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WELCOME Run IT as a Business

20150929 Playbook Transformational IT Run IT as a Business

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WELCOME

Run IT as a Business

Why we are here –Your CIO will think about The Matrix

CoreContext

Mission

Critical

Non-Mission

Critical Outsource!

Out-task!

Out-task!

Our challenge is to ensure we spend as much of our scarce resources on core as possible, and as little on context

Who is in the room?

1. In IT, or not, vendor, partner, friend?

2. Industry?

3. Describe your IT organization

Additional info:

http://www.meetup.com/Run-IT-as-a-Business-South-Bay

https://www.linkedin.com/grp/home?gid=6990103

Contact inf0:

Paul Hoekstra

[email protected]

Phone: 408 537 3416

9/30/2015 3

Today’s Agenda

▪ IT Transformation – a Playbook 45 min

▪ Ask any question at any time

▪ A word from Computer Associates, our host 10 min

▪ Your floor: What is on your mind- ask the room a question As long as it takes

▪ What subject would make you come back? 5 min

▪ Drinks and networking Till 8pm

9/30/2015 4

My Main Influencers

9/30/2015 5

Michael Hammer Clayton Christensen Alfred Korzybski

IT Transformation – a Playbook29 September 2015

“CIOs must make IT a strategic differentiator, or perish.”Randall Spratt, EVP CIO & CTO McKesson

“A Transformational CIO drives business performance.” Ramón Baez. SVP and Global CIO HP

“ We need to shatter the delineation between the business and IT. IT is the business and the business is IT.” Janet Sherlock SVP & CIO Carter’s

“In this new era of computing, the role of the CIO has never been more strategic.” Jeanette Horan, Managing Director IBM

“Business leaders today must disrupt or be disrupted ~ to drive ideas to cast fast” Ashwin Ballal, VP & CIO KLA-Tencor Corporation

“Leading and innovating in the C-suite and into the boardroom is key for any transformational CIO.” Hunter Muller President & CEO HMG Strategy LLC

“It’s not about technology. It’s about how your business uses technology to win.” Roger Gurnani EVP & CIO Verizon

Does this describe your CIO? (or the one you want to work for / be?)

9/30/2015 7

Note: Quotes from http://www.hmgstrategy.com

When you choose to become a Transformational CIO

Pragmatically, do you have:

▪ A plan for your journey?

▪ Are the right people in the right place?

▪ Do you understand and have agreement on the expectations the customers, partners, board, executives, peers and employees have of your IT department?

▪ Mitigation for corporate and security risks?

We have developed and proven:

▪ The maturity model to assess where you are

▪ The building blocks which can be adjusted and prioritized to meet your immediate and longer term needs

9/30/2015 8

Corporate NeedsThe Outside – In perspective

Standard, Commodity Services

Business Process Support

Product / Service Delivery

Network, communication, employee productivity / support, storage, IS security

Support all value flows with integrated CRM, ERP (order, finance, HR), business intelligence. Excludes Engineering Productivity typically

Highly scalable, highly available production support

Revenue generation

Drive out operational ineffectiveness and inefficiencies

Provide infrastructure aligned with culture. 10% cost reduction / year

Corporate Need

Employee productivity and IT foundation

Minimize inefficiency and ineffectiveness

Deliver product / service to customers

IT Service (Solution) Key Value Driver Business Impact

1

2

3

Digital Transfomational companies

All Companies

9/30/2015 9

The expectations are setNow What?

A Pragmatic Framework for Change

A. Corporate NeedsB. Create RunwayC. Right peopleD. Execute

9/30/2015 10

Maturity Model

9/30/2015 11

Stable

Strategic

Alignment

No surprises• Outages within SLA• Budget control• Data Governance• Know what you’re working on

• Align with the other functions• Cross functional roadmaps• Joined experiments (e.g.

mobile apps, big data, social)• Internal Operational Excellence• KTLO 10% cost reduction YoY

• IT is key component of setting and executing corporate strategy

• Enables lean business operations• Enables company growth through

alliance networks

Whole Enterprise

Functions

IT

Board

Executive

Internal IT

Elements needed to focus and deliver

9/30/2015 12

Agree on Needs, develop Vision

Right People

Create Runway

Execute

Describe in simple terms what the corporation and it’s customers need from IT

Get the right people on the bus – Focus on the right targets, mindset, skills, beliefs

Go through the maturity levels fast, deliberate, experiment, learn, adjust, keep the focus, transparent metrics, formalize to get economy of scale

Agree with your boss on a multi year roadmap to assure support for the journey

A

B

C

D

Understand the Needs of the Corporation, Growth and it’s CustomersDefine the Needs, Alternatives to meet them, Set Direction, Articulate what you Enable

Standardize on low cost devicesStrategy: Minimize Cost

Strategic Differentiator to be perceived as cutting edge attracting top talent

Strategy: Employees supported with Cutting Edge technology

Illustrative

Understand the strategic importance of each IT Service

• Engage with various levels in the other functions to understand needs and come to agreement on mutual expectations

• Cost structure shifts

Set the financial, operational, cultural direction early

13

Example of Choices to be Made: Employee Devices

A

OUTCOMEExecutive Vision statement on

IT Value Contribution

9/30/2015 14

Converge Voice, Video & Social NetworkBRINGING DIVERSE SOLUTIONS TOGETHER

Voice

telepresence

Video and

Voice

converge

Content

Delivery

Oracle Video

Platform

Oracle

Social

Networking

Social

Networking

Over the next 2+ years,

Global IT expects:

• Conversion of all video end points to all connect to all internal and external

• Voice and video to further converge up to the point where each user will have only one unique ID

• We also expect the video solution to integrate with Oracle social network

Conference

Rooms

Example Video Service

Create Runway

▪ Multi year roadmap

▪ Take accountability: Set direction with measurable checkpoints along the way

▪ Fiscally sound

▪ Headcount strategy and plan

▪ Vendor strategy and plan

▪ Steering Committee

▪ Cross functional focus

▪ Gain and maintain trust, mutual accountability

▪ Articulate how changes will be incorporated: pro-actively

▪ Experiments to be run, hypotheses to be tested

▪ Balance the financial, customer, internal business processes, learning and growth perspectives

9/30/2015 15

B

OUTCOMEExecutive buy-in on multi-year

journey

“Companies get the IT Organization they deserve.” Mark Sunday, Oracle CIO

Chaos Order Alignment Strategic

Financial Surprises Predictable10% cost reduction on standard

services. Measurable ROI on changes

Investment in differentiating capabilities

Perception other functions

Never commit objective with a

dependency on IT

Slow, technical, but doesn’t break it all the time

IT is key partner in delivering functional objectives

IT is a key to the survival of the company

Ability to executeLate, over budget,

poor qualityPredictable. Order takers Deliver on roadmaps Operational Excellence

Culture Fire fighters Operators / Order Takers Enablers Drivers

Employee satisfaction

Low Split Excited Passionate, volunteer time

LeadershipDepending on

critical fewFocus on IT effectiveness

Shoulder to shoulder with other functional leaders

Deliver differentiators

Measurements Excel, ad hoc Operational, IT centric Linked to other functionsContribution to revenue, margin,

market perspective

SystemsSystems, what

systems?Key processes formalized and supported by central system

All IT processes supported by central system

Expanding systems into other functions, partners, customers

Meet Corporate needs?

No Some Operationally Strategically

Where are you (to be)?

9/30/2015 16

Right People

▪ Define a culture that drives the new philosophy

▪ Your workforce is key stone – Assess and make decisions fast. Doubters will kill momentum

▪ Put the best talent where change needs to happen

▪ Don’t be afraid to move people on

▪ Pull from proven frameworks and tools like ITSM and ServiceNow

▪ Invest in alignment with your financial department

Be crisp -

▪ Build performance management system directly linking the rewards to the objectives

▪ Articulate the evaluation criteria for each role

▪ People that feel uncomfortable, probably should be uncomfortable

9/30/2015 17

C

Execute

▪ Translate multi-year into quarterly themes

▪ Set aggressive, realistic financial, customer, internal business process, learning and growth objectives

▪ Implement a routine to review metrics,

▪ Move deliberatly towards required service levels

▪ Drive the right operational and cultural changes

▪ Celebrate reaching concrete measures

▪ Assure results are visible to corporation, customers and employees

9/30/2015 18

D

Learning and

Growth

Vision and Strategy

Financial

Internal Business

ProcessesCustomer

IT Maturing PathO

rder

Alig

nm

ent

Str

ateg

ic

Learning and Growth

Vision and Strategy

Financial

Internal Business

ProcessesCustomer

Learning and Growth

Vision and Strategy

Financial

Internal Business

ProcessesCustomer

Learning and Growth

Vision and Strategy

Financial

Internal Business

ProcessesCustomer

• Regulatory Compliance• Business Relationship Management

• Employee Productivity• Service Catalog

• Forecast & Cost Control• Asset & License compliance• Budget cycle

• Stabilize: Incident, issue, change, problem management• Demand insight: Request mngt, service roadmaps• Standardize operations

• Human Capital: Org Design• Information Capital: Centralize and formalize operational systems• Organizational Capital: culture, leadership, team

• Business prioritized resource allocation• Increase asset utilization• Supplier optimization

• Business prioritized resource allocation• Increase asset utilization• Supplier optimization

• Human Capital: company critical vs. outtask vs outsource. Career paths• Information Capital: centralize and optimize financial, customer, HR systems• Organizational Capital: 100% alignment with IT visions and strategy

• Human Capital: career paths• Information Capital: centralize and optimize financial, customer, HR systems• Organizational Capital: 100% alignment with corporate visions and strategy

9/30/2015 19

Vision and Strategy: Establish solid foundation. Right people in the right place, engage, control, fundamentals in place

Partial example

Vision and Strategy: Change the conversation to jointly deliver high value to customers

Vision and Strategy: IT is key element of setting and realizing the corporate vision and strategy

Fo

rward

lo

okin

gB

ackw

ard

lo

okin

g

Program/Project planning & execution

Service Cycle

Steering Committees consist of

Service Owners and Core

team. Decides on allocation of

budget and workforces.

Escalation path for teams,

monitors progress

Service capabilities formalize those

initiatives making a significant

impact on the CSF and service

metrics.

Allows for technology as well as

operational focused. All

deliverables needed to create

value are defined

Roadmaps reflect GIT’s

commitment to deliver new and

improvements to services

(attributes)

Build Run

Stakeholder

Advisory

Council

Operational

Reviews

FY13

Budget /

HC

Prioritized

Services

Strategic

Service

Reviews

Service Transition and PMO

Approved new items and changes

Roadmap

Desired

Future

State

Service Capability

Monitoring

Definition, transition, implementation /

deployment of new or enhanced

Service Capabilities

Realized benefits of projects

Financial, Customer, Operational

performance.

Capacity and Availability

Service Metrics

Which subject would make you come back?

Topic Description

Building a business focused service strategy function

How to capture the needs of the corporation in a service catalog, build a strategy and implement

Business application innovation, leveraging Lean IT to create value

Removing waste in the business processes through innovative implementation of business systems

DevOps, a cultural challenge Not the tool, but the culture is your roadblock!

M&A integration. Models and applicability

IT supports cross functional and is in a unique position to lead during integration. What is the approach depends on the type of integration

Cloud Strategy How your business needs drive your cloud strategy

Leverage tool implementation like ServiceNow to drive organizational change

How to leverage process automation to drive operational change

The finances of IT Follow the money – how do you get a good handle on your budget, forecast, actuals?

Employee devices and support on steroids

How to support the corporate culture through employee productivity tools and devices

THANK YOU

9/30/2015 22

http://www.meetup.com/Run-IT-as-a-Business-South-Bay

https://www.linkedin.com/grp/home?gid=6990103

Paul [email protected]

Phone: 408 537 3416

Need to Solution

Kickoff Event

• Value Case

• Stakeholder approval and commitment of resources to clarify requirements, look at options

Design Commit

• Specific stakeholder use scenarios, business requirements, and success measures validated

• Non-functional (e.g. Security, Audit, Compliance, IT Ops) requirements understood; confirm no showstoppers

• Commitment to invest in selecting and designing a solution based on a projected cost and schedule (still a major course correction available downstream)

Need

Stakeholder identifies a need or opportunity. IT consults

with Stakeholder(s) to lay out value to be realized, and discuss field of options

Clarify

Requirements

Stakeholder and IT Team defines specific needs and outcomes – Use Scenarios, Business Requirements &

Success Measures – while preparing the project plan

Approve

Design

Team designs the To-Be Solution (people, process, technology).

Stakeholders participate in demos, prototyping & functional design while

IT ensures architectural fit, supportability, compliance

Build & Accept

Solution

Solution is built and tested to specification while the organization

prepares for the change (e.g. documentation, training, support prep). Stakeholders (Business and IT) accept

the solution before it is approved to Go-Live

Build Commit

• Solution Design approved, after having been validated to meet success criteria and for architectural fit, supportability and compliance

• Commit to build & deploy solution

Deploy &

Stabilize

Solution is deployed and made stable in production, priority stakeholder issues are resolved

Value

Value assessed by Stakeholder(s) and IT according to success measurement

plan and leveraging IT Service Management processes; additional

actions may be taken in order to meet success criteria.

Project Close Event

• Functionality working according to specification

• Priority Stakeholder issues resolved or on path to resolution

• Organization ready for transition to regular production support

• Approved success measurement plan in place

Go-Live Readiness & Go-Live

• Solution accepted by Stakeholders

• Documentation in place andStakeholder(s) trained

• Post Go-Live support process, resources in place

• Solution approved for and then deployed to Production (Go-Live)

Need ValueClarity

Requirements

Approve

Design

Build & Accept

Solution

Deploy &

Stabilize

Needs expressed in business outcomes

Detailed definition of deliverables by tollgate (expectation)

Weekly Tollgate meetings

Weekly status reporting• Project, scope,

timeline, resources• Risks and Issues• Plan (Milestones

and detailed steps)

Short escalation path