after it restructuring: what's next? (166174219)

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After IT Restructuring: What's Next?

This paper was presented at the 1995 CAUSE annualconference. It is part of the proceedings of thatconference, "Realizing the Potential of InformationResources: Information, Technology, and Services--Proceedings of the 1995 CAUSE Annual Conference,"pages 7-3-1 to 7-3-9. Permission to copy ordisseminate all or part of this material is grantedprovided that the copies are not made ordistributed for commercial advantage. To copy ordisseminate otherwise, or to republish in any form,requires written permission from the author andCAUSE. For further information: CAUSE, 4840 PearlEast Circle, Suite 302E, Boulder, CO 80301; 303-449-4430; e-mail [email protected].

AFTER IT RESTRUCTURING: WHAT'S NEXT?

Susy S. Chan, Ph.D.Vice President for Information TechnologyAssociate Professor in Information SystemsDePaul University

243 S. Wabash, Chicago, IL 60604Tel: 312.362.8597Email: [email protected]

I. INTRODUCTION

In July 1993, DePaul University integrated itsinformation technology and services functions undera new information technology division. Thisrestructuring consolidated formerly fragmentedservices to achieve a unified direction forinformation technology aligned with university

goals. In two years, the new division brought theuniversity into a competitive technologyenvironment of integrated network infrastructureand client server architecture. To respond tochanging technology environment and maturing usercommunity, in spring 1995, the division undertook asecond restructuring effort. Four strategies wereused to reposition the division: a) streamlinefunctional areas for greater coordination; b)invigorate team leadership for sharedresponsibilities; c) initiate new cross-functionalprocesses to enhance IT effectiveness; and d)implement a comprehensive communication and

customer service program to forge activepartnership with users.

This paper examines DePaul's experience after itsinitial IT restructuring and discusses therationales and strategies for further changes tomeet changing university needs. Two cases, networkand client server support, are presented toillustrate the strategies and implications.



II. PHASE ONE: BUILDING TECHNOLOGY ANDORGANIZATION INFRASTRUCTURE

My recent article on "Strategies for RestructuringIT Organizations" (Chan, 1995) provides a fairlydetailed discussion of DePaul's first effort inrestructuring its IT functions. In essence, fiveprinciples have guided the IT restructuring:

* focus on institutional strategic goals* maintain IT organizational responsiveness;* provide integrated information and technology

solutions;* develop an IT culture of learning

organizations; and* insist on flexibility in resource management.

The new division adopted a team-based, horizontalstructure to achieve a unified vision, sharedvalues, responsiveness to institutional change, andimproved productivity. Seven small and flatfunctional groups were formed to replace formerlylarge, hierarchical, and separated departments.

1. Outcomes and Deliverables This restructuring yielded many positive outcomes:

* networked 2500 users at five campuses* standards for platforms, productivity tools,* hardware, and network operating systems* standards for client server environment* a five-year telecommunications plan* a new telephone switch for the Lincoln Park

Campus* consolidation of academic computing operating

systems

* student and faculty microcomputing centers* residence hall data & voice cabling* enterprise data model for new student systems* mainframe operating systems migration* data gateway for client servers* reengineered fund-raising process

2. Key Strategies

Core Values for IT Organization

Ten core values were introduced to unify formerlyseparated cultures and organizations. These values

were incorporated into a new performance appraisalsystem as performance attributes: commitment tomission, continuous quality improvement, creativityand innovation, customer focus, leadership,openness to change, result-oriented, self-directedlearning, self-empowerment, and teamwork andcollaboration. These values helped to redirectstaff's attention to the need for change, but havelimited effect if not continuously translated intoperformance expectation.



High Performance Management

A new performance appraisal system helped to setperformance objectives and review outcomes everysix months. These objectives are linked touniversity and divisional strategies. This processmotivated managers and staff to think and behave inmeasurable goals.

Cross-Functional Teams

We created cross-functional teams to support helpdesk, computing workshops, computing labs, andspecial projects. Team approach for ongoingsupport was less satisfactory than that forprojects. Users were confused with the processapproach. Clear objectives, outcome expectation,and division of labor are essential for teamsuccess. As a new organization, we underestimatedthe training requirement.

Reskilling of IT Staff

Multiple strategies were used to develop the softand technical skills of IT staff across division.Leadership development programs, technical trainingon new technology for targeted individuals,participation in special projects, coupled withrigorous performance management, yielded highperformance and productivity.

Partnership with Clients

Despite our effort in communication, the massiveand numerous technology changes introduced in thepast two years heightened users' anxiety as well as

expectation. Communication and customer servicedid not meet changing needs.

3. Change and Transition We carried out the IT restructuring as planned buthad to address transition issues along the way toensure staff retention. The impact ofrestructuring on people, both individuals in the ITdivision and users, was sever. Many IT memberswent through prolonged anxiety about changingroles, responsibilities, relationship with co-workers and users. Users expressed equal

frustration about learning new skills and fear forjob shift. It became quite clear that we had toaddress the transition process for individuals inorder to implement the planned change. Transitionmanagement differs from change management in manyways (Bridges, 1993). Change is an externalprocess, often driven by events, situations,outcomes, and external environment. It emphasizesa new beginning and intended results. Transition,in contrast, is a process internal to specific



individuals. It has three distinct phases--ending,neutral, and beginning--and starts with the ending.We assisted individuals through formal learningforums and informal communication to acknowledgetheir loss and the pain associated with therestructuring. We also emphasized a projectapproach to help those individuals to establishearly success in moving into a new beginning.

III. PHASE TWO: EXPANDED INFORMATION ACCESS ANDSERVICES The rapid development of infrastructure achievedduring the first eighteen months brought theuniversity community to a new environment andheightened user expectation,

1. Rationale

Changing Technology Environment

The 1993 restructuring enabled the IT division tomove the university from a lagging position to a

competitive environment. Completion of the networkinfrastructure and new client server applicationsrequired the division to reposition itself as aservice provider and a change agent, capable ofimproving work process through technology.

Changing Institutional Needs

The new technology environment afforded theuniversity numerous opportunities to developinnovative strategies. Technology solutions becameimbedded in academic and service strategies. TheIT organization has to collaborate with user

community and adopt a strategic view in selectingand prioritizing its projects in order to harvestthe benefit of technology investment

Changing User Expectation

Our client base has tripled since 1993. Six toseven thousand students joined the user communityin the 1995-96 academic year. Users of differentproficiency level and needs further complicated thedesign of new service models. Measures of ITsuccess shifted from infrastructure work tocustomer service, from technology solutions to our

ability to vision and facilitate work redesign.

2. Strategies We continue to follow the five principles,mentioned above, to guide this second round of ITrestructuring. A four-prong approach was taken toimprove services and information access.

Restructure and Streamline Functional Groups



The seven small, flat functional groupsaccomplished the advantages of empowerment, crosstraining, reestablishing working relationship, andconsolidation of technology platforms andoperation. However, coordination across divisionwas still problematic. To allow bettercoordination and more effective communication withusers, functions for the seven groups werestreamlined to form four functional groups whilemaintaining the same unified vision and culture.

Information and Application Support (IAS): Focusedon client server, work process redesign andmigration of legacy systems

Network and Telecommunications: Full responsibilityfor voice and network support, including networksoftware support

Academic Technology Development: All instructionaland research computing, instructional technology,and student Internet support

Management Support: Focused on customer service,management practice, user communication and ITpolicy research These changes gave each functional group a completeset of service responsibilities and accountability.Although an additional layer of managers wasincorporated into each group, we balanced theorganizational design by emphasizing teamleadership and new horizontal processes.

Strengthen Team Leadership

This team, composed of the vice president and fourdirectors, developed a heightened sense of sharedresponsibility through a commitment to priorityprojects, team problem solving, and managementpractice. This team was responsible for qualityassurance and exercised a discipline in projectplanning, management, and customer service..

Develop New Cross-Functional IT Processes

Four horizontal processes were established toimprove user support. Objectives and expectedoutcome of each process are clarified for each

process group.

Software Research -- Expertise from ATD, IAS, andN&T was drawn to research, evaluate, and plansoftware selection, acquisition and installationbefore implementation. This process helps toachieve knowledge sharing and improved delivery ofnetwork software upgrades and support.

User Computing Training -- Each functional group



was responsible for conducting user trainingworkshops on a designated network software package.This approach establishes direct, personal rapportwith new users. It also instills a division-wide,shared commitment for user training.

Help Desk--The process is coordinated by N&T butall groups provide higher level support. Newpolicies and procedures were established to ensurea single point of service to the user community.

Customer Service--A customer satisfaction actionplan was supported by all groups. Measures andbenchmarks were established for maintenancefunctions as well as new initiatives.

Forge Proactive Partnership with Users

A customer satisfaction action plan was developedto articulate products, services and clientele.This plan includes eight components:

* university plan for information technology* IT policy development process

* voice of the customer* project management and communication* customer satisfaction card* customer communications* operational performance measures* rewards and Incentives based on user

satisfaction This approach enabled the division to designappropriate messages, communication strategies, anduser support. Staff in the division receivedtraining in customer relations and communication.Besides various electronic and print

communications, the division holds regulartechnology and project updates for users. Key usergroups receive customized support.

3. Outcomes and Deliverables

* new voice services for 1700 resident students* DePaul Online: Internet SLIP services for

students* DePaul In-Touch--campus-wide information access* enhanced student bills* student and user training and services* suburban campus support

* faculty microcomputing service* support for distance learning* remote Access for faculty and staff* enrollment management data warehouse* extend use of legacy systems* WWW applications* data policies and procedures* a new fund-raising and donor tracking system* redesign of student-centered processes and

systems



IV. Two Case Studies The IT division responded to changing institutionalneeds in two phases of restructuring. The initialrestructuring in 1993 was to create anorganizational infrastructure for implementingtechnology infrastructure. The realignment in 1995was to reposition the division as a serviceprovider and change agent. How did the ITrestructuring affect users? What are theimplications of these rapid, massive organizationaland technological changes for the IT division? Theimpacts of these changes are examined in two casesfrom several perspectives.

Case #1: Network and TelecommunicationsSupport

In the network support arena, the completion ofuniversity network infrastructure at all campusesby early 1996 will bring 3000 faculty and staffusers into the Novell, Windows-based environment.Completion of networking for student residence

halls would bring over 1,700 students in a "portper pillow" environment. The DePaul Online couldpotentially connect the remaining 15,000 studentswith the university.

A shift from infrastructure work to provision ofquality service--network operation, softwaresupport, help desk, and risk management--becomes atop priority. After the aggressive buildingeffort, ways to ensure currency in technology andinfrastructure become new challenges.

New Environment

Our client base nearly tripled since 1993 in anintegrated network environment. We had to servedifferent generations of users; some are novice,some demand advanced technologies. Users nowdepend on the network to perform their tasks. Theyexpect a stable work environment and a full rangeof free services. They view network standards andpolicies as signs of centralization in atraditionally entrepreneurial universityenvironment.

IT Internal ConditionsThe Network and Telecommunications group embraced

the values of innovation and learning organization.They had little old technology to shed and quicklytransitioned into the new work environment. Theyadopted a project management discipline andimplemented networks at a fast pace. This in turnbreeds staff expectation for new learningopportunities and career growth. Most of networkstaff valued projects over maintenance of networkoperations or user services.



Realignment StrategiesWe realigned the network staff and service to meetuser demand for reliable network performance andresponsive services. The group was restructuredinto three sub groups--network operations,telecommunications service, and help desk. Wemoved technically oriented individuals into thenetwork operations and staffed the help desk andtelecommunications groups with people of strongservice orientation and contact management skills.Several new members were recruited from otherdepartments, such as placement service. Theposition of help desk manager was upgraded toconfirm our commitment to service and theimportance of a service-oriented career trackwithin the division. We also created two cross-functional teams to support users at the two maincampuses. Offices were reconfigured into an openspace at the two locations to foster integration ofvoice and data services and personal contacts withusers. Users are consulted to develop servicestandards and policies. Bonuses and performanceappraisals were linked to user feedback.

Results To DateWhile many of these strategies are still beingimplemented, user response has been extremelypositive. Ratings for services during October andNovember 1995 showed more than 95% satisfaction.Timeliness in project completion received an arating of 86% satisfaction due to poor coordinationin October. Improvement was made immediately andraised the November results to 95% satisfaction.Current members appreciate the parallel track ofservice and technology orientation. The redesignof work space was essential in making therealignment successful.

Case #2: Client Server versus Legacy Support In the client server arena, we are implementing anOracle-Microsoft Access application to supportreengineered fund-raising process. Object-orientedrapid prototyping and application development wereused. We worked with consultants to rearchitectthe enterprise data model for building anintegrated student system. This two-year project,when completed, will replace home grown legacysystems. It is critical to develop new skills forapplication staff. How to target and motivate

developers for these new learning opportunitieswhile maintaining support for legacy systems is adelicate balancing act. In designing and deployingnew client server solutions, we were alsochallenged by users' learning curves in using thetechnology.

New EnvironmentOur intensive effort in user training increasedtheir knowledge about technology and information.



Restructuring and reengineering in other universityfunctions also raised their expectation for rapidtechnology solutions. Several user groups began toestablish their IT support staff to cope withincreasing dependency on technology. However,dependency on legacy systems continues as most ofdata still reside on the mainframe. Users showedmixed reactions to new client server applications;there was anxiety about steep learning curves andjob shifts to be introduced in a client serverenvironment.

IT Internal ConditionsObsolete technology and gaps in skill profilesdelayed our timetable to migrate off the legacysystems. Many individuals in this group attachedtheir professional identify with the legacy systemsand had trouble in transitioning into a newenvironment. There was also growing tension inresource allocation between on-going legacy supportand new systems development. New systems demandskills and experiences that few possessed.

Realignment Strategies

The Information and Application Support group wasrealigned into four subgroups -- new systems,legacy support, systems administration, andproduction -- following the system life cycle. Anysystems, regardless of technology or platform,would eventually move from new systems to theproduction phase. A complex system project wouldrequire support from members of several subgroups.We also developed a client server architecture(Unix, Oracle, Windows, Access), partnered withvenders and consultants in systems development. Toensure project success, we also redesigned workspace, created special project team rooms,

emphasized user ownership in major projects.

Results To DateBoth users and IT staff experienced difficulty intransitioning into a client server environment. Itwould take much longer to achieve the desiredchange in this case. While these projects receivedmuch attention, it is important to maintain ongoinglegacy support as the majority of mission-criticalapplications are still on the mainframe. Tensionbetween the new systems group and legacy supporthad to be addressed promptly. Because progress inlegacy support tends to receive less attention,

special effort is required to encourage steadyoperations and responsiveness in problem solving.We sponsored many individuals for learning newtools. They did not always have opportunities toapply new skills immediately. It would be moreeffective to synchronize training with projectassignment.

V. IMPLICATIONS



Reflecting upon DePaul's experience, it would beappropriate to view IT transformation as a processof managing at least three overlapping phases ofchange and transition. The first phase focuses onbuilding organizational and technologyinfrastructure. The second phase emphasizesexpanding information access and services forusers. The third phase evolves around processinnovation and integration, probably the mostdifficult to achieve. Each phase calls fordifferent organizational design, skill sets,processes, and relationship with user community.

What we have learned is that IT restructuringignites a process of continuous change, because theinstitutional context and the IT internal processesand dynamics are changing constantly. Thechallenge we face is how to expand our capacity tomanage change and transition.

1. Successful Strategies Five strategies have been critical to our ability

to implement the transformation:

A focus on outcomes and deliverables motivated theIT members to transition into a new environment anddevelop a sense of pride.

Rigorous project management enhanced the successrate of on-time delivery. This discipline isadopted by all groups. Even routine maintenancetasks are now formulated as special projects toassure rigorous monitoring and timely completion.

Flexible organization design, coupled with flexible

staff and budget management, allowed the divisionto move nimbly in responding to university needs.

A divisional perspective in resource management isnecessary to avoid building new turf walls afterinitial restructuring.

A discipline in performance management, linkingindividual's deliverables with divisional goals andproject timelines is most critical in ensuringdivisional performance. A reward structure thatallows market adjustments and incentives for highperformance prevented the attrition of some newly

trained professionals.

Adoption of a customer service attitude is achallenge for technical staff but our attempt sofar has improved the division's image. Frequentfeedback, direct communication, and personalcontacts are keys to establishing relationship withcustomers. User feedback cards gave usquantitative evidence of problems, improvements,and user satisfaction.



2. Challenges The pressure that higher education institutions arefacing in the coming years will require ITorganizations to embrace continuous change. Anunderstanding of what this continuous but radicalchange, or transformation, is critical for ITprofessionals. These changes have sever impact onpeople and must be carefully managed.

Transition management is not well recognized in achange process. Acknowledgment of pains anddifficulties associated with change helpsindividuals to move toward a new beginning.Creating a work environment that ensures small butearly success from day one helps build confidencein individuals for sustained change. Those inleadership positions should take a special effortin working with individuals during the changeprocess to build trust.

Restructuring should be coupled with continuousquality improvement to achieve sustainable results.

Radical changes need to be implemented quickly tocapture the momentum and energy. It is difficultto anticipate all the consequences of change, evenin a carefully constructed plan. Incrementaladjustments afterwards are appropriate to ensureservices, quality, and impact on users.

Adopt a transformation process for continuouschange will become a key to successful IToperation. Alternating between redesign,restructuring, and slower-paced quality improvementcan build long-term results. However, the pressureon high education may soon propel IT organizations

to quicken the pace for continuous change.Developing the organization's and its members'capacity for IT transformation will be a challengefew can avoid.

REFERENCES

William Bridges, Managing Transitions. Reading,MA, Addison-Wesley, 1993.

Susy S. Chan, "Strategies for Restructuring IOrganizations," CAUSE/EFFECT Magazine, fall 1995,

pp. 13-19.

after it restructuring: what's next? (166174219)

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