IT Strategic Capabilities - Mary Stacey

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IT Strategic Capabilities Aligning Strategy, Capabilities, Services, & People

Transcript of IT Strategic Capabilities - Mary Stacey

Page 1: IT Strategic Capabilities - Mary Stacey

IT Strategic Capabilities

Aligning Strategy, Capabilities, Services, & People

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Aligning Strategic Capabilities

R

Bus. Strategy &Bus. CapabilitiesBus. Strategy &

Bus. Capabilities

IT StrategyIT Strategy

Strategic CapabilitiesStrategic

Capabilities

Major ServicesMajor Services

Key People SkillsKey People Skills

Service Level Capabilities

Service Level Capabilities

ASSESS

E V O L V E

ALIGN

In a recent engagement, we partnered with the Executive VP and CIO of an 80M IT organization to design and execute a strategic capabilities strategy.

We worked with the twenty member leadership team to develop a customized framework and implement an approach to evolve and leverage capabilities at three levels of alignment: business strategy, service delivery, and people development.

The following slides provide a high level view of the strategy, the process, and the outcomes.

In a recent engagement, we partnered with the Executive VP and CIO of an 80M IT organization to design and execute a strategic capabilities strategy.

We worked with the twenty member leadership team to develop a customized framework and implement an approach to evolve and leverage capabilities at three levels of alignment: business strategy, service delivery, and people development.

The following slides provide a high level view of the strategy, the process, and the outcomes.

Context

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IT Vision, Guiding Principles and Strategic Focus

“A collaborative team that delivers and enhances the company’s business capabilities through innovation and thought leadership”“A collaborative team that delivers and enhances the company’s

business capabilities through innovation and thought leadership”

Strategic Partnership

We will be at the table with the business in

the strategic planning and decision-making

process.

People

Focus on building leadership and

capabilities for higher value IT services.

Financial Management

Strive to optimize operational costs and

undertake projects with appropriate

returns.

Operational Excellence

Our operational excellence is the door to credibility and we

are committed to continuous

improvement of our processes & services.

The 2003 IT Strategy was about developing our capabilities to support the company’s business strategy andmanaging costs through renewal and standardization of our technical environment

IT Strategy

Company Vision Company Strategy

...is guided by our strategy & guiding principles…

The vision for IT…

Refreshed 05-07

Strategic Context

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IT Strategic Framework

IT strategic capabilities are a ‘complex bundle’ of services, skills, and tools (processes and technologies) that support the development, deployment, and management of IT

assets consistent with business strategies.

BUSINESS & IT PLANNING

IT STRATEGY

PEOPLE

• Leadership Programs• Capabilities Alignment

PROCESS

• Governance Framework• Process Improvement

TECHNOLOGY

• Business-Driven Initiatives

• Integrated Business and IT Renewal Plan

Strategic Context

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Business StrategyIT Strategy

Stewardship Management

GrowthEvolution

IT Capabilities Strategy

IntegrationTeam

Evolving IT capabilities to convert IT investments into business value

Reporting

Sustainability

OpportunityMining

Currency &Alignment

SourcingStrategy

ManagedServices

InternalServices

Evolve Skills

Tools &Resources Centres of

Excellence

Career Mobility

IT Capabilities Strategy

IT Strategic Capabilities Model

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Strategic Capabilities Model

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IT Capabilities Guiding Principles

IT exists in an increasingly complex retail environment. Focus is key. A capabilities strategy creates focus, simplifies complexity, and enables IT to continuously adapt with speed and agility.

IT strategic capabilities are dynamic and evolve to keep pace with longer term business strategies. They are simultaneously current and future focused, yet should not be too closely aligned with current business priorities.

As a strategic partner IT must focus on business outcomes. Technology needs to be placed in a business outcome context. As much as possible, capabilities should be defined using business language.

Capabilities are dispersed across the IT organization in services, skills, and tools and need robust integration processes to ensure they remain current and aligned.

A Capabilities Model is an integrating mechanism that guides stewardship (strategic leadership and governance), management, and growth of IT capabilities.

Organizations need a full view of capabilities (strategic capabilities, major services, key skills) so that they can be used effectively at the strategic, operational/service, and employee levels.

Capabilities stewardship is more tied to business strategy and IT planning cycles. Capabilities management is most tied to operational cycles and service delivery. Capabilities growth is more tied to HR performance and development cycles.

Well defined capabilities create a common language between the business and IT. The business understands what IT is doing, and this builds credibility.

A capabilities strategy well communicated in IT drives an understanding of the business agenda to the front lines of the IT organization, so that every employee understands how what they do on a day-to-day basis contributes value to the business.

Sound management of strategic capabilities enables IT investments to be successfully converted into business value across the Enterprise

Sound management of strategic capabilities enables IT investments to be successfully converted into business value across the Enterprise

ContextCapabilities Principles

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Stewardship Guiding Principles

• Stewardship involves both the strategic leadership & governance of IT capabilities.

• Strategic leadership of IT capabilities encompasses the Enterprise, and supports business growth through Enterprise opportunity mining.

• Capabilities governance is an integral component of the Enterprise Governance Framework.

• An annual strategic capabilities refresh is carried out to ensure currency and alignment to corporate strategy.

• IT capabilities are sustained and evolved through clear ownership and dynamic integration processes.

Capabilities Principles ReportingReporting

SustainabilitySustainability

OpportunityMining

OpportunityMining

Currency &AlignmentCurrency &Alignment

Stewardship

Ensure that capabilities are current and business aligned. Find opportunities to create efficiencies. Build processes to ensure capabilities are sustainable.

Measure and report how well IT capabilities support business growth and productivity.

Ensure that capabilities are current and business aligned. Find opportunities to create efficiencies. Build processes to ensure capabilities are sustainable.

Measure and report how well IT capabilities support business growth and productivity.

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Management Guiding Principles

• If IT does not have a full view of its capabilities, it cannot effectively manage them.

• Management of IT capabilities ensures effective deployment and delivery of services.

• IT delivers strategic capabilities to the business through a combination of internal and external sourcing.

• A sourcing strategy guides decision making about what services are sourced internally and externally—and how they work together.

• Sourcing conversations are ‘business as usual’—services are continually re-visited as part of the annual refresh process.

• Well integrated services provide a seamless customer experience.• Capabilities management supports business productivity by mining for

synergies and efficiencies.

Capabilities Principles

Management

SourcingStrategySourcingStrategy

ManagedServicesManagedServices

InternalServicesInternalServices

Develop a sourcing strategy that supports business growth and productivityImplement a managed services plan. Implement an internal services plan.

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Growth Guiding Principles

• Capabilities growth is about growing services to the desired level of maturity• Maturity assessments provide a strategic focus for growing services, which

are later evaluated through governance metrics and reporting processes• Capabilities growth also about creating a balanced opportunity for

employees to contribute value in exchange for the opportunity to develop their skills and career.

• IT is committed to growing services that support its strategic capabilities, and investing in Centres of Excellence across the Enterprise.

• To evolve their skills and enhance career mobility employees need high-quality jobs, tools and resources.

Assess and grow services. Evolve Skills. Invest in Tools & Resources. Build Centres of Excellence. Enhance Career Mobility.Assess and grow services. Evolve Skills. Invest in Tools & Resources. Build Centres of Excellence. Enhance Career Mobility.

Capabilities Principles

GrowthEvolve Skills

Evolve Skills

Tools &ResourcesTools &Resources Centres of

ExcellenceCentres ofExcellence

Career MobilityCareer Mobility

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High Level Approach

The IT Capabilities Model & Capabilities Refresh Framework will guide activity. They will provide support for establishing priorities, identifying integration points, and continuously evolving IT’s ability to effectively manage its capabilities.

Work will be undertaken in a continuous assess-evolve-align process that is focused on longer term business strategies. Capabilities will evolve in many ways as a result of strategic imperatives, annual processes, deliverables from strategy projects, and employee development.

Capabilities initiatives are:Networked. This strategy will be implemented as a network of activities across the 3 IT spheres. For example while Enterprise IT is refining capabilities governance processes, IT Shared Services will be implementing a sourcing strategy, and Retail IT will be establishing a Centre of Excellence.

Integrated. Networks of activity require strong linkages. Sustainable growth of IT capabilities will depend on the extent to which efforts are meaningfully integrated from a strategy-to-skill perspective, as well as though sound governance, management and development processes.

Innovative. “In order to be seen as innovative IT must break the status quo by radically transforming the way tasks, processes, and interactions occur.” (Forrester) The next phase of capabilities work will challenge stakeholders to look at IT’s relationship to the business differently, and transform the way they think about IT capabilities.

Strategy

2007 2008 2009

Approach

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Stewardship

GrowthManagement

Managed Services

Approach

IT Capabilities Strategy

IT Sourcing Strategy

BusinessCase

Analysis

Evolution

Risk Assess-

ment

ProgramDefinition& Design

CapabilitiesCentres of Excellence

Org Design& Skills

Development

RFP Issuance& Vendor(s)

Selection

ProgramExecution

IT Strategy RefreshIT Strategy Refresh

BenchmarkingAnalysis

Assessment(Enterprise

Governance)

InfrastructureArchitecture Assessment

Context Management

Strategy Definition

Internal Services

&Managed Services

Capabilities Assessment

Integration

2007-2010 Detailed Approach

Approach

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Engagement Timeline*

April May June June June June July

LeadershipTeam

& Pre-Work

Director Workshop 2

Director Workshop 1

IndividualReview

Services with Descriptors

Individual Review

Results Consolidation

Leadership Team

Review

DirectorEngagementIn Results

SBUEngagement

OUTCOMEImplications &

Gaps

Results for Final

Review

BusinessStakeholders

ReviewResults

Check ResultsAgainst

Other DataSourcing Decisions& Managed ServicesFinal Capabilities

Services, & Mandates Internal Growth Plan

& CoE Identification

* does not include skills refresh

Introduction2007 Assessment

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Results

Relationship Management

Change Leadership

Business & Technology Portfolio

Management

IT Value & Risk Management

Enterprise Planning

Information Management

Major Services

IT Strategic Capabilities

Business Strategy

Innovation

Transformation Services

People Development

Organizational Change

Management

IT Resource Management

Capabilities Management

Strategy & Planning

Enterprise Architecture

Lifecycle Management

Competitive Intelligence

Business & IT Consulting

SolutionIntegration &

Delivery

Project Leadership & Management

Service Delivery & Management

Customer Support

Measurement & Reporting

IT Policy & Standards

Governance

Compliance Management

IT Security Standards

Data Management

Knowledge Management

Collaboration Services

Enterprise Information &

Analytics

Strategic Partner

Management

Operational Vendor

Management

2007-10 Strategic Capabilities and Major Services

2007 Assessment Results

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Change Leadership Services

Results

Change Leadership

Innovation

Transformation Services

People Development

Organizational Change

Management

IT Resource Management

Capabilities Management

Leverage new technologies to support business growth and productivity, and mine opportunities for enterprise synergies in technology

Drive business process improvements through leveraging IT’s business knowledge and incorporating advancements in technology

Develop and execute plans and programs to build IT’s functional team customer focus, leadership, and other people capabilities at all levels

Lead the planning and support the execution of organizational changestrategies that result from solution delivery initiatives

Manage IT resource capacity (human, processing power, memory, etc.) to meet current and future business requirements in a cost-effective manner

Manage IT’s strategic capabilities and services to ensure the effective deployment, delivery and growth of services

2007-10 Capabilities

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Enterprise Planning Services

Results

Enterprise Planning

Strategy & Planning

Enterprise Architecture

Lifecycle Management

Competitive Intelligence

Develop a strategic vision and practical implementation plan for IT investments to achieve enterprise business objectives and goals

Manage the evolutionary lifecycle of technology components, from introduction to disposal across all applications and infrastructure domains to achieve high-level productivity, stability and cost effectiveness

Collect and understand relevant technology best practices, directions and trends as input to Strategy & Planning and Lifecycle Management

Provide future-focused, business enabling technology leadership for the enterprise through the development of strategies and the establishment of principles, rules and guidelines

2007-10 Capabilities

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Business & Technology Portfolio Management Services

Results

Business & Technology Portfolio

Management

Business & IT Consulting

Solution Integration &

Delivery

Project Leadership

& Management

Service Delivery & Management

Customer Support

Collaborate with the business and IT to advise on, and leverage technology investments and IT services for current and future solutions

Design, develop and implement people, process, and technology solutions in response to business and technology needs

Plan and deliver programs and projects, through project leadership and management

Deliver operational services and support through monitoring and managing the technical environment, leveraging problem, incident, change, and service management and BCP/DRP strategies

Provide front-line support directly to our customers

2007-10 Capabilities

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IT Value & Risk Management Services

Results

IT Value & Risk Management

Measurement & Reporting

IT Policy & Standards Governance

Compliance Management

IT Security Standards

Enable IT to support the business by reporting on IT’s performance and business value realization

Develop and deliver the policies, frameworks, standards and processesnecessary to govern IT

Enable, monitor and manage policy, standards and regulatory compliance

Define the information protection standards and sustaining processes required for the protection of information assets and for ensuring compliance with regulations

2007-10 Capabilities

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Information Management Services

Results

Information Management

Data Management

Knowledge Management

Collaboration Services

Enterprise Information & Analytics

Facilitate data ownership, manage enterprise data integration and stewardship, and provide tools, knowledge, and resources required to ensure consistent data quality and use

Provide the tools, processes, and skills necessary for the identification and distribution & application of knowledge across the enterprise to support performance and competitive advantage

Provide strategies, tools and processes to enable collaboration across the organization and among vendors, stores, suppliers, and customers

Provide the technology, processes, and resources to transform enterprise data into actionable business information

2007-10 Capabilities

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Relationship Management Services

Results

Relationship Management

Strategic Partner

Management

Operational Vendor

Management

Develop mutually beneficial alliances with services and technology providers to extend IT’s core competencies, execute strategy, and manage vendor relationships, from identification and selection, through contract creation, negotiation, and management

Manage, coordinate, monitor and integrate vendor provided services to ensure seamless delivery of IT capabilities to our clients

2007-10 Capabilities

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Distribution of Services

Strategic CapabilitiesCL - Change LeadershipEP - Enterprise PlanningBT – Bus. & Tech. Portfolio Mngmt.VR - IT Value & Risk ManagementIM - Information ManagementRM - Relationship Management

Almost half of the identified services are common to Corporate IT and Retail IT. Service growth and evolution should be coordinated across both groups.

Applying the Results

Corporate IT Services Common Services Retail IT ServicesEnterprise Architecture (EP) Innovation (CL) Organizational Change Management (CL)Service Delivery & Management (BT) Transformation Services (CL) Project Leadership & Management (BT)Data Management (IM) People Development (CL)Knowledge Management (IM) IT Resource Management (CL)Collaboration Services (IM) Capabilities Management (CL)Enterprise Information & Analytics (IM) Strategy & Planning (EP)Strategic Partner Management (RM) Lifecycle Management (EP)Operational Vendor Mngmt. (RM) Competitive Intelligence (EP)Measurement & Reporting (VR) Business & IT Consulting (BT)

IT Policy & Standards Governance (VR) (VR)

Solution Integration & Delivery (BT)Compliance Management (VR) Customer Support (BT)IT Security Standards (VR)

Application of Results

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Services Maturity Levels

Corporate IT Services MaturityEnterprise Architecture (EP) HService Delivery & Management (BT) HData Management (IM) MKnowledge Management (IM) LCollaboration Services (IM) LEnterprise Information & Analytics (IM) MStrategic Partner Management (RM) MOperational Vendor Management (RM) L

Measurement & Reporting (VR) LIT Policy & Standards Governance (VR) MCompliance Management (VR) M IT Security Standards (VR) L

Common Services MaturityInnovation (CL) LTransformation Services (CL) MPeople Development (CL) HIT Resource Management (CL) MCapabilities Management (CL) MStrategy & Planning (EP) MLifecycle Management (EP) LCompetitive Intelligence (EP) L

Business & IT Consulting (BT) HSolution Integration & Delivery (BT) HCustomer Support (BT) H

CTR IT Services MaturityOrganizational Change Management (CL) LProject Leadership & Management (BT) H

A rough assessment of service maturity levels shows that 9 services are at the low maturity level, requiring investment in growth and development.

Application of Results

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How can we use the results?

2007 Strategic Capabilities Refresh2007 Strategic Capabilities Refresh

CapabilitiesStewardshipCapabilitiesStewardship

Sourcing StrategySourcing Strategy

IT CapabilitiesStrategy

IT CapabilitiesStrategy

CapabilitiesManagementCapabilities

ManagementCapabilities

GrowthCapabilities

Growth

Agenda:Ensure that capabilities are current and business aligned (June, 2007)

2. Find opportunities to create Enterprise efficiencies3. Build processes to ensure capabilities are sustainable4. Measure and report how well IT capabilities support business growth and productivity.

Be a Strategic Partner to the business.

Evolve IT capabilities to convert IT investments into business value

Business & IT StrategyBusiness & IT Strategy

Agenda: Develop a sourcing strategy that supports businessgrowth and productivity (June, 2007)

2. Implement a managed services plan3. Assign ownership for major services4. Facilitate the integration team.

Agenda:1. Implement an internal growth plan

A. Assess the maturity of IT servicesB. Invest in Tools and ResourcesC. Build Centres of ExcellenceD. Enhance Career Mobility

Application of Results

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2007-10 Activity Streams

Career Mobility (Phase 2)• HR Career Development Guide, HR Performance Systems

Centres of Excellence • Invest in internal services based on results of opportunity mining, business-IT strategic agenda

Tools and Resources (Phase 2)• Invest in growth ‘portals’ such as Canadian Tire University, IT Capabilities Directory, IT Capabilities Resource Centre, Career Development Guide

Evolve Skills• Focus on and investment in skills based on maturity assessment results, business-IT strategic agenda

Capabilities Growth: Support IT Employees as they Grow their Skills and Careers

Internal Services• Manage internally sourced services

Managed Services (Phase 3 in progress)• Manage externally sourced services

Services & Skills Assessment (Phase 2)• Strategically align strategic capabilities, services, and skills

Sourcing Strategy (Phase 3 in progress)• Principles, drivers, decision criteria, and approach for internal and external sourcing

Capabilities Management: Manage Internally and Externally Sourced Capabilities, Services & Skills

Reporting• Metrics such as Customer Satisfaction Survey, Employee Satisfaction Survey; Capabilities Scorecard (maturity and sourcing information)

Sustainability• Strategic focus and processes that create a capabilities culture, integrate capabilities activities, and support evolution and alignment

Opportunity Mining• Optimizing enterprise synergies for growth and productivity

Currency & Alignment (Phase 3 in progress)• Annual Strategic Capabilities Refresh

Capabilities Stewardship: Strategic Leadership and Governance

Integration Team• Integrate stewardship, management & growth activity streams and represent capabilities work to stakeholders

Core Group (Phase 3 in progress)• Executive sponsor, sustaining sponsors, Phase 3 director & consultants, HR & Communications advisors

IT Capabilities Strategy & Framework (Phase 3 in progress)• Sub-set of CTC & IT Strategies; guides all capabilities plans and activities

Phase 3 Integrating Infrastructure: Ensure Sustainable Evolution of IT Capabilities

Career Mobility (Phase 2)• HR Career Development Guide, HR Performance Systems

Centres of Excellence • Invest in internal services based on results of opportunity mining, business-IT strategic agenda

Tools and Resources (Phase 2)• Invest in growth ‘portals’ such as Canadian Tire University, IT Capabilities Directory, IT Capabilities Resource Centre, Career Development Guide

Evolve Skills• Focus on and investment in skills based on maturity assessment results, business-IT strategic agenda

Capabilities Growth: Support IT Employees as they Grow their Skills and Careers

Internal Services• Manage internally sourced services

Managed Services (Phase 3 in progress)• Manage externally sourced services

Services & Skills Assessment (Phase 2)• Strategically align strategic capabilities, services, and skills

Sourcing Strategy (Phase 3 in progress)• Principles, drivers, decision criteria, and approach for internal and external sourcing

Capabilities Management: Manage Internally and Externally Sourced Capabilities, Services & Skills

Reporting• Metrics such as Customer Satisfaction Survey, Employee Satisfaction Survey; Capabilities Scorecard (maturity and sourcing information)

Sustainability• Strategic focus and processes that create a capabilities culture, integrate capabilities activities, and support evolution and alignment

Opportunity Mining• Optimizing enterprise synergies for growth and productivity

Currency & Alignment (Phase 3 in progress)• Annual Strategic Capabilities Refresh

Capabilities Stewardship: Strategic Leadership and Governance

Integration Team• Integrate stewardship, management & growth activity streams and represent capabilities work to stakeholders

Core Group (Phase 3 in progress)• Executive sponsor, sustaining sponsors, Phase 3 director & consultants, HR & Communications advisors

IT Capabilities Strategy & Framework (Phase 3 in progress)• Sub-set of CTC & IT Strategies; guides all capabilities plans and activities

Phase 3 Integrating Infrastructure: Ensure Sustainable Evolution of IT Capabilities