it alighnment10 v3.1
TRANSCRIPT
© 2010 Robert Bobojco. All rights reserved.
CIO Roundtable
- Alignment with the CEO & Business -
Robert Bobojco
January, 14 2010
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Agenda
Strategic Alignment
From Strategy to Execution
The Current State of IT
Open Forum
Introduction
Alignment
Today’s economic climate, perhaps more than ever, prompts us
to re-evaluate IT’s alignment with the Business. The current
business challenges present an OPPORTUNITY to pro-
actively evaluate IT’s role and contribution to top-level
business objectives and engage in proper adjustments (i.e.
alignment).
The CIO’s alignment with the CEO is largely a “battle” at two
fronts:
• Actionable/measurable Initiatives (direct control)
• Perception (in-direct influence)
Alignment
How to become aligned?
How to develop a strategy in alignment?
How to get agreement between CEO and CIO?
What is the best way to get a statement of direction?
How to document/record alignment?
… the current economic context makes IT alignment with
CEO/Business very challenging, but very necessary!
Alignment – What is “alignment”?
Alignment is the continuous process of implementing and adjusting Technology-based solutions and processes in DIRECT support of ever
evolving and changing prioritized business requirements.
Process
• Established, repeatable process
• Methodology & Tools
Perception• Top-down
• Bottom-up
Measure
• How to assess alignment/progress
• Benchmarking
Repercussions of “poor” Alignment
IT is viewed a “Cost Center” or infrastructure only, not a business enabler
Executive-level discussions of IT focus mostly on cost reduction
IT is designated “Scapegoat” for business performance issues
IT has an inward focus (i.e. operations), is not externally focused on customers
Business & IT – Strategic Alignment
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Business Strategy
IT Strategy
• Growth & Customers• Market & Competition• Operational Efficiency• Performance Analysis & Decision Support
• Platforms• Budget & TCO• Vendors• Initiatives & Projects• Resources & Skills
Alignment – “Translation” .. making Strategy
tangible
Strategy
Objectives
Initiatives
Projects / Solutions
Capabilities
IT Strategy - Drivers
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IT Strategy is primarily driven and impacted by:
Business Strategy, imperatives, goals, targets
and business initiatives
Market & Customer requirements
Technology enhancements & capabilities
Software/Hardware vendor release strategy
Alignment – Business Strategy
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Strategy
• Growth
• Acquisitions
• Products
• Service
• Markets / Channels
• Etc.
Customers
• Acquisition
• Service
• Proc. Integration
• Self-Service
• Pricing
• Retention
• Etc.
Operations
• Process
• Flexibility
• Cost
• Visibility
• Performance
• Etc.
Alignment – Shift to “outward” focus
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Customers (Sales & Product)
What are our real business drivers?
? Change in customer behavior/expectations -> shift to WEB
? Improved self-service / customer service
? Process Automation / Lower transaction costs
? Pressure by competitors
? Growth opportunity (channel sales)
? Customer experience & loyalty
? Account Management capabilities
? Direct tie-in with Marketing and Advertising
Alignment - Process
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Strategy
• Growth
• Acquisitions
• Products
• Service
• Markets / Channels
• 6
• 7
Customers
• Service
• Integration
• Self-Service
• Pricing
• 5
• 6
• 7
Operations
• Process
• Flexibility
• Cost
• Visibility
• Performance
• 6
• 7
Alignment
• Break-down & Translation
• Prioritization
Vision
• Solution Picture
• Technology Integration
Execution
• Initiatives / Projects
• Execution & Monitoring
Alignment – Process Step 1
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Alignment
• Break-down & Translation
• Prioritization
Vision
• Solution Picture
• Technology Integration
Execution
• Initiatives / Projects
• Execution & Monitoring
VPs
IT
CEO
Alignment – Process Step 2
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Alignment
• Break-down & Translation
• Prioritization
Vision
• Solution Picture
• Technology Integration
Execution
• Initiatives / Projects
• Execution & Monitoring
Business
Objectives
IT Solutions
Alignment – Process Step 3
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Alignment
• Break-down & Translation
• Prioritization
Vision
• Solution Picture
• Technology Integration
Execution
• Initiatives / Projects
• Execution & Monitoring
Alignment
Review
Refine
Solution
Execute
VPs
IT
CEO
Alignment – From Strategy to Execution
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1-on-1: Top strategic
objectives
Understand objectives & requirements
Understand priorities & timeframes
VPs
IT
CEO
Alignment – From Strategy to Execution
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Breakdown of objectives & Initiatives/Project Definition
Partnering & Collaboration (Ownership/Stake)
Joint Execution (Responsibility & Resources)
VPs
IT
CEO
Alignment – From Strategy to Execution
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Develop a thorough understanding of the business objectives
Develop & evaluate solution options that support the business objectives
Develop detail plans & designs and execute projects
VPs
IT
CEO
Alignment – Outcome (CEO)
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Input, feedback and validation sessions:
2x per Year
Company updates: 4x per year
Company newsletter: frequent updates & articles
VPs
IT
CEO
Alignment – Outcome (Executives - VP)
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Input, feedback and validation sessions:
2x per Year
Company updates: 4x per year
IT Vision updates: 2x per year
VPs
IT
CEO
Alignment – Outcome (IT Organization)
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IT Vision updates:
2x per Year
Business/IT Translation: project prep, kickoffs & reviews
Staffing & Education:
2x per year
Alignment - Outcome
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Re-active organization
Pro-active
organization
Perception-based
Tangible (Activities)
Inward focus Outward focus
Cost CenterBusiness Enabler
“Scapegoat”Business Partner
Alignment – Documentation
IT Strategy Presentation
The Master Plan
Project Estimates
Project Plans
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No. Strategic Business
Objective
Goals IT Initiative / Solution
1 Profitable Growth Increased Market Share
* Awareness
* Coverage
CRM – Pre-Sales, Marketing & Sales Analytics
Increased Profitability CRM – Gross Profit Confirmation for incentives
Reduce Errors via CRM product configurator rules
Business Performance
Transparency
Enhanced analysis & reporting capabilities
(BI / Pro-forma reporting prior to quote approval)
2 Cost Reduction Business Transaction
Efficiency
SAP Dealer Portal:
* Order & Vehicle Mgmt. life-cycle
CRM: Streamlined quoting and transition to order
management
* DBMS Integration
* Offline Productivity
* TMQS
* CRMToday
Shared Services IT Shared Services
Utilize Global Licensing
Balanced IT Resource Model (in-house vs.
consulting)
Standard IT Application
Platform
Consolidation of customer and partner websites onto
single Enterprise Portal platform
3 Mergers & Acquisitions Standardized Processes &
Flexible IT Platform
Expandable and open (integration) technology
platform
Alignment – Breakdown & Translation (EXAMPLE)
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Alignment – The “Master Plan” (EXAMPLE)
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Pre-requisites of Alignment – Are you ready?
Operational Excellence
Information is an asset
IT Organization
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Alignment – Current State & Evolution
Operational Excellence:
Internally focused
Process efficiency
Business Intelligence:
Performance transparency
Management by exception
Decision support
Information worker
External Integration:
Customer, Vendor, and Sales Channel Integration (i.e. external process integration)
The “connected” enterprise
Kaizen –Optimization and support of changing business environments
Rapid Response
Alignment – Key Takeaways
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You must take the initiative in the alignment process
You must meet crucial pre-requisites for successful alignment
The most challenging step of alignment is the translation of high-level business strategy/objectives into actionable initiatives & solutions
Document all agreements and outcome of the alignment process (Visibility of Alignment)
Successful alignment involves all levels of the organization
Alignment is a continuous, repeatable process
© 2010 Robert Bobojco. All rights reserved.
Introduction
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Robert Bobojco
A dedicated, results-oriented executive management consultant with over 19 years of IT & SAP experience. Predominantly focused on IT transformation initiatives, systems improvement and process integration projects – ranging from middle-market to global, large-scale clients – using ERP/SAP software portfolios including the ECC, mySAP.com and SAP Business Suite solution platforms.
Background includes senior management positions with a major “Big 6” professional services company, a German Management Consulting Company and international ERP implementations/ solution roll-outs.
Major roles and areas of expertise include:
* Trusted advisor to senior executives (CEO, CFO, CIO) * Effective, hands-on solution-oriented IT & Team Mgmt.* Alignment of business & IT strategy * SAP Implementation Methodologies & Tools* Program-, Project & Integration Management * Business case, Program-/Project budgeting & controlling * Process Improvements & Optimization * SAP application portfolio consulting in ECC, CRM, BI, * IT operations management Portals & XI/PI integration technology