IT Strategic Capabilities - Mary Stacey
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Transcript of IT Strategic Capabilities - Mary Stacey
IT Strategic Capabilities
Aligning Strategy, Capabilities, Services, & People
2
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
© Context Management Consulting Inc. 2007 All Rights Reserved© Context Management Consulting Inc. 2007
3
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.
© Context Management Consulting Inc. 2007 All Rights Reserved
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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