity

Level

CBB

Category Practices Outcomes Metrics

Level 5 Benefits

Planning

Extend use of standardised BBMs, business case and benefits realisation

templates/guidance beyond the enterprise

Vendors use the enterprise's language and taxonomy for expressing

business value and benefits

% of external business partners using common BBMs,

business case and BRP templates for investments

Level 5 Benefits

Process

Mandate reuse of historical business value and other BAR data in business case,

BRP development and decision making. Proliferate learnings to amplify investment returns and manage business

value risk profile

% of investments delivering and/or exceeding initial

business value forecasts

Level 5 Benefits

Culture

Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training

and incentives Business value culture institutionalised across extended enterprise

% YoY improvement in other BAR metrics

Participation rate across extened enterprise in BAR review

Level 4 Benefits

Planning

Mandate use of standardised BBMs, business case and benefits realisation templates

across the enterprise Enterprise-wide approach to investment proposal development exists

% across the enterprise using common BBMs, business

case and BRP templates for investments

Level 4 Benefits

Planning

Review business case and benefits realisation templates for effectiveness at

appropriate intervals

Templates stay current with business objectives and leverage best

practices

Length of time between each review cycle

Level 4 Benefits

Process Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans

Level 4 Benefits

Process

Establish procedures to accelerate, decelerate or stop in-flight funding of investments

from the perspective of enterprise scorecards

In-flight investments can react to economic changes and competitor

reactions that threaten to erode forecasted benefits

% of original investments scaled up

% of original investments scaled down

Forecasted vs realised value delta

Level 4 Benefits

Process

Track BBMs for investments at appropriate intervals beyond their initial deployment

phase i.e. throughout their full lifecycle Understand when to end-of-life/upgrade/replace initial investments

% of investments measured against BBMs throughout their

lifecycle

Level 4 Benefits

Culture

Make business value database available to consistently capture historical investment

performance

Accurate and consistent data is available to support and influence strategic

decisions

Number of times database is interrogated for decision

making

Level 4 Benefits

Culture Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards.

Cumulative business value

Average business value

Forecasted vs actual business value variance

Level 3 Benefits

Planning

Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their

relevance to the enterprise's objectives and to also ensure that they align to the

business units scorecards.

The relevance of BBMs is checked to ensure they cover relevant enterprise

objectives

% of investments with BBMs that explicitly link to the


Level 3 Benefits

Planning

Standardise and agree with stakeholders Benefits Realisation Planning (BRP)

templates (including review with Finance) for all IT enabled investments Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates

Level 3 Benefits

Planning

Develop guidelines and training on completing Benefits Realisation Planning (BRP)

templates The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission

Level 3 Benefits

Process

Agree with stakeholders a standardised methodology, tools and validation process to

measure impact of investments on forecasted BBMs Consistent evaluation of forecasted BBMs against actual delivery

% of investments with pre and post BBMs measurement

Level 3 Benefits

Process Agree with stakeholders multiple financial and non-financial business case inputs.

Holistic evaluation approach for business cases (i.e. criteria beyond

financial are considered)

Weighting attributed to financial versus non-financial inputs

when evaluating business cases

Level 3 Benefits

Process Assign accountability for realising forecasted BBMs

Benefits have an enterprise stakeholde to troubleshoot issues and improve

delivery % of investments with enterprise sponsor(s)

Level 3 Benefits

Process Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans

Level 3 Benefits

Process Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme

Level 3 Benefits

Culture Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals

% of cross-enterprise review of Benefit Assessment &

Realisation.

Level 3 Benefits

Culture

Establish and make accessible Benefits Assessment & Realisation (BAR) training

program One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme

Level 3 Benefits

Culture

Establish business value champions and increase communication across the

enterprise

Increased breadth of adoption across the enterprise Visibility and

communication of good practice/case material

Number of projects across enterprise adopting a common

and standard approach to managing business value.

Number of examples/cases as examplars, awards

Level 2 Benefits

Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common

business value understanding

Level 2 Benefits

Planning

Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational

definitions and calculations

Investment returns are expressed using a taxonomy understood and

agreed with the enterprise % of investment proposals using approved BBMs

Level 2 Benefits

Planning Standardise business case templates for use with all IT enabled investments

Common format for business case submissions allowing fairer

comparisons across investment proposals % of investments using approved business case templates

Level 2 Benefits

Planning Develop and make accessible business case training

Formal training on business case development improves adoption of

standardised approaches and business case submission % of people trained on business case development

Level 2 Benefits

Planning Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission

Level 2 Benefits

Process

Define and assign roles and responsibilities for the overall delivery and running of a

Benefits Assessment & Realisation (BAR) capability to the enterprise

Management has communicated commitment to developing BAR capability

within the enterprise % of senior managers sponsoring BAR initatives

Level 2 Benefits

Culture Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals

Number of business unit leaders involved in business case

review and approval

Level 1 Benefits

Planning No formal Benefits Planning practices expected at this level

No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level

Level 1 Benefits

Process No formal Benefits Process practices expected at this level

No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level

Level 1 Benefits

Culture No formal Benefits Culture practices expected at this level

No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level

Benefits

Planning

Agree an appropriate business

value language definition with

stakeholders

Business benefit operationally

defined

% of senior executives and

managers who share a common


Practices Outcomes Metrics


Business Value Dials - Practice

• System EOL

• HW / SW Avoidance

• Head Count Avoidance/Reduction

• Factory Uptime

• Unit & Other Cost Avoidance

• Head Count Turnover

• Head Count Productivity

• Materials Discounts

• Scrap/Reserve Reduction

• Days of Inventory

• Days Receivables

• Time To Market

• Optimize Existing Markets

• Open New Markets

• Cross-Selling

• Risk Avoidance/Business Continuity

• Vendor Of Choice

Bottom Line Improvements: Efficiencies,

Productivity

• Measurement is Direct and

readily “countable”

Top Line Growth

• Measurement is not Direct

• Create Competitive Advantage

Source: Intel


Value Dial Definition / Valuation

Days of Inventory Reductions in days of inventory lead to value in finished goods, work in process, or raw material inventories.

(value of 1 day) x (days of inventory removed) x 15% (weighted average cost of capital)

Headcount Reduction or Avoidance

Solutions the reduce human resource requirements or absorb business growth without growing headcount. Employees can be moved to jobs with greater value.

(number of headcount reduced or avoided) x (average burden rate for location and job type)

Employee Productivity

Gains in headcount efficiencies or effectiveness. Headcount is expected to produce more through these gains due to the additional time efficiencies.

(number of employees affected) x (time) x (average burden rate) x (50%)

Business Value Dial - Form

Value

Dials

xxxxxx

Xxxxxx

Xxxxxx

xxxxx

Intel

Vision & Strategies

Business

KPIs

Programme

Delivery

Major IT

Investments

Business IT


Business Value Dials - Pattern

Name • What is the value dial

capturing?

• Concise and to the point

• As descriptive as possible

• In the customer’s language

Common Valuations • What is it worth?

• The elements of the calculation should be standard

• Measurement and valuation are separate concepts

• IT Finance should own the basics and financial tips

Definition • One definition

• Specific enough that everyone understands

• It is not the metric that occurs at the time of use

Managing IT for Business Value


How Could Patterns Add Value to IT-CMF?

• Operationalise CC/CBB concepts

for maturity improvement - based

on experience of repeated

application of practices

• Guidance on how to resolve

problems (direct) or how to

organise for solving problems

(indirect)

• Balance providing guidance and

enabling flexibility... scope for

improvisation based on the needs

of specific contexts

Reusable pattern – flexible

for differing shapes & sizes,

Cognitive amplification &

reorganisation tools


THE CONTRIBUTION OF PATTERNS: A

RICHER VIEW OF PRACTICES


Pattern

• a formal way of giving good advice on how to do something

• based on experience of repeated application

• provides rationale and context

• scope for improvisation


Mrs Beeton’s

Family Cookery

1962


Nigel Slater

Real Cooking

1997

“A recipe should be a tune

to which you can sing your

own song”

Rick Stein, chef


“Learn the patterns, then

forget ‘em”

Charlie Parker

saxophonist


Christopher Alexander A Pattern Language 1977


PATTERNS: IMPROVING

PERFORMANCE


Patterns and practices

- A practice relates to a specific approach to getting

work done in a specific context.

• A pattern is a way of sharing advice based on

experience of what works in similar situations – it

is an abstraction of a practice. It abdicates some

of the richness and uniqueness of the practice - to

identify and communicate what works.

What is abstracted from practice is not so much an individual

solution but rather the form of good solutions.


algorithmic • if you want to achieve Y in

situation Z, then perform action X

Patterns: ‘is’ & ‘is not’

Has to be translated (by the professional in the field) to a specific problem at hand, problems

are always context related - solution concept

heuristic • if you want to achieve Y in situation

Z, then something like X might help

Although problems and situations might be very similar, this is not a guarantee that a solution

that worked in situation A also works in situation B

The pattern approach is a way that captures and shares how things get done

while leaving scope for improvisation and adaptation (for example to reflect

different organisational contexts and rationales).


Maturity

Level

CBB

Category Practices Outcomes Metrics

Level 5 Benefits

Planning

Extend use of standardised BBMs, business case and benefits realisation

templates/guidance beyond the enterprise

Vendors use the enterprise's language and taxonomy for expressing

business value and benefits

% of external business partners using common BBMs,

business case and BRP templates for investments

Level 5 Benefits

Process

Mandate reuse of historical business value and other BAR data in business case,

BRP development and decision making. Proliferate learnings to amplify investment returns and manage business

value risk profile

% of investments delivering and/or exceeding initial

business value forecasts

Level 5 Benefits

Culture

Conduct cross-enterprise review of BAR capabilities, templates, guidelines, training

and incentives Business value culture institutionalised across extended enterprise

% YoY improvement in other BAR metrics

Participation rate across extened enterprise in BAR review

Level 4 Benefits

Planning

Mandate use of standardised BBMs, business case and benefits realisation templates

across the enterprise Enterprise-wide approach to investment proposal development exists

% across the enterprise using common BBMs, business

case and BRP templates for investments

Level 4 Benefits

Planning

Review business case and benefits realisation templates for effectiveness at

appropriate intervals

Templates stay current with business objectives and leverage best

practices

Length of time between each review cycle

Level 4 Benefits

Process Mandate contingency risk planning template submission for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans

Level 4 Benefits

Process

Establish procedures to accelerate, decelerate or stop in-flight funding of investments

from the perspective of enterprise scorecards

In-flight investments can react to economic changes and competitor

reactions that threaten to erode forecasted benefits

% of original investments scaled up

% of original investments scaled down

Forecasted vs realised value delta

Level 4 Benefits

Process

Track BBMs for investments at appropriate intervals beyond their initial deployment

phase i.e. throughout their full lifecycle Understand when to end-of-life/upgrade/replace initial investments

% of investments measured against BBMs throughout their

lifecycle

Level 4 Benefits

Culture

Make business value database available to consistently capture historical investment

performance

Accurate and consistent data is available to support and influence strategic

decisions

Number of times database is interrogated for decision

making

Level 4 Benefits

Culture Report/communicate business value data across the enterprise Confidence in BAR proramme based on enterprise scorecards.

Cumulative business value

Average business value

Forecasted vs actual business value variance

Level 3 Benefits

Planning

Evaluate and regularly update Business Benefit Metrics (BBMs) to ensure their

relevance to the enterprise's objectives and to also ensure that they align to the


The relevance of BBMs is checked to ensure they cover relevant enterprise

objectives

% of investments with BBMs that explicitly link to the


Level 3 Benefits

Planning

Standardise and agree with stakeholders Benefits Realisation Planning (BRP)

templates (including review with Finance) for all IT enabled investments Managing benefits to fulfilment can be tracked and reported % of approved investments using approved BRP templates

Level 3 Benefits

Planning

Develop guidelines and training on completing Benefits Realisation Planning (BRP)

templates The quality and consistency of BRP submissions is increased % of BRPs requiring rework and resubmission

Level 3 Benefits

Process

Agree with stakeholders a standardised methodology, tools and validation process to

measure impact of investments on forecasted BBMs Consistent evaluation of forecasted BBMs against actual delivery

% of investments with pre and post BBMs measurement

Level 3 Benefits

Process Agree with stakeholders multiple financial and non-financial business case inputs.

Holistic evaluation approach for business cases (i.e. criteria beyond

financial are considered)

Weighting attributed to financial versus non-financial inputs

when evaluating business cases

Level 3 Benefits

Process Assign accountability for realising forecasted BBMs

Benefits have an enterprise stakeholde to troubleshoot issues and improve

delivery % of investments with enterprise sponsor(s)

Level 3 Benefits

Process Make available a standardised contingency risk planning template for business cases Threats to BBMs forecasts are actively managed % of investments with contingency risk plans

Level 3 Benefits

Process Establish and sponsor a Business Value programme Reported forecast vs realised value for enterprise programme % of projects run within the BAR programme

Level 3 Benefits

Culture Align investment decisions to enterprise level scorecards. Clarity of investments and business case approvals

% of cross-enterprise review of Benefit Assessment &

Realisation.

Level 3 Benefits

Culture

Establish and make accessible Benefits Assessment & Realisation (BAR) training

program One-stop-shop umbrella training programme for staff on BAR available % of people trained on BAR programme

Level 3 Benefits

Culture

Establish business value champions and increase communication across the

enterprise

Increased breadth of adoption across the enterprise Visibility and

communication of good practice/case material

Number of projects across enterprise adopting a common

and standard approach to managing business value.

Number of examples/cases as examplars, awards

Level 2 Benefits

Planning Agree an appropriate business value language definition with stakeholders Business benefit operationally defined % of senior executives and managers who share a common


Level 2 Benefits

Planning

Agree with stakeholders a suite of Business Benefit Metrics (BBMs) i.e. operational

definitions and calculations

Investment returns are expressed using a taxonomy understood and

agreed with the enterprise % of investment proposals using approved BBMs

Level 2 Benefits

Planning Standardise business case templates for use with all IT enabled investments

Common format for business case submissions allowing fairer

comparisons across investment proposals % of investments using approved business case templates

Level 2 Benefits

Planning Develop and make accessible business case training

Formal training on business case development improves adoption of

standardised approaches and business case submission % of people trained on business case development

Level 2 Benefits

Planning Develop and make accessible guidelines on completing business cases Information is presented consistently within and across business cases % of business cases requiring rework and resubmission

Level 2 Benefits

Process

Define and assign roles and responsibilities for the overall delivery and running of a

Benefits Assessment & Realisation (BAR) capability to the enterprise

Management has communicated commitment to developing BAR capability

within the enterprise % of senior managers sponsoring BAR initatives

Level 2 Benefits

Culture Align investment decisions to business unit level scorecards. Clarity of investments and business case approvals

Number of business unit leaders involved in business case

review and approval

Level 1 Benefits

Planning No formal Benefits Planning practices expected at this level

No formal Benefits Planning outcomes expected at this level No formal Benefits Planning metrics expected at this level

Level 1 Benefits

Process No formal Benefits Process practices expected at this level

No formal Benefits Process outcomes expected at this level No formal Benefits Process metrics expected at this level

Level 1 Benefits

Culture No formal Benefits Culture practices expected at this level

No formal Benefits Culture outcomes expected at this level No formal Benefits Culture metrics expected at this level

Benefits

Planning

Agree an appropriate business

value language definition with

stakeholders

Business benefit operationally

defined

% of senior executives and

managers who share a common


Patterns – to provide greater guidance to share good practice and improve

performance


IDENTIFY POTENTIAL PATTERNS: GOOD

PRACTICES TO CAPTURE AND SHARE


Identify Potential Patterns

• Work in groups.

• Consider a specific Critical Capability: eg

1. Strategic Planning (SP)

2. Business Planning (BP)

3. IT Leadership & Governance (ITG)

4. Solutions Delivery (SD)

5. Service Provisioning (SRP)

• Target specific CBB(s)

• Share good practices from your organisation and develop a list of potential patterns that

you can share with other groups

• Note: keep in mind the relevant context and the rationale


Best Practice Recording

- CC:

- CBB:

- Best-practice Name:

- Objective:

- Source (if published):


Using patterns – lessons learned

• Emphasise usage (as well as writing).

• Can be shared as a book and/or as a community owned ‘living’

resource.

• Write for a specific audience (level of knowledge / maturity).

• Reflect specific assumptions / principles (eg benefits ‘mindset).

• Use an explicit template to capture and structure a pattern

• Use an implicit structure (ie formatting text cf ‘corner doors’) to

communicate and share a pattern.

• Fit with wider roles including education and advisors / coaches.


pattern language

an interconnected web of patterns which

may be assembled as advice for a task

just what patterns are used and how

determined by the user

more scope for improvisation


Conduct driver

analysis

Stakeholder

analysis

Establish

benefits

dependencies

Structure benefits

Assess project

type

Phase benefits

delivery

Plan benefits

realisation

Design business

change

governance

Create a shared

business vision

Opportunity

based design

Business

competence

based design

a pattern language

(work in progress)

benefits driven

planning for a

transformation

project


DRIVING ORGANISATIONAL

PERFORMANCE USING PATTERNS

EMBEDDED IN IT-CMF


How could we use patterns to:

• add value to current IT-CMF practices?

• to capture and share good practices?

• to help improve maturity / IT capability in your

organisation?


Today’s Discussion

IT-CMF: Blueprint For Making IT Better

1) Diagnose 2) Prescribe 3) Medicate 4) Monitor

What should be done?

Assistance from:

- POMs How could it be done?

Assistance from:

- Patterns & Practices What & how to monitor?

Assistance from:

- CC Performance Metrics

What’re symptoms

& causes? Assistance

from:

- CCs

- CBBs

- Maturity Levels

- Questions

5) Prevent


THANK YOU

Questions & discussion welcomed


Pattern Template

Name should be brief and easily convey the subject

Context why and where does the problem arise?

Forces problems commonly arise because two or more forces conflict and must be

reconciled: the forces are described

Discussion sets out the best thinking on the problem and approaches to a solution

Solution gives the recommended course of action

New context it is unusual for a solution once applied to solve a problem completely,

rather a large part of the problem is addressed and the system is left in an

improved state, though not without its own problems, and this is described

here

See also gives links to other patterns which may also be of interest or provide further

explanation, though these references are likely to have been given in the

Discussion section


Patterns & Practices: Moving through the maturity levels

Level 1

• Adhoc

Level 2

• Standard business case template

• Clear review and sign off process

Level 3

• Benefits Realisation planning

• Benefits focus to project lifecycle

Level 4

• Creative, workshop based approach to benefits planning

• Active leadership / user engagement

Level 5

• Flexible approach adapted to specific project context

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