Tuesday, May 22, 2012
sourabhhajela

Why bad things happen to good IT Strategies?

On: 05/19/2009 Views: 1231

Rating: rating

add to favoritesADD TO FAVORITES

download ATTACHMENT
download COMMENTS(0)
print PRINT

You thought you have dotted all Is and crossed all Ts but still the IT Strategy failed. Why?

You did everything right. There was a steering committee, charter, process, framework, thorough analysis and an unbelievable deliverable. This was a perfect IT Strategy – even the consultant said so. Then why did it fail?

Before we answer this question, we need to rephrase it. Did the strategy fail or was it the team? Let me explain.

For argument’s sake, let us assume that this was indeed a very good IT Strategy – it got the key business imperatives and accurately identified the implications for IT. It also got the projects and priorities right and crafted a realistic plan of action. This team really hit the mark on all aspects of this issue.

Then how can we say that this IT Strategy failed?

The focus of this discussion is on other things so let us briefly answer this question. The signs of failure of an IT Strategy are everywhere. They cannot be missed. Lack of action is the most obvious one. Lack of funding for key initiatives is another one. There are many more but I hope you get the point - to be successful, an IT Strategy has to be implemented. And implemented successfully.

Sometimes the best IT Strategy fails because the team misses the critical factor to its success – stakeholder communications. To get stakeholder communications right, IT Organizations need to understand, acknowledge, accept and implement the following.

It is the business’ IT Strategy

IT Organizations have a hard time accepting this fact: IT Strategy is owned by the CEO not the CIO.

IT is an item on the CEO’s agenda. CIOs take their cue from that. At no point should there be confusion on who really owns this strategy – it is the business executive. The CIO is their trusted advisor and implementer. Nothing more, nothing less.

Engage the business

If it is the business’ IT Strategy then it is logical that they – key business executives or functional heads - be engaged not merely involved. Engagement turns “ownership on paper” into “ownership in practice”. It is the latter that makes the difference between success and failure of an IT Strategy.

How do we get the business engaged? How do we know if they are merely involved or really engaged? Here are a few examples:

  • Receiving status reports on the IT Strategy initiative is involvement. Writing and contributing to it is engagement
  • Attending IT Strategy meetings is involvement. Owning a deliverable is engagement
  • Listening to presentations is involvement. Presenting a section of the report is engagement

Who should you engage?

In a large organization, this is the million dollar question. The IT Strategy team has to wade through a list – sometimes as big as 100 names – of people to decide whom to engage.

Often, we get the initial list wrong. The usual suspects are all on it – those that are visible for one reason or another. Functions such as Marketing and Operations are well represented. Larger than life personalities make it no matter what their functional affiliations.

However, key stakeholders are missing on this list and that sets in motion the eventual demise of all the hard work that follows.

How many IT Strategy initiatives involve the Procurement Organization? How many actively engage the HR Organization? Getting organization charts is the beginning of such an engagement but it does not end there. IT Strategy has deep and lasting implications for the entire enterprise – HR is a key stakeholder and must be actively engaged throughout the process.

Stakeholder preferences also play a critical role. There are those stakeholders who want to be engaged – whether they have anything to do with it or not; whether they have anything to say or not. Then there are those who pretend to want to be engaged but really do not have the time or inclination.

So how does one get the “right” list? One needs to cast the net wide and then funnel to the correct list by asking the following questions.

Who should be engaged? Why? Carefully think through the list of stakeholders. Some need to be on this list because they have something to say. Others can clear hurdles. Others can be prevented from throwing stones.

How should they be engaged i.e what role will they play? Some will be on the core team. Some will be informed. Some will attend key presentations.

When should they be engaged? Some will be engaged throughout the process and some others will come in at key points. Understanding who comes into the picture when will help craft communications to them.

Often, the answer is not a whittled down list but a cube with three dimensions – stakeholder, medium and timing.

How should you engage them?

When it comes to communications, our focus is on emails, reports, presentations. Often, the same tools are applied for the entire audience without discretion.

Communications need to be personalized. Timing, medium and content must be tailored to the audience. For example,

CEOs must be interviewed to get their perspective. In fact, they should be one of the first, if not the first, people to be interviewed. They must be kept in the loop continuously throughout the process:

  • Be on the distribution list of key executive communication
  • Invited to key presentations
  • Regular, perhaps monthly, meetings to show deliverables and get their perspective on them

CFO must also be interviewed and get the same written communications as the CEO. However, do they need to be met with monthly to get their perspective on key deliverables? Perhaps.

Similarly, head of HR, needs to be interviewed and receive written communications. Do we meet with them monthly on IT Strategy?

Personalized communications are invaluable to the success of an IT Strategy initiative. But communications are not just written or spoken words as in emails and presentations. Communications is also about getting active participation of the key stakeholders:

  • Should a finance person be on the core IT Strategy team? Should they be involved in calculating the ROI of key initiatives? Absolutely.
  • Is there a spot for an HR person on the IT Strategy core team? Should this person own the organizational implication section of the deliverable? Absolutely.

An IT Strategy initiative that engages all key stakeholders is right from the start. Because there is no such thing as a perfect IT strategy. An IT strategy is created and continuously refined i.e. it is a work in progress. Engagement of key stakeholders ensures that we make progress!

About the Author:

Sourabh Hajela is a management consultant and trainer with over 20 years of experience creating shareholder value for his Fortune 50 clients. His consulting practice is focused on IT strategy, alignment and ROI. For more information, please visit http://www.startsmarts.com/. Or feel free to contact Sourabh at Sourabh.Hajela@StartSmartS.com .





COMMENTS:

  Comments

There is no comment. To be the first to make a comment...


Related Categories


IT Strategy


Related Topics


IT Strategy IT Strategy lessons learned

7S Framework       AIE       AIE Case Study       aim       aim framework       aligning business and it       aligning business and it strategies       aligning business and it strategy       aligning business goals       aligning business strategy and it strategy       aligning business with it       alignment trap       amsterdam information model       analysis       application investment management framework       Applied Information Economics       assessment       automating balanced scorecard       balanced scorecard       balanced scorecard 101       balanced scorecard case study       balanced scorecard governance       balanced scorecard healthcare       balanced scorecard hospital       benchmarking       betterbusiness case       big bang for it buck       Bridging the Strategy-Execution Gap       bsc       building permit       business       business alignment issues       business and it alignment       business and it collaboration       business and it consolidation       business and it strategy alignment       business architecture       business case       business case framework       business case primer       business excellence model       business excellence model bem       business excellence model benefits       business excellence model by efqm       business excellence model checklist       business excellence model company       business excellence model doc       business excellence model efqm       business excellence model european foundation for quality management       business excellence model explained       business excellence model for management       business excellence model free download       business excellence model implementation       business excellence model kpis       business excellence model leadership       business excellence model management       business excellence model needs       business excellence model process       business excellence model questions       business excellence model self assessment       business excellence model strategy       business excellence model studies       business excellence model training       business excellence model what is it       Business IT Alignment       business it alignment benefits       business it alignment definition       Business IT Alignment Framework       Business IT Alignment guide       business it alignment maturity model       business it alignment ppt       business it chasm       business it disconnect       business IT Management       business model       business strategy       business value       business value analysis       business value framework       business value index       Business Value of CMM       business value of innovation       business value of innovation       business value of IT       business/IT alignment       BVA       BVI       calculating total cost of ownership       capability maturity model       capital planning definition       capital project planning       case       CBA       ceo view of information technology       cio       CIO Agenda       cio and innovation       CIO Challenge       CIO Concern       CIO Issue       CIO Survey       CIO Topic       CMM       CMM Case Study       CMMI       collaborative innovation       component business model       Corporate Executive Board       corporate valuation       cost benefit analysis       cost justification using EVA       create a project charter       creative destruction       critical success factor       crm       CSF       customer acquisition cost       customer lifetime value       customer relationship management       customer retention       customer service       DAM       definition of IT Strategy       delone       DeLone McLean Framework       delone mclean model       demand assessment methodology       Demonstrating the Value of IT       digital strategy       Disruptive Technology       Earned Value Management       eBusiness model       eBusiness strategy       economic slowdown       economic value added       effective       efqm       efqm business excellence model       efqm business excellence model balanced scorecard       efqm excellence model       efqm excellence model pdf       efqm model for business excellence       emerging trends       enabler       Enterprise Architecture       environment       e-strategy       EVA       evm       framework customer management strategy       function point analysis       future of corporate it       green CIO       how to calculate total cost of ownership       IBM       ICT strategy       implementing balanced scorecard       information       information productivity       information systems plan       information systems strategic planning       information systems strategy       information systems success       information technology competitive advantage       information technology cost optimization        information technology return on investment       information technology roi       information technology strategy       information technology strategy framework       information technology strategy template       information technology value       information technology vision       inhibitor       innovation       innovation management       innovation roi       internet strategy       Introduction to AIE       introduction to applied information economics       introduction to balanced scorecard       Introduction to IT Strategy       introduction to portfolio rationalization       investment return       is it strategic       is it strategic analysis       is it strategic planning       is it strategies       is it strategy       is it strategy development framework       is it strategy process       is strategy       is strategy definition       is strategy document       is strategy example       is strategy important       is strategy making a difference       is strategy template       is strategy triangle       is/it strategy       issp       IT alignment       IT Alignment Maturity Model       it and strategy       IT as a cost center       IT as a profit center       IT as cost center       IT Budget       it business case       IT business case primer       it capability       it capital budgeting       it capital expenditures       it capital investment       it capital planning       it capital planning process       IT consolidation       it cost accounting       it cost allocation       it cost analysis       it cost benchmarking       it cost benefit analysis       it cost benefit analysis example       it cost benefit analysis framework       it cost benefit analysis template       it cost categories       it cost cutting       it cost cutting ideas       it cost drivers       it cost efficiency       it cost estimate template       it cost estimation       it cost management       it cost metrics       it cost model       it cost model template       it cost of ownership       IT cost optimization       it cost per employee       it cost per fte       it cost per user       it cost recovery       IT cost reduction       it cost reduction strategies       it cost reduction strategy       it cost saving ideas       it cost saving strategies       it cost savings       it cost structure       it cost transparency       IT due diligence       IT ecosystem       IT enabled alliance       IT enabled collaboration       IT enabled partnership       IT Governance       IT Governance best practice       it innovation       IT investment management       IT investment management framework       it management strategy       it metrics       IT Performance       IT Performance goals       IT Performance goals examples       IT Performance management       IT Performance measurement       IT Performance measures       IT Performance metrics       IT Performance model       IT Performance review       IT Performance review sample       IT Portfolio Management       IT Project Portfolio Management Guide       IT Research       it roi       it roi case study       it roi framework       it roi framework comparison       IT ROI Guide       IT ROI metrics       it service price list       it service pricing       it service pricing itil       it service pricing models       it service pricing ppt       it service pricing strategy       IT Spending       it stage gate       it strategic goals       it strategic plan       it strategic plan outline       it strategic plan sample       it strategic plan template       it strategic planning       it strategic planning best practices       it strategic planning methodology       it strategic planning process       it strategic planning template       it strategist       IT Strategy       it strategy alignment       IT Strategy Best Practices       it strategy case study       it strategy consulting       IT Strategy definition       it strategy diagnostic       it strategy document       it strategy for business value       it strategy formulation       IT Strategy Framework       IT Strategy Guide       IT Strategy lessons learned       it strategy management       it strategy management       it strategy maps       it strategy methodology       it strategy models       IT Strategy Plan       IT strategy process       IT Strategy Sample       IT Strategy template       IT Strategy tips and tricks       IT Transformation       IT trends       it value       it value add       it value case study       it value chain       it value creation       it value framework       it value framework comparison       it value management       IT Value Mapping       it value matrix       it value measurement       it value metrics       IT Value Model       it value proposition       it value realization       it value scorecard       IT Vision       IT visioning       IT-enabled innovation       ITIM       kick off letter       kick off meeting       luftman       manage IT as a business       managed it services pricing models       managing for a shareholder value       managing it as a business       managing it as a strategic resource       managing it assets       MAREVA       mclean       measure innovation       measure IT roi       measure IT value       measurement of IT value       measuring project success       merger and acquisition       merger and acquisition trends       model       North Carolina Framework for Managing IT Investments       online strategy       open       organization culture       organizational capability analysis       outcomes management       overview of balanced scorecard       Overview of IT Strategy       partnerships and alliances       peppard       performance definition       performance management       performance management metrics       performance measurement system       performance testing       plan       portfolio rationalization 101       Post Merger Integration       post merger integration challenges       post merger integration lessons learned       post merger integration plan       post merger integration ppt       post merger integration process       post merger integration steps       post merger integration tips       ppm       pre merger IT diagnostic       primer on balanced scorecard       primer on portfolio rationalization       prioritize IT investments       profit center       project charter       project charter assumptions       project charter deliverables       project charter document       project charter example       project charter guide       project charter objectives       project charter samples       project charter scope       project charter scope statement       project charter template       project communication       project governance best practice       project management framework       project management guide       project portfolio management       project portfolio rationalization       Rapid Economic Justification       REJ       roi       running it as a business       Sample IT Plan       sample technology plan       sample technology strategy       SCRUM       server consolidation       service oriented architecture       shadow IT       shadow IT organization       shared services       shared vision for it       shareholder value       sisap       sisp       six sigma       SOA       stage gate       stage gate guide       stage gate innovation process       stage gate methodology       stage gate model       stage gate portfolio management       stage gate process       stage gate process templates       stage gate steps       stage gate system       strategic       strategic alignment       strategic alignment and deployment       strategic alignment definition       strategic alignment in project management       strategic alignment maturity       strategic alignment maturity assessment       strategic alignment model       strategic alignment model henderson and venkatraman       strategic information systems planning       strategic value of IT       strategy       strategy communication       strategy cycle       strategy execution       strategy focused organization       strategy it       strategy maps       supplier management       sustainability       SWOT       TCO       tco analysis       TCO case study       tco model       technology       technology deployment       technology plan       technology roadmap       technology strategy       technology trends       technology vision       TEI       TEI case study       Total Cost of Ownership       total cost of ownership definition       total cost of ownership example       total cost of ownership information technology       total cost of ownership it       total cost of ownership model       total cost of ownership principles       total cost of ownership sample       total cost of ownership template       Total Economic Impact       using balanced scorecard       using balanced scorecard to create IT Strategy       value assessment methodology       value at risk framework       value based it alignment       value management       Value Measuring Methodology (VMM)       VAM       vendor relationship management       venkatraman       ward       what is a project charter?       what is balanced scorecard?       what is bsc       what is bsc?       what is business it alignment       what is IT Strategy       what is stage gate       what is VITAL?       why is business it alignment so difficult       why is total cost of ownership important       why it strategy       why projects fail?       wibe       wibe 4.0       wibe 4.1       wibe framework       wibe introduction       wibe methodology       wibe overview       wibe primer       work system performance indicator       work systems framework       work systems method       work systems model      
Copyright 2009 Startsmart Consulting