Posts Tagged ‘goal’

3 Ways To Bring Business And IT Together

Wednesday, June 3rd, 2009

Executing A Single Business / Technology Strategy Leads To Success

Executing A Single Business / Technology Strategy Leads To Success

In the end, it all comes down to execution. No, not chopping heads off, but rather how you go about having your IT department perform the tasks that the business needs them to do. How hard could this possibly be?

What’s The Goal?

The power term “alignment” is tossed around a lot these days. I think that it’s gotten used so much that a lot of us have forgotten just exactly what it means. In its simplest form, when a company is truly aligned then it is able to mange both its business and its technology together.

As simple as this may seem, too few companies are able to achieve this goal. The reasons are many: differing personalities, budgets that are unrelated, lack of accountability for business results, etc.

Fredric Fishman has spent some time  thinking about this and he’s come to the realization that in order for a a company to commit to managing both its business and its technology together, then it needs to do three things well:

  • Provide a clear vision for the organization
  • Create a well-defined roadmap that shows how to get to the future
  • Measure outcomes against predefined criteria

One Strategy For Both Business And Technology

If you have any hopes of bringing your business and technology activities together, then you’re going to have to make sure that the firm has a living business strategy. The world changes and your business strategy needs to be able to change with it. One way to accomplish this is to implement processes that will allow feedback on the business strategy to be collected and used to make adjustments.

The next step is to make sure that everyone understand just exactly how technology is going to be used to achieve each one of your business objectives. Finally, don’t just hope for the best – make sure that you have criteria in place to judge success before you start any IT project.

Strategic Imperative: Talk & Spend

A company’s goals are no good if nobody knows about them. Make sure that any planned investment in technology has a direct link to a business objective. This kind of decision making won’t happen overnight. You’re going to have to take the time to create internal processes that will allow your staff to learn how to make the correct investment decisions.

Once again, good communication is at the heart of any well run organization. You need to make sure that EVERYONE knows what the expected outcomes are and what the expected business results are. This will establish a sense of ownership and will make sure that everyone has “skin in the game”.

Measure, Measure, Measure

The best IT programs in the world don’t amount for much if you can’t determine what their impact was. You need to monitor the outcomes of each IT investment decision so that your decision making process just keeps getting better.

This is where IT folks can really shine: collect those metrics, stats, and usage data and use these numbers to measure impacts and report results.

Final Thoughts

As you can see, the steps that we need to take to align technology and business are pretty straightforward. The challenge is that this calls out not for a technology solution, but rather for a human-to-human solution. Within IT we’re great at writing code and hooking up new systems, now we just have to do a better job of talking and communicating with the rest of the company.

Questions For You

Within your firm, do you feel that you have a clear vision or is it just a piece of paper on the wall? Do you know how the company is going to achieve its stated goals? Are there effective ways to measure your IT results in place today? Leave me a comment and let me know what you are thinking.

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Coming Up Next Time

HP’s CIO Randy Mott has done some fantastic things in helping to turn the company around. However, now things are starting to get tricky and it’s not clear that the company is going to be able to continue to be successful…

How Can You Make Your IT Department Strategic?

Monday, February 16th, 2009
Lockheed Martin's IT Department Had A Problem: They Had No Strategy

Lockheed Martin's IT Department Had A Problem: They Had No Strategy

Isn’t that the goal of every IT department – to move from being viewed as a support organization to somehow becoming part of the company’s strategic core? Although we all know that this is what we want, for some reason it sure seems to be very hard to do. Good news – the folks over at Lockheed Martin have figured out how to do it…

Ed Meehan is the VP of operations at Lockheed Martin’s Enterprise Information Systems (EIS) and back in 2004 he discovered that he had a problem on his hands. In 1995, Lockheed and Martin Marietta had merged and Ed’s IT team had spent the next 10 years consolidating data centers (they actually got to be quite good at it). However, in 2004 they were done and they found themselves adrift – now what should they do?

EIS had neither a strategy nor a focus. Does any of this sound familiar to you? In order to have a strategy, you need to have a goal and since EIS is an internal IT organization they don’t have the normal measures of profit and loss. What’s an IT department to do?

What EIS had to do was identify a goal, create a strategy to reach that goal, and then sell the strategy to a spread out IT department that had never needed to have a strategy. How hard could that be?

Ed was smart enough to know that he needed to have his team pick the direction that they wanted to go in. He showed up at a meeting with three different popular business books that had three different business strategy goals: become a product leader, become the low-cost leader, or provide complete customer satisfaction. Pick one – you can’t do all three. Ed’s team picked providing complete customer satisfaction with the customer being Lockheed Martin’s internal employees.

So now what? Ed set up an 8-person team who had to map out the new strategy and then get the message out to the rest of the department. Their first step was to create a strategy map which showed how each part of the company would be measured against the goal of providing complete customer satisfaction.

Now the 8-person team couldn’t do this alone, so they asked each business unit to design their own strategy map with the thought that once they had this, EIS could then build a master map. You can imagine how well this went over – none of the business departments saw any value in adding strategy to their IT department and so they were, to say the least, reluctant to participate.

The 8-person team didn’t give up and they brought Ed in when needed. In the end, they got what they were looking for – a complete map of what it would take to fully satisfy the rest of the company.

Now came the hard part: selling the concept of thinking about the new strategy to the rest of the IT department. The biggest problem turned out to be the middle managers – they had “This To Shall Pass” syndrome. They figured that they could just wait things out and this “new idea” would go away just like all the other ones before it.

Well, they were wrong. It took a year to get the program off the ground and then it took another year to get the message out and train the staff. However, through relentless communication, they finally did it – everyone bought it.

Lockheed Martin has seen measurable improvements in their operations since this strategy was implemented. Internal customers have rated alignment between divisions as having improved by 160%. Probably the greatest payoff is that at Lockheed Martin, IT is now seen as being strategic.

Is your IT department considered to be a strategic part of your company? Does your IT department have a goal? Do you have a strategy to reach that goal? How are you doing in getting there? Leave me a comment and let me know what you are thinking.