Avoiding ITstrategies and investment disasters
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Transcript of Avoiding ITstrategies and investment disasters
Avoiding IT Strategy and
Investment Disasters
Richard Moulds
Warwick London Alumni Group
2nd May 2012
Introduction
Moulds Management Consulting Ltd
Objective
To enable you to identify at least 1 lesson and 1
resource
– Publications
– Organisations & Case Studies – Organisations & Case Studies
– Methodologies
– Fellow Alumni
to act on
Moulds Management Consulting Ltd
Agenda • Introduction
• Objective
• IT Disasters
• Identify your 1st lesson
• Findings
– Research – Research
– Lessons Learned
– Making Decisions
• Identify your 2nd lesson
• IT Management Capability
• Summary Moulds Management Consulting Ltd
Agenda
• Introduction
• Objective
• IT Disasters
• Identify your 1st lesson
• Findings
• Individuals
• Teams
Capability Focus
• Findings • Research
• Lessons Learned
• Making Decisions
• Identify your 2nd lesson
• IT Management Capability
• Summary
Moulds Management Consulting Ltd
• IT Management
• Business
Capability Focus
IT Disasters
• 1983 Faulty Soviet early warning system nearly causes WWIII
• 1990 The AT&T network collapse
• 1996 The explosion of the Ariane 5
• 1998 Mars Climate Observer metric problem
• 1997 Siemens and the passport system 1997 Siemens and the passport system
• 1999/2000. The two-digit year-2000 problem
• 2004 EDS and the Child Support Agency
• 2006 Airbus A380 suffers from incompatible software issues
• 2006 When the laptops exploded
• 2007 LA Airport flights grounded
Moulds Management Consulting Ltd http://www.zdnet.co.uk/news/it-at-work/2007/11/22/the-top-10-it-
disasters-of-all-time-39290976/
IT Disasters - Crash
• Overambitious
• Pride
• Presumption
• Pusillanimity• Pusillanimity
• Credulity
• Consultancy
• Tailored Software
• Concealment
• Buck Passing
• Lawyers Moulds Management Consulting Ltd
Identify your 1st lesson in pairs
1. Describe a recent IT disaster
from your own experience
2. Use the handout to identify
up to 3 Sins that you feel up to 3 Sins that you feel
were relevant to this
disaster
3. Choose one of these Sins
and discuss the likely root
cause of the problem
Moulds Management Consulting Ltd
Tony Collins in 2012
http://blogs.computerworlduk.com/the-tony-collins-blog/Moulds Management Consulting Ltd
Tony Collins & David Bicknell in 2012
Moulds Management Consulting Ltd http://ukcampaign4change.com/
Research
Top 10 Practices H% L% Diff.%
Transferral of lessons learned 73 32 41
Quantification of benefits 52 14 38
All benefits identified 56 19 37
Organisational change reviews 62 30 32
Overstating benefits 22 51 -29
Benefits delivery planning 45 19 26
Benefits review and evaluation 62 39 23
Organisational change planning 44 23 21
External reference sites used 45 24 21
External benchmarking used 35 16 19
Moulds Management Consulting Ltd Cranfield University Information Systems Research Centre
Lessons Learned • Google searchs
• Lessons learned = 39.7 million hits
• We fail to LL = 29.2 million hits
• Lessons learned = identify lesson & act on it **
• Identify lessons by assessing the:– context
event
context
– event
– causes (root causes and critical success factors)
• Act on lessons
• 6 Case studies - 5 NHS Hospital Trusts & BHF
• Published in British Journal of Healthcare Management
** Milton N (2010) The Lessons Learned Handbook
http://www.amazon.co.uk/The-Lessons-Learned-Handbook-Knowledge-Based/dp/1843345870/ref=cm_cr_pr_product_top
Moulds Management Consulting Ltd
British Journal of Healthcare
Management Dec. 2010
Moulds Management Consulting Ltd
5 lessons identified Business Cases
• identify a list of measurable benefits, with named owners , that
stand up to objective scrutiny in the business case
• list all major risks, issues and lessons identified from at least one
reference site visit for each option see slide 15
• ensure the mobilisation of staff in future projects includes a role
Capabilities
ensure the mobilisation of staff in future projects includes a role
model approach, led by the project sponsor on how to raise and
resolve difficult issues see slides 17 & 18
Decision Making & Governance
• establish decision-making processes for complex, innovative
projects that use a proven process see slide 16
• establish a similar approach to governance for identifying and
acting on lessons as used for corporate and patient risks.
Moulds Management Consulting Ltd
Decision Making
Risks, Issues & LessonsRisks, Issues & Lessons
Complex Decisions
Personality Types
Business Teams
Accountability & Capability
Risks, issues & lessons
Risks- what could go wrong ?
Issues- what has gone wrong ?
Identify and act on lessons
Moulds Management Consulting Ltd
Disaster = Multiple, Major
Issues
Complex Decisions People who Are responsible for
Recommend Make a proposal, gather input, provide data and analysis to make a sensible choice in a timely fashion
Consulting with input providers-hearing and incorporating their views and winning their buy in
Agree Negotiating a modified proposal with the recommender if they have evidence based concerns about the original proposals
Escalating unresolved issues to the decider if the A and R cant resolve differencesresolve differences
Perform Executing the decision once it is made
Seeing that the decision is implemented effectively
Input Providing relevant facts to the recommender that shed light on the proposals feasibility and practical implications
Decide Serving as the single point of accountability
Bringing the decision to closure by resolving any impasses in the decision making process
Committing the organisation to implementing the decision
Moulds Management Consulting Ltd HBR Jan 2006 - Who has the D? How clear decision roles enhance organisational performance
http://www.bain.com/publications/articles/who-has-d-how-clear-decision-roles-enhance-organizational-performance.aspx
Personality Types
MYERS BRIGGS Extraversion ( E ) Introversion (I)
Sensing (S) Intuition (N)Sensing (S) Intuition (N)
Thinking (T) Feeling (F)
Judging (J) Perceiving (P)
Moulds Management Consulting Ltd
Business Teams • IT and Project Management is still a relatively
young profession
• Engineers, Lawyers, Accountants, Doctors 1818 -1880
• IT, Project Managers 1957-1975
• Balance of Business Teams• Balance of Business Teams– What is the frequency of HR, Finance & IT agenda
items in the last 12 months?
– IT projects or Business IT projects ?
• People & project management– Includes role model leadership, conflict management,
behaviours, learning and development
Balanced business teams including IT Moulds Management Consulting Ltd
Accountability & Capability
Sponsor/SROC level sponsor on top 10 projects
Senior UserProject
Manager
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5 lessons identified – capabilities eg the mobilisation of staff in future projects includes a role model
approach, led by the project sponsor on how to raise and resolve difficult
issues
Identify your 2nd lesson in pairs
1. Describe a recent IT disaster
from your own experience
2. Use the handout to identify
up to 3 Sins that you feel up to 3 Sins that you feel
were relevant to this
disaster
3. Choose one of these Sins
and discuss the likely root
cause of the problem
Moulds Management Consulting Ltd
IT Management Capability
Developed by the Innovation Value Institute (IVI)
Developed by the Innovation Value Institute (IVI)The IT Capability Maturity FrameworkThe IT Capability Maturity Framework
Steering patronsOptimize value from IT
• Defines maturity profiles across IT domains to transform organizations from cost center to value center
• 33 Critical Capabilities, each with 5 levels of maturity
• Provides a holistic view of maturity, with ability to share amongst peers
• Non-profit, open innovation consortium with membership from leading industry IT end-users, vendors, consulting firms, government, non-profit and academic organizations
• More than 75 organizations worldwide
ability to share amongst peers
Provision of improvement roadmaps
• Assists CIOs and senior IT decision-makers evaluate their IT organization, industry benchmark trends and clearly identify next steps
Research base
• Based on a framework originally developed by Intel IT
• Refined and extended by the Innovation Value Institute (www.ivi.ie)
• Reviewed and tested with 300+ CIOs plus latest academic thinking
Moulds Management Consulting Ltd
Managing IT Like a Business
Managing the IT Budget
Managing the IT Capability
Managing IT for Business Value
ITGIT Leadership & Governance FF Funding & Financing EAM
Enterprise Architecture Management TCO
Total Cost of Ownership
BPMBusiness Process Management BGM Budget Management TIM
Technical Infrastructure Management BAR
Benefits Assessment & Realization
BP Business Planning PPPPortfolio Planning & Prioritization PAM
People Asset Management PM Portfolio Management
SP Strategic Planning BOPBudget Oversight & Performance Analysis KAM
Knowledge Asset Management
DSMDemand & Supply Management RAM
Relationship Asset Management
CFPCapacity Forecasting & Planning RDE
Research, Development, & Engineering
• Each critical capability has five levels of
The Framework
RM Risk Management SD Solutions Delivery
AA Accounting & Allocation SRP Service Provisioning
ODPOrganization Design & Planning UTM
User Training Management
SRC Sourcing UEDUser Experience Design
IMInnovation Management� PPM
programme & Project Management
SAIService Analytics & Intelligence SUM Supplier Management
SICT Sustainable ICT CAMCapability Assessment & Management
five levels of maturity ranging from ‘Initial’ to ‘Optimizing’
Increasing maturity improves IT ability to deliver on key priorities
Moulds Management Consulting Ltd
IT-CMF: Maturity of discrete Critical ProcessesDifferences in perceived current maturity by Business Area
Ad
va
nce
dA
dva
nce
dO
ptim
isin
gO
ptim
isin
g
IM&T Operations
Initia
lIn
itia
lB
asic
Ba
sic
Inte
rm-
Inte
rm-
Moulds Management Consulting Ltd
IT-CMF: Importance of discrete Critical ProcessesDifferences in perceived importance by Business Area
4455
IM&T Operations
1122
33
Benchmark: n = 31
Moulds Management Consulting Ltd
Summary
Individuals & teams– Lessons learned =
identify lesson and act
– Mitigate risks by acting Risks– Mitigate risks by acting on lessons to avoid issues
– Better decisions rely on evidence + ideas + objectivity + empathy
Moulds Management Consulting Ltd
Risks
IssuesLessons
MYERS BRIGGS
Sensing Intuition
Thinking Feeling
Summary
IT & Business Management
– Accountabilities & capabilities - act on lessons &
knowledge
– Balanced business teams, including IT
– Business IT Plans & ambitions > or = or < IT – Business IT Plans & ambitions > or = or < IT
management capability
– Determine where you, your business and your IT
suppliers are/need to be in the IT capability chain
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Questions & Comments
• Richard Moulds
• Moulds Management Consulting
Limited
• 28 Eggbridge Lane,
Waverton,
Chester, Chester,
CH3 7PE
• http://www.linkedin.com/in/rich
ardmoulds
• M: 07834 320979
Moulds Management Consulting Ltd
SPARE SLIDES SPARE SLIDES
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4. Highly
Successful
3. Successful
Sound business cases
based on achievable
Benefit delivery:
Delivery Planning - organisational
change
& benefits.
Project selection:
Portfolio management.
Business cases –
identification of benefits.
Benefit and change reviews
Project delivery:
Business cases-
identification of costs.
Key practices
to be improved to
increase maturity
level and success
Life cycle approach
to benefit management.
Demand led with
business ownership of
benefit delivery plans and
a comprehensive review
process.
1. Unsuccessful
2. Moderately
Successful
Inadequate and inconsistent use of
proven methodologies. Unrealistic
business cases, limited business
involvement in all practices. Very
weak review processes.
Sound IT methodologies, but
ineffective portfolio management and
business cases are cost rather than
benefit based. IT methodologies
dominate with insufficient business
involvement in business cases,
implementation and review.
based on achievable
benefits but ineffective
benefit delivery and
change planning, with
insufficient business
ownership &
involvement.
identification of costs.
Technology and
process change
planning. TCQ
reviews.
Characteristics
of the 4
levels of maturityMoulds Management Consulting Ltd