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IT ExcellenceIT Excellence
Excellence is visionary and inspirational leadership, Excellence is visionary and inspirational leadership, coupled with constancy of purpose” (1)coupled with constancy of purpose” (1)
David BoylesDavid BoylesCXO Technology AdvisorCXO Technology AdvisorMicrosoft CorporationMicrosoft Corporation
1) EFQM – European Foundation for Quality Management
AgendaAgenda
Excellence ModelExcellence Model LeadershipLeadership Competitive CapabilitiesCompetitive Capabilities Enablers (Key Frameworks & Processes)Enablers (Key Frameworks & Processes) Outcomes, ResultsOutcomes, Results
Examples of Best PracticeExamples of Best Practice
IT Excellence ModelIT Excellence Model
2. Competitive Capabilities
4. Results, Outcomes
1. Leadership
3. Key Enablers
1.1. LeadershipLeadership
VisionVision ValuesValues Constancy of PurposeConstancy of Purpose Clear ObjectivesClear Objectives InspirationInspiration
Note: Also includes credibility, hard work, focus, compassion, etc.
2. Competitive Capabilities2. Competitive Capabilities
Driven by market forces: customer Driven by market forces: customer behaviour, competitor activity, behaviour, competitor activity, technology trendstechnology trends
Aspirational (look forward to the Aspirational (look forward to the outcomes, then roll back to the outcomes, then roll back to the present)present)
What must be put in place over time to What must be put in place over time to achieve the aspiration?achieve the aspiration?
IT capabilities are the direct result of IT capabilities are the direct result of needed BU capabilitiesneeded BU capabilities
IT CapabilitiesIT Capabilities
Non-negotiableNon-negotiable ““Keep the trains Keep the trains
running”running” Value for money Value for money
(ROI)(ROI) Information SecurityInformation Security
Strategic Strategic CompetitiveCompetitive Risk ManagementRisk Management Value ManagementValue Management Self Service (int. & Self Service (int. &
ext.)ext.) Innovation in Innovation in
products & servicesproducts & services Business Process Business Process
ImprovementImprovement Brand EnhancementBrand Enhancement
3. Enablers3. Enablers
PeoplePeople Governance, policy, strategyGovernance, policy, strategy ProcessesProcesses InfrastructureInfrastructure PartnershipsPartnerships
PeoplePeople
Right people, right Right people, right jobsjobs
Competency-based Competency-based hiringhiring
Tiered Tiered development development strategystrategy
Governance, Strategy, Governance, Strategy, PolicyPolicy
All about business & All about business & stakeholder alignmentstakeholder alignment
Based on both present Based on both present and future needsand future needs
Grounded on internal Grounded on internal and external facts and and external facts and trendstrends
Reviewed and updated Reviewed and updated regularlyregularly
Critical ProcessesCritical Processes
Information Security ManagementInformation Security Management Project ManagementProject Management Software DevelopmentSoftware Development ReengineeringReengineering SupportSupport Operations ManagementOperations Management
InfrastructureInfrastructure Should be “dial tone” – always there and Should be “dial tone” – always there and
workingworking Five year planning horizon (out of synch with Five year planning horizon (out of synch with
most BU planning horizons)most BU planning horizons) Asset life managedAsset life managed Flexible and scalableFlexible and scalable Standardised, component architectureStandardised, component architecture Self-healingSelf-healing Real time business process monitoringReal time business process monitoring ITIL as management frameworkITIL as management framework
PartnershipsPartnerships
Partners should:Partners should:Understand your business, your objectives and your capability needsUnderstand your business, your objectives and your capability needsDeliver specific capabilities or solutionsDeliver specific capabilities or solutionsDemonstrate clarity of products & solutions roadmapDemonstrate clarity of products & solutions roadmapBe full participants in major projectsBe full participants in major projectsBe subject to the same SLAs as ITBe subject to the same SLAs as ITHave access to all needed informationHave access to all needed informationBe willing to work with other partnersBe willing to work with other partners
4. Outcomes/Results4. Outcomes/Results
Employee satisfaction & loyaltyEmployee satisfaction & loyalty Customer satisfaction & loyaltyCustomer satisfaction & loyalty Market share growthMarket share growth Shareholder satisfactionShareholder satisfaction
Total shareholder returnTotal shareholder return TransparencyTransparency No negative surprisesNo negative surprises
Community ValueCommunity Value
Examples of Best PracticeExamples of Best Practice
PeoplePeople Governance, Strategy & PolicyGovernance, Strategy & Policy InfrastructureInfrastructure Other Quick ExamplesOther Quick Examples
People: Best PracticePeople: Best Practice Job descriptions aligned to Job descriptions aligned to
competitive capabilitiescompetitive capabilities Job descriptions must Job descriptions must
specifically define:specifically define: Technical/business skillsTechnical/business skills People skillsPeople skills Values & behavioursValues & behaviours
Interview questions based on Interview questions based on all three areasall three areas
Use scoring and qualitative Use scoring and qualitative comparison systemcomparison system
Multiple interviewsMultiple interviews Team interviewsTeam interviews
ContinuousImprovement
Competence-basedCompetence-basedHiringHiring
People: Best PracticePeople: Best Practice
All IT EmployeesAll IT Employees Performance plansPerformance plans Development plansDevelopment plans Online TrainingOnline Training Learning vouchersLearning vouchers Teaming skillsTeaming skills
SpecialistsSpecialists CMM/TQMCMM/TQM PMBOKPMBOK ITILITIL EtcEtc
High PotentialsHigh Potentials MentoringMentoring Job rotationJob rotation
LeadersLeaders 360 Feedback360 Feedback Executive MBAExecutive MBA Styles AssessmentStyles Assessment
Tiered DevelopmentStrategy
ContinuousImprovement
Governance: AGL IT Governance: AGL IT Executive CommitteeExecutive Committee
*1 This includes the review and approval of the detailed roadmap to achieve the vision, objectives and strategy
*2 Examples: Information Security, Identity Management, Software Development Life-cycle, etc.
*3 This includes applications, infrastructure and information security architectures
*4 IT Infrastructure initiatives are proposed by the CIO; Shared application initiatives (e.g. Intranet) are proposed by the application owner and the CIO; Business Unit IT initiatives are proposed by the Business Unit Sponsor
Support
Input to key ITpersonneldecisions
IT Capex*4
(review,prioritise and
recommend toALT)
IT Opex*4
(review,prioritise and
recommend toALT)
Tactical Activities
Review and approve IT Architecture*3
Review and approve IT Policies*2
Review and approve IT Vision, Objectives and Strategy*1
Strategic Activities
Otherissues
Review &monitor IT
Projects andIT
PerformanceReports
Infrastructure: Desktop TCO Varies Infrastructure: Desktop TCO Varies Widely…. Why?Widely…. Why?
Client TCO varies from <$2K to >$5K/user/year, depending on application architecture, standardization, automation, service level, and
geography/demographics.
Low-End Cost/User for 5,000 Users
Direct Cost Bucket High-End
Cost/User for 5,000 Users
$100 Help Desk Level 1 $300 $350 Client Support $1,400 $140 Server/LAN Support $350
$50 LAN Support $150 $45 Collaborative Support $113 $73 Workgroup Architect $157 $80 Design and Testing $200 $64 Supplier Management $113 $46 Procurement Admin. $120 $50 Break/Fix $170
$400 Client Capital $1,200 $100 Server Capital $400 $100 Software Capital $400 $125 DSM Infrastructure $25
$1,724
Total $5,097
Model & Data courtesy METAGroup. Copyright 2003 MetaGroup.
Infrastructure: Desktop Best Infrastructure: Desktop Best PracticePractice Rationalise and standardise on a few hardware/software images Rationalise and standardise on a few hardware/software images
(eg,mobility platform for executives, call centre platform, (eg,mobility platform for executives, call centre platform, knowledge worker platform, etc.)knowledge worker platform, etc.)
Keep software current and consistent (reduces complexity, avoids Keep software current and consistent (reduces complexity, avoids problems between versions, improves info security, etc.)problems between versions, improves info security, etc.)
Automate deployment of images, updates and patches (made Automate deployment of images, updates and patches (made possible via #1 & #2 above). Little or no human intervention possible via #1 & #2 above). Little or no human intervention needed at the needed at the desktopdesktop or server level. or server level.
Automate support (FAQs on line, help desk software, etc.). For Automate support (FAQs on line, help desk software, etc.). For example, best practice environments take 1 or 2 calls per month example, best practice environments take 1 or 2 calls per month per user. Poor environments take 2+ calls per month per user.per user. Poor environments take 2+ calls per month per user.
Manage mobility platforms (only those who are mobile get them). Manage mobility platforms (only those who are mobile get them). Mobile platforms (laptops, tablets) are significantly more Mobile platforms (laptops, tablets) are significantly more expensive than desktops and they get lost, are damaged by being expensive than desktops and they get lost, are damaged by being dropped, and get stolen with great regularity.dropped, and get stolen with great regularity.
Infrastructure: VOIP at MicrosoftInfrastructure: VOIP at Microsoft
Examined complete deployment of VOIP right Examined complete deployment of VOIP right down to the handset level. Couldn’t justify down to the handset level. Couldn’t justify costs.costs.
Opted instead for tiered approach utilising Opted instead for tiered approach utilising standard digital handsets connected to VOIP standard digital handsets connected to VOIP gateways at the PBX (IP trunk card).gateways at the PBX (IP trunk card).
VOIP between all major Microsoft facilities VOIP between all major Microsoft facilities over the Microsoft WANover the Microsoft WAN
Cost reductions have ranged from 7-12% of Cost reductions have ranged from 7-12% of total communications coststotal communications costs
Next stage will utilise public WANs for further Next stage will utilise public WANs for further cost reductionscost reductions
Other Areas: Quick ExamplesOther Areas: Quick Examples
Software DevelopmentSoftware Development CMM/CMMI is certainly best practice.CMM/CMMI is certainly best practice. Not as well known is Fagan’s Inspection Process. Many of Not as well known is Fagan’s Inspection Process. Many of
the benefits of CMM can be realised in a very short time frame the benefits of CMM can be realised in a very short time frame with the Fagan Inspection Process. Finally, Fagan plus TQM with the Fagan Inspection Process. Finally, Fagan plus TQM can serve as the foundation for CMM3 or even CMM4. can serve as the foundation for CMM3 or even CMM4.
Information SecurityInformation Security Many companies approach this piecemeal, with various Many companies approach this piecemeal, with various
vendors providing separate pieces of the puzzlevendors providing separate pieces of the puzzle ISO 17799/AS 7799 can provide a complete framework and ISO 17799/AS 7799 can provide a complete framework and
model to implement best practice. Also, many free tools and model to implement best practice. Also, many free tools and documents are available at no cost on the internet.documents are available at no cost on the internet.
Project ManagementProject Management Most projects fail because one or more critical elements of Most projects fail because one or more critical elements of
excellent project management are missing or lacking in quality excellent project management are missing or lacking in quality (schedule, scope, status reports, risks, etc.)(schedule, scope, status reports, risks, etc.)
PMI and PMBOK provide the training and tools to run best PMI and PMBOK provide the training and tools to run best practice projects.practice projects.
Questions? Feedback?Questions? Feedback?
Why aren’t more Australian software Why aren’t more Australian software development shops certified to CMM 4 development shops certified to CMM 4 or 5?or 5?
Why is infrastructure investment so Why is infrastructure investment so difficult to justify?difficult to justify?
Acknowledgement: The European Foundation for Quality Management (EFQM) Excellence Model served as the basis for this presentation. EFQM provides a comprehensive model for corporate excellence. I altered some aspects of the model to better profile the IT environment..
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