Strategic IT Planning and Governance

Info-Tech’s Step-By-Step Consulting Methodology G R O U
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Strategic IT Planning and Governance

Copyright © 2004 by Info-Tech Research Group All rights reserved. No part of this book may be produced or transmitted in any form by any means – graphic, electronic, or mechanical – without permission in writing from the publisher, except by a reviewer who may quote brief passages in a review. P Printed in Canada First edition: January 2004 Cataloguing in Publication Data Info-Tech Research Group, 2004Strategic IT Planning and Governance ISBN 0-9734751-0-2 To order please contact: Info-Tech Research Group 888-670-8889 519-432-3550 customerservice@infotech.com

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Strategic IT Planning and Governance Info-Tech’s Step-By-Step Consulting Methodology
G R O U I
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In the modern organization, Information Technology (IT) plays an increasingly important role in enabling all business processes. IT has become everybody’s business and the proper management of IT across the enterprise can substantially boost competitiveness. This step-bystep methodology will help you create the mechanisms for making IT decisions at the strategic level. Here are some examples of the kinds of questions that this methodology will help you answer: • How Do You Prioritize Big IT Projects? Large IT projects that impact the whole organization can be very expensive. Not only do organizations have to decide whether or not to green-light an expensive project, sometimes they have to choose between several big ticket projects all vying for the same scarce resources. This methodology provides a framework for these decisions. What Should Be Outsourced? Often outsourcing is seen too narrowly as an internal cost-cutting device, but outsourcing should enhance, rather than diminish, the effectiveness of enterprise information technology. Making outsourcing decisions in a strategic context will lead to smarter and more efficient IT. What Are Your Organizational IT Standards? With most or all of your departments using IT for competitive advantage, platform standards cannot simply be a case of what’s good for the IT department. Standards and procedures should be approved through an organizational governance process.

Info-Tech Research Group believes the top IT manager in the organization (whether he or she is a Chief Information Officer, Information Systems Manager, or Information Technology Manager) should play a lead role in the development of a plan for the strategic use of Information Technology. This guide is written from an IT management point of view. In eight concise stages, we show how IT managers can launch and manage a strategic IT process within their organizations. We also provide dozens of ready-to-use tools and templates to help you build this capability.

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ON N6B 1Y8 Tel: 519-432-3550 Fax: 519-432-2506 Toll-Free: 888-670-8889 Or visit us online a www.infotech.com I N F O ~ T E C H R E S E A R C H G R O U P Page 4 . or with the accompanying CD-ROM. please feel free to contact us at: Info-Tech Research Group 602 Queens Avenue London.Strategic IT Planning and Governance Contact Information Should you encounter any difficulties with this guide.

......................................... 31 The Most Important Constituent: Senior Management .................. 19 Stage 1> Plan the Plan ........ 30 Background > Making the Case for Strategic IT Planning......................................... 44 Step 4: Define Core Business and Its Boundaries ........................................... ............. 32 The Importance of Communication......................................................................... 48 Background > Analyzing Business Strategy .............................................................................. Competencies.......................................................................... 15 The Importance of Governance .................................. 16 The Agility Paradox.............................. 35 Co-opting the Power User ............................................................................... 45 Step 5: Create a Financial Picture .................................... 49 A Company’s Value Chain ......................................................................... 49 The Supply Chain .................................. 22 Step 2: Establish a Planning Group.... 51 C Page 5 I N F O ~ T E H R E S E A R C H G R O U P ......... 39 Step 1: Describe the Company and Its Background..................................... and Core Values ................................... 36 Stage 2> Document Your Business Strategy.................................................. 17 How This Methodology Works: ............................................................................................................................................................................................... 43 Step 3: Document Vision................................................ Mission... 47 Stage Summary ................................................................ 46 Step 6: List Strategic Objectives.................. Governance ...................................... 42 Step 2: Conduct an Industry Analysis.................................................................................................................................................... 9 Aligning IT With Business Goals............................................................................................................. 33 More Notes on Agility.......... 14 Scope.............................. 28 Stage Summary ......................................................................................................................................... 21 Step 1: Set Strategic Planning Goals..................................................................................... 25 Step 3: Hold a Kick-off Meeting ..................Table Of Contents Introduction...... 27 Step 4: Create a Preliminary Report...

...... 52 Porter’s Five Forces Model........ 57 P Stage 3> Assess the Current IT Situation ........................................................................................... 64 Step 4: Understand the IT Environment ......... 79 Stage 4: Propose a New IT Situation ................................................................................................................... 70 Rolling Out an Asset Management Initiative......................................... 88 Stage Summary .................................................................................................................................. 55 Key Success Factors ............... 54 Environmental Analysis (PEST)........................................................................................................................... 69 Thoughts on Staffing Needs ............................................................................ 66 Stage Summary .......... 63 Step 3: Audit Current IT Projects ............................. 70 Business Benefits of Asset Management ...... 83 Step 2: Brainstorm Technology Opportunities ...................................... 95 Page 6 I N F O ~ T E C H R E S E A R C H G R O U .................................................................................................................................................. .......................................................Strategic IT Planning and Governance Industry Lifecycles .............................................................................................. 86 Step 3: Document Your Results......................................................................................................... 69 Skills Development ............................................................................... 71 Conducting a Hardware Asset Inventory ................ 81 Step 1: Analyze IT Strengths and Weaknesses .......................................................... 62 Step 2: Document Your Hardware and Software Infrastructure.. 90 Background > The Art of Brainstorming......................................................................................................................................... 75 Change Management ....................... 93 Step 1: Analyze Alignment Gaps......................... 73 Conducting a Software Asset Inventory................................................................................................. 92 Stage 5: Perform a Gap Analysis ................. 59 Step 1: Document Your IT Organizational Infrastructure .......... 91 Brainstorm of One (Brainwriting) ........................... 55 Identify Your Organization’s Core Competencies ........................................ 68 Background > Mapping IT Assets................. 78 Understanding the IT Environment ...................... 76 Asset Management Best Practices....................................................................................................

.... 128 Customer Service Goals. 116 Step 3: Identify Your Options ........................................................... 101 Step 2: Establish a Strategic IT Vision..................................... 102 Step 3: Propose a Governance Structure................................................................................... Maintain Your Strategy ...................................... 106 Building Your Steering Committee................... 126 Technology Operations..... 109 Stage 7: Build a Strategic Decision Making Framework .......................................................Step 2: Analyze Infrastructure Gaps.............................................................................................................................................................................................. 117 Step 4: Prioritize Your Projects .................................................................................................................................... 98 Stage 6: Propose a Strategic Vision and Governance Model ........................................................................................................................................................................... 103 Stage Summary ............ 97 Stage Summary .......................................... 111 Step 1: Set Strategic Goals and Measures ......................................... 130 Getting Buy-In for Your Goals............................................................................................................... 135 Step 1: Build Your Strategic Plan Materials ........................................ 96 Step 3: Summarize and Resolve Gaps.......... 113 Step 2: Perform a Budget Analysis.... 129 IT Governance Goals...................................................................... 125 Financial .............. 105 Reigning In Rogue IT....................................................................................................................... Promote....................................................... 125 Organizational Goals ........................................................ 104 Background > One Vision for All............................................................................................................................................................................... 132 N F O ~ T E C H R E S E A R C H G R O U .......... 138 Page 7 Step 1: Hold a Vision Meeting With Stakeholders ........ 133 Stage 8: Publish............................................................ 120 Stage Summary .... 124 Background > Types of Goals IT Should Set..... 131 Using Your Budget as a Management Tool ........................... 99 P I Dealing with Budget Cuts .......... 137 Step 2: Present Your Plan to Senior Management .........................................

........................................ 139 Stage Summary ........................................................................................ 150 Conclusion ............................. 149 Tips For Ongoing IT Strategic Governance ............. 146 P The Rollercoaster of Change........................................................... 142 Guide to Developing a Communications Plan ...................... 143 Design the Roll-Out Plan .........................................................................................Strategic IT Planning and Governance Step 3: Communicate and Manage Change ... 141 Background> A Guide to Killer Boardroom Presentations ......................................................... 152 I N F O ~ T E C H R E S E A R C H G R O U Page 8 ................................................................................ 147 Adjusting Your Current Organizational Structure..............................

department a competitive weapon. which aligns well with your organization’s business strategy and lays the foundation for on-going strategic decision-making. A report template upon which additional costs incurred as a result of you can build your Strategic IT unplanned purchases. a lack of understanding of. Info-Tech Research Group asked IT managers how much Strategic IT Planning impacted the overall competitiveness of their organizations. Page 9 Why Strategic IT Planning? In a late 2002 survey. the Methodology breaks into business strategy and IT’s role in the eight stages. This step-by-step guide takes you through the stages Here are some of the consequences of not having an of establishing an IT Steering established IT strategy: Committee and building a Strategic IT Plan. garnering support for IT projects. By following the steps in each organization’s future. Plan document. This will be a living document subject to annual ü Limited participation of IT in the review and updating. These tools are few opportunities to make your IT available as both individual files. The guide also includes ü Increased risk of project failure due to helpful background articles. I N F O ~ T E C H R E S E A R C H G R O U P . This methodology has three components that will help guide you through this process: 1. A collection of tools and strategies. throughout the Strategic IT technology decisions. on your CD ROM. both on strategic goals and on a framework for making strategic decisions. you will build an IT strategy. your organization’s overall business 2. or support to. leading to Planning process. ü Inconsistent systems purchases and 3. and proving IT is a strategic asset of the organization.Introduction Introduction Establishing a strategic planning process and governance model for Information Technology (IT) is critically important for making sound IT investment decisions. and are compiled into a printable Workbook. rather than proactive. templates that you will use for information gathering and analysis ü Reactive. The goal of this methodology is to provide you with an effective process for goal setting and decision making in IT that aligns with the business goals of your organization. The majority confirmed that strategic planning did have an impact on increasing competitiveness. of the stages listed below. organization’s strategic planning process because of a lack of understanding of Specifically. Strategic planning is about building consensus.

Put together a reasonably detailed description of your organization. Make sure you have the full support and cooperation of senior management before you proceed. it is a process. Be aggressive but realistic with your deadlines. Start by answering the question. In this stage you will analyze your organization. “What is Strategic?” when it comes to IT projects. the steps that will be taken. Use these analysis tools. An open and inclusive process will lead to a better plan and increased understanding by all. to better understand your industry. Your timetable should establish momentum and a sense of urgency. Select for your planning team a group that can work productively on building the plan and then on championing the results across the organization.Strategic IT Planning and Governance Stage 1> Plan the Plan Strategic planning is not just a task. • • C H • E S E A R R Stage 2> Document Your Business Strategy You can’t hope to align your IT strategy with the business strategy of the organization if you can’t first demonstrate a clear understanding of that strategy. processes. Step 2: Establish a Planning Group. Review the steps of this methodology with the steering committee and set a preliminary time frame. the better the results. Step 3: Hold A Kick-Off Meeting. An analysis of the industries in which your organization operates will provide a deeper context to your current strategic mission and key objectives. • G R O U P Step 1: Set Strategic Planning Goals. and Core Values. Step 3: Document Vision. mission and core values. Put together a preliminary project description report. Can you describe your organization’s overall purpose? Step 2: Conduct an Industry Analysis. Present this report to senior managers and get their sign-off. Include the overall goals. as well as the theory contained in the background section. A truly open and effective process begins with a well-rounded working group. The better planned the process. Work up a list of objectives for the strategic IT planning project. but also in terms of past challenges that have been overcome. • Step 1: Describe the Company and Its Background. Look at your history in terms of dates and growth milestones. Your organization mission statement should answer three equally important questions: Why do we exist? Whom do we serve? What do we produce? N F O ~ T E C H • I • Page 10 . and investments. List all the major IT stakeholders in the enterprise. Analyze how your organization got to where it is today. A strategic planning process is also a crucial communications vehicle between IT and the rest of the organization. Step 4: Create a Preliminary Report. background. The culmination of your analysis should be a succinct set of well-defined corporate objectives. Document your organization’s mission and vision statements and list your core values. Mission. the time frame. and any other preliminary cost estimates you have.

This should include functional areas like network support. the current state must be understood. Page 11 . Identify and document your physical infrastructure. Without a firm understanding of your existing technology assets. Defining the projects currently being worked on by the IT department will help you understand whether IT is aligned with the overall goals of your business. Financial information is one of the few ways you can make a real ‘apples to apples’ comparison of your organization to the rest of the industry. • Step 1: Document Your IT Organizational Infrastructure. You can’t manage what you don’t know you have. you are essentially operating in the dark and strategic planning will be a futile effort. G R O U I N F O ~ T E C H R E S E A R C H Step 6: List Strategic Objectives. programmers.Introduction • Step 4: Define Core Business and Its Boundaries. Examine your organization’s core competencies. Step 4: Understand the IT Environment. Analyze the trends in your industry and the actions of your competitors. determine what customers. Review your current IT situation asking tough questions about performance. and goal setting. channels. Step 3: Audit Current IT Projects. Before plans can be made about the future of the IT organization. Step 5: Create a Financial Picture. weaknesses. • Step 1: Analyze IT Strengths and Weaknesses. Summarize your analysis in a succinct and forceful set of business objectives. Understanding the current workload and spending patterns is essential to planning for the future. P • • Stage 3> Assess the Current IT Situation Take a hard look at your current IT situation. and competitors are within those boundaries. • • • Stage 4> Propose a New IT Situation World-class IT departments are forward-looking and proactive. Gather up-to-date financial information of your organization. Look at industry trends and create competitor profiles. This stage will help you envision the future of IT in your organization. opportunities and threats (SWOT). Step 2: Document Your Hardware and Software Infrastructure. and business analysts. Creating an IT plan that only addresses your organization’s current needs has limited value in the long run. Prepare an organizational chart of your IT department. Completing this section will help you identify the IT areas where the enterprise should focus investment. What makes you special and different? Once you have defined your core business. These are the specific strategic objectives that you hope our IT strategy will align with. Compare your current governance practice (if you have any) to an industry maturity model. Conduct an analysis of current strengths. alignment.

now is a good time to establish a top level vision and mission for your IT department. Step 2: Establish a Strategic IT Vision. Step 2: Analyze Infrastructure Gaps. Document your final recommendations for the future as approved by your planning group. Your IT core values represent the standard axioms by which IT is applied across the organization. you will be able to create a roadmap for the future. Look at where current IT systems and skills sets do and do not fulfill those requirements. as a whole. The strategic IT vision applies to all strategic level IT decisions across the organization.Strategic IT Planning and Governance • Step 2: Brainstorm Technology Opportunities. • Step 1: Analyze Alignment Gaps. Put together a summary of the gaps identified in both Step 1 and Step 2 and chart the implications for your IT strategy of addressing those gaps. • G R O U P Stage 5> Perform a Gap Analysis Compare your current IT situation to the proposed situation you developed in the previous stage. Similar to the core values you documented for your organization. Hold a brainstorming meeting (or meetings) involving your strategic planning group as well as IT staff. Assess the IT requirements of the projects and areas of investment you identified in “Stage 4: Propose a New IT Situation”. Use diagrams and charts as much as possible and remember to continually relate your recommendations to the business goals of the enterprise. R C H S E A • • R E H Stage 6> Propose a Strategic Vision and Governance Model With a firm grasp of your organization’s business objectives and the ways that IT can enable them. N F O ~ T E C • • I Page 12 . and special applications users. Formulate a set of key questions to get the mental wheels turning. senior managers. strategic IT core values are the set of beliefs or philosophies that guide strategic IT decisions. Step 3: Propose a Governance Structure. Use the guidelines for the organization vision statement in Stage 2 when preparing the vision statement for corporate IT. Step 3: Document Your Results. Step 3: Summarize and Resolve Gaps. • Step 1: Hold a Vision Meeting With Stakeholders. By taking a detailed account of what you will need in the future and then matching it against your current infrastructure. power users. Describe what needs to be done to achieve the future IT situation documented in Stage 4. The IT Steering Committee is a cross functional committee for the on-going application of strategic priorities to all IT projects. Review the results of “Stage 2: Document Your Business Strategy” and “Stage 3: Assess the Current IT Situation” in the context of the four quadrant strategic alignment model. line managers. Propose a charter for this group that draws a line from vision and objectives to specific actions.

Info-Tech Priority Index 3. Present the plan to Senior Management and require its official approval. Step 3: Identify Your Options. Step 3: Communicate and Manage Change. • • Page 13 I N F O ~ T E C H R E S E A R C H G R O U P . Begin identifying your options by taking a very high level approach. Promote. Begin the process of turning your strategy into action by setting some clear goals for the IT department. After you have gathered some actual information. it is still important to develop a communications plan to ensure that all stakeholders are fully aware of the plan’s contents and implications. Step 4: Prioritize Your Projects. This takes the work you did in the previous stage – Set Your IT Strategy – and turns it into some actionable objectives for the upcoming year. and a mechanism and governance model for making sound strategic priority decisions about IT into the future. the next step involves making some recommendations and determining a course of action. However. Use the Strategic IT Plan template to bring together all of the elements you have created in this process into one concise plan that can be recommended to senior management. Goal setting and measurement are only two steps of the cycle. • Step 1: Build Your Strategic Plan Documentation. Step 2: Present Your Plan to Senior Management. Info-Tech Project Matrix 2. the completed plan should not be a surprise to anybody. Use a three-tier approach to prioritizing your projects. Info-Tech ROI Calculator • • • Stage 8> Publish. Using your gap analysis from Section 6. and Maintain Your Strategy The main deliverable of this process is a Strategic IT Plan that provides a specific vision and goals for IT in your organization. The last step is budgeting future performance levels.Introduction Stage 7> Build a Strategic Decision Making Framework Translate your strategy into some tactical and operational goals. • Step 1: Set Strategic Goals and Measures. If your planning process has been open and broadly based. Our Project Ranking Framework is designed to provide you with a robust prioritization process that ensures that your department’s projects are aligned with the objectives of the business. group together functions that you think can be fulfilled by a type of application. These include: 1. budgeting next year’s information becomes much easier. Step 2: Perform a Budget Analysis. a rational for prioritization of current IT projects. Now that you have identified the gap between where you are and where you want to be.

R C H G R O U P The IT/Business Alignment Model contains four main interrelated domains. your information technology infrastructure needs to be accountable to both the overall strategic goals of IT (strategic fit) while also being able to help individual business units realize their individual strategic goals (functional integration). the IT/Business alignment model looks like this: I N F O ~ T E C H R E S E A Each of the four quadrants of the business alignment model must integrate with the other quadrants. Henderson and N. Any resource expended in an activity that does not advance either the strategic goals of the organization. A number of management researchers have further refined the model and applied it to a range of industries. is a wasted resource. Venkatraman proposed a theoretical model for Strategic Alignment. Each of these areas contains three interrelated subdomains. or the functional requirements of other units in their quest to meet key business goals.C. In a 1993 IBM Business Journal Article.Strategic IT Planning and Governance Aligning IT With Business Goals Strategic Planning and Alignment Info-Tech Research Group’s strategic planning survey found that the vast majority of organizations that did strategic planning saw an improvement in business/IT alignment. horizontal integration is called functional integration. So. Pursuing alignment is an exercise in efficiency. Page 14 . Vertical integration is called strategic fit. J. for example. Graphically. IT/Business strategy alignment has been talked about in business studies for 20 years.

Governance: How authority and responsibility for decisions is shared between IT and business partners. Infrastructure planning should focus on the following: • Structure: Priorities. Page 15 I N F O ~ T E It is strongly recommended that your infrastructure planning initiative be undertaken concurrently with your strategic planning. and core competencies as these apply to the whole enterprise. Skills: Human resources practices and issues specific to building an effective IT department. How project priorities are established. in the background section for Stage work on the Strategic IT Plan will be that much easier. • Your strategic IT plan also needs to integrate well with Business Strategy and Technology Infrastructure. and the IT department that must articulate the infrastructure requirements and the specific projects that will realize strategic goals. policies and choices that bring together applications. • • Think of it as a conversation between the steering committee. which is setting strategic priorities and represents the whole enterprise. Competencies. Plan Strategy and Infrastructure Concurrently P . The Information Technology Strategy quadrant includes: • • Systemic Competencies: Vital characteristics and strengths of information technology that provide advantages to the organization. In essence. software. Governance An information technology strategic planning process needs to focus primarily on the Information Technology Strategy quadrant of the alignment model. In an ideal situation. governance. C H R Plan Strategy and Infrastructure Concurrently E S E A R C H G R O U Technology Scope: The key technologies that support the current business scope as well as the technologies that enable new opportunities. Business strategy also focuses on scope. your efforts will drive development in these important areas. Further information/discussion of If a well-articulated business plan and a technology the alignment model can be found infrastructure plan are in place or under development. networks. this methodology contains tools for roughing in some working definitions of your business and infrastructure strategies.Introduction Scope. hardware and data management into a cohesive platform. However. Processes: The procedures for managing IT infrastructure as well as practices for developing and maintaining applications. you will have concurrent plans in place or under development for both Business Plans and Technology Infrastructure. in the event they are not. 1: Plan the Plan.

By “high level” we mean that these processes and structures extend beyond managing the IT department to address strategic IT issues across the entire enterprise.” Processes to do this have three main principles: 1. and disseminate the data needed for informed decisions. While being as flexible as possible. In “An Holistic Approach to IT Governance”. through an existing management committee or. and to make and communicate the decisions. Senior managers need to be involved on a regular basis. Senior managers will need to accept formal responsibility for strategic decisions regarding information technology. As they impact the entire organization they demand wider involvement and particularly the participation and support of senior management.Strategic IT Planning and Governance The Importance of Governance The term “IT Governance” refers to formal high level processes and structures for IT strategic planning. prioritization. Harvard Business School Professor Charles Popper notes that formal decision making “helps to ensure that critical decisions are fully committed to by all groups in the enterprise. if necessary. through a dedicated IT steering committee. it is still important to establish agreed upon processes and structures for strategic planning. decision making and performance measurement. I N F O ~ T E C H R E S E A R C H Page 16 . analyze. to collect. Agreed-on processes need to be developed to identify the decisions to be made. The business world at the turn of the millennium is too dynamic for a strategy to be implemented by remote control. By having these formal processes and structures – such as IT strategy and steering groups – the organization can better: • P G R O U • • Align IT strategy with the business strategy Transform high level strategic goals into actual IT projects. Establish procedures for prioritizing IT projects that are understood and supported by all senior managers. prioritization. 3. decision making and performance measurement. 2.

the greater the need for strategic direction. In these cases you can check off the steps as done and significantly reduce the estimated hours it will take to complete your objectives. real-time process of alignment and execution. Completing the stages of this methodology leads to the establishment of a strategic IT planning and governance practice as well as a written strategic plan. however. You can take the first steps towards greater agility by developing a more flexible strategic planning process for your organization. you may have already completed much of this work as part of other projects. the harder it is to develop a strategic plan. G R O U P The Agility Paradox The faster things change. will help you assess the amount of work that needs to be done to complete this methodology. Every step should be completed as part of this process.Introduction Methodology Overview Spreadsheet This spreadsheet. This is the agility paradox. Planning. Yet the faster things change. You can work toward the goal of making planning more agile by shifting your strategic focus from simply creating a plan to implementing an iterative. Page 17 I N F O ~ T E C H R E S E A R C H . Not the Plan Start with the following proposition: It’s not about the plan. located on the CD-ROM.

“ritualized. and expanding fields of competition. too rigid. E A R C H C H R The moments of stability normally experienced between cycles of change have become shorter and shorter. Developing such an agile strategic planning process will foster constant learning. and too reactionary. I N F O ~ Page 18 . the threat of external change is much greater. linear forecasting.” • • • Traditional models focus more on the bottom line and on making quarterly numbers than on innovation and real-time response to the market. to the point where change is constant. and of little value. thus failing to anticipate change. give you the ability to adapt in real-time. windows of competitive advantage have already been lost. we add “agility tips” – suggestions on how you might achieve each stage in a more informal and timely fashion. E S T E Agility Tips Each step in this methodology is necessary for the creation of a workable strategic governance practice. rapidly advancing technologies. and the extrapolation of historical data. and planners are forced to wait until the next planning cycle to react. evolving entity that is in a state of perpetual change based on changes to the business environment. and ultimately create opportunities for ongoing competitive advantage. Shortcomings of Traditional Strategic Planning P G R O U Often referred to as “dog-and-pony shows. stagnant annual document. In addition to the formal processes laid out in this document. Faster business cycles. A McKinsey report involving 80 companies characterized the annual strategic process as. They depend on predictable future outcomes. The need for an agile strategic planning process is real.Strategic IT Planning and Governance Instead of thinking of your strategic plan as a reactive. think of it as a proactive. Traditional plans are often out-of-date before they are even fully conceived. politicized. By this point.” the traditional models for preparing an annual strategic planning document are too slow.

Reading these objectives will help you nail down the purpose of each step and will give you direction. step-by-step approach. use the related background information to quickly get you up to speed.if you are not comfortable with your knowledge level of the topic at hand. All workbook documents are in Microsoft Word. • Background Sections: These sections should be viewed as optional reading . You have been provided with a hard copy of the methodology and background sections. What You Need to Do: This section contains the action steps that you need to take in order to complete the objectives. Workbook documents can be accessed from the electronic version of the methodology through the hyperlinks within specific action steps. In undertaking the steps of this methodology. and what you can expect to encounter in each section. If the CD-ROM does not install automatically. The hard copy is intended as a quick reference. Contents of the CD-ROM are designed for use on PC platforms using Microsoft Office software (Microsoft Word. P I N F O ~ T E C H R E S E A R C H G R O U For each stage there are also corresponding Workbook sections as well as Background sections that provide further information on the subject of the stage. The electronic version will save you time in completing most stages and makes it easier to make changes during the process. we strongly recommend using the electronic version provided on the CD-ROM. and to be used in lieu of reading from a computer screen. Many workbook articles are drawn from Info-Tech advisory publications and have their own mini-action plans. • Page 19 . which include the following sections: • • Objectives: Each step has objectives. Each Stage in the methodology is broken down into Steps. Excel and PowerPoint viewers are available on the CD-ROM in the “Viewers” folder for accessing files without Office software). you can access the contents by exploring your CD-ROM drive. Excel. and PowerPoint format. These sections are the “meat” of this methodology and will guide you through the process in an easy-to-follow.Introduction How This Methodology Works Below is a brief explanation of how the methodology is laid out. Workbook Sections: These sections help you complete the action steps and gather documentation for a final report.

Please note that all of the workbook files and interactive tools will be saved by default to their original location on your hard drive. nonprofit.Strategic IT Planning and Governance When you insert the CD into your computer. and in many cases relate stages or steps to business situations. the electronic version will automatically load and install itself onto your hard drive. or government organization. Please Note: While we refer to the business or company. This terminology was used purely for consistency and to facilitate reading ease. this methodology is equally applicable to any type of for-profit. I N F O ~ T E C H R E S E A R C H G R O U P Page 20 . An icon will be created on your desktop for easy access. We strongly recommend that you create a Strategic IT Planning folder on a backed-up network drive and save all of your work there.

Work up a list of objectives for the strategic IT planning project. processes. “What is Strategic?” when it comes to IT projects. A strategic planning process is also a crucial communications vehicle between IT and the rest of the organization. An open and inclusive process will lead to a better plan. A truly open and effective process begins with a well-rounded working group. Page 21 I N F O ~ T E C H R E S E A • R C H G R O U Strategic planning is not just a task. Be aggressive but realistic with your deadlines. Stage In this stage you will establish the who. It is a process.Stage 1> Plan the Plan Stage 1> Plan the Plan Every moment spent planning saves three to four in execution. The better planned the process. You and your committee will review the steps of this methodology and determine what will need to be done specific to your circumstances and establish when each stage should be completed. what. • • You will establish who the stakeholders are in your strategic IT plan and establish a planning committee to include those stakeholders in the process. increased understanding by all. when and why of your strategic planning process. Step 2 – Establish a Planning Group List all the major IT stakeholders in the enterprise. Step 1 – Set Strategic Planning Goals Start by answering the question. the better the results. and closer alignment of corporate and IT strategy. Your timetable should establish momentum and a sense of urgency. and investments. Finally you will complete a preliminary report for senior management that outlines the scope and the goals of the plan (the why). Select for your planning team a group that can work productively on building the plan and then on championing the results across the organization. Step 3 – Hold a Kick-off Meeting Review the steps of this methodology with the team and set a preliminary time frame. Identify areas where key steps have already been taken as well as areas that will require more work. 1 P . The answer to this question will help set the scope for the Strategic IT Plan. Approval of this report will constitute a green light for the entire process to commence.

.............. 33 More Notes on Agility .................................................................... 11 1............ 15 1................................................... 36 H R E S E A R C H Workbook Stage 1 > Plan the Plan. 9 1........................................ 7 1.... 21 Step 1 – Set Strategic Planning Goals ...........10 Project Definition Statement ........................................................................... 21 1.......................................Strategic IT Planning and Governance Step 4 – Create a Preliminary Report Make sure you have the full support and cooperation of senior management before you proceed................................................................. and any other preliminary cost estimates you have............. Present this report to senior managers and get their sign-off............... Put together a preliminary project description report........................ 23 1.........8 Convergence of Technology and Core Business Strategy ............................................ P G R O U In This Stage Stage 1 > Plan the Plan................6 Letter to Key Stakeholders ........ 26 I N F O ~ T E C Page 22 .................... 27 Step 4 – Create a Preliminary Report...... Include the overall goals.................................................4 Identify Stakeholders . 35 Co-opting the Power User ................... the steps that will be taken.....................................................5 Stakeholder Analysis Tool .......................................... 25 Step 3 – Hold a Kick Off Meeting .................................................................................... 23 Step 2 – Establish a Planning Group..................................................................................... 14 1................................................................................................................................................................... 12 1.............................1 Scope Statement Worksheet.......................................................................................................2 Project Goal Statement ............... 24 1..........9 Timeline Tool ...................... 31 The Most Important Constituent: Senior Management.................................................................................... 30 Background > Making the Case for Strategic IT Planning....... 25 1............................... 32 The Importance of Communication ...............7 Kick-off Meeting Agenda ...................3 Planning Constraints ... the time frame........... 28 Stage Summary................

2 Project Goal Statement” to draft the primary reasons for developing a strategic plan.3 Planning Constraints” to list these constraints and how they might be avoided. What is strategic? Use “1. Think about the constraints you will encounter in implementing the plan.” Another example is “To identify technology-related projects that provide our organization with the highest return on investment. However. In most simple terms. O ~ ü Create a Scope Statement. It is good to start by defining the kind of IT investments and activities your strategic planning effort will address. Establish strategic planning goals. What You Need To Do ü Identify (and plan to mitigate) possible constraints. The important thing is that you continue to drive the process while keeping key stakeholders in the loop. if your organization is small or averse to large formal meetings. you might instead try to schedule regular lunches or coffee break meetings with key stakeholders. Use the worksheet “1.Stage 1> Plan the Plan Agility Tip: Have a Plan for the Plan Every minute spent planning saves three minutes in execution. start by defining boundaries.1 Scope Statement Worksheet” to help formulate a scope. Review possible constraints and steps to mitigate those constraints. State the purpose(s) of the Strategic IT Planning process. Why are you preparing an IT planning document for your enterprise? What are the primary reasons you are undertaking this process and what do you hope to achieve? One example might be “To align the IT organization with the business strategy of the North American operations. Don’t try to go it alone. We recommend it. • • • Establish the scope of your Strategic IT Plan. you still need to establish some kind of planning circle. Rather than formal meetings with formal agendas. Two critical issues require your attention in this first stage: establishing lines of communication and agreeing on a reasonable scope for this effort.” Page 23 I N F ü Outline the purpose of the plan. Use the worksheet “1. T E C H R E S E Objectives: A Step 1 – Set Strategic Planning Goals R C H G R O U P . Holding a kick-off meeting is a great way to focus everybody’s attention.

if a new Web services based content management system requires Office XP running on Windows XP. Cost: It may seem crass to identify a project as strategic simply because of its price tag. the reality is that there are numerous internal agendas. Alternatively. Page 24 .Strategic IT Planning and Governance Keep the focus of your goals externally oriented and speak to the enterprise as a whole. there are certain IT projects that are beyond the scope of the functional duties of the IT department. should be suspect. P R C H G R O U A What Is Strategic? It will be noted later in this methodology that an IT governance structure is not a replacement for the IT manager. standards implications. if IT has historically served in a support capacity at your organization. to make it a strategic project. Think about the constraints you will encounter in order to implement your plan. you may have difficulty scheduling time with all of the stakeholders. you may face resistance from senior management who do not see the need for a strategic plan for the IT department. but another way to look at it is that any project that carries a price over a certain amount. Any such standard should have demonstrable impact on moving the enterprise toward its goals. which does not advance the strategic goals of the organization. Your Strategic IT Plan should be about establishing how information technology will make the enterprise more effective and competitive. However. For example. An enterprise-wide operating system upgrade does have the scope and impact. However. Upgrading one PC isn’t strategic. Then think about what steps might be taken to mitigate those constraints. In this case the project should be analyzed and approved within a strategic context. not to mention the cost. A goal such as “Make the IT department better at serving our customers” is a laudable departmental goal. then it may be necessary for the company to standardize on Windows XP. T E C H R E S E • O ~ I N F • As an example. List the major constraints in the project constraints worksheet. Identifying Constraints As much as we would all like to believe that everybody in an organization is headed in the same direction. A project to upgrade every PC to Windows XP would certainly have the reach and impact. but it is more functional rather than Strategic. affect everybody. by definition. consider something as simple as upgrading a PC operating system. Info-Tech Research Group suggests that you look at projects that might be strategic from three perspectives: • Reach and Impact: Who is affected directly and immediately by a proposed project? Will it involve the participation of more than one department? What proportion of IT users across the organization will be impacted? Standards: Any action that sets or impacts an Information Technology Standard for the entire enterprise will. and cost to warrant being considered strategically. Successful implementation of any plan relies on a number of factors that are outside of your control. Give some thought to what kinds of projects occupy this space.

Stage 1> Plan the Plan

Step 2 – Establish a Planning Group
Objective: • Identify and contact the key stakeholders who can participate in the strategic process. What You Need To Do G R O U I N F O ~ T E C H R E S E A R Creating your steering committee is the most crucial part of this stage of the strategic planning process. The steering committee will be the basis for both drafting a strategic plan and for long term IT strategic governance in your enterprise. A steering committee will help perform two important roles for the management of an organization’s IT direction: • • Alignment. The committee helps ensure that IT strategy is aligned with the strategic goals of the organization. Ownership. IT enables all functional units within the organization. These units have to play a role in larger IT strategic decisions since those decisions will impact their processes. Consider the alignment model sketched in the introduction to this methodology. Other department managers and key executive decision makers are going to have to be in the loop if you are going to build both strategic fit and functional integration across the organization. The steering committee will help you develop a strategic vision for IT in the organization. They will also act as an on-going review body that will help you judge the strategic merit of IT projects and investments. As IT has enterprise-wide implications, it makes sense that you should involve constituents of the enterprise outside of IT in strategic planning. It is also important, however, to remember the following: • A steering committee is not a clearinghouse for functional demands of the various units in your organization. This is not the place for finance to complain about bugs in their new system or for personnel to note inefficiencies in the help desk. A steering committee is not a replacement for the IT manager, or management team of the IT department. The IT manager manages his or her department. The •
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ü Identify stakeholders. Use the worksheet “1.4 Identify Stakeholders” to create a preliminary list of people who you may want on your steering committee, or those that you will enlist as ‘champions’, in order to implement your strategic plan. ü Think carefully about this list. Your list should consist not only of management above you, but also of your peers and subordinates. Use worksheet “1.5 Stakeholder Analysis Tool” to further refine your list. ü Invite key stakeholders to join the steering committee. The Strategic IT steering committee will be the primary planning body for Strategic IT. This group will participate in the creation of the strategic plan, and will be the basis for a permanent governance group.

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steering committee helps set priorities for IT investment and evaluates how well the entire organization is progressing in meeting strategic goals. • The steering committee is not a “rubber stamp” for the IT department. The committee must be able to gauge the business impact of various proposed IT projects. They are not there simply to communicate the latest decision by the IT managers. They must have the power to say another project has higher priority.

Agility Tip: The Perils of Going It Alone
What if your organization or department is small and culturally averse to the idea of a formal committee? At the very least build an informal network of contacts, keeping stakeholders and senior decision makers in the loop about the planning process. Whether it is a ten-person committee or a couple of decision makers with whom you regularly have coffee, open communication and stakeholder involvement is the key. Meetings, communication, consensus building: These are all time consuming tasks. Wouldn’t it be easier just to take this methodology into your office, work through the steps, and present a finished strategic plan to your CEO? You can go it alone with this methodology, but the resulting plan will be more likely to sit on a shelf and never really impact management decision making. Wider involvement in planning guarantees better and more lasting results as more people will have a stake in the outcome.

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Stage 1> Plan the Plan

Step 3 – Hold a Kick-off Meeting
Objectives: • • Bring together your steering committee to formally launch the project. Refine goals and establish an initial timeline for the project. What You Need To Do ü Use the “1.6 Letter to Key Stakeholders” template to make initial contact with your proposed steering committee members. Outline the goals and expectations of the planning project. ü Use “1.7 Kick-off Meeting Agenda” as a basis for your meeting. Discuss the goals and possible constraints that you have outlined with the steering committee and if necessary, revise goals and expectations based on their input. ü Use “1.8 Convergence of Technology and Core Business Strategy” PowerPoint presentation to help explain the importance of IT/Business alignment and establishing IT governance. ü Use “1.9 Timeline Tool” to establish a preliminary timeline for the Strategic IT Planning project. Estimate an approximate time for each of the stages in this methodology. The kick-off meeting is an excellent opportunity to introduce your steering committee members to each other and to the project. Review the goals and possible constraints that you have already identified. Use this meeting to set a clear understanding of the importance of the project as well as the importance of the committee. • The project kick-off meeting should run no more than a couple of hours. You don’t want to make the group think that the project is nothing but a series of long meetings. If you can have the President or CEO kick-off the meeting with some encouraging words, it would be a great shot in the arm to the project. Introduce the members of the team to each other. Depending on the size of your organization, some members may not know each other. Discuss responsibilities of the team. Explain that this is an enterprise-wide IT plan and the input of the entire steering group will be critical. Share your preliminary goals and discuss possible constraints with the team. Be willing to listen to concerns and ideas. Make sure you encourage feedback from the team. Finally, review the steps of the plan and put a rough timeline together. Better to be up front with the group and let them know that this isn’t a ‘back burner’ project. Make sure the group understands how the project will be tracked and what the status update routines will be. P I N F O ~ T E C H R E S • • • • •
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If this exercise takes too long. In this step you will review and consolidate the content created in the first three steps of the Plan the Plan stage into one consolidated report that you can take to senior management for approval.Strategic IT Planning and Governance Creating the Timetable Review the steps in this methodology with your team and establish a completion date for each step in the strategic planning process. If your organization has recently completed a Strategic Plan. you will have trouble sustaining enthusiasm. Try to stick to your dates as much as possible. In your project definition statement. as time goes on. ü Garner top level support. Make sure your report is understood and approved by senior management. and the likelihood of creating a successful plan will diminish significantly. This is your opportunity to streamline the process: Although the best IT plans include all of the stages in this methodology. in Stage 2 you will be documenting your organization’s strategic vision and business direction. ask “Has this been done already?” and “Do we already have this information?” For example. Keep your timelines aggressive but realistic: One of the biggest obstacles to creating and implementing a successful strategic plan is managing the energy and enthusiasm of the people involved over time. E S E A R C H G R O U P Step 4 – Create a Preliminary Report Objectives: • • • • Document the purpose of the Strategic IT Planning and Governance Project.10 Project Definition Statement” to bring forward information from all the steps in this stage into a preliminary report. or you keep missing deadlines. you and your steering committee’s energy will wane. you will likely have no shortage of energy to put into creating the plan. However. At the outset. you will do the following: Page 28 I N F O ~ T E C H R . Set a timeline for the project. Gather top-level support. this documentation probably already exists and the time required to complete this stage will be drastically reduced. What You Need To Do ü Use the template “1. For each stage of the process. the information gathering involved can be very time-consuming work. Identify possible project constraints and limitations and mitigation options.

sit down with some of the brass and get their take on the project. Successful implementation of any plan relies on a number of factors that are outside of your control. Use the “1. These dates may be adjusted later.9 Timeline Tool” to lay out a preliminary timeline for the project. Use your revised goal statements from worksheet “1.Stage 1> Plan the Plan • Begin with the purpose of the plan. Gather top-level support for the project. Use the various stages outlined in this methodology as macro-level milestones and establish completion dates for each stage. Either way their support and endorsement is essential when trying to re-deploy resources to your project and soliciting help from organization employees. Using your completed worksheet “1. as well as possible solutions within the Project Definition Statement workbook. however setting some general targets now is a good start. constraints. and solicit their feedback. This can be an informal meeting – if you can. timeline and budget.3 Planning Constraints” list any constraints. Set a timeline.” Include the constraints you have identified. • • • Page 29 I N F O ~ T E C H R E S E A R C H G R O U P . limitations. List the primary reasons that the organization is undertaking this process and what it hopes to achieve.2 Project Goal Statement. The CEO and other top-level management should be involved in this project either directly or through a representative on your planning committee. State the purposes of the Strategic Planning project in the Project Definition Statement. Show them your definition statement. or obstacles that you can think of.

You should now have a planning group with a strong and shared sense of mission. a clear picture of the current business mission and goals needs to be drawn. The following chart shows the progress of developing the plan after Stage 1 of the engagement. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure.Strategic IT Planning and Governance Stage Summary: Plan the Plan Time spent planning saves time in execution. In the next stage you will lead this group through a critical information-gathering exercise. P G R O U Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. In order to align IT with the business. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H Page 30 .

Consider the four-quadrant IT/ Business alignment model that was presented in the introduction to this methodology. In many organizations. The IT department is integrated with both the Business Infrastructure and an overall Technology Strategy that is aligned with the Business Strategy. This is because IT is more often seen as a functional enabler of business processes. an organization could have a strategic plan. what is the motivation for changing this relationship? You need to make the case that balancing functional requirements with IT Strategy will benefit your organization. IT alignment in actual companies can be quite different than what is modeled here. the business infrastructure is the pivot and IT is the impact domain. make the case that a wellthought-out IT strategy can make your enterprise more competitive and profitable.Stage 1> Plan the Plan Background > Making the Case for Strategic IT Planning P I Assuming that the image at left above comes closest to describing your situation. In an ideally aligned IT organization. It is also possible. In this case it is IT strategy that is the pivot between the business strategy anchor and the IT infrastructure impact. In Strategic Alignment parlance. the business strategy is the anchor. Page 31 In the pre-planning stage it is critical that you make the case for strategic planning of enterprise IT investment. In this case the alignment model is entirely weighted toward functional integration. In this case the IT department’s agenda is very much influenced by the functional requirements of the individual departments who are each striving to fit their individual plans with the overall strategy. N F O ~ T E C H R E S E A R C H G R O U . You could have an organization where IT is always seen as a strategic driver and individual business units are left to fend for themselves. to go too far in the other direction. In short. there is a balance between Functional Integration and Strategic Fit. but perhaps less likely. but IT has never been looked at strategically. thinking strategically about IT may be a new concept. For example.

1. Big IT Spenders. if you don’t have upfront buy-in and support. 15% indicated that utilizing SITP has significantly increased their organizations’ competitiveness. In fact. Were slow to use new technologies either efficiently or effectively in support of core business process. Page 32 I N F O . it is really worth asking whether or not you should proceed. Use the following points from the survey in bolstering you case: • Increased Competitiveness: 65% of organizations utilizing SITP reported that their entire organization was at least somewhat more competitive due to utilization of SITP. Kearney. In 1998 a research report from McKinsey Group argued that most companies fall within four categories in terms of their use of Information Technology. Better Project Tracking and Budgeting: Organizations utilizing SITP were more likely to finish their projects on time and on budget than those organizations not utilizing this practice E A R R E S • • T E C H ~ The Most Important Constituent: Senior Management Senior management involvement (CEO and senior managers) in the strategic IT planning process is absolutely critical. G R O U P • ü C H • Increased Executive Support of IT Strategy: 80% of respondents utilizing SITP versus 67% of respondents not using SITP reported that IT strategy was of high or moderate importance to senior management in their organization. IT Laggards. 2000: Technology is not only viewed as part of the strategic business process. but is considered a fundamental key driver. From Enabler to Strategic Investment The purpose of IT has shifted from enabling the organization to actually delivering value to the customer. they have not balanced these efforts with efficiencies and are not getting enough bang for their buck. Almost half of the companies studied by Mckinsey fell into this category. Improved IT/Business Objectives Alignment: 94% of respondents utilizing SITP reported having improved the alignment between their IT objectives and those of the organization as a whole. Increased Ability to Obtain Funding: 73% of organizations utilizing SITP reported an increased ability to obtain funding for new IT initiatives. 2. These are companies that have tried to stay ahead of the curve with large IT expenditures. Consider these trends from A.T. ü ü 1996: 50% of CEOs felt that technology decisions influence overall business strategy. 1998: 55% of CEOs were devoting 22% of their time toward trying to keep abreast of technologies that would affect their business. Unfortunately.Strategic IT Planning and Governance In late 2002 Info-Tech Research Group surveyed IT managers about Strategic IT Planning (SITP).

top managers devoted 45 hours. It is really all about communication. Enablers Senior executive support for IT IT involved in strategy development IT understands the business Business . They have successfully balanced effectiveness and efficiency. Page 33 I N F O ~ T E C H R E S E A R C H G R O U P .” (“Manufacturing Use and Abuse of IT”. In their prescription for how IT Laggards can become IT Stars.Stage 1> Plan the Plan 3. These companies are a minority (27%). but the expenditures they make have a greater return. and share the same vision. The survey resulted in the following table of enablers and inhibitors. At IT stars. and get actively involved in introduction of new systems. They spend less than the big spenders. “top managers devote time and energy to developing an IT strategy. Cautious IT Spenders. alignment follows. 4. McKinsey Quarterly.IT partnership Well-prioritized IT projects IT demonstrates leadership Inhibitors IT/business lack close relationships IT does not prioritize well IT fails to meet its commitments IT does not understand business Senior executives do not support IT IT management lacks leadership An interesting observation of the study was that the enablers and inhibitors were seen as two sides of the same coin. They found that top management at IT laggards spent 20 hours per month focused on IT. use a common vocabulary. 1998 issue 1. The very first of these habits is “IT must be a top management affair”. p 138. These are companies that focus on efficiency of functional IT but fail to think about how IT can have a strategic impact. the McKinsey researchers posited “seven highly effective habits” for IT in companies. At IT stars. the researchers found. If you and your non-IT masters and colleagues plan together.) The Importance of Communication A 1999 study of “Enablers and Inhibitors of Business-IT Alignment for the Association for Information Systems” surveyed hundreds of IT executives and business executives. IT Stars.

budgets.g. Among the findings: • • • While most respondents (58%) said there are general efforts to link IT spending with strategy. Research shows that the better aligned the business and IT strategy. 3. and profits). Business and IT metrics should also be linked (e. 47% saw IT’s role as “reactive problem solver”. Prepare a business case for each significant technology investment. procedures. and only a third thought their IT strategic priorities were well linked to business strategy. service level agreements. but it’s important enough that you need to set goals and monitor progress towards them. Page 34 .g. All four are addressed in this methodology. security. Communicate Clearly through policies. 2. This committee should make sure that IT planning and strategic planning are linked. Build Governance Procedures and Structures that involve the broader management team in IT investment decisions. You should “treasure what you measure” because it sends an important message to everyone that not only is the outcome important.Strategic IT Planning and Governance Here are four suggested actions for enhancing alignment in your organization. Such a governance body is usually called a “Steering Committee” though other terms like “IT Investment Committee” can also be used. business continuity. the better the potential for positive return for the enterprise. sales. META group reported that alignment had been among the top five concerns of IT executives over the previous five years (number one ranked in 2002). P S E A R C H G R O U Easier Said Than Done In 2002. Some can be difficult to justify in isolation (e. as an idea.g. in spite of this fact – and the fact that the idea of alignment has been around for 20 years – alignment is still elusive in many companies. In the same year Balanced Scorecard Magazine and CIO Magazine co-sponsored a survey of 500 IT and business executives. storage). 4. such as strategic planning and governance. letting customers serve themselves online). while only 28% reacted favorably to the title “strategic consultant”. but can be justified as part of a broader business objective (e. $1 million in new sales in six months after completing the e-commerce project). Learn the Language of Business: The benefits of any IT project must be expressed in business.g. Yet. has been a failure? A more realistic reading is that perfect alignment is more theory than reality: it is an ideal that motivates on-going efforts. I N F O ~ T E C H R E Does this mean that alignment. Measure Every Important IT and Business Outcome (e. rather than technical terms. 1. project completion dates. and project charters to ensure on-going understanding of both the functional and strategic role of IT and IT investments. only 10 percent said spending was “explicitly based” on strategic plans. Almost half of respondents didn’t think their organization had done a good job making strategic goals clear to all employees.

G R O U I N F O ~ T E C H R E S E A R C H P • • • • 4. Consider this food for thought as you build your strategic practice. Consider the entire value chain – how will these initiatives affect your suppliers. long-term strategy based on the scenarios most likely to occur. Information assets need to be made readily available and reusable to all authorized users while maintaining a high level of security. and restricting access from those who don’t. The IT investment policy must change from simply endorsing planned replacements to a model of continuous adaptation based on business needs. Consider the following implications for IT: • Open architecture needs to be a working reality. A process must be created to manage workflow – providing access to information for those who need it. Since agility is an initiative that will affect the entire company. Ensure that the strategy you envisioned is tactically possible given the various scenarios. and develop high-level strategic options for other likely scenarios. Strategic decisions to outsource or in-source should be supported by flexible systems capable of change. 1. is the key to keeping your strategic planning agile. customers. Envision the strategy. The success/failure of your strategy should be measured in real-time as the implementation occurs. If feedback indicates that Page 35 . Set guidelines for the real-time creation of new options in the event that unforeseen scenarios transpire. Because IT strategic planning is closely tied to corporate planning. As a starting point for your agile strategy. 3. Here are some additional tips on building agility from the McLean Report article “An Agile Strategy for A Dynamic World”. Business and IT processes need to be developed and resources deployed to gather real-time performance measurements during the execution phase. you will also need to gather stakeholders from various departments and functional units. capable of maximum flexibility. there must be corporate initiatives in place that cultivate a change-tolerant and flexible culture. 2. While individual technologies and applications may change based on strategic objectives.Stage 1> Plan the Plan More Notes on Agility Focusing on an open on-going strategic process. Gather corporate and departmental support. the entire technology infrastructure must evolve into a set of standards-based services. as opposed to writing an annual strategic IT planning document. and business partners? The largest hurdle in adopting a flexible. identify the factors that could change the business environment in the future and prepare multiple scenarios to anticipate threats and opportunities more accurately. this initiative must be backed by senior management. agile strategy will likely be your IT infrastructure. Outline a focused. Execute the strategy and gather feedback. Design the strategy and plan for changes to the corporate infrastructure. Overall.

Instead of an annual analysis of the strategy.Strategic IT Planning and Governance there are holes in the design or vision of the strategy. however. The skeptic may be flattered by your request and more open to dialogue. O ~ T E C H R E S E A R I N F • • • Page 36 . then these should be modified. It’s also true. as changes will be incremental and less drastic. Let’s call him Bob (or Alice will also do). If he or she is not using your services. More precisely. that Bob and Alice could have some great ideas with genuine business value. 5. Once the process is in place. Check help desk logs to see how often the power users on your list have used your services. the strategic planning process should be less time-consuming. evaluation of strategic effectiveness should be occurring on an on-going basis. however. Maybe he just wants a little respect for his opinions from the IT decision makers. H G R O U P C Co-opting the Power User There is a power user in your organization. ideas. This is the crux of the real-time strategy. Bob is respected in his department because of his above average understanding and use of information technology. He is openly critical of IT with other users. initiatives. Invite potential power user skeptics to meet with you to discuss IT directions. Help the skeptic become the local expert in new tools and services you plan to introduce. Involve them further by tapping them during fact-finding phases of planning for new projects. is a bit harder to track down. Your job is to understand these skeptics and make them your allies. and is the most difficult to implement. Bob doesn’t like you. and market influences for later reference during the on-going strategic planning process. Bob doesn’t like the direction your IT department is taking. Document all changes. Maintain a continuous process for strategic development. Maybe the help desk failed to answer his sophisticated queries. The Bobs and Alices of your organization could undermine your credibility and frustrate your plans. How? • Ask department heads and your own IT support groups to give you the names of the power users in various units. Skeptical business unit executives should be easy to find since many of them come to executive meetings and make their skepticism known. Allow for the introduction of new ideas and innovations mid-planning cycle and respond to new opportunities and threats as they occur. • Preparation and execution are lengthy processes. The skeptical end-user. take this as a sign that they do not have adequate confidence in your ability to support them. Why? Maybe your department refused his request for non-supported technology without explaining why or offering an alternative. Infusing these with real-time feedback of environmental and competitive changes as they occur will prevent companies from wasting time on outdated initiatives. This will help them protect their leadership status among their peers and ease any feelings of threat they may have.

Be prepared to listen to your power user skeptics. You may know more about IT. and they may have more knowledge of how things have played out on the ground in the past. They might even provide a valuable window into the business needs of your organization. Keep in mind that their skepticism may come from a perception that you’re repeating the mistakes of your predecessors. Remember: the best way you can understand and win over skeptics is to keep them close to your side and involve them in planning initiatives.Stage 1> Plan the Plan • Post positive performance indicators and testimonials from satisfied users at public places on your intranet. Page 37 I N F O ~ T E C H R E S E A R C H G R O U P .

Strategic IT Planning and Governance I N F O ~ T E C H R E S E A R C H G R O U P Page 38 .

to better understand your industry. and competitors are within those boundaries. Put together a reasonably detailed description on your organization. Look at your history in terms of dates and growth milestones but also in terms of past challenges that have been overcome. Document your organization’s mission and vision statements and list your core values. Mission. mission and core values. H G R O U In the four-quadrant business-IT alignment model outlined in the introduction to this methodology. and Core Values O ~ An analysis of the industries in which your organization operates will provide a deeper context to your current strategic mission and key objectives. Realistically. If not. 2 P . Your organization mission statement should answer three equally important questions: Why do we exist? Whom do we serve? What do we produce? Step 4 – Define Core Business and Its Boundaries Examine your organization’s core competencies. What makes you special and different? Once you have defined your core business. T E C Step 2 – Conduct an Industry Analysis H R E S E A R C In this stage you will analyze your organization’s background.Stage 2> Document Your Business Strategy Stage 2> Document Your Business Strategy Stage Step 1 – Describe the Company and Its Background Analyze how your organization got to where it is today. The culmination of your analysis should be a succinct set of well-defined corporate objectives as well as an understanding of the environment in which your organization competes. Use your steering committee Use members of your committee – such as participants from the senior management team – for information gathering. the IT strategy must be functionally aligned with the business strategy. channels. Can you describe your organization’s overall purpose? Steering committee members should have information for this stage readily at hand. you can’t hope to integrate your IT strategy with the business strategy of the organization if you can’t first demonstrate a clear understanding of the business strategy. have committee members invite resource people from their departments to help you build this information. Use these analysis tools. as well as the theory contained in the background section. determine what customers. Page 39 I N F Step 3 – Document Vision.

........... In This Stage Stage 2> Document Your Business Strategy.................... 42 Step 2 – Conduct an Industry Analysis............................................... 54 Environmental Analysis (PEST) ............................................................................................ and Core Values .......Strategic IT Planning and Governance Step 5 – Create a Financial Picture Gather up-to-date financial information of your organization............................. 55 Identify Your Organization’s Core Competencies ........... 55 Key Success Factors.............................................................................................. 51 Industry Lifecycles ......................... 44 Step 4 – Define Core Business and Its Boundaries .............................................. 46 Step 6 – List Strategic Objectives. Step 6 – List Strategic Objectives P G R O U Summarize your analysis in a succinct and forceful set of business objectives........... 57 I N F O ~ T E C H R E S E A R C H Page 40 ......... Mission.... 43 Step 3 – Document Vision........... These are the specific strategic objectives that you hope our IT strategy will align with............................................................... 48 Background > Analyzing Business Strategy................ 49 A Company’s Value Chain . 39 Step 1 – Describe the Company and its Background............................................................ 45 Step 5 – Create a Financial Picture........................ Financial information is one of the few ways you can make a real ‘apples to apples’ comparison of your organization to the rest of the industry................................................ 52 Porter’s Five Forces Model ....................................................................................................................................................................... 49 The Supply Chain .......................................................................................................................... 47 Stage Summary..................

...........11 Key Success Factor Analysis Tool ........................................................................9 Company Financial Picture................................10 Company Strategy and Goals ...................... 49 2..............6 Company Mission and Vision ...... 41 Agility Tip: Keep an Eye on Change The tools in the workbook for this section are designed to help document a company’s vision................. 55 2............1 Company Background and Description ....... from an agility standpoint............ 57 P I Page 41 2................................ An important issue... 35 2.....................................4 PEST Analysis .... 44 2.......................... 33 2...................... 42 2..............5 Core Values ................................3 Priority Industries................................... 38 2....................... and objectives.. 47 2...............2 Industry Definition.................Stage 2> Document Your Business Strategy Workbook Stage 2> Document Your Business Strategy........................ N F O ~ T E C H R E S E A R C H G R O U ........... 45 2.................8 Business Unit Core and Goals ............................ It is hoped that these elements are already documented or at least there is a firm idea of what they are in the heads of your senior executives.................................................... 51 2............................................................................... is that you be kept in the loop if there are any significant changes in direction....... but not knowing that the target has been moved will be even worse...................... Aligning with strategic goals that are moving targets can be hard enough......................................7 Core Business and Its Boundaries ................... core business.................. mission....

while everybody feels they know why the company exists. there is no consistent written understanding of where the company came from or where it is going. Members of your steering committee should also be able to supply this information. What You Need To Do ü Outline Your Organization History.g. Use the worksheet “2. Begin with historical information and documents about your organization. By focusing on your vision of the company you will better be able to focus on the technologies and policies that will help it succeed. You may be surprised to find that.Strategic IT Planning and Governance Step 1 – Describe the Company and Its Background Objective: • P Build a synopsis of your organization including where it comes from and where it is going. you will in the next step sharpen your understanding of where your enterprise stands in relation to competitors. The aim of this stage is to build a structured profile of your company. although it may not be in an ideal format. the easiest place to start is the most recent annual report. Consult existing organization documents (e. financial statements. The key to this section is to develop an appreciation of your organization from a business perspective. Much of this information will be readily available. on the horizon? Make sure your profile takes account of recent and pending changes. annual reports). I N F O ~ T E C H R E S E A R C H G R O U Page 42 .1 Company Background and Description” to create a brief history and description of your organization. ü Outline Recent/Future Challenges and Changes. business plans. Having sharpened your understanding of the company. What kind of challenges and crises has your organization overcome? Are there major changes. In a public organization. such as a change in ownership.

If your organization operates in multiple industries. or is it a traditional industry where things have been essentially the same for the last 20 years? ü Prioritize multiple industries. use the worksheet “2.3 Priority Industries” to determine if any industries are viewed as a more important strategic priority to the organization. your organization may operate in different industries. Your definition is based on the answers to the following questions: • • • In what industry (or industries) does the organization compete? How large is the industry and what role does your organization play in it? Is the industry dynamic and quick to change. These are standard management theories that will help you in your analysis. A PEST analysis will give you a firm understanding of the environment within which the organization is operating. The background to this stage includes additional information about Industry Lifecycles. Social. Economical. ü Conduct a PEST Analysis. Most importantly. Each industry has different dynamics. and Technological) Analysis”. you may want to take your industry understanding a step deeper. If so. and Technological) analysis. Social. N F O ~ T E C H R E S E A R C H P . Depending on the size and complexity of your organization. Depending on the complexity of your customers and products. Porter’s Five Forces Model. and PEST (Political. What You Need To Do G R O U I Page 43 ü Define your industry. Conducting an industry analysis and understanding industry drivers will help you better understand your corporate mission and strategy. Every organization operates in at least one market with at least one product.2 Industry Definition” in the workbook to document your industry.Stage 2> Document Your Business Strategy Step 2 – Conduct an Industry Analysis Objective: • Gather implications based on an analysis of the industries in which the organization operates. complete a “2.4 PEST (Political. levels of competitiveness and levels of profitability. you probably have several distinct customer sub-groups and product groups. Economic. Use the worksheet “2.

A vision statement describes an image toward which your organization is striving. While individual values can be different.6 Company Mission and Vision” to document corporate vision and mission statements. They are traits your organization will never give up (even in difficult times). the top leadership in the organization. Most organizations’ visions say things like “to create an organization with which customers line up to do business and for which employees can’t wait to come into work. They determine the norms or standards of acceptable behavior concerning how to approach your work. use the Mission Development Triangle below to develop a working statement. just get the key concepts down on paper. C H R E S E A R C H More than likely. and Core Values Objectives: • • P G R O U Document the Mission and Vision Statements of your organization. Use these statements to fill out this section. Use the worksheet “2. Sometimes called “beliefs” or “philosophies”. What You Need To Do ü List core values. They are driven by. an organization as a whole requires shared values. Your organization operates on a set of values that guide strategic planning and organization direction. your organization has both a vision and a mission statement. List the core beliefs and philosophies that drive your organization’s strategy. they should be few in number and meet the following criteria: • • • • They are shared by a majority in the organization. They are enduring and consistent over time.” If your organization does not have a mission statement. Use the worksheet “2. For now. ü Document organization mission and vision. Mission. Don’t worry about finding the perfect wording for either the vision or the mission statements. and crystallized from.5 Core Values” to list the values on which your organization culture and direction rest.Strategic IT Planning and Governance Step 3 – Document Vision. I N F O ~ T E Page 44 . Core values guide our day-to-day behaviors and collectively create the desired culture of the organization.

What You Need To Do ü Think about which line or lines of business are at the heart of your organization’s success. many managers often realize that they spend an inordinate amount of time on activities related to ancillary business rather than focusing on Page 45 I N F O ~ T E C H R E S E A R C H G R O U P . ü Define the boundaries for the core business in terms of market. Depending on the size of your organization.Stage 2> Document Your Business Strategy Step 4 – Define Core Business and Its Boundaries Objectives: • • Identify those activities that fall inside and outside of the core business. Identify core business and boundaries for individual business units. There are a lot of consulting companies whose primary business is helping firms determine their core business. defining your core business may either be an easy task or a very difficult one. define core business lines and boundaries for each unit. ü If you have more than one business unit. and competitors. Enter these unique core business lines into worksheet “2. It should not be as difficult as this – spend some time thinking about which line or lines of business are at the heart of your organization’s success.7 Core Business and Its Boundaries”. operations. Part of defining your core business is also drawing a boundary as to what falls outside your core business.8 Business Unit Core and Goals” to create a profile for each business unit. Use worksheet “2. channels. In contemplating this section.

The worksheet lets your create profiles for the following: • • • • • • Total Company Revenues Growth Rate of Company Revenues Total Revenue Over the Internet Growth Rate of Internet Revenues Number of Employees Expected Number of Employees • • • • • Capital Budget Operating Profit Inventory Turns Cost of Goods Sold Cost of Labor R E S E A C ü For each category. In most private companies. or all. P G R O U Step 5: Create a Financial Picture Objectives: • Create a financial profile of your organization. Although you may already have an intuitive sense of what falls within and what falls outside of your core business. I N F O ~ T E C H Page 46 . Tire design and manufacture would not be included in the car maker’s core business. Private companies are not obligated to furnish financial information to either their employees or the general public. Talk to your finance department and senior management. do some research using either the Internet or industry associations to find out how you compare to others in the industry.9 Company Financial Picture” to construct a financial profile of your organization and its competitors. What You Need To Do H R ü Use the worksheet “2. You should still attempt to obtain some. Once you have collected information about your own organization. If you work for a publicly traded company. Financial information is one of the few ways you can make a real ‘apples to apples’ comparison of your organization to the rest of the industry.Strategic IT Planning and Governance making improvements to the core. list your organization’s information in the top box and list the industry average in the box below. putting it down in writing should solidify your understanding. financial information is provided on a need-toknow basis only. a car manufacturer’s core business may be designing engines. of the following information because it will give you a sense of how well your organization is doing financially and how strong you are relative to other companies in your industry. determine what customers. For example. financial information about your organization is public record and should be easy to find. and competitors are within the boundaries. Once you have defined the core. channels.

ü Take your analysis further with “2. The point of this section is to clarify your organization’s strategic business objectives. Page 47 . This tool will look beyond what the organization wants to achieve to a more specific analysis of what the organization has to do. Financial Information) ü Use the worksheet “2.10 Company Strategy and Goals” to formulate lists of primary strategic goals and business objectives. such as revenue and profit growth. you can determine what the Key Success Factors are for achieving these.Stage 2> Document Your Business Strategy Step 6 – List Strategic Objectives Objectives: • • Create a succinct list of primary corporate strategic goals. Keep your list of business objectives close at hand and refer back to it when completing subsequent sections. Core Business Definition. P I N F O ~ T E C H R E S E A R C H G R O U Key Success Factors Now that you have identified your goals and strategy. It may also consist of other. Compare the business objectives you determined with the ones listed in your organization’s business plan or annual report. Depending on the organization. Companies’ stated intentions are often very different from the forces actually driving the organization. An organization strategy can take many different forms and timeframes. such as number of new product launches. or additional partnership arrangements. We suggest using point form and listing no more than ten objectives. non-financial goals. these may or may not be properly defined. Businesses operate towards a set of business objectives. you should prioritize the Key Success Factors so that you focus attention on the largest areas of opportunity. (Mission Statement. increase in share price. It may consist of financial targets. Vision Statement. Create a succinct list of business objectives. What You Need To Do ü Review all of the information collected in this stage of the methodology. Read back through the work you have completed and tie it together into one powerful document outlining your business objectives. improved brand recognition. or a decrease in levels of inventory.11 Key Success Factor Analysis Tool”. After you have identified how the Key Success Factors influence management decisions.

what its primary objectives are. The following chart shows the progress of developing the plan after Stage 2 of the engagement. This is foundational information for building strategy. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. and how it fits in the market in which it competes. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H G R O U P Page 48 . you should be able to tell an audience where your company comes from. Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. In a few PowerPoint slides.Strategic IT Planning and Governance Stage Summary: Document Your Business Strategy You should now have a set of descriptions of your organization that can be used to compare with your IT strategy in order to promote alignment.

you must appreciate why your organization’s strategy is set the way it is. The following chart developed by Michael Porter shows the value chain found in a typical company. By examining the value chain. It is not enough to simply know what your organization’s strategy is. Ideally. now is the perfect time to pitch the idea of concurrently developing an IT plan. use documented existing business strategy as the basis for your IT strategy. This background section contains many common business strategy theories that will help give you a more complete understanding of the analysis and frameworks which are commonly applied to determine business strategy. Page 49 . P I N F O ~ T E C H R E S E A R C H G R O U A Company’s Value Chain A value chain is a “string” of processes within a company that interrelate and work together to meet market demands.Stage 2> Document Your Business Strategy Background > Analyzing Business Strategy In order to proceed with IT Strategy development. IT strategy and business strategy should be developed in a parallel process. you must start by building your understanding of your business and its strategy. If this is not possible. To effectively develop an IT strategy you not only need to completely understand the strategy. If your organization is in the process of developing a strategic plan. This information will be particularly helpful if you do not have a background in management theory. Throughout this methodology you will refer back to the goals and strategic objectives of the business and ask how IT initiatives reinforce and support these objectives. one can uncover how an organization has developed (or not developed) competitive advantage. Complete alignment between your business strategy and IT strategy is the most important determinant of success.

Examples include: • • • Savings on raw materials Productivity improvements Overhead reduction N F O ~ T E C H R E S E 2. the higher the profit.e. leading to higher prices. Increasing Unit Revenue: This usually involves improving the real and perceived value to the customer. Decreasing Unit Costs: This is reducing the costs of providing the same amount of value to customers. Examples include: • • • Branding Quality and innovation Effective targeting I Page 50 . 1. How can a company achieve this? There are two main ways to improve margins: decreasing unit costs. marketing and sales. Strategic analysis determines which of the activities are most important (i. maximizing margin is an objective of most businesses. contribute the most value) from the customer’s perspective.Strategic IT Planning and Governance G R O U P A R The various parts of the company’s business processes (inbound logistics. C H Maximizing Margin The goal of a well-functioning value chain is to maximize margin. Obviously. Margin is essentially a ratio of the operating income to the sales revenue – the bigger the margin. and increasing unit revenue. and so on) each contribute different amounts of value to the company. and determines ways to increase that value.

Page 51 I N F O ~ T E C H R E S E A R C H G R O U . to retailer. to consumer.Stage 2> Document Your Business Strategy The Supply Chain A supply chain is a process that consists of materials. The average firm spends twice as much on its supply chain as the best firm. and finances as they move from supplier. This is even more astounding given the power of information sharing that the Internet and similar technologies allow. P Considering the critical strategic role of the supply chain. information. to manufacturer. to wholesaler. nearly 50% of companies do not have good information about their supply chains. showing how important the supply chain is to company performance.

Get the data on everything from vendor delivery performance to forecast accuracy. the best logistics pros – and get them to work together under a top executive whose mandate is supply chain excellence. Align the incentives correctly. Practice enlightened self-interest – share forecast and other data with suppliers. Enlist the A players. Defer IT spending decisions until key strategy elements are in place. Reward cross-functional collaboration as well. Most of the time. and then determine which metrics matter most. ask for reciprocity and work to improve your communications channel. 5. Excellent supply chain management means juggling multiple supply chains simultaneously. To reach it. I N F O ~ Page 52 . People do what they’re paid to do. Straighten out the strategy first.Strategic IT Planning and Governance Untangling Your Supply Chain Companies that have the best supply chain performance follow six principles: 1. 6. Too many companies see salvation in technology. by channel. and demand the same of your customers. If you don’t measure. 4. Top performers differentiate by product. T E C H R E S E A R C H Industry Lifecycles Analyzing where your organization and industry is in terms of its lifecycle is another way to understand management’s attitude towards IT planning initiatives. Replace rules of thumb with metrics. you can’t improve. Work beyond your four walls. The supply chain leaders hire the very best strategists – the best purchasing experts. offer trust. but they are just as powerful in terms of understanding when and why companies spend money on IT planning and governance. these charts are used to explain the strategies of companies bringing new products to market. Avoid “one size fits all” solutions. not just what happens inside your business. Tie incentives to the big goals: as you would hook transportation managers’ pay to on-time performance and tracking costs. Measure the “what ifs” and track your entire supply chain. One study says three of the four drivers of supply chain excellence are not related to technology but to alignment of the organization and to performance measurement. Find below two charts popularized by Geoffrey Moore. and by customer. “Organized interdependence” is the goal. 3. P G R O U 2. tie supply chain executives’ pay to return on assets (ROA) and vendor metrics.

Stage 2> Document Your Business Strategy If you operate in a slow-moving industry with little prospect for growth. C H G R O U P . In fact. an organization in a young and rapidly developing industry may want to take the risk on untested technology with the potential payoff coming in the form of exponential growth. spending a lot of money on untested technology may not be a sound business decision. On the other hand. This will help you later when you are prioritizing your projects. spend a couple of minutes thinking about where your organization is in its lifecycle. different divisions or products may be at different stages in the lifecycle. Nonetheless. Page 53 I N F O ~ T E C H R E S E A R There is no formula to determine what stage your organization is in.

The Threat of New Entrants. allows leaders to fully understand all the market forces that can impact their organization. This threat is mitigated by barriers to entry such as governmental regulation. and high exit barriers. This usually impacts an industry through price competition i. A R C H G R O U P The essential elements in Porter’s Five Forces model are: 1. low levels of product differentiation. In essence. are concentrated. patents. they offer commodity products. 2. Applying this framework lets you understand the market forces that can impact your organization. high fixed costs. The power of customers decreases if buyers are fragmented. requirement of highly specialized technology/ equipment to make a product. 5. The Threat of Substitutes. this model ties everything together – it. or customers are powerful. high storage costs. buyers are highly dependent on producer for their output. there exists a significant cost to switch suppliers. the purchaser could buy the supplier. and customers are weak. The Power of Customers. or there are high switching costs. along with a PEST analysis. the number of suitable alternatives available at a competitive price. Page 54 I N F O ~ T E C H R E S E . 3.e. Suppliers are weakened if there are many competitive suppliers. The power of suppliers increases if they can threaten to buy the purchaser. and economies of scale. low switching costs. Industry Rivalry. 4.Strategic IT Planning and Governance Porter’s Five Forces Model The following diagram shows Michael Porter’s famous strategy model that describes the five forces of competition that affect a company and an industry. The power of customers increases if there are few buyers with significant market share or if they can threaten to buy the producing firm or rival (backward integration). slow market growth. The Power of Suppliers. Rivalry is intensified by factors such as a high number of competitors.

lumber or U. or other discipline that provides significant competitive advantage for the organization that has it. sales.S. Political 2. Technological: Technology also impacts companies and industries because of the new possibilities it creates. A core competency is a business function. Technological Political: The political environment is important in certain situations where there are legal issues with the company’s products (e. A PEST Analysis is commonly used to determine what these external factors could be. Since an organization can’t do all things equally well. tobacco) or disputes between jurisdictions (Canada/U.g. Economic 3.g.g. Certain industries (e. P I N F O ~ T E C H R E S E A R C H G R O U Identify Your Organization’s Core Competencies Successful managers identify and understand their organization’s core competencies and take appropriate actions relating to them. housing. External factors can be categorized in four ways: 1. Social: Social trends can be positive or negative. the core competencies are the major source of differentiation in the marketplace that creates most of an organization’s profit. base metals) or if the company is impacted by changes in the general economic environment (e. Core competencies are a subset of all business functions an organization has (e. music) can be suddenly impacted by new technologies and related business models (e./Japan automobiles). Social 4. purchasing.g. KaZaA).g.S. Page 55 .g. manufacturing. Economic: Economics can play an important role if the company’s product is highly cyclical (e.Stage 2> Document Your Business Strategy Environmental Analysis (PEST) The Environmental Analysis asks what external forces influence the company. retail). process. recruiting).

Strategic IT Planning and Governance Examples of Core Competencies Core competencies can exist in any functional area. certain industries have most of their costs in one major category that is not a core competency (e. This may be your core competency. you should also invest more in supporting these core competencies (e.g. In the IT department. However. The change in core competencies has major implications for which projects and departments IT should support. customers should be immediately able to tell you what they think your core competencies are (e. For example. you can market new products that you don’t today. their efficient. Similarly. investing in the latest CAD workstations if engineering is your core competency).g. Ask senior management.g. Ask customers why they buy from you. Apply them to other related industries and opportunities. Review your performance appraisal system for core competency measurements and requirements. For example. cutting-edge products. Monitor changes in core competencies over time. SAP is especially effective at writing enterprise software. great customer service). SAP is not the world’s best operating system or database software writer. which the executive team is responsible for. which gives them more of a competitive advantage than having the latest products. Gradually. core competency areas become less and less of a competitive advantage. it doesn’t really matter because they can partner with Microsoft or Oracle to make sure their enterprise software runs on their platforms. Dell also has a core competency in manufacturing PCs. Page 56 I N F O ~ • • . New areas must be developed into core competencies. Core competencies are usually part of the strategic plan. G R O U ü A R C H S E ü ü T E C H R E Implications of Core Competencies There are three major strategies you can pursue after identifying core competencies: • Invest more resources in them. low price. Ideally. you can increase your budget or increase the number of people working in those core competencies. airlines spend most of their funds on airplanes and fuel. However. For example. your performance appraisal system should be in sync with your organization’s overall core competencies. For example. low-inventory manufacturing and supply chain systems don’t require lots of research and development – they can charge low prices and react very quickly to changes in customer demand. Dell is not effective at research and development. They have a significantly smaller R&D budget than Hewlett-Packard or IBM and don’t produce any leadingedge products. If you have significant advantages that customers see every day (as opposed to process advantages they don’t really see). In their case. Companies’ core competencies do not extend to everything the organization does. P Identifying Core Competencies ü Look where the largest portion of financial and other resources go. but don’t achieve competitive advantage from these purchases). if marketing is your core competency.

IBM is selling off parts of their hardware business and focusing on developing new core competencies in software and services. Similarly. GM would need to know how much extra capacity manufacturing plants had. Key Success Factor Example: General Motors General Motors has large investments and fixed costs in its manufacturing plants.000. controlling overhead costs is another Key Success Factor. GM has several alternatives of how to structure the compensation package for its sales force. Since conditions change.g. other companies have developed similar competencies and eroded IBM’s competitive advantage. If there were a sudden increase in overhead costs. Because these large fixed costs are relatively constant.000 units of capacity. Note that this can cause problems (e. the total opportunity from increasing units sold would be $500 million. and the average contribution per unit sold was $5. For the sales units metric. another possibility is to compensate the sales force based on factory utilization or the number of units shipped. Therefore. but if a Key Success Factor is the number of units produced by the factory. GM would need to know the total amount of overhead spending. If GM had an extra 100. IBM used to have a significant core competency with manufacturing mainframes and other hardware. and how much unit contribution GM made on each unit sold. selling cars below cost to increase factory utilization metrics). GM’s profitability is heavily influenced by the number of units it can sell. one Key Success Factor is sales and marketing capability. However. For the overhead cost Key Success Factor. This has major implications for what functions their IT department will support and how much support they will provide. controlling overhead costs is very important. C I N F O ~ T E C H R E S E A R H Page 57 G R O U Key Success Factors P . Key Success Factors are the most important parts of the strategy or conditions that may exist in the marketplace or your organization without which your strategy would fail. Therefore. GM would have to sell many more cars or increase the price per car to make money. Total sales revenue or total revenue of new products are two possibilities. so you should identify them and come up with ways of dealing with these problems during the process of structuring compensation packages and not afterwards. the Key Success Factors must be identified and monitored in case conditions change. Today. General Motors would need some specific financial information about the two Key Success Factors it has previously identified: increasing sales units and reducing overhead costs.Stage 2> Document Your Business Strategy For example.

Strategic IT Planning and Governance I N F O ~ T E C H R E S E A R C H G R O U P Page 58 .

In this stage you will map and analyze the characteristics of the Information Technology Infrastructure of your organization. Only by understanding your current position can you begin to develop a strategy for the future.Stage 3> Assess the Current IT Situation Stage 3> Assess the Current IT Situation Stage A strategic IT plan has to integrate with your functional IT plans and infrastructure (See Background). It is strongly recommended that you complete this methodology concurrently with Strategic IT Planning and Governance. procedures and processes. stepby-step. In Stage 2 you were asked to map the particulars of your organization’s Business Strategy. Step 2 – Document Your Hardware and Software Infrastructure Identify and document your physical infrastructure. This product will provide you with the tools and processes to develop a comprehensive and effective IT Infrastructure Plan that will optimize IT in your organization to best serve both the functional needs of business units and the strategic IT objectives of your organization. Step 1 – Document Your IT Organizational Infrastructure Prepare an organizational chart of your IT department. and business analysts. Without a firm understanding of your existing technology assets. process for analyzing all facets of your IT infrastructure – IT architecture. Page 59 I N F O ~ T E C H R E S E A R C H G R O U A balanced Strategic IT Plan must integrate both with your business strategy and with your IT infrastructure. Documenting and analyzing each of these areas will provide you with a clear picture of where you are currently sitting. you will be able to recognize key areas of opportunity. Understanding your current IT situation is achieved by looking at three key areas: • • • Organizational infrastructure Hardware and software infrastructure Current IT projects Optimizing IT Infrastructure Info-Tech’s “Optimizing Your IT Department” consulting methodology provides a detailed. and human resources – and for developing an optimization plan. programmers. 3 P . you are essentially operating in the dark and strategic planning will be a futile effort. You can’t manage what you don’t know you have. This should include functional areas like network support. By documenting your current IT situation.

..................................................... 78 Understand the IT Environment................................................... 70 Business Benefits of Asset Management ................................................. 69 Thoughts on Staffing Needs ........... 76 Asset Management Best Practices........................ 64 Step 4 – Conduct an IT SWOT Analysis . 79 I N F O ~ T E C H R E S E A R C H Page 60 ....................................................... 62 Step 2 – Document Your Hardware and Software Infrastructure .............................................................. 69 Skills Development ............................................ 66 Stage Summary............................................. Look at industry trends and create competitor profiles.................................................................................................. 75 Change Management .................................................. 71 Conducting a Hardware Asset Inventory .............................. 63 Step 3 – Audit Current IT Projects ................................ Step 4 – Understand the IT Environment P G R O U Analyze the trends in your industry and the actions of your competitors... 59 Step 1 – Document Your IT Organizational Infrastructure.. Defining the projects currently being worked on by the IT department will help you understand whether IT is aligned with the overall goals of your business......................................................... In This Stage Stage 3> Assess the Current IT Situation ..................................Strategic IT Planning and Governance Step 3 – Audit Current IT Projects Understanding the current workload and spending patterns is essential to planning for the future...... 73 Conducting a Software Asset Inventory .................... 70 Rolling Out an Asset Management Initiative...................................................................................................................................... 68 Background > Mapping IT Assets...................................

..................... should be a part of any major initiative................................................12 Competitor Profiles ................... You should have a lot of this information already............... 63 3.................5 Vendor Contact Information...........8 IT Expenditures Analysis ...............7 Hardware Inventory ...4 Network Diagram Primer ....... Find out what is going on outside of formal IT.............. perhaps you have more pressing management issues to deal with before strategic level planning...... 69 3........................................2 IT Irregulars ........................................................... including talent infrastructure.......................3 Skills Mapping Tool.....................................10 Project Scope Statement............ 84 3.....9 Current IT Projects ......................... C H R E Agility Tips S E A R C H G R O U ...................................................... 90 3.......................................................... 75 3.................................. Don’t forget to form relationships with your “IT irregulars”.. 65 N F O ~ T E You have to know where you are to chart where you are going...................................... A basic audit of current infrastructure.......................................................6 Software Inventory...................Stage 3> Assess the Current IT Situation Workbook Stage 3> Assess the Current IT Situation ............ 60 3........11 Industry Trends ................................................................. from departmental optimization to disaster planning. 88 3........................................ 92 P I Page 61 3.........1 Organizational Chart........................................................................ 67 3................................. 87 3.................................................... 71 3.... If you don’t.. 62 3........................

Also include the following information: • • • Number of people in your department. desktop recoveries. ü Use “3.” This PowerPoint template will help you create a chart that includes the number of people in your department. What You Need To Do ü Prepare an organizational chart of your IT department. I N F O ~ T E C H R E S E A R C H Page 62 . beyond a simple head count. new application installation). Use the tool “3. where your organizational IT skills lie.3 Skills Mapping Tool” to develop a map of the skills in your IT department.2 IT Irregulars” to record names and contact information for this important internal IT resource.Strategic IT Planning and Governance Step 1 – Document Your IT Organizational Infrastructure Objectives: • • P G R O U • Create a map of who does what in your IT department. user groups. This will help you understand. Use the worksheet “3. and so on. viruses. Each employee’s responsibilities. each employee’s responsibilities. and the volume of activity by task. Prepare an organizational chart of your IT department similar to the example below.1 Organizational Chart. Document IT service providers and key IT vendors. Document IT resources (power users. Volume of activity by task (e. ü Record individuals outside of the IT department who formally or informally provide IT services (Such as power users and IT support personnel within other departments). This should include functional areas like network support.g. programmers. business analysts. IT professionals in other departments) that exist outside of the IT department. password reset.

Managing your IT portfolio in a current networked computing environment requires more than simply conducting a physical inventory. ü Create a software inventory. For each component that is identified in the diagram. software packages. Without a firm understanding of your existing technology assets. router. Use the worksheet “3. Use the worksheet “3. Using the worksheets in “3. Document vendor and service provider contact information. vendor information. Audit all enterprise software. its implementation has largely been sporadic and half-hearted.6 Software Inventory” to create a document that includes license information.4 Network Diagram Primer” for more. See “3. contact information. operating system. you are essentially operating in the dark and strategic planning will be a futile effort. ü Conduct a complete hardware inventory. switch. provide the following information: component’s name. While the concept of asset management is familiar to most decision makers. service and agreements. ü Create a directory of all vendor account numbers. For example: Page 63 I N F O ~ T E C H R E S E A R C H G R O U P . and training and service level agreements. vendor contact. hub. IP address. manufacturer and model number. What You Need To Do ü Create/acquire a network diagram. and desktop.5 Vendor Contact Information” to gather this information.7 Hardware Inventory” to list each server. firewall.Stage 3> Assess the Current IT Situation Step 2 – Document Your Hardware and Software Infrastructure Objectives: • • • Create a detailed view of all physical IT assets.

I N F O ~ T E C H Page 64 . Agility Tip: Have You Been Here Before? The kind of basic audit information required for this section may well already be on hand. Don’t reinvent the wheel. Understanding your department’s current workload and spending patterns is essential to planning your upcoming year. G R O U Asset management. Create a consolidated record of all current IT projects. if implemented correctly. ü Document your IT projects. The worksheet includes seven questions you can ask in analyzing current expenditures. No enterprise-wide picture emerges upon which key strategic decisions can be made. you may do regular audits for asset management or have reviewed your infrastructure for a Disaster Recovery Plan. these stabs at asset management happen on a departmental level. Use the template “3. More often than not. For example. but much of the information is incomplete and inconsistent. can become an important decision-making tool in any organization.9 Current IT Projects” to list current major IT projects.Strategic IT Planning and Governance • • • P Many organizations send out hardware and software inventory surveys. Use the worksheet “3. Use the worksheet “3. Even if usable data is collected. it is often rendered unusable because it is stored in separate formats across a variety of spreadsheet and database programs. For more information and advice on asset management.8 IT Expenditures Analysis” to record the current profile of expenditures in your IT department. If you have recently gathered infrastructure data. This section focuses on identifying where your department spends its money and what projects are currently on your plate. What You Need To Do ü Analyze current IT expenditures. copy it into your workbook. refer to the background section of this stage. E S E A R C H R Step 3 – Audit Current IT Projects Objectives: • • Develop a snapshot picture of current IT expenditures.10 Project Scope Statement” to create a project description for each major IT project currently underway.

if you are part of the way through your current fiscal year. Use your judgment. Be ruthless in your analysis of current projects and expenditures. Info-Tech offers a comprehensive consulting methodology. your budgeted figures may provide you with a more accurate picture. Page 65 . the more accurate your strategic plan will be. If projects or expenses do not match the goals of the organization. The better your project information. but remember that the more realistic you make your numbers. Include spending in the following categories: • • • • • Labor Outside services Hardware Software Other H I N F O ~ T E C H R E S E A R C • • • • Telecommunication Repairs Leases Training P G R O U Break down this information further in the following ways: • • • • Capital assets versus expenses Growth rate over time Percent of total IT budget Percent of organization sales Clearly defining the projects currently being worked on by your department will help you understand whether the IT department is aligned with the overall goals of your business. the better you will be able to make strategic decisions about projects. Effective Project Management: Tools. Agility Tip: Project Discipline is Key The Project Scope Statement will help you provide further detail on each major project. use last year’s figures to complete this section. Templates and Best Practices to help you get your projects into shape.Stage 3> Assess the Current IT Situation Where does your IT department spend its budget? If you have just completed a year-end. Alternatively. be prepared to take action.

11 Industry Trends” to work up a list of technology trends that could impact your company’s competitiveness. Getting a solid understanding of the current environment will make the task of keeping up-to-date easier in the long run. Industry trends are changes happening in the marketplace of technology. N F O ~ T E C H R S I Industry Trends Staying abreast of industry trends is an on-going process. What You Need To Do P G R O U ü Identify Important Industry Trends. If your company is like most. However. everything related to technology. Page 66 . On a weekly basis. Understanding how your competition is using technology to gain a competitive advantage will provide you with a point of reference against which you can benchmark your company’s performance. or are just starting to use a new technology that none of your competitors are using. For example. E A R C H E Info-Tech Advisor and McLean Report Clients of Info-Tech Research Group have ready access to two excellent tools for tracking technology and business trends. Take this opportunity to do an intensive survey of industry trends and the actions of your competitors. the pace of technological change suggests that much of what you knew two years ago is obsolete. Info-Tech Advisor provides on-going research into IT department management practice as well as the practical implications of technology trends. Use “3. Looking at what is happening in your industry and with your competitors provides you with one of the best ways to benchmark your company’s performance. This can be one of the toughest parts of your job. and general news. ü Develop Competitor Profiles. Use a diverse set of information sources. or knowledge of. Meet with your IT department as well as your steering committee. you should at least be reading publications focused on technology.Strategic IT Planning and Governance Step 4: Understand the IT Environment Objective: • Create a view of where IT is going in your industry by looking at publicly available IT news information as well as at your competitors. Here are some additional tips to help you and your department to keep up-to-date: 1. you may be using technology that is becoming obsolete. Schedule some time into your week to keep your knowledge base current and relevant.12 Competitor Profiles” to profile a selection of main competitors. Both products are based on extensive scanning of the business and IT management environment. McLean Report provides more high-level advice on the management and strategic use of technology in the enterprise. business. Use the worksheet “3. the CEO and other senior management expect you to have an opinion on.

Stage 3> Assess the Current IT Situation 2. Number of IT staff. How have we been beaten in the past? Is there something the competition is doing better than we are? How is technology aiding them? How have we used technology to get ahead of them in the past? O ~ T E Agility Tips: They Who Know the Competition C Sort the information into files on your biggest competitors and update the files as you learn new information. Magazines and other public sources of information. Internal technologies used (e. N F Talk to your sales and marketing people about the competition. video conferencing). IT spending. G R O U I Page 67 Competitor Profiles Here are some types of information you should know about your competitors. Applications being used. Conducting a periodic review of the files will provide you with better industry trend data than you will find anywhere else. Here are some ways of learning this information: Your employees who used to work for them. ask about lost sales. Put the document into a shared folder and make it a requirement that everybody in your department add at least one idea to the document per week. online ordering). H R E S E A R C H P . Create an “Ideas and Opportunities” living document. instant messaging.g. Status of PC environment. Vendors. Functionality offered to customers (e. CRM). Assign each person a specific publication or topic area. Consultants. Make “keeping up-to-date” part of their performance evaluations. Ideas from this document will become some of your department’s future projects. Enterprise systems (ERP. Make environmental scanning a requirement for everybody in your department. Customers. 3. Though it’s a difficult topic to broach. direct payment. Competitors’ Web sites.g.

Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. In the next stage of this methodology.Strategic IT Planning and Governance Stage Summary: Assess the Current IT Situation The IT audit sets a starting point against which you can analyze the gaps between what is and what should be. you will set your sites on an ideal IT situation. The following chart shows the progress of developing the plan after Stage 3 of the engagement. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H G R O U P Page 68 . one that will help the enterprise achieve its strategic goals.

In the Background section to Stage 2 we provided some additional information on business analysis so that you can more fully understand the process of business strategic planning. it will give you added insights into technology for infrastructure planning. Organizing around work roles so that people are easier to replace when they leave. you are at a disadvantage for creating an Information Technology Strategy. however.Stage 3> Assess the Current IT Situation Background > Mapping IT Assets In an ideal situation. In this section we offer additional information on Information Technology Infrastructure analysis. Page 69 . Similarly. Each of these methods has its strengths and weaknesses. Organizing around work roles offers a simple “cookie cutter” approach. but what if you can’t find a replacement worker fast enough? In this case. but if needs change rapidly. A strategic IT plan and an IT infrastructure plan are not the same thing though they relate to each other on a very fundamental level. including: • • • Organizing around the services to be provided such that business needs are adequately reflected. Organizing around a complete team with a broad skill set to flexibly meet a variety of specific missions as they arise. For example: • • Organizing around services ensures that business needs are being met. P I N F O ~ T E C H R E S E A R C H G R O U Thoughts on Staffing Needs Theories abound on how to organize an IT department. your organization will have developed (or will concurrently be developing) a business strategy. This model calls for your Information Technology Strategy to align on a horizontal axis with your business strategy. but also on a vertical axis with your Information Technology Infrastructure. without a firm grasp of your current IT infrastructure you will also be at a disadvantage for developing an IT strategy. If no business strategy exists. This section is not a substitute for a full Infrastructure Planning tool. Consider the four quadrant IT/Business alignment model discussed in the introduction to this methodology. you could be left with a large staffing gap with no one to do the requisite work. you could be left stumbling to fill the holes.

For a typical enterprise with 2. so can employee value. Workers with low-demand IT skills can be hired and “reskilled” to do what you need faster and at a lower cost. not IT-specific skills.500 PCs. will manifest differently at junior versus senior levels. Page 70 . P R • E S E A H R • • T E C • I N F O ~ Business Benefits of Asset Management Any business. Skills Development G R O U Specific jobs require different skill sets. • According to Gartner Group. Use these tips to help you create and maintain an efficient and responsive IT staff: H C • Create a Skills Map: Almost 60% of skills required by IT workers are general business skills.Strategic IT Planning and Governance The approach you choose will depend on the pace of your industry and your organization’s position within that industry.” Train Small Groups: Don’t train your entire development team on a new technology.g. specialized IT workers. ready-to-go skill set are expensive and hard to find. This can really hamper your skills acquisition process. Beyond generic job type skills and duties.g. IT workers. you have fewer staff to retrain. to personal and interpersonal skills. and allows trainees to do a specific job better. As skills become undesirable over time. and those at your specific organization. Degrees of technical versus management skills. or future XML design tools? Think ahead – invest in skills that will last and outsource the skills “du jour. Minimize Training in ‘Subsumable’ Skills: Do you want to invest heavily in training for grassroots XML coding. demand a big training investment in highly specialized skills that aren’t portable across other technologies. Look for Skills Upgrade Candidates: Staffers with a high-demand. or mainstream technologies in a niche combination (e. can significantly reduce costs and engage in better decision making by actively practicing asset management. Training small groups of specialists is faster and easier. When that technology fades away.000 in savings over 12 months. Fast moving organizations need to maximize flexibility. ranging from technical. large or small. which could lead to more extensive utilization of contractors and other outsourced services. COM on Tandem). you must consider other factors that relate to your specific organization. Avoid Niche Products: Niche technologies (e. to business and management. Forte). such as industry affiliation and the specific technologies and tools your organization employs. for example. this could translate into $900. Build a skills map that outlines those skills required by: all workers. properly implemented asset management can save an organization 20 to 40% per seat per year in IT costs.

Identify correct amount of insurance coverage required through correct asset value estimation. Ready the organization to absorb mergers and acquisitions more easily. Anticipate and plan moves. Remove end-user access to “time-wasting” applications. Discover and remove dormant assets. Avoid duplication in product purchases or double-coverage in contracts. Assure the organization of software license compliance. Listed in the table below are the primary business “selling points” of diligent asset management: G R O U I N F O ~ T E C H R E S E A R C H P Financial Benefits Perform accurate budgeting and forecasting of hardware and software expenses. Calculate total cost of ownership (TCO) or average price per equipment type. Cancel costly maintenance renewals for unused software. creating an effective program is a sizeable undertaking. installations and upgrades. and reduce piracy.Stage 3> Assess the Current IT Situation • • Gartner Group has also found that the average lifecycle cost for a given asset can be reduced by 37. Move to standardized hardware and software purchasing. Negotiate better hardware purchasing and software licensing agreements. and organization restructuring. Uncover vendor accounting and invoicing errors. Create at-hand information for IT budgeting and planning. Rolling Out an Asset Management Initiative Given that comprehensive asset management is enterprise-wide in nature. Accommodate rapid technology changes and deploy new applications more quickly. minimize business disruptions. Efficiency and Productivity Benefits Help ready the organization for organizationwide migrations. personnel transfers. allowing for eased support and volume discounts.5% overall by using asset management. Deter theft of components by deploying entirely traceable equipment. The beneficial applications of asset management are myriad. International Data Corporation discovered savings of 13% per year on PC staffing costs alone due to asset management initiatives. Give end users access to the right applications when they need them. Determine departmental charge-back billing. Make the helpdesk more productive by giving them access to each desktop’s inventory. Follow this 15-point checklist to help you get your plan underway: Page 71 . helping to avoid fines. Identify potential incompatibilities between components prior to purchase.

9. Pick Your Rollout Structure: Decide on a structured plan of attack. for what purpose. financial. IT move/add/change request policies. Look for a provider that offers extra services like infrastructure design and planning. 6. selection and deployment of tools. outsourcing your asset management may be a wise choice. an asset management initiative should be rolled out in small steps. 2. 5. and legal records for all IT assets. These include all of the departments that you expect to comply with new policies and from whom you will be collecting data. Identify Affected Parties: Understand all of the constituencies that will be affected by the asset management initiative. 3. 7. will give you a good indication of how much work you will have to do. Are you going to collect by department and roll into a centralized database. One of the goals of asset management is to create standardized practices. You need to understand the business that the IT department serves and the different units’ goals and objectives in order to effectively sell the asset management concept. Check Current and Historical Initiatives: Find out what asset data has already been gathered. By knowing your organization’s current state. Organize Manual Asset Tagging: All current and incoming assets should be physically tagged with unique asset tags. software migration planning. Plan for a Staged Rollout: Ideally. such as a single project that addresses a pre-existing asset category like tracking machines under lease or inventorying a single department. Once you have ironed out the initial process glitches and demonstrated positive results. Decide Whether or Not to Outsource: Given budgetary and personnel constraints. and how it is being maintained. This information must I N F O ~ T E C H R E S E A R C H G R O U P Page 72 . Gather Records: Find all technical. preferably permanent metal tags. Start with something you know you can solve. This step is critical in order to uncover potential resistance and to ensure end-user compliance. Finding out what these policies currently demand. you can begin to identify areas of greatest need and plan your target goals. Build Your Team: Form an asset management team made up of representatives from the affected constituencies. if anything. or perhaps tie inventory to directory services? It’s up to you. Understand Existing Policies and Procedures: This includes any hardware and software purchasing policies. Apart from your own department. the purchasing department is a good place to check. 8. 4. and so on.Strategic IT Planning and Governance 1. subsequent projects should be easier. These individuals may also be aware of local attempts at asset inventorying that you don’t know about. and software license management in addition to basic inventory services. You will need to compare these records against your actual inventory to identify gaps. but do decide early.

Such assets are financially wasteful on many fronts. This is a one-time-only-per-device operation. Pick Automated Tools: Gartner claims that asset management is 60% technology and only 40% methodology. Consider these statistics from Micropath: Page 73 I N F O ~ T E C H R E S E A R C H G R O U P . an automated asset management solution is a must have. 14. 10. but also to ensure that your asset management software is registering newer device specifications. Assign Ownership: To make sure that this initiative is converted into an on-going process. This may include purchasing. you will have to install agent software on each device. In fact. Also set up a schedule to run manual checks on non-networked devices that may be unscannable by automated tools. use your new automated system solution to scan the same machines and compare accuracy. and checking of supplier invoices. and reporting. This is a big responsibility. do a physical count of roughly 5% of your current IT systems. but may require some time. Set a Schedule: Plan a schedule for regular automated inventory scans. including client computers. add-in cards. You may be able to automate this process using login scripts or a software distribution program. and network devices. 15. Plan Regular Checks: Perform regular asset scans not only to ensure your asset inventory is up-to-date. budgeting. peripherals. Plan for Agent Installation: When buying an automated tool. contract management. IT may have to take on responsibilities previously held by others to ensure an integrated process. someone needs to be assigned responsibility. depreciation. Next. so make sure the chain of command is well established. these 15 tips should place you in good stead for deploying a successful asset management initiative. including cost of storage and lack of revenue-generating use. Set Up a Baseline: Before using your new software. database merging. Incorporate agent installation into all new and upgrade machine builds. Create and enforce a mandatory asset tagging policy. One of the major early benefits of conducting a hardware asset inventory is the discovery of dormant or excessive assets. If you have more than 200 desktops. This information is critical for technical planning and support as well as financial management. rebilling of expenses. Combined with rigorous enforcement and follow-up. 13.Stage 3> Assess the Current IT Situation be recorded. Conducting a Hardware Asset Inventory A hardware asset inventory is a listing of all IT hardware in an organization. servers. This will represent a baseline against which you can test the accuracy of the asset management product you bought. 11. 12.

is a part of a larger system. You need to decide early on the level of detail you wish to achieve in your asset registry. monitors. monitor. and model Installed RAM All peripherals (keyboard. DVD. printers. laptops. it is particularly important to itemize each individual component within the PC or server. size. the components will be tied to and/or listed as part of an individual machine. Page 74 . and type of disk drives Amount of remaining disk space Any other drives (CD.Strategic IT Planning and Governance • • The average corporation has about 20% more workstations than they originally thought. tape. etc. G R O U P Careful structuring of the information you wish to collect is an important first step. like the ones mentioned above. make. As such. asset tag number. including: • • • • • • • • Processor name. servers. The percentage of out-of-service IT equipment – desktops. modems. and zip) I N F O ~ T E C H R E S If a component. – runs between 17% for medium-sized companies and over 27% for Fortune 1000 companies. it is a good practice to note which system the component is tied to using the larger system’s unique identifier. Below is a comprehensive list of fields you may wish to include for each discrete component. Identification Data Assigned user/department Physical location Administrative Data Date of acquisition Purchase order number Lease terms (if any) Purchase/leasing price Warranty information Contract information (maintenance and support) Historical Data Move/add/change history Other installed hardware Service history Installed software Usage history Associated peripherals Component make Component model Unique asset identification (serial number. mouse. and modem) Video card Network card Number. bar code) E A R C H Many hardware asset inventories will be conducted at the PC or server level: that is.

most do not actually use a sizeable portion of these paid-for. have rapid usage cycles. Identification Data Administrative Data Historical Data Unique asset identification (serial number. and are difficult to locate exactly. While including mobile and wireless devices in your asset management plans is important. Compared with hardware. See the table below for key information to track in your software inventory. troubleshoot. E A R C H G R O U Conducting a Software Asset Inventory P . Start by mandating the use of specific products and only then plan to conduct a manual count down the road. it is much harder to track and much easier to misuse than its hardware counterpart. Polling a network to find out where they are is often not an option. • For example. because it is less physical. The information you collect can be used to better manage license and support contracts. put this project at the bottom of your to-do list. and perform better financial management.Stage 3> Assess the Current IT Situation Potential Problem Areas: Performing asset management on wireless and mobile devices is difficult given that they are highly portable. license number) Application name Application vendor Application version Physical location Assigned user/department Workstation/server upon which software is installed Purchase order number Cost of license Cost of annual support and update fees License type. network. and server software installed across your entire organization. you need to decide which data fields you wish to populate. the average organization spends 10 to 20% of their software investment on software updates and support services. software is something of an “invisible” asset. yet superfluous. product number. however. terms. A software asset inventory is an up-to-date listing of detailed information about the client. plan technology implementation. Unbeknownst to them. assets. and conditions (maintenance and support) License expiration date Warranty information Usage monitoring details Move/add/change history Training history Consulting history Page 75 I N F O ~ T E C H Date of acquisition Support history R E S As with conducting a hardware asset inventory.

If the software is permanently removed. If the hardware is placed in storage. flag it as deleted in the registry. removals. employee changes. In order for your asset database to remain useful. N F O ~ Example: Tracking Component Lifecycles Let’s walk through the process of tracking a PC and an operating system license over the course of their respective lifecycles. If it is a workstation and has associated peripherals that are not being disposed.) Step 1 . then change the workstation identification field. This is particularly useful between actual inventory audits that just present a snapshot of what you have at a specific period in time. yet hard to control. (The data provided in this example is for demonstration purposes only and may not be accurate. then add a unique identifier that ties it to the workstation or server upon which it is installed. In essence. make the following changes to the asset database: • • • If software is installed. who requested the purchase (by name and department). P S E A R C G R O U If software is added or removed. then change the workstation record. If a hardware component is redeployed. and a brief description and statement of anticipated use of the intended system. The result for IT is the ability to engage in risk management by responding to organization expansions. make the following changes to the asset database: • • • • H Location and/or staff to whom the hardware is assigned. you are earmarking a place in the asset repository for your new acquisition. asset volume and allocation changes as well. The change management aspect of asset management involves the recording of all installations. If software is transferred between machines. Managing change will necessarily involve the development. then delete the peripherals listed and redeploy them. If it is a peripheral. then flag the asset as removed in the database. Add an install date. If the hardware is slated for disposal. As things change within an organization. This can be a single-field entry that lists the requisition date and number. it is essential that it remain reflective of the actual state of affairs in your organization. then change the workstation identification to which the asset is allocated. and technology advances. communication. T E C H R E Engaging in rigorous change management practices is probably the most critical. and enforcement of enterprise-wide policies for it to be effective.Strategic IT Planning and Governance Change Management Asset management isn’t a one-off project – it is an on-going process. Page 76 I . and configuration changes made to hardware and software.Requisition: Enter the requisition information into the asset database. aspect of asset management.

Stage 3> Assess the Current IT Situation

Step 2 - Procurement: When the asset arrives and before it is used, it is tagged with an asset tag and described in the asset database. Step 3 - Deployment: Once a user for the asset is identified, add the following information to the asset database.
PC User Location / Facility Make Model Serial Number Operating System Dell Optiplex Emily Chesley Finance Dell OptiPlex GX150 PC000762 Windows 2000 Professional NIC / IP Information Video Card 3Com Etherlink 123.456.789.01 16MB 4XAGP NVidia TNT2 Pro (#HD444366) Local Hard Drive Network Drives Local Printer Network Printers EIDE S.M.A.R.T. II Ultra ATA/100 20 GB

Hardware - PC Move/add/change history 07/07/01: Added 32MB RAM 15/03/01: Windows 2000 Professional (OS000578) added - no previous operating system 23/05/01: Jammed CD-ROM drive (technician deployed onsite) Basic office use 15/03/01: License transferred from PC PC000221 to PC000762 - same user 27/09/00: OS crash - technician deployed onsite 14/06/01: Installation of Service Pack 2 Launched 43 hours per week on average. No weekend use. End-User: Windows 2000 Professional Introduction (2-hour seminar for all end users) IT Staff: Microsoft Course 2152 (taken by Jane Jones) None

Service history Usage history Software - Operating System Move/add/change history Support history Usage monitoring details Training history

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If a hardware component or software license is moved to a different machine, changes must be recorded in at least two fields:

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Details must be entered in the “move/add/change history” field. Include activity dates in all history-related fields. The unique identifier in the “workstation/server installed on” field must be changed to that of the new workstation.

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Step 5 - Retirement: Upon retirement of an asset, an accurate account of where it is, what it contains, and all changes it has undergone are already on record. At this time, decisions need to be made as to which hardware components can be reused, sold, or discarded, and which software licenses can be redeployed in the organization. • If a component is to be discarded, flag that asset’s record in the registry as deleted. Ensure that changes are also made in the “installed components” and “associated peripherals” fields.

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Like any management procedure, there is a collection of best practices associated with asset management. Apply the following to your initiative: 1. Beware of Culture Shock: Asset management will probably require a restructuring of how certain traditional processes, such as purchasing, are done. Some users and department heads may resent this or have trouble making the transition. Learning to comply with new asset management policies and procedures will likely require some training, so be prepared. 2. Ensure End-User Compliance: Behavior modification may be in order to make your asset management plan achieve the desired benefits. Here are some examples of what you may need to communicate in terms of end-user participation: • • Ensure that remote machines are left turned on during the scanning period. Mandate that users notify IT prior to any changes that might affect inventory. This includes hires, terminations, moves, and strategic plans that involve IT assets. Employ e-mail or an asset change form on the intranet to facilitate this communication. If the number of available software licenses is tight, ask end users to schedule use for non-peak usage hours to avoid purchasing more. Get users to exit an application when they are not using it to ensure license availability and avoid over-purchasing. Some users will “horde” an app by launching it early and leaving it idle to ensure availability when needed.

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3. Enforce Standardization: META Group says standardization of hardware and software purchased for the desktop alone can reduce costs by up to $650 per seat per year. Standardization limits the number of products that helpdesk and IT staff need to learn to support, as well as allows greater leverage in purchasing volume discounts. 4. Automate Software Distribution: Deployment is a key stage in the lifecycle of an asset, and an excellent cost-saving opportunity. Automating software distribution is a simple, labor saving device that has a big impact on the bottom line by lowering the cost of managing IT assets. 5. Focus on Software Asset Management First: Potential cost-savings associated with well-managed software assets include overall reductions in license fees, update fees, and software support. Other areas of benefit include system administration, and management time spent on budgeting, documenting, and figuring charge backs. Because of these factors, software asset management has the fastest return on investment. 6. Perform Inventory Scans During Off Hours: Evenings and weekends are ideal times to perform automated scans since the tax on the system and associated bandwidth is reduced. 7. Communicate With Others: To get the most benefit from asset management, the data gathered through this process must be made available to financial, administrative, and technical planners, as well as system administrators and the helpdesk. Key data includes contract terms, hardware and software inventory, accounting, maintenance records, change history, support history, and other technical and financial information. Decide the types of reports needed and who will get them. 8. Broadcast Your Results: Publicize the beneficial results of your efforts. This will not only make you look like a cost-saving star, but it will also help change the minds of buyin hold-outs.

Environmental scanning is becoming a skill required of more and more IT managers. Understanding trends in your industry and the actions of your competitors has never been more important to the IT function. Depending on your situation, you will want to adapt the information for which you are looking and you may want to broaden your scope to include trends and analysis not specifically related to technology, but which may impact you and your department’s role in the future.

Industry Trends
Keeping on top of all the trends that may affect your business and your technology decisions is a difficult task at best. This does not mean, however, that you do not have to scan the environment on an on-going basis.

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Familiarity with competitors’ strategies is generally low. updating executives on new opportunities and potentials are your responsibilities. but in others you may be able to gain competitive advantage by implementing systems that differentiate your company. P G R O U Knowing Your Competitors Pays Off H Organizations with a Strategic IT Plan were more familiar with the IT strategies of their nearest competitors than those without. However. In some cases.Strategic IT Planning and Governance Recognizing the business ramifications of new technologies and trends should be the responsibility of company business executives. C I N F O ~ T E C H R E S E A R Page 80 . Competitor Profiles Understanding how your competition is using technology to gain a competitive advantage will provide you with a point of reference against which you can benchmark your department’s performance. every company in your industry may be using the same technology. but use of a plan appears to drive some investigation of competitors’ IT strategies and departments.

Formulate a set of key questions to get the mental wheels turning. Compare your current entirely dictated externally. Where You Need To Be. opportunities and threats (SWOT). The department can also be a valuable resource for evaluating and scoping out details for IT ideas provided by stakeholders in other departments. By documenting your company’s strategic objectives. you will begin the process of proposing a new IT situation. The particulars of what can actually be accomplished short. Now it is time for you. as well as its market and core competencies. Do You Have Your Act Together? Your information technology department has a critical role to play at this stage of strategic IT planning. you also don’t questions about how performance. H R E S E A R C H G R O U Now comes the fun part. Through the first three stages of this methodology. governance practice (if you have any) to an industry maturity model. weaknesses.Stage 4> Propose a New IT Situation Stage 4> Propose a New IT Situation Stage To this point in the methodology you have gathered information on two important issues: • Where You Are. Your department will be expected to provide leadership in pitching new IT initiatives that can be tested against strategic priorities. 4 P . and special applications users. you have begun to construct a picture of where your organization wants to go. current systems. you have focused on the past and present of your organization and its use of Information Technology. Now you have to look at how IT can enable that successful future organization. senior managers. Page 81 I N F O ~ T E C In this stage. Be bold! Try not to worry too much about what can be done in the short term. and current projects you should now have a solid understanding of your current situation and an excellent starting point from which you can benchmark future endeavors. want to be in a position where your future is and goal setting. line managers. power users. and long term will be addressed in the next stage. and your steering committee. alignment. • Step 1 – Analyze IT Strengths and Weaknesses Review your current IT situation asking tough borders of the IT department. This is your opportunity to look at the future and think about how IT can make a difference. to set your sights on the future. medium. While strategic IT planning goes beyond the Step 2 – Brainstorm Technology Opportunities Hold a brainstorming meeting (or meetings) involving your strategic planning group as well as IT staff. Conduct a analysis of current strengths. By examining and documenting organizational infrastructure.

..................................... 121 4.. 98 4........ Use diagrams and charts as much as possible and remember to continually relate your recommendations to the business goals of the enterprise............................1 Questions to Focus Discussion .................. 96 4......................................................5 Brainstorming Tool............................................................. 91 Brainstorm of One (Brainwriting) ............7 Summary of Strategic Directions .................... 81 Step 1 – Analyze IT Strengths and Weaknesses .......3 SWOT Analysis .............6 Summary of Strategic Objectives ..................................................................................................... In This Stage Stage 4> Propose a New IT Situation .......... 92 E A R C H G R O U P Workbook Stage 4> Propose a New IT Situation ............................................................... 88 Stage Summary............................................................... 83 Step 2 – Brainstorm Technology Opportunities ......... 86 Step 3 – Document Your Results .......................... 124 4...............................Strategic IT Planning and Governance Step 3 – Document Your Results Document your final recommendations for the future as approved by your planning group.... 125 I N F O ~ T E C H R E S Page 82 ..................... 94 4.............................................................2 IT Governance Maturity Model .................................4 Future IT Options Questionnaire ............................................. 90 Background > The Art of Brainstorming ................................ 114 4................. 105 4............................................................................................................................

This document contains a set of questions that will help members of the group focus on key issues of strategy and IT governance. The Board Brief on IT Governance. For example. Use the tool “4. Discuss everybody’s answers to “4.2 IT Governance Maturity Model”. weaknesses. begin by asking tough questions.3 SWOT Analysis” to further flesh out the strengths. ü Benchmark Current IT Management Practices Against “4. ü Conduct a directed SWOT analysis with members of your steering committee. After amassing the information in Stage 3. Analyze your current level of IT Governance against this governance maturity model. opportunities and threats of IT in your enterprise. But strategic planning and governance is not about volume or even the quality of work being done. Be sure to consider the SWOT for all IT being used in the organization.Stage 4> Propose a New IT Situation Agility Tip: Keep the Focus External This is not a referendum on the effectiveness of the IT department. While the IT department will likely play the largest role in the IT SWOT analysis of the enterprise.1 Questions to Focus Discussion” to members of your steering group. This will help you map out what needs to happen in the short and long term to improve Strategic IT governance. you and your planning team may be amazed at the sheer volume of IT work being done. P I N F O ~ T E C H R E S E What You Need To Do ü Distribute “4. notes that asking the tough questions about IT is the necessary first step in developing Page 83 Step 1: Analyze Strengths And Weaknesses Objectives: • • Review your current situation to identify specific issues of strategy and governance. weaknesses. Encourage steering group members to share the questions with their constituents and gather their feedback. the strengths and weaknesses of that relationship should be considered as part of the IT SWOT analysis.2 Governance Maturity Model”. which is based on Control Objectives for Information and related Technology (COBIT). opportunities and threats faced by enterprise IT. Analyze the strengths. A R C H G R O U . ü Analyze all IT initiatives. It is about making sure that the work being done is most effective toward the organization achieving its goals.1 Questions to Focus Discussion” as well as “4. if a particular department has forged a productive relationship with an external IT service provider. not just that which is the responsibility of the IT department. don’t forget to address and analyze how IT is being used throughout the organization to advance the corporate goals you documented in Stage 2. To get at the issue of effectiveness.

and are they appropriate? Is the enterprise clear on its position relative to technology: pioneer. early adopter. Benchmarking your current situation against a maturity model will inform your discussion of strategic steps that you need to take. decision making and performance measurement. N F O ~ The Governance Maturity Model The introduction to the Strategic IT Planning and Governance methodology states that IT governance refers to formal high level processes and structures for IT strategic planning. follower or laggard? Is it clear on risk: risk-avoidance or risk-taking? Is there an up-to-date inventory of IT risks relevant to the enterprise? What has been done to address these risks? T E C H R E S E A A more extensive list is included in “4. The model looks like this: Page 84 I . prioritization. key success factors and performance drivers of successful governance. infrastructure and competencies available to meet strategic objectives? What has been the average overrun of IT operational budgets? How often and how much do IT projects go over budget? How much of the IT effort goes to firefighting rather than enabling business improvements? C G R O U R To Find Out How Management Addresses the IT Issues • • • • • How well are enterprise and IT objectives aligned? How is the value delivered by IT being measured? What strategic initiatives has executive management taken to manage IT’s criticality relative to maintenance and growth of the enterprise. be sure to review both your corporate strategy (from Stage 2) and your current IT situation (from Stage 3). and strategic objectives that need to be set.1 Questions to Focus Discussion”. Before you tackle these questions. It is critical that a range of views be brought to the table. best practices.2 IT Governance Maturity Model” is based on the maturity model outlined in Control Objectives for Information and related Technology (COBIT).Strategic IT Planning and Governance the outcome measures. Distribute the questions to your planning group and make sure they respond. “4. to move toward best practices in IT Governance. Such questions would include the following: To Uncover IT Issues • P • • • • H How often do IT projects fail to deliver what they promised? Are end users satisfied with the quality of the IT service? Are sufficient IT resources. Best practices and measures will be discussed further in Stage 7: Build a Strategic Decision Making Framework.

Carefully consider the information you have gathered in the previous Stages of this methodology. For example. Budget Performance. stating.1 Questions to Focus Discussion” these include: • • • • • Governance and Accountability. For every category. weaknesses.Stage 4> Propose a New IT Situation Focus your analysis of strengths. Page 85 I N F O ~ T E C H R E A SWOT analysis is a simple and powerful way of analyzing an organization’s corporate capabilities. and ultimately to Level 5. G R O U P . opportunities. IT/Business Alignment. These processes and structures form the basis for you to establish an ongoing strategic planning and governance practice.3 SWOT Analysis” tool. or pick areas for political reasons. but which provides little insight into the reasons why Acme is actually successful. spend some time thinking critically about your choices and how you can work on them. It is through an effective ongoing strategic practice that you can move to Level 4. “the employees are Acme’s biggest strength” is an easy answer with which nobody will disagree. opportunities and threats upon the key areas used in “4. Process and Project Management. IT Skill Sets and Performance. The temptation in completing this section is to pick some generic areas. and threats for each of these categories in the “4. S E A R Directed SWOT Analysis C H This Strategic IT Planning and Governance methodology lays out the steps for moving to a Level 3 – Defined Process. Enter your strengths. weaknesses.

Distribute the same questionnaire as well as any of the ideas already on the table. ü Brainstorm within the IT department. and excited about. First. • Make your staff accountable for coming up with new ideas to help your company.4 Future IT Options Questionnaire” in advance to those attending meetings. The goal in this meeting is to come up with as many different technology-related ideas as possible. Use the IT Options Questionnaire to get participants thinking of how IT might fit into the company’s future. generating ideas for capitalizing on technology will give you the chance to shape the way your company thinks about the IT department. What You Need To Do ü Lay the ground rules and prepare for the future. we suggest having at least two meetings. Document ideas generated from the questionnaire. ü Hold brainstorming meetings with stakeholders. Use “4. Meeting attendees could include: senior management. Planning ahead and getting everybody ready for the upcoming brainstorming meeting is key to having a successful outcome. have a meeting with your own IT staff and go through the list of ideas they generated from the questionnaire. Involve the widest possible circle of stakeholders in the exercise. Are there potential opportunities to use technology to further the goals of the business? What can be done using technology to change your company and its processes. you decided who you wanted at your meeting and sent them a questionnaire to get them prepared. At this point. The goal in this meeting is to come up with as many different technology-related ideas as possible.Strategic IT Planning and Governance Step 2 – Brainstorm Technology Opportunities Objectives: • • P Brainstorm various options for IT in the future of the organization. power users. either incrementally or exponentially? Some brainstorming sessions will help you to determine all of the ways that technology can deliver value to your company. Page 86 I N F O ~ . Distribute “4. 1.5 Brainstorming Tool” to document ideas coming out of these meetings and the one within your department. To do this. middle management. Refer back to the “Ideas and Opportunities” document discussed in Step 4 of Stage 3. Getting everyone involved in. In the previous step. you need to pull in a variety of people from your company. T E C H R E S E A R C H G R O U Brainstorming Meetings Your objective is to find the best possible ways that technology can be used to help your company. and specific application users.

Stick to your timeline as much as possible. Consider designating a third party to be moderator/ secretary for your sessions. make sure that you arrive at a list of options and potential avenues to follow. Focus on determining which options provide your company with the greatest business benefit. have a meeting (or meetings) with the broader community. brainstorming sessions can get out of control and end up being counterproductive. without strong leadership. During the meeting. somebody with a methodical/procedural bent (shouldn’t be hard to find somebody like that in IT). and even disagreement.Stage 4> Propose a New IT Situation By having this meeting prior to your meeting with other departments and senior management. A R C H G R O U P . debate. Expect this meeting to take approximately two hours. Be sure to read the background articles on brainstorming and “brainwriting” (in this Stage) for tips on sparking and leading effective brainstorms. • • Agility Tip: Controlling the Chaos Brainstorming sessions are a great way to both generate new ideas and to push your own thinking outside of the box. you can save time by presenting an initial list of possible ideas that your department can undertake. Only by pushing the envelope will you come up with truly brilliant ideas. However. Page 87 I N F O ~ T E C H R E S E Before adjourning your meeting. Next. brainstorm the various options that were brought up by the questionnaire. Encourage discussion. At this point don’t discount any ideas. 2. don’t say that any ideas “wouldn’t work” – consider every option. • • Send out your compiled list of ideas well ahead of time. This list will be used to create the follow-up document discussed next. This is your opportunity to “blue sky” about ideas to reinvent the business and change your industry. regardless of size or scope. In other words. along with a meeting agenda.

” “Continue to strengthen our relationship with key enterprise technology vendor Microsoft. your analysis and brainstorming could lead to an opposite set of objectives: • • “Seek industry standard commercial tools and applications for all core technologies. Estimate the cost of each idea if it were to become a formal project.) ü Follow-up and document. ~ Projects List Your brainstorming sessions will also yield a wish list of specific projects ideas aimed at advancing the core strategies of the organization.” R E S E A R C H G R O U H On the other hand. Estimated costs (high. Use “4. Use the “4. if the consensus was that your IT infrastructure is well disposed to supporting open source development. and senior management is not averse to exploring this option from a cost savings point of view. Hold a follow-up brainstorming meeting with your steering committee. For example. one of your objectives may be to: • “Move toward adopting proven open source tools and applications for all core technologies.” T E C N F O The list of objectives you put together here will inform the Strategic Objectives and Core IT Values sections of the Strategic Plan which you will construct at the end of this Methodology. (This includes outsourced IT projects.6 Summary of Strategic Objectives” form to list the overriding objectives of core values for IT that came out of both your SWOT analysis and your brainstorming sessions. What You Need To Do ü Review all ideas with the IT department. For each proposed IT project. where possible. cost estimates for making the ideas a reality. include the following information: • • • Description of option. medium. Review the ideas that come out of the various brainstorming meetings with specialists in your IT department.Strategic IT Planning and Governance Step 3 – Document Your Results Objectives: • • P Create a summary of project ideas from the brainstorming sessions.7 Summary of Strategic Directions” to record and list all possible projects. Page 88 I .6 Summary of Strategic Objectives” to record and list objectives and core values. Review results from all previous meetings and cement together a list of ideas into a document that outlines a roadmap of technology options for your company. Benefit to the business. Include. low). Use “4.

Stage 4> Propose a New IT Situation

Estimated time to complete the option (number of months).

This list of ideas will be the basis for moving forward and ensuring that IT supports and enhances the needs of the business. Using this process to create a list of possible projects will also help when it comes time to implement because you will already have buy-in from key stakeholders.

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Stage Summary: Propose a New IT Situation
The results of this stage should be a “wish list” of projects that you and your planning group believe will impact the company’s competitive position. In the next stage you will measure the gap between the ideal situation (where IT projects are fully aligned with strategy) and the current situation (as outlined in Stage 2). The following chart shows the progress of developing the plan after Stage 4 of the engagement. P G R O U
Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision, Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8

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Background > The Art of Brainstorming
P I N F O ~ T E C H R E S E A R C 2. Designate a Recorder: This individual will be kept very busy writing down the ideas that will be generated, and therefore should not be a participant in the actual brainstorming. 3. Discuss the Rules: There should be a defined code of conduct agreed to by all. For example, there should be no criticizing of ideas because being relaxed and thinking freely is the key. Quantity supersedes quality because it has been proven in history that the best ideas are generated when the highest numbers of ideas were being generated. 4. Delegate a Moderator: A moderator is responsible for keeping order and ensuring the discussion stays on topic and moves in a logical manner. For example, it is beneficial to build on existing ideas before new ones are tackled. The moderator can also use the following techniques to facilitate the idea generating process. • Pose an initial question that will encourage thought into what the brainstorming session should provide ideas about, or what you are attempting to solve. This presents a discussion starting point and it frames what the ideas/solutions are intended to resolve. Identify a challenge to get the discussion moving and also because people are usually programmed to respond when faced with a challenge. Utilize word association techniques to find linkages between key words that will assist in idea generation. • • 5. Regulate Time: Sessions are not recommended to go any longer than 15-20 minutes
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Brainstorming is a creative idea generating technique which results in a set of ideas from which we can choose, and it also forces us away from our everyday mode of thinking. Use this information to ensure that you make the most of your brainstorming endeavors. Although there are different methods used to brainstorm ideas, group brainstorming is still considered an important activity to promote teamwork, socialization, and opportunity to build on the ideas of others. Use the following steps to ensure that you succeed at brainstorming with a group. 1. Schedule a Meeting: Everyone has a busy schedule so make sure that you book their time in advance. Invite those who will be open to share their ideas and ensure that you have coverage from all the required viewpoints. The ideal number of participants is 4-7 members.

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Groups with 4 members generated about half as many ideas as 4 individuals brainstorming individually alone. Ensure that you understand. Solitary brainstorming is as effective as group brainstorming. 6. 7. “Brainwriting” occurs when one member of the group writes their idea down and then distributes the idea to others to obtain feedback and additional ideas. add the new ideas and evaluate the ideas that exist. then the member could become discouraged to join future groups. N F O ~ T E C H R E S E A R C Ideally.Strategic IT Planning and Governance without breaks.” additional idea generation will recommence. Brainstorming is a method to facilitate creative idea generation. This allows for closer study and the ability to unearth further ideas for the next meeting. A quantity of new scientific research suggests there is more to brainstorming than originally thought. Psychologist Paul Paulus. encourage and properly use the keys to unlock the minds paralyzed by daily rituals. Make Copies: After the session has concluded. and outside of. and social inhibitions. Make sure not to give the impression that formal brainstorming meetings are where all the thinking will happen. If you show no intention to use the generated ideas. has spent the last 14 years studying brainstorming techniques at the University of Texas Arlington Group Creativity Lab and has discovered the following: • • • Do not overuse group brainstorming as groups create distractions. the brainstorming meetings. Scientists are studying cognitive processes and looking deeper into human behavior to push people to their creative heights. you want to get the most out of individual and group brainstorming. Add and Evaluate: At the next scheduled meeting. you will be practicing what brainstorming experts called “brainwriting”. Groups harbor illusions of their own effectiveness and therefore prematurely believe that they have completed the task. You will find that after people have had the opportunity to “relax their minds. By distributing some ideas as well as the options questionnaire in advance. make copies of the ideas that were generated and distribute them before the next meeting. for example. conformity. P G R O U H Brainstorm of One (Brainwriting) One of the reasons you are distributing the options questionnaire is to encourage thinking on technology options in advance of. Do not confuse a lull in idea generation as the end of idea generation. This technique has been proven to generate 40% more ideas than individual brainstorming. I Page 92 .

At the time. Put together a summary of the gaps identified in both Step 1 and Step 2 and chart the implications for your IT strategy of addressing those gaps. performing a gap analysis should be a fairly straightforward process. 5 P . A R Step 1 – Analyze Alignment Gaps C H G R O U It’s reality check time. Page 93 I N F O ~ T E Step 3 – Summarize and Resolve Gaps C H Assess the IT requirements of the projects and areas of investment you identified in “Stage 4: Propose a New IT Situation”. In Stage 4 you were asked to blue sky a little bit about how IT might play a critical role in the future competitiveness of your organization. By taking a detailed account of what you will need in the future and then matching it against your current situation. Look at where current IT systems and skills sets do and do not fulfill those requirements. you were advised to be bold and to not worry too much about what it might take to get there.Stage 5> Perform a Gap Analysis Stage 5> Perform a Gap Analysis Stage This Stage compares your current IT situation to the proposed situation you developed in Stage 4. If you have completed all of the sections in the workbook up to this point. you will be able to create a roadmap for your organization. R E Step 2 – Analyze Infrastructure Gaps S E Review the results of “Stage 2: Document Your Business Strategy” and “Stage 3: Assess the Current IT Situation” in the context of the four quadrant strategic alignment model.

............... 97 Stage Summary................................. 95 Step 2 – Analyze Infrastructure Gaps......................................... 98 G R O U Workbook Stage 5> Perform a Gap Analysis ..... Drop the items that don’t directly relate (these are your pet peeves which need to be dealt with at another time)............................. 143 R E S E A R C H Agility Tips Before you meet with anybody to discuss the gaps...................................................... 96 P Step 3 – Summarize and Resolve Gaps ..........................4 Recommendations to Resolve Strategic Gaps...... ........2 Review Strategy to Assess Skills ........................................... take a few minutes alone to play the Devil’s advocate..... 141 5...............................................3 IT Infrastructure Gap Analysis ........................... 128 5........................................1 Assess Your Alignment ..Strategic IT Planning and Governance In This Stage Stage 5> Perform a Gap Analysis ................... Use what is left to spark the thinking of your working group when you meet to discuss gaps................................. 126 5............... Then compare your list to corporate objectives...................................................... 138 5.............................. 93 Step 1 – Analyze Alignment Gaps............ Write down ten things you wish you did better........................ I N F O ~ T E C H Page 94 ...................................

Use the tool “5.” You should be able to complete this table with information gathered in your Stage 3 IT Assessment. Do the current skills and processes of the organizational infrastructure (from Section 2) support where the company wants to go in terms of strategic goals (Section 1)? If not. Do your current distinguishing competencies and strategic deliverables (your answers to 3-A and 3-B) relate to future strategic priorities of the organization? If not. The most important part of the tool.2 Review Strategy to Assess Skills” to identify gaps between your current IT skill sets and the requirements of business/IT alignment. what key technologies and tech services would go into an enterprise customer relationship management system). 4. Use the tool “5.a” of the tool you are asked “Outline the key parts of your IT infrastructure such as the main platforms. Use these questions as a starting point for a discussion with your steering group. in section “4. software.1 Assess Your Alignment” is based on the four-quadrant strategic alignment model. The questions include: 1. which parts of your IT infrastructure (architecture. What You Need To Do G R O U I N F O ~ T E C H R E S E A R C H ü Review your strategic position. processes. Review your summary of corporate strategy from Stage 2. is the final section.1 Assess Your Alignment” to review information about your current alignment situation and to identify gaps. ü Relate strategy to current skills. How can information technology improve business processes that will help the company meet strategic goals? 3. from a gap analysis perspective. and that the organizational infrastructure and processes are well-suited to meeting strategic goals. The tool is divided into five sections. Assuming that your IT strategy aligns well with your business strategy. if total customer lifecycle service is a strategic goal. For example. In section five you will be asked to consider a number of questions to assess how well-aligned your organization is and what gaps there may be. What enterprise-wide technological initiatives would most benefit the strategic goals of the company? (For example. Tool “5.Stage 5> Perform a Gap Analysis Step 1 – Analyze Alignment Gaps Objective: • Analyze gaps between current operational goals and corporate strategy. Sections one through four allow you to map the information you have gathered so far into the four quadrants of the alignment model. what are the gaps? 2. and skills) best deliver on functional integration with other departments and strategic fit? P Page 95 . what has to be done? 5. and network configurations that you support. hardware.

make a note in the third column. 3. Every time you identify an IT requirement.Strategic IT Planning and Governance 6. What You Need To Do ü Identify future requirements. Compare them to current capabilities. write it down in a separate list. ü Identify the gaps. the next step is to compile the list into one comprehensive master list of IT requirements. identify the current system that fulfills the requirement. These are your gaps. 2. After you have completed a list of requirements for each procedure.3 IT Infrastructure Gap Analysis” to enter these requirements. Make note of where current capabilities don’t match future requirements. Identifying the gaps is now a straightforward process. write your future requirements. do not include a substitute for the sake of making the list look better. Your objective should be to make your vision of the future as concrete and detailed as possible. extra work may or may not be necessary here. In the first column. Go down your list. so that you can evaluate whether or not you currently have the capabilities and what you need to do to bridge the gap. Completing a gap analysis between your current systems and your vision of the future of IT at your company requires you to identify all of the IT requirements needed in the future. Use “5. What elements do not fit either horizontal or vertical alignment and what elements will have to be built or bought? From this discussion use the Alignment Gap Summary to list action areas where alignment gaps might be addressed. Depending on the level of detail you drilled down to when creating your vision of the future in the previous stage. go through your list of future IT requirements. Every time you find a future IT requirement that is not met by current systems. by your current systems. The more detailed you make your list. Using the Infrastructure Gap Analysis Tool. 1. Be honest! If there are requirements listed that are not met. In the second column. You need to determine specifically what you will need in the future. The gap analysis tool uses a three column approach. the more useful it will be when you are trying to find gaps in your current systems. or are only partially met. P Step 2 – Analyze Infrastructure Gaps Objective: • Analyze gaps between current infrastructure and the proposed new IT situation. I N F O ~ T E C H R E S E A R C H G R O U Page 96 .

4 Recommendations to Resolve Strategic Gaps” in your workbook to help you document your ideas.” ü Resolve gaps. the requirements listed are future requirements. just try to get as many solutions on the table as possible. develop some recommendations as to how you might overcome the gaps identified in this stage. You should now be left with a set of achievable goals. Accumulate all of the implications and gaps that you have identified thus far in this stage.Stage 5> Perform a Gap Analysis Remember. chances are you need to revisit your vision of the future of IT at your company because you have probably not set the bar high enough. Use “5. Go down your list and rule these out early. whatever the reason. Is there a project here? Carefully examine the proposals for resolving gaps. Don’t discount any ideas yet. if you are not finding many gaps.4 Recommendations to Resolve Strategic Gaps. Conversely. R N F O ~ T E C H R E S E A C Objective: H G R O U . Get everyone involved and think creatively. P I Page 97 Step 3 – Summarize and Resolve Gaps • Create a summary document of gaps. Distribute the list of gaps ahead of time so that people have time to think on their own and table ideas at the meeting. There is no point in wasting time on goals that can’t be met. What You Need To Do ü Gather strategic gaps and implications. so you should expect to find a large number of gaps in your current systems. Use “5. These could spark specific strategic project plans. In a meeting with stakeholder(s). Eliminate Irreconcilable Differences You are likely to find that there are some things that simply cannot be accomplished.

The following chart shows the progress of developing the plan after Stage 5 of the engagement. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H Page 98 .Strategic IT Planning and Governance Stage Summary: Perform a Gap Analysis Your gap analysis should yield a solid list of possible actions that will get you there from here. It should also help identify the things you are doing right – those projects and processes that are already helping achieve competitive advantage. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. P G R O U Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision.

Similar to the core values you documented for your organization. Step 3 – Propose a Governance Structure The strategic IT vision applies to all strategic level IT decisions across the organization. C H R E S Step 1 – Hold A Vision Meeting With Stakeholders E A R With a firm grasp of your company’s business objectives – and having brainstormed various ways that IT can enable them – now is a good time to establish an overall strategic vision for IT in your organization. as a whole. C H G R O U P .Stage 6> Propose a Strategic Vision and Governance Model Stage 6> Propose a Strategic Vision and Governance Model Stage 6 Step 2 – Establish a Strategic IT Vision For more see the articles on “One Vision For All” and “Reigning In Rogue IT” in the background section for this stage. Setting a clear direction though there will be obvious overlap. Use the guidelines for the organization vision statement in Stage 2 when preparing the vision statement corporate IT. Page 99 I N F O ~ T E Describe what needs to be done to achieve the future IT situation documented in Stage 4. It is not specifically about establishing understanding of the role that IT can play an operational vision for your IT department. Your IT core values represent the standard axioms by which IT is applied across the organization. An IT strategy and governance structure that is exclusive to one department (IT) leaves a space for other departments to chart their own IT courses – a practice that could have disastrous results. The IT Steering Committee is a cross-functional committee for the on-going application of strategic priorities to all IT projects. within your company. It will also help focus the entire company on specific IT goals. Department Vision All of the work you have completed thus This section focuses on an enterprise IT far should help you to arrive at a firm vision. A good enterprise IT strategy will align closely with your corporate strategy and vision. in advancing IT strategy. Propose a charter for this group that draws a line from vision and objectives to specific actions. it stands to reason that your departmental vision will be closely aligned (if not synonymous) with a corporate vision. However. will help you later when you are evaluating and prioritizing the projects in the decision-making Since the IT department is the primary mover framework. Enterprise vs. strategic IT core values are the set of beliefs or philosophies that guide strategic IT decisions. it is important that your corporate IT vision extend beyond the IT department.

. 103 Stage Summary.............. 151 6..............3 IT Core Values................................................... use it as a template.............................. 104 Background > One Vision for All.................................................................................... I N F O ~ Page 100 ........................................... inserting technology-specific points.. a workmanlike statement that covers the bases of what you hope to achieve is more important..............................5 Steering Committee Charter...... 105 Reigning In Rogue IT.............................. Individuals and committees will spend hours trying to get the wording perfect....................... Forget the poetry...Strategic IT Planning and Governance In This Stage Stage 6> Propose a Strategic Vision and Governance Model ........................................................... 152 6.......... 147 6........................................ 150 6.............................................................. 102 P Step 3 – Propose a Governance Structure.............................................................................................. 149 6................................... 101 Step 2 – Establish a Strategic IT Vision ....................................................... 109 H G R O U C Workbook Stage 6> Propose a Strategic Vision and Governance Model ... 99 Step 1 – Hold a Vision Meeting With Stakeholders ....................................4 IT Vision Statement .... If your company has a vision statement.............. 106 Building Your Steering Committee.......................1 IT Vision Meeting Agenda.............2 Strategic Objectives List ......... 154 T E C H R E S E A R Agility Tips: Forget the Poetry The vision statement development should not take a long time...................

yet specific enough to be meaningful. ü List strategic objectives for IT. that you or a sub-group within the IT department can’t do some “brainwriting” (see background to Stage 4) by circulating some draft vision statements and objectives prior to the meeting.Stage 6> Propose a Strategic Vision and Governance Model Step 1 – Hold a Vision Meeting With Stakeholders Objective: • Meet with your strategic planning group to devise a vision and mission for corporate IT. Similar to the core values you documented for your company as a whole. however. Invite participants to reflect on all of the material that you have gathered to date and contemplate the ways that IT is going to be able to best help your company. Consider the options that came out of your earlier brainstorming sessions. 3.2 Strategic Objectives List” to support this exercise. develop statements that capture how various IT options can improve the competitive position of the organization and or the services it provides.3 IT Core Values” to document your results. IT core values are the set of beliefs or philosophies that guide strategic IT decisions. This does not mean. It can be difficult to create strategic objectives that are broad enough to encompass the goals you have set. as established in Stage 2 as well as the list of IT options developed in Stage 4. As a committee. The hardest part of creating your strategic objectives will likely be the wording. Make sure everybody is focused on that vision. do the following: 1. It may be helpful to read the vision aloud. It is important to develop a vision and mission for strategic IT . Participants should not feel like they are building from scratch. Use “6. It is important to keep the broader constituency in the loop. P I N F O ~ T E C H R E S E A R C H G R O U Page 101 . 2. Use a white board or easel to record objectives. ü List strategic core IT values for the company. What You Need To Do ü Review your corporate vision and future IT situation. Use worksheet “6. Meet with your IT strategy committee. Meet with the IT stakeholders in your strategic planning group. Use worksheet “6. By this point in the process everybody has already given considerable thought to the corporate agenda and where IT resources might help advance that agenda. At the meeting. Give ample time for this meeting and keep the tone positive. Narrow down your list into five to seven specific objectives.1 IT Vision Meeting Agenda” to review the corporate strategy. The vision exercise should be seen as growing out of your strategic planning process. Begin by reviewing the company vision and mission statements.

Devise a single statement that covers off all the main points in your list. Information technology plays a critical role in achieving our strategic objectives and in enabling critical processes across the organization. Consolidate the various IT value statements into one vision statement. For your list of core values. and so on). Make sure that everybody agrees to the vision statement. We are committed to maintaining a unified standard for enterprise architecture across the organization. 3. Work out a final draft of the vision statement as a group. consider your scope definition from Stage 1 as well as your commitment to alignment. Page 102 . P A R C H G R O U E Step 2 – Establish a Strategic IT Vision Objective: • Draft an IT vision upon which you can base future strategic decisions. A good vision is both inspiring and attainable. Others will state the same principle more than once. 4. On a separate white board or easel page. Some examples of core values could include: 1. 2. I N F O ~ T E C H R E S Your IT vision should describe what the future will look like in terms of functionality and operations (e. Some of the statements will overlap.4 IT Vision Statement” to support this exercise. your core IT values are the set of beliefs or philosophies that will guide your strategic IT decision making. • • • List some broad statements that reflect the values and goals of these lists.000 or more should be approved by the IT governance body. list some core values of corporate IT. anyone can place an order from anywhere in the world. All IT projects in this class must have demonstrable benefit to advancing the corporate mission.Strategic IT Planning and Governance 4. Use the worksheet “6. administrators can manage storage capacity globally. What You Need To Do ü Create an IT vision statement for your organization.g. It should therefore be viewed as a critical enterprise resource. IT projects involving an investment of $10. Your IT vision statement should reflect your vision of what IT might do for the organization in the future. Similar to the core values you documented for your company as a whole.

All proposals must include clear definitions of business measures and benchmarks of progress. What You Need To Do ü Establish and build consensus around a steering committee. Neither are they. and your planning committee is an informal group of three or four people.Stage 6> Propose a Strategic Vision and Governance Model Step 3 – Propose a Governance Structure Objective: • Establish the terms of reference of a governance steering committee. It therefore stands to reason that strategic decisions should be made in a forum which is broadly representative. The mission of this committee. S E A R C H G R O U Agility Tip: Formalize the Informal In this stage you are basically proposing that the planning process used thus far be made permanent. steering committees are not a replacement for the IT department. These include cost/benefit analysis and clear calculation of Return on Investment (ROI). P I N F O ~ T E C H R E • • • In following this strategic IT planning process. at the other extreme. All proposals must be reviewed and approved for technological merit by the IT department. you have recognized that strategic IT is bigger and broader than any one department. could include the following: • The committee shall review all proposals for IT investments with projected costs over a determined monetary threshold. focused on aligning IT with corporate objectives. You will know how serious your organization is about strategic IT when you see how serious it is about a steering committee. as stated in our example steering committee charter.5 Steering Committee Charter” to establish the terms of reference of the steering committee. and answerable directly to the senior executive. you should still get written commitment from the chief executive that this group shall continue to oversee strategy-level IT decisions. This includes proposals from within IT services as well as proposals from other departments that have a significant IT component. A steering committee is absolutely critical to on-going strategic IT planning and decision making. Page 103 . a rubber stamp for IT department plans. The steering committee has the authority to reject any proposal which it deems not to have made a sufficient business case or which does not significantly contribute to the strategic goals of XYZ Company. The steering committee should have broad representation and be promoted as the main body for IT analysis and investment decisions at the strategic level. If you are a small organization. As was stated earlier in this methodology. Use “6.

The following chart shows the progress of developing the plan after Stage 6 of the engagement. where want to be. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H G R O U P Page 104 . Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. You should have these nailed down before you proceed to the next stage: Build a Strategic Decision Making Framework. In this stage you are formally stating your vision for strategic IT development as well as a set of formal rules for IT decision making.Strategic IT Planning and Governance Stage Summary: Propose a Strategic Vision and Governance Model You now should know where you are. and how you can go about getting there.

“effectiveness” was substituted for competitiveness. Page 105 I N F O ~ T E C H R E S E A R C H G R O U P . Sixty-five percent of organizations utilizing strategic IT planning (or SITP) indicated that having the plan resulted in at least somewhat increased competitiveness of their organization. while organizations not utilizing SITP are more liable to view their IT departments as playing a support role. it is equally important for all your departments. with nearly 80% reporting an increase in competitiveness or effectiveness due to the implementation of the IT plan.” (Use of Strategic IT Planning In Medium-Sized Enterprises). however. The IT department should be the lead unit in developing a corporate IT strategy and is the key developer and enabler for strategic level IT projects. a corporate-wide IT strategy and governance structure does not mean that the IT department’s role is somehow diminished or marginalized. Helping the organization achieve its strategic goals and making the organization as a whole more competitive or effective. Fifteen percent responded that the use of SITP has resulted in significantly increased organizational competitiveness. (In the case of non-profit organizations that were surveyed. $0 to $100 million were most likely to realize this benefit. According to Info-Tech Research Group. However. the use of “strategic IT planning can improve organizational competitiveness and therefore should be seen as a priority for the entire organization and not just the IT department. The IT department obviously has the greatest stake in this vision.) Organizations with annual revenue of U. This is consistent across all industry segments.Stage 6> Propose a Strategic Vision and Governance Model Background > One Vision for All The strategic IT vision that is derived from this stage in the methodology should encompass IT as it is applied across the entire enterprise. is the key goal of strategic IT planning. Info-Tech Research Group has found that organizations that utilize SITP are more likely to view the IT department as a strategic weapon.S.

It might solve an immediate problem. the marketing department may have customer data from its own project that could benefit a new CRM package in sales. How do you deal with these shadow or ghost projects? See them as symptomatic of the need for a sound and inclusive IT governance structure.Strategic IT Planning and Governance C H G R O U P R Reigning In Rogue IT “Rogue IT” projects – projects launched and funded by departments outside of the scope of the IT department – can become a costly long-term headache for the company. but the costs of reformatting and correcting that data will add considerably to the cost of the CRM project. Data formats may end up being inconsistent with other enterprise IT projects and data quality that is “good enough” for the rogue project may not be good enough for other applications. When enterprise initiatives are taken down the road. E S E A Rogue IT Scenario Here is the situation: A department feels that a new system will help them achieve business goals cheaply and more efficiently. the departmental solution may have to be re-tooled or replaced – an additional cost of the project. or will not. For example. support a project to develop the system. Why should you care? Here are three good reasons: • The Solution Might Not Scale. I N F O ~ T E C H R • Page 106 . Bad Data/Inconsistent Format Costs. Overall organizational IT goals are probably outside of the scope of the narrow rogue project. but it might also not be suitable to scale up to provide enterprise-wide solutions. So they go ahead and do it themselves using their own IT experts or by outsourcing the project. What is the problem with doing that? It shows initiative and a willingness to move quickly to embrace an innovative solution. They also feel that central IT cannot.

as an opportunity rather than a threat. All they know is that their project is “not a priority”. or the threat of such ghost projects. It is one thing to involve Page 107 I N F O Treat rogue IT projects. These include: • The “Dr. Add to that the spending by IT departments fixing problems that might be created by rogue IT (such as paying for eventual replacement systems or for fixing nonstandardized data. However.) What Can Be Done? The CIO Insight feature “Rooting Out Rogue IT” notes that “ghost IT is being seen as a symptom of poor technology management and a sign of chronic communications problems between IT and business units. If these projects cost more than expected. other departments don’t know what IT is up to or why certain projects are more important than others. you remain responsible for total IT spending. No” Syndrome. it will be on your head. Many an IT manager has been nicknamed Dr. they get criticized down the road for adopting non-standard IT solutions. 2. 3. and there is no accountability for the disconnect. or if the IT department has to spend to rescue a rogue IT project gone bad. Manage Expectations Both Up and Down the Line. “There is no money for this. Set a projected cost threshold. Senior management pressures departments to be more efficient. if they do go ahead. “Just Do It Anyway” Syndrome. Require Committee Approval for All Major IT Projects. by the IT department or otherwise. • 1. No.” In other words. Meet with senior decision makers and press for the following: ~ T E C H R E S E A R C H G R O U P . as CIO. It simply is not fair to force the CIO or IT manager to make these decisions alone.” Of course. IT spending decisions have enterprise-wide impact. Each project should be judged on criteria such as cost/benefit.Stage 6> Propose a Strategic Vision and Governance Model • Off-the-Books Spending. Lack of an effective IT governance structure and communication between IT and other departments leads to conditions that breed rogue IT projects. When IT investment decisions are made in a vacuum. and how it might positively or negatively impact customer relations. The steering committee should involve key department representatives as well as senior administrators. but do it anyway. Establish an IT Steering Committee. Forrester Research predicts that 5 to 15% of corporate technology spending is due to non-IT sponsored projects. Line managers are confronted with the message. while also pressuring IT to spend less. All IT spending. Rogue IT represents IT spending beyond your control. You must take responsibility and exercise leadership. strategic alignment. needs to be more closely and accountably linked to corporate strategic and spending goals. you can’t just complain about rogue IT projects and petition higher-ups to make them stop. and the justifications not communicated. The committee must approve all projects above that threshold.

3. Vol. A “rubber stamp” for the IT department. It is also important to manage the expectations of senior management. It also noted that the roles that steering committees play also impacts on “sophistication” and that firms should carefully define that role in the interest of getting the most benefit from steering committees. which guide and approve IT strategy. G R O U • C R H E A • Steering Committees Work A 2000 study of “The Effects of MIS Steering Committees on Information Technology Sophistication” (Journal of Management Information Systems. A complaints clearing house. 17 No. Steering Groups. The study found that steering committees do indeed improve the effectiveness of IT management across the organizations surveyed. as well as between senior management and line managers. and “ensure IT is run as a business. They must have the power to say another project has higher priority. This is a symptom of poor communication between IT and other departments. an IT steering or governance committee is not: • A replacement for the IT manager or management team of the IT department. The three roles are: 1. and prioritize IT activities. the firm’s future strategic plans are explicitly included in IS planning. Greater sophistication implies that managers are “aware of the firm’s long-term strategic plans. 2. and IS performance is evaluated based on contribution to the firm’s overall objectives. The steering committee helps set priorities for IT investment and evaluates how well the entire organization is progressing in meeting strategic goals. This is a situation that you can use to push a responsive IT governance plan. control and manage IT units. Management Sophistication was defined as “management maturity” or effectiveness of the management function.” I N F O ~ T E C H R E S Page 108 . The study results indicated that “presence of IT steering committees indeed helps enhance the level of IT management sophistication within firms”. IT Boards. The committee is not the place to air the latest problems a department is having with their technology or with the IT department. The IT manager manages his or her department. 2) surveyed 270 IT managers in the Financial Services industry. P As was stated earlier in this methodology. They are not there simply to communicate the latest decision by the IT managers. Leadership sometimes means saying no to the boss (with the ability to justify that position). Policy Committees.Strategic IT Planning and Governance departments in decision making and get their support for IT decisions. The committee must be able to gauge the business impact of various proposed IT projects. which formulate IT department strategy. which are involved in strategy implementation and creating policies and procedures associated with IT planning. Rogue IT projects happen when departments and project leaders feel they must move forward with a project even though they don’t have the support of central IT. give business direction to IT activities.

Stage 6> Propose a Strategic Vision and Governance Model The study also notes that the three are ideal groups and in reality. Here are some tips for establishing your first steering committee. Building Your Steering Committee G R O U I N F O ~ T E C H R E S E A R C H Steering committees can be large or small depending on the size and complexity of the organization. 2. 3. and at least understand (though maybe not agree with) the rationale behind decisions to proceed with one project over another. rather than a technology case. The steering committee shouldn’t be bogged down with small projects (even though some small projects will yield big returns. the committee should also be tasked with prioritizing all of the on-going projects (or approving a prioritization that you come up with). Start with a small core group. there may be a networking working group or a Web working group. Steering committees can also have sub-committees or working groups. Additional ad hoc experts can be brought in on a project-by-project basis. The committee should also approve a detailed project charter for each investment. Other departments will be able to see their IT demands in the larger context of strategic plans. with one or another dominating. Establish project benchmarks. IT committees can have a mix of these roles. Make sure that project proposals are lined up ahead of time and that the business benefits are clearly stated. Set a cost figure above which projects must be reviewed and approved by the steering committee. For example. we are looking mainly at the Steering Group with the policy function as a possible subset. Prioritize projects based on Strategic Alignment and Return on Investment. Project plans should also have clear benchmarks by which the committee monitors progress. Establish a monetary threshold for projects. 4. perhaps once a quarter or twice a year. This prioritization exercise has a number of benefits: • • At budget time you will be able to set spending priorities based on broadly based recommendations. At the very least your steering committee should include a representative from Finance and Human Resources as well as representatives from key business driving departments and yourself as head of IT. In addition to reviewing and recommending projects for IT investment. 1. Page 109 . Each project should be brought to the committee as a business case. P Your steering committee should have a regular set of meetings. For our purposes.

Strategic IT Planning and Governance I N F O ~ T E C H R E S E A R C H G R O U P Page 110 .

We have divided it up into four steps. This takes the work you did in the previous stage – Propose a Strategic Vision and Governance Model – and turns it into some actionable objectives for the upcoming year. Each step builds on the previous.Stage 7> Build a Strategic Decision Making Framework Stage 7> Build a Strategic Decision Making Framework When you are faced with a decision. group together functions that you think can be fulfilled by a specific IT project. the next best is to do the wrong thing and the worst thing to do is nothing. G R O U P . R E Step 1 – Set Strategic Goals and Measures S E These are the steps in this section: A Translating your strategy into some tactical and operational goals is the objective of this stage. Now it is time to make some concrete recommendations and determine a course of action. you will have a prioritized list of projects for the upcoming year. After you have gathered some actual information on this year’s budget. budgeting next year’s information becomes much easier. Our Project Ranking Framework is designed to provide you with a robust prioritization process that ensures that your department’s projects are aligned with the objectives of the business. ~ T E Step 2 – Perform a Budget Analysis C H Begin the process of turning your strategy into action by setting some clear goals for corporate IT. CEO of PepsiCo Stage 7 Step 3 – Identify Your Options Begin identifying your options by taking a high level approach. R C H You have identified the gap between where you are and where you want to be. Using your gap analysis from Stage 5. the best thing is to do the right thing. Roger Enrico. The last step is budgeting future performance levels. You have also established a governance structure that identifies a strategic vision and incorporates a steering committee. Step 4 – Prioritize Your Projects Use a three-tier approach to prioritizing your projects. These include: Page 111 I N F O Goal setting and measurement are only two steps of the cycle. By the time you have completed this stage.

...... 132 Dealing with Budget Cuts ...................................... 130 Getting Buy-In for Your Goals....... Stage 7: Build a Strategic Decision Making Framework .. 120 Stage Summary........................................................... 116 Step 3: Identify Your Options............................................................................. 125 Organizational Goals .................................................................................................................................................................. 113 Step 2: Perform a Budget Analysis.................................................................................................................................................. 129 IT Governance Goals ............................................................................. 117 Step 4: Prioritize Your Projects........................... 111 Step 1: Set Strategic Goals and Measures ...................Strategic IT Planning and Governance • • • Info-Tech Project Matrix Info-Tech Priority Index Info-Tech ROI Calculator G R O U P This is the last step in creating your Strategic IT Plan............................................. 128 Customer Service Goals................................. 133 I N F O ~ T E C H R E S E A R C H Page 112 ....................................................... 125 Financial ......................................................................... Once you have finished this section you will have a plan that establishes the direction for the IT department for the upcoming year and clearly explains how you will achieve your objectives.................................................. 126 Technology Operations.................................... 124 Background > Types of Goals IT Should Set ................ 131 Using Your Budget as a Management Tool .................................

.. 161 7.................. 172 7..................... 173 7......... 174 7.......................................Stage 7> Build a Strategic Decision Making Framework Workbook Stage 7: Build a Strategic Decision Making Framework .. N F O ~ T E C H R E S E A Agility Tip: Consensus On Procedure R C H P .......................................................................................... 176 7...............................................6 Business Case Template .................... 156 7........3 Budget Analysis Worksheets ....................................5 Analysis of Available Options ................................................. 184 G R O U I Page 113 7. How you do it (make decisions) is important............1 IT Strategic Goals...........4 Budget Summary.............. Worry about getting that consensus more than on the details of the framework – these will continue to develop over time......................... 171 This Stage is the foundation of all future strategic planning and decisionmaking........... In this Stage you are agreeing on a common language for expressing the strategic value of IT projects..8 Info-Tech Project Ranking Framework .......9 Prioritized List of Projects .................................................................................. But more important is consensus on how it will be done from now on............ 158 7......... 165 7....................................2 Balancing IT Measures...............................................7 Comprehensive Project List .....

Attainable. measure your performance towards these goals. I Page 114 . While not all goals fit into the SMART formula.2 Balancing IT Measures” as the basis for your own scorecard. understandable. List your goals in the worksheet “7. Measurable. Take the work you did in the previous stage – Propose a Strategic IT Vision and Governance Model – and brainstorm some actionable objectives for the upcoming year. Give each goal a clear start and end point. 58 percent of IT managers either didn’t set goals or didn’t measure their performance towards goals. and limit your number of goals to four to seven.1 IT Strategic Goals”.Strategic IT Planning and Governance Step 1 – Set Strategic Goals and Measures Objectives: • • P Establish strategic goals for IT. Establish measures for ensuring that goals are achievable. Focus is critical to achievement. Use the example scorecard “7. you must set goals. However. N F O ~ T E C H R E S E A R C H G R O U The SMART technique for goal setting is fairly well known. and Timely) criteria to help clarify your goals. based on your new vision and objectives. What You Need To Do ü Start turning your strategy into action by setting some clear strategic goals for enterprise IT. Take a balanced scorecard approach to creating sets of measures for your strategic IT goals. Setting goals is critical for the on-going success of any IT department. it’s an excellent starting point that addresses the key characteristics most goals should. according to one TechRepublic Survey. and translate the goals into documents like budgets and job descriptions. and state the expected result. Use these SMART criteria to help you establish departmental goals. Use SMART (Specific. Relevant. ü Establish clear measures for each goal. Specifi pecific: The goal must be clear. To be a successful IT manager.

Timely: The goal must be tied to deadlines and put into a timetable in order to prevent delay of activity. Relax. Avoid rigidity. 3. Relevant: The goal must be clearly derived from. and market research. Aiming for perfect goals can paralyze you. organizational strategic goals. Attainable: The goal should move you beyond your comfort zone into new growth areas. In fact. and timebound. Objectives and measures are set from four perspectives: 1. but still be realistic and within your departmental or organizational capabilities. including your staff. P I N F O ~ T E C H R E S E A Knowing how to set SMART goals is only the first step. Plan execution of your highest ranked goal first – this way. Internal Business Processes Perspective: Processes instituted to meet or exceed customer expectations. The goal-setting process itself contains a few traps of its own. Remember that you can always make changes.Stage 7> Build a Strategic Decision Making Framework Measurable: The goal must stipulate quantitative and/or qualitative measures to help you determine if the goal has been achieved. and harmonized with. Beware of Goal-Setting Pitfalls Page 115 R C H G R O U . Build in milestones to help break goal achievement into manageable tasks and help you identify problems earlier. customer satisfaction. Stay away from goal attainment at the expense of flexibility and growth. deleting. and adding elements to your goals is often the responsible thing to do. not perfect. 4. Set your sights on being reasonable. Learning and Innovation Perspective: How the organization and its people grow and change to meet new challenges. Know their business. Be sure to include goal review and revision in your milestones. revenue. you can ensure that sufficient resources are allocated to your most important target. Customer Perspective: Customer retention. Remember that many IT projects can run well over a year in length. Financial Perspective: Traditional financial measures such as profitability. measurable. • Do not set goals for others. and sales growth. • • • The Balanced Scorecard The Balanced Scorecard (BSC) combines traditional financial measures with supplemental measures such as gauging innovation and customer satisfaction. Much of the work done in IT is in support of other departments. Make sure senior management is committed to supporting stated IT goals beyond the current year. changing. Not all goals can be made specific. Here are some common pitfalls to avoid. Only set goals after you have discussed priorities and implications with those that they affect. 2. Overly strict adherence to goals can inhibit adaptability and learning. which effectively overshoots most goal-setting timelines. Prioritize your goals against organizational objectives before creating plans for accomplishing them.

If there is no vision. This information will go into your Strategic Plan document. Performing this analysis will give you insight into where the money is going and where it may need to go in the future to support strategic initiatives. you’ve expended resources on activities that won’t contribute to the success of the organization as a whole. For your BSC to have a hope of success.gov/special. The last step is budgeting future performance levels. 1. Use “7. R E S E A R C H G R O U H Step 2 – Perform a Budget Analysis Objective: • Analyze the budget implications of meeting strategic objectives. Do your initiatives and measurements tie into your strategy? If initiatives and measurements don’t link to strategy. Does the scorecard have executive buy-in? Without buy-in on strategy and objectives you can’t set measures that will have an impact.If you have followed this methodology so far.pubs/ai98089. 2. and business/IT alignment is a strong focus of your planning .2 Balancing IT Measures” are derived from Measuring Performance and Demonstrating Results of Information Technology. budgeting for next year becomes much easier. Advocates of the BSC method agree that a BSC without a strategic planning vision is next to useless. Goal setting and measurement are only two steps of the cycle.3 Budget Analysis Worksheets” to review your current and projected budget. What You Need To Do ü Perform a high level analysis of the IT budget. Is there a strategic vision? A scorecard doesn’t provide you with a vision. Use “7. You can download the complete guide from: http://www. answering yes to the above should be a no-brainer.pdf P BSC and Strategic Planning. an Executive Guide of the Accounting and Information Management Division of the US General Accounting Office.gao. you should be able to answer in the affirmative to the following questions.4 Budget Summary” to summarize key points of your budget that are germane to the strategic planning process. Use the actual performance information you gather to help set your departmental budgets (both capital and expense) for next year. ü Summarize your budget. there is no way to apply measures. Your vision has been created through an inclusive process. which has strong executive buyin. 3.Strategic IT Planning and Governance The balanced scorecard and sample measures provided in “7. After you have gathered some actual information. Page 116 I N F O ~ T E C .

and the one thing that IT tends to overlook. For example. ü Create a set of business cases. Once you have done this. your final recommendations should be clear. Begin identifying your options by taking a very high level approach. Once you have listed a number of options for each possible solution. Using your gap analysis from Stage 5. Recommend a set of projects for the coming year. take your understanding a step deeper by analyzing each of the options. Do some research and determine options and their respective vendors. Include financial information as part of your recommendations. you will likely have a reasonably good sense of the types of high-level systems that you will need. as the IT manager. begin to identify at least three options for each. As applications evolve. group together functions that you think can be fulfilled by a specific IT project or investment. G R O U I N F O ~ T E C H R E S E A R C H P Page 117 . Meet with your planning group and review the business cases. List all of the high-level systems that you will be evaluating.5 Analysis of Available Options” to review all available options. logical. you may be able to group together a number of functions that relate to customer contact. Step 3 – Identify Your Options Objective: • • Identify strategic options and create business cases for each. Use the “7. Use “7. Draft specific recommendations for inclusion in your group’s Strategic Plan document. Don’t exclude any option at this stage for financial or other reasons.6 Business Case Template” to create a business case for each project. many of the lines of distinction between types of applications or hardware solutions and their associated functionality are being blurred.Stage 7> Build a Strategic Decision Making Framework Showing that you have a realistic grasp of the mechanics of the IT budget will help you sell your ideas for IT investment. but to get to the level of detail you require to make a final decision. This cannot be emphasized enough since it is the one thing that senior management looks to first. If you have been diligent in your option identification and analysis work. and fit with your company’s overall business strategy. You can probably begin by doing some research on the Internet. What You Need To Do ü Identify your options. ü Make recommendations. These are likely to be fulfilled by investing in a contact management application. you will probably have to send out some Requests for Information (RFIs) or Requests for Proposal (RFPs). Nonetheless. ü Analyze the options.

best practice process that will walk you through all of the issues you need to consider and the potential pitfalls you need to avoid. “Buying Right: Vendor and Software Selection” will help you make the right choice by providing you with a proven. This methodology provides you with the means to focus your efforts on core organizational needs rather than on the minor issues that can often sidetrack this type of evaluation.infotech. Management thinks in terms of costs.000.com. duration of the project) Time required to maintain IT resources required User resources required Benefits to your company Reasons you might not want to go with this option (deterrents and risks) Compatibility with existing systems Digging Deeper: Vendor and Software Selection Methodology Info-Tech’s in-depth vendor and software selection methodology can help you dig deeper into the software selection process. training. we estimate that the help desk can handle 20 more customer service requests per hour. go to www. outside services. at a cost of $2.e. software. benefits and return on investment (ROI) – make sure that your business case takes this into account. take your understanding a step deeper by analyzing each of the options on the following dimensions: • P G R O U • • • • • • • Costs (hardware. For more.000 per year in labor and phone costs.Strategic IT Planning and Governance Analyzing the Options Once you have listed a number of options for each high-level system.” I N F O ~ T E C H R E Page 118 . For example. S E A R C H Create a Set of Business Cases Use the information you just gathered to prepare a business case for making the suggested changes. which will save an estimated $20. support) Time required to implement (i. stating that: “We have to add extra RAM to 10 desktops because PCs they are slow at running the new version of the customer service application” is not as likely to get a positive response as saying that: “By adding extra RAM to 10 desktops PCs.

the objective here is not just to make recommendations – you have to sell your recommendations to senior management. Make a Recommendation Preparing a complete set of business cases gives you an objective way of analyzing the various solutions available. you should still prepare an executive summary of your findings and include it at the beginning. Any questions or concerns will be directed towards your decisions. Make sure that your recommendations are clear and justifiable in language that a non-technical person can understand. N F O ~ T E C H R E S E A R C H Remember. the final step is to make some recommendations. not your background research. Remember. In your business case. G R O U . Add value through your insight and analysis. these are going to be read by senior management. A good business case is no more than two to three pages in length.Stage 7> Build a Strategic Decision Making Framework Prepare a business case for each solution. include the following information: • • • • • • General description of the high-level system Identified options Benefits Costs Risks Recommendation P I Page 119 If management has asked you to include all of your background research. You don’t need to include every detail your research uncovered. Keep them clear and concise. Once you have prepared a business case for each solution. This is where the work you did on documenting and understanding your company’s business strategy will pay off by ensuring that your suggestions fit with the overall goals of the company.

Strategic IT Planning and Governance

Step 4 – Prioritize Your Projects
Objective: • Create a prioritized list of projects for inclusion in the annual strategic IT plan. What You Need To Do G R O U ü List all projects that are currently in progress. Refer to the work you did in Stage 3 documenting your current IT projects. Use “7.7 Comprehensive Project List” for this purpose. ü Add to your Comprehensive Project List all of the possible projects that your department can pursue in the upcoming year to the list. Do not exclude any project for any reason. The Project Ranking Framework will take care of sorting out less attractive projects. ü Use “7.8 Info-Tech Project Ranking Framework” to analyze and sort your projects into priority order. • • • Use the “Info-Tech Project Matrix” to sort projects into four distinct groups: Pursue Aggressively, Scale Down, Pursue Cautiously, and Terminate Immediately. Use the “Info-Tech Priority Index” to ensure that your projects are aligned with the objectives of the business. Use the “Info-Tech ROI Calculator” to create comprehensive return on investment criteria for each project. P R E S E A R C H

ü Use “7.9 Prioritized List of Projects” to list your top ten projects in priority order as established by Info-Tech’s Project Ranking Framework. This prioritized list is one of the central components of the Strategic IT Plan that you will submit to management.

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The first step in sorting your initiatives is fairly straightforward. Use the project matrix below to sort your projects into four separate groups. Projects should then be carried forward in their groupings and prioritized using the Info-Tech Priority Index. This framework shows the four generic strategies for IT projects: Pursue Aggressively, Scale Down, Pursue Cautiously, and Terminate Immediately:

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Contribution to Core Business (CCB)
For a more detailed definition of each quadrant of the project matrix see “7.8 Info-Tech Project Ranking Framework” in the workbook. Once you have sorted your projects into the four groups, take your prioritization a step further using the Info-Tech Priority Index.

2. Info-Tech Priority Index
Use the Info-Tech Priority Index to sort each group of projects. The Priority Index is a simple, but effective, analytical tool you can use to help you prioritize your projects. InfoTech has assigned a suggested point rating to each factor, but these can be adjusted to reflect your company’s objectives. Info-Tech Priority Index
Viability Customer Value Proposition – CVP – (0 -15) Economic And Upside Potential – EUP – (0-25) Industry Attractiveness – IA – (0-15) Fit With Company Goals/Capabilities – CGC – (0-15) Ease Of Implementation – EI – (0-15) Possibility of Missing Schedule – PMC – (0-5) Risk of Cost Overrun – RCO – (0-5) Technical Risk – TR – (0-5) Total out of 100

“Fit”

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For a detailed definition of each of the factors listed above, see the Priority Index in “7.8 Info-Tech Project Ranking Framework.” Assigning each project a rating out of 100 on the Info-Tech Priority Index is the first step in creating a prioritized list of projects. Rate each individual category separately. To Complete Info-Tech’s Priority Index: • P G R O U • • • • List all of the possible projects down the left-hand column of the Info-Tech Priority Index Template. Schedule a meeting and include all of the key stakeholders, including senior management. Hand out copies of the project list to each meeting participant. Ask them to assign rankings to each project under the criteria in the Priority Index Template. Briefly explain each project and wait until everybody has finished assigning the project a numeric ranking. By completing rankings together as a group, it allows individuals to clarify any information they need to assign a ranking. Once you have assigned a ranking for each project, ask every attendee to submit their completed Priority Index template to you. Depending on the number of projects on your list, you will want to tally and average the scores after the meeting by inputting them into the spreadsheet provided with this workbook. Once you have tabulated the scores, sort them in order of priority, with the highest scoring project listed first. Distribute the prioritized list to all meeting attendees.

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The Info-Tech ROI Calculator will provide you with one last step of prioritization. It will also force stakeholders to think through the project and identify potential risks. Info-Tech’s ROI Calculator is an Excel spreadsheet and can be found the accompanying CD-ROM with additional explanation found under Info-Tech ROI Calculator in “7.8 InfoTech Project Ranking Framework.” Use the spreadsheet to determine the ROI for each of your top projects. Input all of the necessary data for each of your top ten projects. Once you have inputted all of the costs and benefits of each project, re-sort the projects based on the expected ROI of

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Stage 7> Build a Strategic Decision Making Framework each project. Your project with the highest return on investment should be the highest priority. as suggested above. Page 123 I N F O ~ T E C H R E S E A R C H G R O U P . Consider eliminating projects that do not meet the “2:1” Rule of Thumb. Agility Tip: Show Your Work The tools in the Info-Tech Project Ranking Framework will help provide you and your stakeholders a common language and touchstone for prioritization. make sure to at least distribute the framework to senior decision makers. If you don’t have time to work through the framework in a workgroup setting. then the project is not worth doing. If the benefits of your proposed solution are not at least double the expected costs. Make sure they understand and approve of the methods being employed and be prepared to show your work in justifying prioritization decisions.

Strategic IT Planning and Governance Stage Summary: Build a Strategic Decision Making Framework This stage is critical because. P The following chart shows the progress of developing the plan after Stage 7 of the engagement. Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. in addition to analyzing and recommending specific projects for the coming year. you and your governance group are establishing practices for how strategic level IT projects will be measured and evaluated from now on. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 I N F O ~ T E C H R E S E A R C H G R O U Page 124 . Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure.

such as reducing the number of PC suppliers Page 125 N F O ~ T E 2. C H R E S E A R C H G R O U . Capital budgeting is for projects and assets that will last over a long period of time. 1. Microsoft). This isn’t easy. Remember that business goals don’t usually translate directly into IT goals. you need to communicate them to your IT staff.000. Budgeting There are two kinds of budgeting IT managers perform: capital and expenditure. metrics. such as more than one year. IT managers can set budgetary goals such as reducing the capital budget 25%.000. Communicate business goals to all IT staff.g. or reducing the total expense budget to $1. Each has different sub-types. and management issues. Purchasing Purchasing involves selecting vendors and products that meet corporate requirements. reducing the toner cartridge budget 20%. based on the work you have completed. e-commerce) and high-profile projects (e. Below is a quick reiteration of some of the key points you should remember to ensure that your department’s goals fit squarely with the overall direction of the company. This point should be abundantly clear to you by now. After business goals have been finalized or changed. Many vendors also require long-term management and strategies (e. but IT staff should keep this information in mind when doing their jobs.g. IT managers can set a large variety of purchasing-related goals. Make sure the business goals are clear. management reporting). Below we will discuss appropriate measures for each category. but must be built up over a period of time. Here are a few examples of the different sub-types of financial measures: IT goals and business goals must be continuously aligned and realigned. Asking questions about the business goals is a good way to test if the information has been communicated effectively.Stage 7> Build a Strategic Decision Making Framework Background > Types of Goals IT Should Set Here are the five major types of goals you should consider setting.g. Get the latest information about business goals from business managers and ask if you don’t understand something. Transferring high-level goals down to operational IT goals can be a lot like playing the children’s game of whispering a message to the person sitting next to you in a circle (the message gets distorted). but is critical for the success of projects that span multiple years (e. Aligning IT and Business Goals Financial Enterprising IT managers will create and beat their own internal financial goals. • • • Financial Organizational Technology Operations • • Customer Service IT Governance P I 3. Earn the trust of senior non-technical management. Trust can’t be won immediately. This methodology is an important step in that process.

g. increasing the dollar amount of purchases from a strategic vendor by $500. lines of code. if you have staff not working as hard as you think they should. You can also set a goal of creating a new department for customer system support at the same time. Remember to agree on the consequences of not meeting the goals with your staff before starting to measure performance. G R O U P Organizational Goals In addition to financial goals. (e.g. its manager must create an organizational structure with specific roles and responsibilities. 200 lines of code per week. and so on. These costs include both direct (e. you can measure their output and set productivity improvement goals. 40 hours worked per week). especially in the current environment of cost cutting and budget control.g. Page 126 . number of hours worked) before this change. or reducing overall TCO by 10%. You can set a staffing goal of having three full-time people to handle all your customers’ system issues at the end of December. and financial budgets need to be set. which is increasing the demands for customer system support. your company may be integrating systems with dozens of new customers. you can set a productivity improvement goal (e. Total Cost of Ownership (TCO) Total cost of ownership (TCO) is a measurement of all the costs of purchasing and using a technology. I N F O ~ T E C H R E S E A Training Because technology changes so quickly. You can set TCO goals such as reducing you network TCO to $25 per user. Here are some examples of organizational goals: R C H Staffing When more than a few people are in an IT department. 100 lines of code per week. you can see where new staff will be needed in the future and plan for the changes necessary in the organizational structure. For example. reducing total purchasing expense by 10%. Organizational goals relate to the people working in the IT department and how they work. If some of your current staff is under-worked. Another staffing goal you can set is related to productivity. 30 hours worked per week).000. If you measure their output (e. However. the purchase price) and indirect (e. skills become obsolete very rapidly. TCO is a major issue for IT managers.g. Similarly. other system resources that will be used). Keeping IT staff current with the latest technologies is a necessary investment to keep your technology functioning optimally.g. As companies grow. training also costs money. you can assign more work to increase productivity.Strategic IT Planning and Governance from five to one. companies can set organizational goals for their IT department.

0 certified staff upgrade their certification to Windows XP certification by June 30.g. or adding “years of experience” to the database by the end of April. In addition. you can set a technical skills inventory goal of creating the inventory by December 31. You can set an application development productivity goal of 1000 lines of code per quarter per employee. P I N F O ~ Efficiency and effectiveness are related concepts that are critically important to any activity. but managing this is critical to the success of your IT organization and the overall company. total departmental costs) over time. An example of this type of goal would be to improve a specific employee’s evaluation from “Poor” to “Good” by the next review through coaching. Effectiveness in the IT department can be measured by surveying users to determine how satisfied they are with the IT department’s work. For example.g. Efficiency measures whether you are doing things right. You can set a goal of an average customer satisfaction rating of 4 out of 5 (where 5 is high) and measure performance towards that goal by surveying users. Efficiency in the IT department can be measured by taking outputs (e. These companies make inventories of their employees’ skills to match their skills with the projects they have to do. You can set management and review goals for doing performance reviews for all your employees by the end of the current quarter. the IT manager often doesn’t know every member of the department personally or what their skills are.000. or reducing the training budget from $10.Stage 7> Build a Strategic Decision Making Framework You can set training goals of having all your Windows NT 4. business value created) and comparing them to inputs (e. Although many large organizations require semi-annual or annual performance reviews of all employees. E A R C Technical Skills Inventory H G R O U . you can set management goals for coaching employees with poor reviews. smaller companies often don’t have these requirements. Page 127 Programming output is a very difficult activity to measure. and effectiveness measures whether you are doing the right things. or no more than 10% of the initial programming time spent on debugging afterwards.000 to $8. You can set a goal of improving the ratio of business value to IT department costs by 10%. Efficiency and Effectiveness T E C H R Application Development Productivity E S In larger organizations. Management/Reviews Having subordinates means that you must review their performance and manage them through problems.

the order entry application will be available 95% of the time Monday to Friday 8:00 – 6:00). while others don’t require as much (e. or being able to restart operations in 24 hours after a major disaster.g. customer satisfaction. order entry). you can set internal SLA goals for responding to all help desk inquiries within 30 minutes. but is still critical to many users.g. You can also set uptime goals for specific days and times (e. For example. Page 128 . There are several sub-types of technology operations goals you can set: Help Desk P Most IT professionals and users are familiar with help desk operations. building maintenance). support staff will respond to each inquiry in 30 minutes. and having virus definitions updated every day instead of every week. 95% of issues will be resolved 30 days after the initial logging of the request. G R O U Uptime Uptime is a more technical measurement of IT operations. many IT departments do not measure help desk performance on attributes like average response time. C H Service Level Agreements (SLAs) Service level agreements are critically important to managing external service providers. However. percent of issues resolved.5 out of 5).g. and so on. Security goals can include having all extra-company data communications encrypted with 128-bit encryption. but measuring their performance is critical to managing the trade-off between costs and user satisfaction. but are becoming more important at managing internal services. IT managers can set goals for business continuity planning of having real-time data available in the off-site location.g. IT managers need to be able to offer business continuity solutions that will let the company operate normally or almost normally very quickly. and users will have an average satisfaction rating of 4. T E C H R E S E A R Security Security goals are critical to protecting the company’s reputation and assets. I N F O ~ Disaster Planning/Business Continuity Planning Business continuity planning is a critical issue for senior management today. and providing 99% uptime to all network users. You can set uptime goals for the overall company and/or specific departments and applications (e. all financial systems will be up 99% of the time. and support staff will be available 24-7). Certain users require a great deal of system uptime (e. You can set goals for each of these metrics and offer performance guarantees (e. during month-end.Strategic IT Planning and Governance Technology Operations On-going operations may appear routine and boring to users and support staff.g.

g. To prevent this. Policies Users can do serious damage to systems in a variety of ways (e. managing IT assets is becoming a strategic imperative for IT managers. Internet use. You can set customer satisfaction goals of having certain performance ratings (e. e-mail use) or for writing new policies (e. IT managers must make all users sign policies that describe what behavior is acceptable. or auditing all PC assets by the end of June. Measuring customer satisfaction can be done informally by asking users what they think of your service or formally through surveys. C H User Services/Levels of Service R E S E A R C H G R O U P .g. hogging bandwidth with streaming media. or writing and distributing a wireless networking policy by September 30. For example. spreading viruses).5 out of 5) or improving existing poor performance (e. For example. and what the consequences are for unacceptable behavior.g. what behavior is not acceptable.g. handheld devices. 4. IT managers can set goals for getting users to sign existing policies (e. Active Directory to every sales employee) or higher levels of existing service to your users (e.Stage 7> Build a Strategic Decision Making Framework Asset Management As IT becomes a more critical component of the organization. getting all new employees to sign all computer policies. wireless networking). Page 129 I N F O ~ T E Many new services are possible with new technologies (e. Active Directory).g. you can set asset management goals for doing your first asset inventory by the end of December. improving the 2 out of 5 rating in the shipping department to 4 out of 5 by August).g. Customer Service Goals Customer service goals are very important because your users have more day-to-day awareness of them relative to other goals.g. Here are some customer service goals: Customer Satisfaction Customer satisfaction is probably the most important measurement of how good a job you’re doing. You can set goals to deploy new services to your users (e.g. higher bandwidth VPN access). you can set a goal of getting everyone in the company to sign the Internet use policy by March 31.

I N F O ~ Project Portfolio Management As you start to run many IT projects at the same time. Measuring alignment can be difficult. you may need to develop expertise in a specific technology that is not yet mature. Page 130 . or what you want to do with what you learn from scanning the environment. You can set goals for what features you need to develop from this business partnership. you can set a goal of making one. You can set goals to improve senior management’s understanding and/or increase their commitment to IT (e. T E C H R Top Management Commitment In many companies. You can also set a goal of creating standard tools for aiding this process. which technologies you want to spend extra time scanning.g. Here are some sub-goals you can make in the IT governance category: Project Approval Method/Process G R O U If you don’t have a standard methodology or tools for approving projects. but surveys of business and IT managers can be used to determine how aligned you are today and to set targets for future alignment. get the VP of marketing to sponsor a CRM project by December 31). senior management doesn’t understand and is not committed to using IT for competitive advantage.Strategic IT Planning and Governance IT Governance Goals IT governance refers to the high-level strategies and practices of IT management. Portfolio management means that you calculate business value for each project and determine which projects to undertake based on the amount of business value they will generate. or when and how you want to end such a partnership. You can set goals for how much time you spend scanning. This will require a business partnership with vendor(s) to ensure that the technology meets your requirements today and in the future. E S E A Business Partnership As business requirements change. P Business/IT Alignment Aligning IT with business goals is a critical issue for both business and IT managers. you need to manage them as a portfolio. C H R Environmental Scanning One of the most critical activities an IT manager performs is scanning the environment for critical technologies and issues that may affect the company in the future.

you need the specific data you gather. However. Change job descriptions of IT staff to match IT department goals and influence behavior. IT departments sometimes also need to develop new competencies in new technologies (e.g. This will give them a greater sense of responsibility and ownership in the outcome. Tracking actual performance lets you do several important tasks: • • Conduct performance reviews of IT staff based on the goals you set. help desk support).g. 4. you need to measure your actual performance towards them. they will feel excluded from the goal-setting process and work to sabotage the results. by December 31 the company will have hired five Java programmers and written 1. Evaluate employees based on the goals you have agreed to.g. This should be a negotiation instead of you imposing expectations on them. Map the performance expectations to their job descriptions.g. Java).000 lines of Java code). R 1.Stage 7> Build a Strategic Decision Making Framework Outsourcing/Insourcing IT departments need to outsource many routine and non-strategic activities (e. Page 131 I N F O ~ T E 3. This requires establishing specific numeric metrics. Get the employees to measure and track the results themselves. C H 2. Here’s how to get buy-in for your goals: E A R C Getting Buy-In for Your Goals H G R O U • Create and modify specific service level agreements (SLAs) as you learn more about what different customers want. This increases their ownership and lets them take corrective action as quickly as possible. E S • Publicize what a great job you’re doing with Before you assign goals to employees. IT managers can set goals for both outsourcing (e. You should also ask how the performance level goals can be improved and set the goals higher each review. Otherwise. Measuring the Success of Your Goals Once you have created goals. Involve employees in selecting measurements and quantifiable performance levels. P . all five locations will have outsourced help desk support by December 31) and insourcing (e. to make sure they agree and are committed to them.

The budget can be used as a living prioritization document that differentiates between essential and non-essential activities. Talk to the Right People.” Rolling budgets work by adding an additional quarter to the end of the budget as the current quarter ends.a specific percentage of your total budget . HR and finance will be able to provide you with some valuable information to help ensure accuracy.Strategic IT Planning and Governance Using Your Budget as a Management Tool Management Application Planning Risk Management Management Benefit Decision makers are forced to think through activities in detail. Last year’s final operating budget is your best “reality check” on actual costs. use this plan to help you turn your budget into a useful decisionmaking document. and continually revise your projections. Next. and secure resources in advance. whereas finance can help predict the impact of seasonal variations on income. Compensation and performance reviews can be tied to hitting budget targets. This forces you to think long term. revisit your plan four times a year. Every three months. benefits figures. Information on projected expenses helps to assess feasibility and risk. Working collaboratively to prioritize expenditures helps gain buy in from all staff.for covering cost variances in “iffy” areas. Know your variables and draft several advance budgets (“flexible budgets”) that account for potential variances. P G R O U Commitment Control Performance Evaluation H R Use the budget analysis tools in your workbook to help you identify potential line items on your IT department budget. Getting your decision-making staff on board with the budgeting process and helping them understand that the budget will be used as a measurement tool will ensure their commitment. Identify and investigate what are causing deviations from the budget and take action to either rectify or justify the differences. This method keeps your budget current and accurate. Identify Your Variables. Involve Others. S E A C H R E • • T E C N F O ~ • • I • Page 132 . and predict salary increases. However. HR will be able to provide accurate headcounts. The cost of some factors is hard to predict. Lay your assumptions on the table to ensure everyone is on the same page. • Look at Last Year. Prepare a report and share it with your staff. Prepare Quarterly Reports. Look Into “Rolling Budgets. See if you can gain permission to include a contingency budget . compare how well your department is faring against budget predictions. which is better for forecasting.new anticipated projects will have a big impact on your final numbers. avoid making your budget a mere extrapolation of the past .

you won’t be sorry when your CEO asks you to cut your budget by “Xpercent. build flexibility into your budget today. and profit per employee.” • • N F O ~ T E C H R E S E A R C H P . This knowledge will allow you to foresee what would take place if a particular line item were trimmed down or cut completely. Make it a practice in your IT department to identify the target line item for budgetary reductions. Building flexibility into your IT budget is key. • Budget Comprehension. return on equity.” Also. economy makes this the smartest pre-emptive move you’ve ever made. Then ask your employees to consider ways in which to maintain the business benefit of the line item while cutting costs simultaneously. This way. This push toward creative thinking will have big results.S.Stage 7> Build a Strategic Decision Making Framework Dealing with Budget Cuts Before your CEO demands a 10% cut to your IT spending. Why IT Gets Cut G R O U I Page 133 IT is often the first to get slashed when an organization is facing a financial squeeze because those in IT have traditionally done a mediocre job of linking IT performance with company business objectives. The Best Defense is a Good Offense. The downturn in the U. If a budget cut is necessary in your organization. integrate these methods into your IT department culture so that future cutbacks won’t cause insomnia. META Group states that 80% of Global 2000 enterprises have failed in merging their IT and business strategy. Only 20% will succeed in creating a unified business/IT strategy and establishing an architecture process that addresses the enterprise’s key business goals. Utilize Methodology. use these key methods to “trim the fat. What should you do? • Be Prepared. Make it a practice to tie IT performance with business performance measures like return on investment. return on assets. Make it your practice to understand the economic returns for the company on each line item within the budget. This allows you to prioritize projects and protect those of high priority. Show through the numbers that IT is not just a cost center.

Strategic IT Planning and Governance I N F O ~ T E C H R E S E A R C H G R O U P Page 134 .

Page 135 I N F O ~ T E C H R E Present the plan to Senior Management and require its official approval. Executive sponsorship is critical for any strategic initiative to succeed. and Maintain Your Strategy Stage 8 Step 1 – Build Your Strategic Plan Documentation Use the Strategic IT Plan template to bring together all of the elements you have created in this process into one concise plan that can be recommended to senior management. communication is the key. We also have a template that you can use to create a comprehensive strategic plan presentation. In this stage we outline what you need to do to formally launch your Strategic IT plan. and Maintain Your Strategy Stage 8> Publish. Step 3 – Communicate and Manage Change If your planning process has been open and broadly-based. However. You also need to consider the organizational impact of your initiative. Promote.Stage 8> Publish. seek formal approval. As with much in the realm of strategic planning. Now you need to pull everything together. S E Step 2 – Present Your Plan to Senior Management A R C H G R O U Congratulations. You have completed the work of creating a Strategic IT Plan for your organization. P . Promote. it is still important to develop a communications plan to ensure that all stakeholders are fully aware of the plan’s contents and implications. and get the ball rolling. the completed plan should not be a surprise to anybody.

........ Promote................................................................................................ and Maintain Your Strategy..................... Review your progress........................ 135 Step 1 – Build Your Strategic Plan Documentation ....................................... and Maintain Your Strategy.........................................................Strategic IT Planning and Governance In This Stage Stage 8> Publish............................... 147 Adjusting Your Current Organizational Structure..................................................... 143 Design the Roll-Out Plan ............. 185 8.............................2 Notes for PowerPoint Slide Presentation .......... If your proudest achievement is a nice looking plan document................... 149 Tips For Ongoing IT Strategic Governance................... 187 8..... 190 8... but you still feel that the executive and IT can’t talk about strategy........................................ 137 Step 2 – Present Your Plan to Senior Management...... 138 Step 3 – Communicate and Manage Change ...... The end of this methodology should be the creation of a permanent strategic planning process that includes a governance model and an overall goal of business/IT alignment............... 141 Background> A Guide to Killer Boardroom Presentations.... Promote....... 150 G R O U S E A R C H P E Workbook Stage 8> Publish........................ I N F Page 136 .. 192 ~ T E C H R O Agility Tips The end of this strategic planning methodology is not the creation of a strategic plan document..............3 Communications Plan Template ..................................................................... 139 Stage Summary... you still have work to do.... 146 The Rollercoaster of Change.............................1 Notes for the Strategic IT Plan Template........ 142 Guide to developing a communications plan................

1a IT Strategic Plan Template”. Promote. An initial set of prioritized projects that have been identified as providing the greatest strategic value to the organization. P Much of the content of your strategic plan can be derived from the workbook tools you have already completed. it is still important to have unanimous approval of the document before it is presented to senior executives and the stakeholder community. Open “8. ü Create a master strategic plan PowerPoint presentation. there will be few surprises in the content of the plan for your planning group. paradoxically. ü Circulate a draft of the plan to your planning group. G R O U I N F O ~ T E C H R E S E A R C H What You Need To Do ü Assemble your strategic plan document.Stage 8> Publish. your projects. and Maintain Your Strategy Step 1 – Build Your Strategic Plan Documentation Objectives: • • Create a formal strategic plan document. Your Executive Summary should be one to three pages long and should persuade management that your suggested plan is the best course of action for your company. costs involved. The file contains a link to the shell PowerPoint presentation “8. and expected timelines. This is a succinct summary of your entire plan with specific focus on changes or projects proposed. If your process has been inclusive. to write the first page – the “Executive Summary” (also called a Management Overview) section of the template. The Executive Summary is the single most important section of your plan and. your Strategic IT Plan is complete and ready to be proofread. Page 137 .2 Notes for PowerPoint Slide Presentation” provides you with notes for incorporating your SITP workbook content into a comprehensive presentation. grammatical errors and poorly structured ideas can seriously impact your credibility and diminish the likelihood that management will approve. “8.2a Slides to Present Your Strategic IT Plan. Once you have completed the Executive Summary.1 Notes for the Strategic IT Plan Template” indicates which workbook content should be incorporated into the plan. The final step of the plan creation process is. let alone champion. in many cases. Create a master strategic planning PowerPoint presentation. it is the only section that management will actually read.” A formal plan provides a tangible object that you can bring to senior management for approval and adoption of: • • The strategic IT planning procedures that you and your planning group have established including the steering committee and the prioritization matrix. “8. However. Treat your plan as carefully as you would a resume to a prospective employer. Spelling mistakes. Most of the content for the plan should now be in your workbook.

ü Keep your presentation short and punchy (one hour or less) and leave a lot of time for questions. or line workers. Make sure that you give them at least a week before you need to create a final draft. Make sure to conclude your presentation by asking for formal approval of the plan. other managers.8 Convergence of Technology and Core Business Strategy” – is more focused on educating your audience about the reasons that you have completed a strategic plan for the IT department. whether it is to senior executives. G R O U R These presentations will provide valuable backup material for communicating your strategic IT plans and processes.2a Slides to Present Your Strategic IT Plan” that you can fill out with highlights of your plan. They will want to talk in terms of costs and benefits. In the workbook section “8.1 Notes for the Strategic IT Plan Template” you will find detailed notes suggesting how to use your workbook content to populate the slides in “Slides to Present Your Strategic IT Plan. The PowerPoint Presentations P In addition to the strategic plan template document in Microsoft Word. I N F O ~ T E C R Page 138 . Remember that your audience is probably not very technically oriented. highlight specific areas that they should focus on in case they do not have time to read the whole document.” E S E A C H H Step 2 – Present Your Plan to Senior Management Objective: • Win formal approval of the Strategic IT Plan and its recommendations. What You Need To Do ü Send out the final version of your plan ahead of time to everybody you have invited to the presentation. • • The first is an empty template called “8. so don’t alienate and bore them by using techno-babble. The second – “1. Use either or both. we also provide you with two PowerPoint presentations. Invite them to critique it and make suggestions for improvement.Strategic IT Planning and Governance Have a draft of the plan reviewed and approved by your planning group. ü Wrap up with approval and next steps. You may also want to cut and paste slides from one into the other to create your own presentation. Make sure that you make the time and date of your presentation clear and confirm who will be attending ahead of time. Since your document is probably fairly lengthy by now. depending on your objective. so make sure that you have these figures handy for every single aspect of your plan. Outline what will happen next.

Stage 8> Publish. Plan to mitigate the impact that strategic projects may have on your staff. Page 139 . Make sure your strategic planning effort does not become an historical footnote. What You Need To Do ü Develop a formal communication plan for the SITP. It is your opportunity to get others excited about the opportunities that technology can create for your company. To others. Many well-conceived IT initiatives have failed because they did not have executive sponsorship and support. G R O U I N F O ~ T E C H R E S E A R C H P Step 3 – Communicate and Manage Change Objectives: • • • Communicate the plan to the broader community. for a variety of reasons. This should be the most enjoyable part of completing a strategic plan for IT. it is the one that most IT professionals overlook. ü Establish a timetable for change. and given to only those who request it.3 Communications Plan Template” to devise a communication strategy to promote the goals and objectives of your strategic IT plan. Prepare for change management. Establish long term goals for Governance. The plan should clearly indicate actions that need to be taken by you and others to promote and raise awareness of the plan. you need senior management to approve and champion it. Use “8. Do not fall into any trap that prevents you from communicating your plan with as many people as possible. laying out a plan with milestones is done only when requested. It isn’t enough just to inform people of impending change. For your plan to be truly successful. To some. Your understanding of your company’s business objectives and your ability to demonstrate the ways in which your plan supports those objectives is essential in gaining support from senior management. and Maintain Your Strategy All the work you have done thus far is not worth much if you do not communicate and sell your plan to senior management. ü Prepare to manage change. make sure there is a timetable in place to review the plan and develop annual revisions/additions to the plan. Creating a Strategic IT Plan has limited value if you do not communicate the end result to others. Although this is perhaps the most important section of this entire document. communicating with others is something they do not feel they are particularly good at. In addition to project milestones. Promote.

Prioritize Multiple Improvements: Often there is more than one change opportunity in play. 5. Construct a Timeline: Once you know what needs to happen. budgets. brainstorm how the process will look in its new and improved state. Define the Project Adequately: Clearly defining the project being pursued will help sharpen the vision. Nebulous or overly broad problem statements are harder to work with than more direct statements. Coordinate to ensure the right people receive the right training at the right time to maximize positive effects. the next decision is when it will happen. Develop an implementation timeline that incorporates major milestones and actions for approvals. 4. Make the Intended Outcome Clear: The goals of the anticipated change should be made clear to all those affected by the change. Focus on measurable value that is highly visible. Do a training assessment in conjunction with the Human Resources department. especially if the change requires new skills or competencies. Determine which of these to pursue at which time. 2.Strategic IT Planning and Governance Establish a Formal Change Management Process Follow these steps to manage your process of change: 1. Clearly identify on the timeline all items that can halt the progression of the plan. 3. Break the problem down into bite-sized portions. Identify which actions may be taken concurrently and which are dependent on other elements. Assess Your Training Needs: Training is essential when changing a process. Feasibility and Benefits: To help calculate the possible costs and benefits of the change. The new process may mean less waiting time for client support. Consider all users of the process and how their interactions will change. or less paperwork. and then stick with your priority. P I N F O ~ T E C H R E S E A R C H G R O U Page 140 . 6. fewer people behind the scenes. Market these benefits to the user community. and resource requirements. Consider building a prioritization matrix that measures each opportunity against established criteria. Determine Costs.

Stage 8> Publish. Promote. Hardware and Software Inventory Analysis of IT Trends Review of IT Against Governance Maturity Model IT SWOT Analysis List of Proposed Future IT Directions List of Requirements for Resolving Gaps (Roadmap) Corporate IT Vision Statement Corporate IT Governance Charter Strategic IT Goals Achievable Measures Budget Analysis Prioritized Project List Completed Strategic IT Plan Document Comprehensive Strategic Planning PowerPoint Strategic Planning Communication Plan Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Stage 1 1 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 7 8 8 8 Page 141 I N F O ~ T E C H R E S E A R C H G R O U P . Status Creation Of Steering Committee Scope Definition of “Strategic” Strategic IT Plan Kickoff Meeting Preliminary Report With Goals and Timeline Document corporate Vision. Mission and Strategic Goals Analyze Core Competencies and Competitive Position Current IT Organizational Structure. and Maintain Your Strategy Stage Summary: Publish. In this final stage you have put together plans and materials that will help you communicate this process and the value it will create to the organization as a whole. Promote. and Maintain Your Strategy By following this process you have established a framework for formulating IT strategy and making strategy level decisions about IT for your organization. The following chart shows the progress of developing the plan after Stage 8 of the engagement.

Balance Words with Images. Limit yourself to 20 words per slide. you have 30 minutes to present. but also the questions that you are likely to be asked. not repeat. Use Slides to Hammer Home Key Points. Use short bulleted information nuggets complemented by photos and graphics. but confronting a team of cynical executives is the ultimate presentation stress test. Stay within your presentation software’s default title and text blocks. Subtract three (10%) from 30 to get 27. This means that you should have no more than 25 slides for a 30-minute presentation. Use these tips to help you master the art of boardroom presentations. or tables that require explanation. you need to knock. follow this time management rule of thumb: • To decide on the total number of slides you should have. Presentation technology won’t save poorly organized material. and two minutes for those with graphs. and round down to 25. Here are some tips to help make your presentations sing.Strategic IT Planning and Governance Background> A Guide to Killer Boardroom Presentations P Giving a presentation on the best of days is a nerve-wracking experience. O ~ N F • • I • Page 142 .no more than five lines per slide and five words per line. and an LCD projector anybody can put together an effective presentation. • Tips for Building Blockbuster Presentations With Microsoft PowerPoint. their socks off. • Organize Your Information. Plan Your Time: Allot one minute per slide. S E A R C H C H R E • T E 2. Maintain Readability: Projections aren’t as clear as on-screen visuals. When planning your presentation. a laptop computer. For example. charts. take the total time allowed. and round down to the nearest five. not bore. Master the 5x5 rule . Speak to the audience and have the slides support. Wordy slides are dull and distracting. subtract 10% of that time. You should be able to state the goal of your presentation in fifteen words or less. Consider not only the information you must present. G R O U Presentation Best Practices: 1. your words. The most boring presentations feature a speaker reading the content of his or her own slides to the audience. • Use Arial or Times New Roman fonts only and a minimum 18point size. When the CEO invites you to make a presentation to the senior management group.

especially for detailed or complex visuals.Stage 8> Publish. their job is not to communicate on your behalf. Developing your presentation skills is an important way to get your voice heard in your organization. and Maintain Your Strategy 3. Here are just some possible initiatives that might warrant a communications plan. and backup copies of your presentation saved to CD-ROM (floppies are not reliable enough). R C H 5. • • • Focus on perfecting the first 30 seconds and last 15 seconds of your presentation. cables. modem. Practice holding eye contact with individual audience members for upward of five seconds. always have print copies of it available (note: conserve paper by printing multiple slides per page). Page 143 . explain later”. IT professionals pride themselves on being doers. To move your projects ahead you must be able to build consensus and develop relationships whether it be with other business units within the organization or with a client base. For starters. IT is central to business processes and organizational goals. Use this guide to evaluate their services. If you do present an electronic slide show. Promote. and practice. Quick left to right scanning of the audience is less likely to engage them. Bring Two of Everything: Assume that your technology will fail. These moments are where lasting impressions are made. Avoid Real-Time Visits to the Internet: The risk of technology failure is too high. store a copy of the site on your hard drive and use your browser to open the file. attitude can doom a project as surely as faulty technology. We have attached a downloadable template document that you can use to create your own planning documents. Double or triple up. P Guide to Developing a Communications Plan Face it: communications skills are not among the many abilities for which information technology (IT) professionals are known. Other media – such as handouts – are sometimes more appropriate. 6. Remember. This brief guide will walk you through the creation of a communications plan. But a “do first. You have to ask yourself whether the issue that needs communicating is worth the time investment. Be brief and candid. G R O U I N F O ~ T E C H R E S E A In the boardroom. 4. your budget and your reputation are on the line. Your organization may be large enough to employ professional communications staff. not talkers. Finish early. it is to help you communicate. Don’t Use Technology Just Because You Can: Technology cannot replace creativity. bring an extra laptop. This shows respect for your audience’s time. Instead. Hone Your Style: The only way to improve is to practice. Are they asking the right questions? When Do I Need a Communications Plan? It should only take a few hours to draft a communications plan. You must be able to communicate what you are doing and why it matters to them. practice.

Consider these questions: • Who is our audience? This seems like a “no-brainer”. • P G R O U • R C It is also important to note that if you have a range of existing communications vehicles. your communication effort is in serious trouble. a newsletter. To maximize awareness and acceptance of a new application or service. when. you need to plan how to make effective use of that tool. regular e-mail. or a memo – without appropriate consideration of the audience or what you would like that audience to do. “Build it and they will come” is not enough. Before you commit anything to paper. however you should be able to state the benefits of a particular technology in simple terms. The action encouraged by your plans might be as simple as attending an open meeting or going to a Web page for more on a new application. for example. what. Introduction of New Communications Vehicle. If you can’t put what it is you want to communicate into three or four simple bullet points. A newsletter or a Web site is only a tool. and why of using these media. During Y2K initiatives.Strategic IT Planning and Governance • • Major Software/Service Roll-out. What do we want our audience to do? The best communication plans encourage an action on the part of the audience. H A Key Point: Start With the Audience A key failing of many communications initiatives is that they begin with output products – such as a distributed e-mail. A communication plan will help you identify the how. or intranet page – should itself be given maximum introductory exposure to encourage its use. O ~ T E C H R E S E • I N F • Page 144 . If you have ever been in a meeting where somebody said. Focus on creating a list of key messages. If a newsletter is being done solely to “make the head office happy” then the audience is the head office. Department/Organization Wide Desktop Upgrade. not the people reading the newsletter. it is a good idea to sit down with those involved in a particular project and brainstorm about your audience. this does not mean you don’t need to do communications plans. This should reduce service-calls after the fact. Saying “we’ll put something in the newsletter or on the Web site” is not enough. Do some advance legwork to help clients see the value of a change to their desktop workstation. communication of Y2K issues to clients was part and parcel of encouraging due diligence steps that needed to be taken. Communication is crucial to encouraging compliance with policy such as a new security policy or a disaster recovery plan. “We should have a newsletter” or “Let’s e-mail everybody about it” then you have witnessed this thinking. but it can be more complicated than you think. A new communication vehicle – such as a newsletter. New Policy Initiatives. Does your audience read newsletters or do they line budgie cages with them? Do they read and respond to e-mail? Do they use the Internet/Intranet? What do we want our audience to know? Information Technology is complex.

message.Stage 8> Publish. The goal is to have a simple. If you are going to produce anything on paper. Given all of the possible barriers that may exist. and Maintain Your Strategy The considerations prompted by the above questions should be interlocking. no more than one short paragraph. Now it’s important to plot out a timeline for the proposed actions to take place. Post Mortem: A firm date should be set for reviewing whether or not the timeline was met and what impact the communication plan had. one or two page document that lays out your plan to achieve clear communications goals. Suggested Actions: Now comes the fun part. what are the best ways of carrying your message to your audience to help you move them toward a particular goal? This part lends itself well to a brainstorming session: start with all the options regardless of how unusual or expensive. Roles and Accountability: Many an exciting communications plan has died because of inadequate follow through. Potential Barriers: You know whom your audience is and what you want to say to them. make sure you consider the cost of production and distribution. This should be a brief statement. You should be able to boil down your messages into two or three bullet points. Now ask what possible barriers stand between your message and your audience. Budget: Time for a reality check. Here then are the components of your communications plan and what each of them means: • Overall Goal(s): Begin with a statement of what you hope to achieve with this communications effort. ask yourself why they should care about your message. P I N F O ~ T E C • • • • Page 145 • • • • H R E S E A R C H G R O U . Objectives: Break down your overall goal into two or three discrete objectives. For example. Consider the costs that will be incurred if you outsource the job in whole or in part. Anatomy of a Communications Plan Your communications plan will lay out how key considerations – such as audience. the nature of your audience and how they receive information will guide your choice of communications vehicle. Take care to consider maximum impact for each action and a mutually supportive timetable. Key Messages: This is where you list the gist of what you want to communicate. Your plan should be clear about who will be responsible for various actions and who will make sure the timeline is met. Timeline: By this point you should have a short list of actions that are “do-able”. and action – fit together and with other considerations such as budget and timeline. Your key messages will provide the “why” for what you want that audience to do. Be realistic. In essence you are stating your conclusion first. Time is also a resource that should be budgeted. Promote.

5.Strategic IT Planning and Governance Design the Roll-Out Plan Control is an essential part of any project roll out. Don’t forget a contingency plan – if things aren’t working. Keep your team apprised of problems and progress – change is much less harrowing when people can see where they are headed. 2. 3. Each project requires a Project Charter with the following components: • H • • • • C Sponsorship: Who is commissioning the work? User Community: Who will use the product? How many users are there? Functions: What will the product do? What purpose will it serve? Deadline and Other Constraints: When must the project be ready for release? Budget: Who is paying for the product? P O ~ T E R E S E A R C H G R O U 2. This section will help the Project Managers start the task of outlining each project. procedures and requirements. Cost Management: This includes processes used to ensure that the projects are completed within the approved budget. Plan Each Project. 4. I N F Page 146 . Time estimates are difficult aspects to predict accurately. Proper planning requires the project manager and sponsors to do the following: • • Create a Work Breakdown Structure. stakeholders. 6. This involves determining in detail all tasks needed to finish each project. Team Management: The project managers need to develop skills that create an efficient production system and a cooperative and effective team culture. you need a well-thought-out backup strategy. Estimate Task Times Accurately. clients and senior management. Communication Management: This enables interaction between project teams. Double check to ensure that the following steps are included in your project implementation: 1. Make sure your project plans have the following components to ensure you’re controlling it instead of the other way around: 1. avoid and control project risks. Time Management: This includes processes and techniques used to ensure the timely completion of each project. Unexpected delays and unforeseen aspects of implementation often extend a timeline by over 40%. Define Each Project. Risk Management: This includes strategies and tactics used to identify. Always come equipped with a detailed project plan complete with goals and milestones. Quality Management: Activities and techniques used to ensure that all project activities and work products comply with all relevant standards.

Depending upon client demands. Make sure that the project plans are signed by someone with the authority to approve each project. The diagram below represents the “highs” and “lows” of the change process as experienced by individuals in a given organization.Stage 8> Publish. A Task Analysis Form is used to collect information of the most consequence for your schedule and budget. The formality of client approval generally depends on the size and complexity of each project. • • • Rolling out a full-scale IT strategy can be a large undertaking that required meticulous planning. but this is essentially the reason for the project plan – better to revise the requirements now than to do it during implementation. This may seem to be a simple point. An unrealistic budget will only create frustration and disappointment among your project teams. Create a Budget. so make sure your estimates do not turn into a “pie in the sky” piece of work. Win Client Approval for the Plan. the project plans may need revising. Schedule Each Task (using a Gantt chart or Critical Path Charting). When selecting members for your project teams. but it cannot be stressed enough. and Maintain Your Strategy • • Create Task Analysis Forms. while the Critical Path charts aren’t date specific but represent more accurately the task-by-task progression of the project. The final step in planning your projects is obtaining the approval of your clients. If your selection list extends beyond the skill set requirement. Promote. Gantt charts attach work tasks to a calendar. make your selections based on individual (or team) track records. managers must understand how to conduct change correctly in order to minimize department and company-wide stress during and after implementation. multiplying the lack of incentive to complete the projects in a timely manner. Staff the Project Team. If you think you’ve covered all the bases. Page 147 I N F O ~ T E C H R E S E A R C H G R O U P . A budget can only be useful if it is realistic. you may have limited options available. Make sure that your selections reflect the collection of skills needed as well as who is available. The Rollercoaster of Change Regardless of the reasons for change. Selecting teams and team members with proven track records improve the probability of your project being delivered on time and within budget. and then check one more time for good measure. The effect of change on employees and managers is stressful at the best of times. check again. Make absolutely sure that you convey to your personnel why changes are being made and how they will affect different people’s positions.

lower productivity. Acknowledge the stress. communicate clearly and often. Page 148 . This is the most painful part of the change process. but also sell the benefits for the organization and its employees. and stress the positives of what lies ahead. Acknowledge the disruption and insecurity change can bring. and their productivity improves. Organizations involved in a large change process experience higher rates of employee dissatisfaction. Previous change experiences play a large role in the perception amongst personnel of how the change process will play out over the long term. or denial. This gives employees a sense of hope about the future. listen to personnel concerns.Strategic IT Planning and Governance Rollercoaster of Change H G R O U P E A R C • Step 1 – Shock/Denial: When change is announced. Pay close attention to the people factor. expect a “bottoming out” period. which may manifest as shock. Delegate tasks so that all staff members are participating in putting the pieces together in order for them to buy in to the new post-change vision. Step 3 – Hope/Readjustment: As demonstrated by the diagram above. With consistent progress and small successes at the front-end of the project. • T E C H R E S • N F O ~ • I Change usually has a cultural impact that is often underestimated. Watch for “fight or flight” responses in personnel. and explain why the change is taking place. People start to become more proficient with the new way of doing things. personnel will probably respond negatively. dispel uncertainty. people will become more comfortable with the concept of change. Step 4 – Rebuilding: The pieces of the puzzle should all be on the table and how the pieces fit together increasingly apparent to individuals at all levels of the organization. anger. However. Step 2 – Acknowledge Depression: Pretending that personnel are not experiencing stress brought on by change is dangerous. which creates a virtuous circle of productivity improvement and greater hope. and high turnover. Establish a rewards system based on success measures to motivate participation. Unfortunately. shortly after the bottom. things start to improve. Clear two-way communication can mitigate many of change-associated staffing losses. express empathy. many change experiences are fraught with stress.

Creating an organizational infrastructure plan for your department. your timeline for terminating the ‘bad apples’ should be at most six months. get them caught up as soon as possible. but it is probably also the most important factor in both your and your department’s success. but you should begin planning to replace them. but you have to be careful to avoid disrupting your current culture. • • • • • • Page 149 . There may be a number of reasons that you have held on to them until now. Train to retain. and managing to it will make your department happier and more productive because everyone will know where they stand and where they are headed. Promote. We don’t have enough people. The important thing to do now is to recognize the situation and determine an action plan for making improvements. You run the risk of losing these people if you do not move them into positions where they can use their abilities. Too many moves too quickly can make everybody paranoid that they are the next to be replaced. Get rid of the bad apples. but are not currently in positions ideally suited to their skill sets. it is only fair to your staff to provide them with feedback on their performance. Manage their careers. you probably had one of two reactions when you saw the results: • • No wonder I never get a break. show them some appreciation by investing in training to keep their skills current – they will repay you with increased loyalty and improved productivity. Hire to fill gaps. Take heart in knowing that you are not alone. Make the obvious moves. Review your organizational chart quarterly and make adjustments as your needs change. most IT departments are either staffed inadequately or inappropriately. Let’s face it – managing your people is probably one of the most difficult parts of your job.Stage 8> Publish. Here is what we suggest: • Conduct performance reviews. communicating it to your staff. Adjust the mix. and Maintain Your Strategy Adjusting Your Current Organizational Structure If you did the work on the previous pages to assess your optimal organizational structure. Depending on the nature of the problem and the potential to replace lost skills. Now that you have the right mix of people. It is probably equally likely that you have some people who are counterproductive to your efforts. G R O U I N F O ~ T E C H R E S E A R C H P Simply put. Waiting to hire people may feel like you are moving slower than necessary. Only once you have moved your existing staff into positions that best fit their skills and terminated employees who do not fit should you begin hiring to fill gaps. Chances are that a number of your staff are very competent. If you are behind on completing your performance reviews. Before you make any changes. How do we get anything done? We don’t have the mix of skills we need.

P A R C G R O U S One of the first steps you should take is to assign a Project Portfolio Manager. Look at which projects share common resources. Governing your projects as a comprehensive portfolio will help you to track projects over the long haul. Prevent project redundancy and overlap. you should find new ways to make use of them in other projects. and map out risk points and mitigation plans. this could have a ripple effect through all other projects with which it shares resources. minimize risk. and optimize resource allocation. PPM allows you to: • • • • H Catalog and know what projects are planned and/or already underway. is to identify project winners and loser early. most projects are often treated as independent silo operations. This person will manage the Project Portfolio Master Schedule and be responsible for calling all quarterly meetings of top executives. This approach can result in too many projects and too few resources. namely staff. if some resources are being underutilized. Underutilized assets that can be deployed elsewhere 2. I N F O ~ T E C Re-establish Project Priorities Projects should be re-prioritized as funding and business conditions change. and other techniques Always be vigilant in watching for ways to maximize resource utilization. Page 150 . R E E H Review Utilization Opportunities Cross-project thinking will help you identify opportunities and risks. Project Portfolio Management (PPM) allows you to collect and control your entire suite of IT projects as a single set of interrelated activities. Become aware of the interrelationships and interdependencies between projects that could cause ripple or domino effects in the event of a problem.Strategic IT Planning and Governance Tips For Ongoing IT Strategic Governance Complete Quarterly Top Executive Investment Reviews A quarterly review of your projects and investments is essential to guaranteeing the health of your overall strategy. Over-utilized assets that need to be conserved 3. Allocate shared resources more effectively and flexibly. and the Project Portfolio Manager in general. However. The goal of these quarterly meetings. Ways to improve asset utilization by training. If one project falls behind schedule. Similarly. Prioritize all projects against strategic business goals. PPM is based on the same theories as those governing financial investment portfolio management. mentoring. Identify the following: 1.

The cuts you make to your portfolio may be dictated by resource availability. low priority projects. For each entry. 5. Make this repository as detailed as possible. These should receive the highest resource allocation. Label your projects as: • • • A utility project (basic necessary maintenance) An upgrade project (improvement of the existing technology base) A strategic investment project (new endeavor that will bring revenue or increased service). and minimize risk are your most important and should receive top ranking. Divide your ranked projects into types: Different projects achieve different organizational aims. IT. If you make any changes. not the project level. include the project name. involve different stakeholders. Make Cuts: The overall health of the portfolio. 3.Stage 8> Publish. goals. Localized cost-cutting projects should be of the lowest priority. maximize profit. and all staff members assigned. consolidate all project details. marketing. and often receive funding from different sources. including their role and degree of involvement. N F O ~ T E C H R E S E A R C H G R O U . If you make any changes. Reprioritize Regularly: Projects should be re-prioritized. Remember: all changes should be made at the portfolio level. established timeframes. or in reduced resource allocation to. Once these objectives are clear. funds and resources reallocated. description. Meet with key stakeholders from sales. 2. is your goal. 4. Catalog all projects: Using a spreadsheet or database. P I Page 151 • • Projects that most closely align with organizational objectives. Separating out these projects will help you decide what percent of your budget should be directed at which project types. Re-prioritize all projects: Project value should directly correlate to organizational objectives. and other departments on at least a quarterly basis. Remember: all changes must be made at the portfolio level instead of the project level so that the best opportunities from across the organization are pursued. Promote. not individual projects. assign rankings and update your catalog. operations. and timelines rescheduled on at least a quarterly basis. add them to your project portfolio repository as soon as they are made. finance. add them to your project portfolio repository as soon as they are made. estimated costs. and Maintain Your Strategy 1. Cuts could come in the form of complete cancellation of.

I N F O ~ T E C H R E S E A R C H G R O U Page 152 . once per year should be often enough to ensure that you are changing with the times. You should now have the support of key stakeholders in your organization. which will make implementing your plan much easier. but not so often that you are operating reactively. Patton P Congratulations! You now have a methodology and a living document to guide you. We suggest reviewing your plan and making revisions on an annual basis. If you take enough time to complete this plan properly. George S. Keep their support by maintaining an open and continuous dialogue through your IT Steering Committee.Strategic IT Planning and Governance Conclusion A good plan today is better than a perfect plan tomorrow. unless there is a significant change to your business that requires you to rebuild your plan. your department. and your organization in the strategic application of information technology.

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K. Info-Tech provides practical and thorough solutions that enable IT Managers to bridge the gap between technology and business. to stay current. Joel McLean. Research Analyst Contributors: • • • Davin Juusola.Strategic IT Planning and Governance About Info-Tech Research Group Info-Tech Research Group is a research and professional services firm focused on providing premium research and advice geared to the unique needs of IT Managers of mid-sized enterprises. Jason Livingstone. Note: All Web links in this document were checked for accuracy and functionality at the time of publication. guarantee that referenced Web sites will not change the location or contents of linked materials and will not be held responsible for such changes. Research Manager. G R O U P Strategic IT Planning and Governance: Info-Tech’s Step-By-Step Consulting Methodology Authors • John Sloan. Our web publications. education.com. however. C H R E S © Info-Tech Research Group. reports. We cannot. Vice President. E A R C H For more information about the Info-Tech Research Group. T E I N F O ~ S Page 154 . CEO. see our Web site at http://www. methodologies. and achieve professional success. and how we might help you. and consulting services help IT professionals across North America and the U. 2004.infotech. effectively manage people and technology.

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