it strategic planning
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Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.
Creating and Using Effective IT Strategic Plans
Louis Boyle
Vice President
Gartner Executive Programs
Most Organizations Have IT StrategiesThat Look Like This
Store Systems
Daily ReportsSystem
ReplenishmentSystem
DC Order MgtSystem
DC Billing
Corp Stk File
DistributionSystem
RSU Central
A10 - Order Routing
A11 - RS Inventory &Sales Month End
Reporting
POS Sales Rpt
Perp Inventory
WarehouseBilling
RS Merch(RSMS)
Acct/Bookkeep
Stock Mnt
A12 - Model Quantity
Store File
A1 -Credit Card Apps
DealerSettlement
Sears PymtSystem
DB2 Mkt Info
Credit CardSystem
A2 - Credit Plan Mnt
A3 - Return CheckApps
Equifax, Martel,Checkfast or
Input of Texas(3rd Party)
Retail Store
Rebuy Dept
Telecom Dept
A5 - Prepaid Cellular
Customer
TPS History
A6 - BANCTEC
A9 - RS StorePerpetual Inventory
Promo Order
Multi-Mkt Price
JournalingSystem
National Parts
A13 - Srvc Cntr PhyInv & On-line Recaps
A14 - POSSales Processing
A15 - RadioShackReplenishment
Order Routing
Service CenterPOS
DATAAPPLICATIONS
A16 - Service CenterReporting
Srvc Cntr Tbls
A17 - Stock Mnt
Fran Store
Comm System
Intern’l Stores
A18 - Merch Pricing
A19 - Merch PromoPln
VSAM Stock,Store or
Control Files
A20 - RS Buyer SalesPlanning /Proj Sys
A&A Import/Export
A22 - Web StoreLocator
A23 - Service CenterWeb Locator
A26 - Answers Online
A29 - Corp Elec Msg
A30 - RS One-Each
A31, A45 - ServicePlan Price Cntrl &
Tranmt
Service Center
A33 - RS Srv PlnSrv Cntr Cust Mnt
A34- Srv PlnsAmercican Bankers
AmericanBanker Assoc
A37 - Srvc PlnDisplay
Contract Srvc
Printer
A38 - Srvc Pln CnfrmLetter
A39 - Srvc Pln Rnwl
A40 - RS Validationand DB2 Load
RSTS DSATbls
A42 - Online InquirySys
RSTS System
A46 - Srvc Pln SalesEntry
A47 EBIS ODS
A48 - Flyer Selection
Ad Circulation
Experion
Advertise/Ad Support
A50 - Customer Load
A51 - GeostoreAnalysis
A52 - Profiler Report
A53 - Name & AddrHygiene
Group 1
A57 - Cust Trk Load
A58 - Customer Mnt
A59 - LOOK!
NAILSWinLook
DB2 Load
Invent Merch
CensusBureau
A60 - EconomicCensus
A61 - Sales Reporting
A62 - Flash Sales
Python
A64 - Fran DR Entry
A4 - Store File Sys
Financial Sys
Payroll/HRMS
Real Estate
Cellular Act
A8 - Comm System
Retail Str POS
Email Server
POS Support
RMAC DR
Promo Dist
POS Invt Tran
Model/Qty
POS Rcv Invc
Merch Adj
RS Invt Sumry
Corp User
A25 Price Lookup
A27 -Srv Pln Rpt/Mnt
A28 - Store Msgs
Email Systems
A32 - New Bus SVPMail
A44 - Mkt IncremtalRpts
A49 - Hitlist
Stock File EffPricing
A24 RS.COM
InvestorRelations
CNN/fn site
Web Dev
Cust Support
Intrnet Cust
A43 - TRACE
Intrnl Audit
Loss Prev
STORE
SALES
PRODUCT
CUSTOMER
Legend
Facility Party
Product Activity
ID Task Name Start Finish DurationJan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006
1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7 5/14 5/21 5/28 6/4 6/11 6/18 6/25 7/2 7/9 7/16 7/23 7/30 8/6 8/13 8/20 8/27 9/3 9/10 9/17 9/24 10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17
1 2w 1d1/30/20061/16/2006Install PMO
2 4w 4d2/16/20061/16/2006Upgrade LAN
3 6w3/30/20062/17/2006Upgrade Desktops
4 20w6/19/20061/31/2006Install ERP System
5 6w7/31/20066/20/2006Install SCM System
6 6w9/11/20068/1/2006Install CRM System
7 6w10/23/20069/12/2006Implement Customer Self-Service
8 6w7/31/20066/20/2006Implement HR System
9 2w 4d8/18/20068/1/2006Institute Employee Self Service
10 4w11/20/200610/24/2006Institute Rewards System
11 6w10/23/20069/12/2006Implement BPM System
12 3w11/13/200610/24/2006Implement other BPM System
13 2w11/27/200611/14/2006Implement BAM System
14 3w12/18/200611/28/2006Implement Enterprise DW
15 1w12/25/200612/19/2006Execute Mobility Strategy
IT Strategic
Plan
IT Strategic
Plan
IT Operational
Plan
Or they look like this…
(Magnifying glasses are at the back
of the room)
IT Vision
Have a fully open,modern, reliableIT infrastructure
We use the most advanced technology to
meet our needs
Our IT clients say we’re perfectly aligned
We have the bestIT workforce
- it does what needsto be done
Or they can look like this……
Lofty Goal 1
Lofty Goal 2
Lofty Goal 3Testimonial
Key Issues
1. What are the primary steps in establishing a good IT strategic plan?
2. What are critical questions that an IT strategic plan should answer?
3. How should organizations use IT strategic plans in their governance processes?
Key Issues
1. What are the primary steps in establishing a good IT strategic plan?
2. What are critical questions that an IT strategic plan should answer?
3. How should organizations use IT strategic plans in their governance processes?
Plan Definitions: Strategic or Tactical
• Strategic - A plan or technique for achieving some
end; distinguished from tactical, short term• Longer-term (> 1 year) objectives and goals• Significant impact on the business
• Tactical / Operational- Adroit maneuvering to gain an objective• Short-term (<1 year) activities and operations
• Plan- Method for the attainment of objectives
• Planning- Ongoing process to develop the method
for attainment of objectives“I don’t believe in plans, but planning is invaluable”
The Perception of IT Value
Innovation
Evolutionary
Transformational
Status quo
Cost Center Modernization
Aggressiveness of change
agenda
Acceptance of IT as an enabler of change
Focus on reducing IT costs
Department-based
change and IT focus
Customer-driven
enterprise change
Improve Efficiency marginally
Deploying bleeding
edge commercial technology
Use IT to speed up existing
processes
Deploying mature
commercial applications
Finance-driven
enterprise
Consolidation
Enlightened Enlightened ManagementManagement
Administrative Process Map: IT Governance Aligns these Processes
Political Agenda
Service Delivery
Project Management
IT Strategic Plan
Human Resources Acquisition
Strategic Sourcing
Budget
Corporate Performance Management
Desires
Decisions
Tactical Execution
Investment Prioritization
Business Strategic PlanBusiness Case Inputs
• Organizational Capacity
• Cost
• Time
• Risk
• Procurement
• Portfolio Performance
Cross-Agency Budget Cutting
Strategic Plan Development: Road Map
Develop Target Develop Target Architecture Architecture
PlanPlan
Develop Target Develop Target Service Service
Delivery ModelDelivery Model
TechnologyTechnologyTrendsTrends
SolutionsStrategy
(Business View)
SolutionsStrategy
(Business View)
DeliveryStrategy(IT View)
BusinessStrategy
Summarize Summarize Strategic Strategic Business Business DirectionDirection
Develop IT Develop IT DirectionDirection
Develop Develop Management & Management &
Governance Governance ProcessesProcesses
Conduct IT Conduct IT Assessment Assessment
and Gap and Gap AnalysisAnalysis
Develop Migration
Approach & Road Map
Use a Self-Assessment: How Do You Rate?
SCORE
A1. Business strategy - Clearly defined business strategy _____
A2. IT strategy - Strategy clear to all and contribution recognized _____
B1. Business applications - Major systems support the business strategy explicitly _____
B2. Personal productivity - Right tools are in place to get the job done _____
B3. Information management - Timely information is available and of the right quality _____
C1. Service management - Internal IT processes conform to quality framework; e.g., ITIL _____
C2. Technology environment - Reliable and cost-effective IT service delivery _____
C3. Asset management - Resources are well managed _____
D1. Architecture framework - Well-defined and stable architectural plan _____
D2. Progress achieved - Getting progressively closer to desired architecture each year _____
E1. Human resources - Right skills and teams in place _____
E2. Organization - Structure best to deliver IT services _____
E3. Client relationships - Strong relationships exist with our clients _____
F1. IT governance - Clarity about who makes decisions _____
F2. Performance metrics - Scorecards highlight critical success factors _____
F3. Budgets - Quality of budget processes and charges for services _____
This is an informal assessment. For each area, rate these factors, where 1 means you havenot started or have a largely ad hoc approach and 5 means you have reached leading practice.
Source: "How to Run an IT Strategy Self-Assessment Workshop" (G00129417)
Consider a Workshop Approach – Deliverables-driven Teach, Coach & Critique
• Create a game plan:- Gain a common understanding of what needs to be done
to create your information technology plan- Plan outline- Level of detail
• Prioritize and scope plan activities based on deliverables
• Develop plan via workshops-based, facilitated approach- Teach, coach & critique
• Assign ownership and establish timetables
Creating the Future State:Use a Common Requirements Vision
• Audience: Senior management
• Scope: Environmental trends, enterprise business strategies, business change requirements, business information requirements, information technology requirements, solution requirements
• Matrix: Relationship between environmental trends, enterprise business strategies,business change requirements, business information requirements, information technology requirements, solution requirements
• Goals
- Obtain senior executive sign-off on requirements via governance process
- Gain support of architecture process
20 Pages20 Pages20 Pages20 Pages
What Is A “Common Requirements Vision”
• A process for discussing, capturing and documenting: - Set of enterprise
business strategies
- Set of common strategic requirements derived from ENTERPRISE business strategies
- Position on the impact of environmental trends to the enterprise
• The resulting document
CRV HierarchyEnvironmental
TrendsEnvironmental
Trends
EnterpriseBusinessStrategies
EnterpriseBusinessStrategies
BusinessChange
Requirements
BusinessChange
Requirements
BusinessInformation
Requirements
BusinessInformation
Requirements
InformationTechnology
Requirements
InformationTechnology
Requirements
BusinessSolutions
Requirements
BusinessSolutions
Requirements
ESAESAETAETAEIAEIAEBAEBA
The CRV document is an articulation of what will drive the enterprise's future state
Why Does the CRV Help With the Problem?
• Identify, discuss and document strategies- Question the meaning and
implications of each
- Analyze the compatibility
- Highlight the inconsistencies
- Clarify the confusion
• Go deeper than the strategies
• Articulate what is NEEDED!
Create a common forum of discussion on matters of strategic alignment
Intended Outcomes1. Business and IT leadership
collaborate on business and IT planning
2. IT is planned and executed holistically, end-to-end, to support business needs and application changes
3. Infrastructure and application life cycles are tightly linked with business process life cycles
4. We save time and money and reduce risk through repeatable, reusable solutions that are developed and applied to similar problems
5. Business value takes precedence over product centricity
Business Solution RequirementsEBS 1: Due to longer sales cycles and smaller contract amounts, increase market penetration by increasing product proposals to qualified prospects by 35%, growing from 1,000 to 1,350 per month by mid-2004
BCR 1: Reduce “opportunity to proposal” conversion time by 60%, from 10 to 4 business days BCR 3: Implement lead and opportunity management processBCR 8: Automate sales proposal generation capability, including appropriate approvals and workflow to reduce opportunity-to-proposal conversion time
BIR 1: Sales/sales administration requires details of product/offering information in real timeBIR 3: Marketing, channel partners, and sales require knowledge of customers, prospects, proposals, leads, marketing programs and campaigns, value generated for customers (customer satisfaction), support delivery metrics on demandBIR 10: Sales/marketing/product planning must have detailed knowledge of all successful consulting engagements to evaluate as standard products upon completion from consulting team
BSR 1: Implement an integrated prospect lead management, forecasting/customer repository solution
BSR 6: Implement a coordinated, enterprisewide proposal factory to be utilized by product planning, customer fulfillment, sales, development, and consulting
ITR 2: Provide access and support for operational systems 24x7ITR 4: Provide real-time access to operational information sources from offices, customer locations, and while travelingITR 5: Provide a real-time accessible integrated view of customer and product information and consulting engagements ITR 7: Provide a mechanism for sharing documents in a collaborative environment across the enterpriseITR 8: Provide cross-enterprise workflow management capabilities
Going From CRV to Future State
Transformation steps:• CRV-level requirements suggest potential initiatives to be
considered for project portfolio
• CRV-level requirements are NOT current project-level requirements, but they should be compared to current and planned projects to incorporate/accommodate future needs in current implementations
• CRV should be revisited periodically (as new strategic plans are developed) and when major environmental trends or business factors indicate significant change (such as a merger/acquisition)
• Maintain linkages among trends, strategies and requirements
• Use CRV to help give future context to all planning activities
Create the Migratory Road Map
Most Strategic IT Plans Have 3-to-5
Year Planning Horizons
Rather than havea laundry list of
initiatives, make sure you demonstrate how
the plan will be implemented over time.
This will indicate priorities, synergies
and set proper expectations
(especially support for priority business-side needs)
IT Program 2006/07 2007/08 2008/09 2009/10
IT Cost IT Cost SavingSaving
ProjectsProjects
Customer Customer Service Service Facing Facing
ProjectsProjects
LOBLOBService Service Improv.Improv.ProjectsProjects
IT Investments
Key Issues
1. What are the primary steps in establishing a good IT strategic plan?
2. What are critical questions that an IT strategic plan should answer?
3. How should organizations use IT strategic plans in their governance processes?
Core Ingredients of IT Strategy
• Direct Link Between Business and IT Strategy
• Sound IT Governance
• Definition of the IT Environment
• Major Initiatives
• People/Resources
• Risks
• Measures of Success
Business Strategy
Application Strategy
Infrastructure Strategy
Architecture
People/Sourcing
Financial
Core Building Blocks
Essential Ingredientsto Address the Building Blocks of IT Strategies
Source: "A Primer for Strategic IT Plans" (G00144281)
Strategic Plans: Seven Key Questions
1. Does the IT strategy substantiate mutually owned expectations developed by all stakeholders?
2. Are critical drivers influencing the direction of the IT strategy accounted for?
3. Is the IT investment direction and alignment with business/mission needs and priorities made explicitly clear?
4. Is the IT strategic plan client-centric?
5. Does the IT plan contain performance measures that can gauge progress and success?
6. Does the plan outline the governance process to executethe strategic planning process and approved IT investment decisions?
7. Does it market the business value of IT effectively?
Source: "Key Questions That Government IT Strategic Plans Should Address" (G00144046)
Learn
Strategy as a Continuous Process
PlanBuildExecute
Execute
ProcessesMetrics
Innovate and adaptFaster cycle timesBetter results
OfferingsChannelsCommunicationPoliciesTechnologies
BuildBuild
ProcessesResourcesBU/IT
VisionScenariosStrategies
ChallengesOpportunitiesBest practices
Analyze/synthesize
External:PoliticalBudgetClientsPartnersTechnologies
Internal:ResourcesProcessesStaffingManagement
Scan and sense
Key Issues
1. What are the primary steps in establishing a good IT strategic plan?
2. What are critical questions that an IT strategic plan should answer?
3. How should organizations use IT strategic plans in their governance processes?
Sample Measurement Areas by Profile
Efficiency Profile Process Profile Transformation Profile
• Total cost of ownership
• Standards/economies of scale
• IT core processes (ITIL, COBIT, CMM-I, etc.)
• Benchmarking, TCO
• Process automation
• Performance-based human capital practices
• Program/project impact
• Relationship management
• Optimized sourcing
• Resource management
• Business process expertise
• Service-based chargeback/pricing
• Performance contracts (SLAs)
• Competitive assessments
• IT architecture
• Governance
• IT portfolio management
• Innovation delivery
• Business/financial management (ROI)
• High-performance workplace
Alignment/VisionAlignment/Vision
CostCost
ResponsivenessResponsiveness
RelationshipRelationship
Focus of IT Doer Service Provider Counselor Value Seeker
Goals, Objectives, Strategiesand Measures*
Objective 1.1
Provide the infrastructure needed to supportservice delivery
Strategies:
• Build and maintain Michigan's infrastructure
• Implement an asset management process statewide.
• Bridge the digital divide
• Improve ease of use
Objective 1.2
Provide reliable, responsible stewardship of data,information, and increase the number of onlineservices
Strategies:
• Continue to expand Michigan.gov by adding services
• Protect data and citizen privacy through a comprehensive security strategy
• Deliver business continuity and disaster recovery plans
*A CRV derivative
Goals, Programs and Target Measures
Goal
Objective
Activities
Desired Results and Measures
IT Scorecards Linked to Strategic Plans Can Assist in Governance
StrategicContribution
Effective Alignment
Management of IT Investments
Business & PublicValue of IT
CustomerSatisfaction
Service-LevelPerformance
Business/ITPartnership
Application Delivery Performance
Process Excellence
Responsiveness
Internal Cost ofQuality Measures
InformationAssurance
Asset Retirement and Disposition
BusinessContribution
Service CapabilityImprovement
Staff Capability& Effectiveness
Business Architecture Evolution
Emerging Technologies Research
Knowledge Management
CustomerOrientation
InnovationImprovement
OperationalExcellence
Visionand
Strategy
Inte
rnal
Ext
ern
al
IT
IT Performance Overview
Business Value
Customer Satisfaction
IT Operations
IT Organization Performance
Major program/project performance
• Performance against budget
• Benchmarks
• System/application reliability
• IT contribution to performance goals/outcomes
• Value contributions in time/quality/cost impact
• Help desk performance
• Problem resolution cycle times
• Choice of vendor satisfaction
•SLA performance
•Business risk reduction
•Security/EA assessments
• Quarterly/annual assessment surveys
• Benchmarks and trends
• Cost/ schedule and benefit realization performance (variances)
• Contribution to PMA, PART, High Risk List reduction, etc. assessments
What IT Governance Is:Collective decisions and guidance about:
How IT should be used in the business (policies, principles)
Who makes What decisions How (clear accountabilities)
Business cases and investments (priorities, ownership and benefits realization)
What IT Governance Is Not:
Internal IT operations IT people management IT contract management Internal IT organization Project management System testing Audits Procurement of hardware Facilities management Documentation and training Client satisfaction Benchmarking Capacity planning Resource management
IT Governance ≠ IT Management They Are Not the Same
IT Performance Scorecards Can Report on Progress
StrategicContribution
Effective Alignment
Management of IT Investments
Business & PublicValue of IT
CustomerSatisfaction
Service-LevelPerformance
Business/ITPartnership
Application Delivery Performance
Process Excellence
Responsiveness
Internal Cost ofQuality Measures
InformationAssurance
Asset Retirement and Disposition
BusinessContribution
Service CapabilityImprovement
Staff Capability& Effectiveness
Business Architecture Evolution
Emerging Technologies Research
Knowledge Management
CustomerOrientation
InnovationImprovement
OperationalExcellence
Visionand
Strategy
Inte
rnal
Ext
ern
al
IT
IT Strategy for Your Organization
• Apply this to your context
• Quick self-assessment
• Develop your game plan- Approach
- Scope (especially what’s NOT in it), TOC
- Major milestones
- Deliverables based, outcomes oriented
- Make it an active, working tool
Recommendations
Follow a process in creating your strategicIT plan; it is not about producing a document.
Strategic IT planning is not self-directedor self-implementing – use EA for planningand portfolio management to implement.
Make sure your completed process can answer the six basic questions.
Use your strategic plan by populating it with performance measures to demonstrate progress, success, and areas for change.
Having planned the work, work the plan (NO SHELF DOCUMENT!)
Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.
Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.
Creating and Using Effective IT Strategic Plans
Louis Boyle
Vice President
Gartner Executive Programs