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Establishing and achieving IT™s business
IT Impact
value proposition.
Management 0 1 2 3 4 5
Managing IT based on business value
Establishing baseline, business value,
and performance information for the
0 1 2 3 4 5
entire IT investment.

Establishing baseline, business value,
and performance information for the
0 1 2 3 4 5
entire IT investment.

Note that Chapter 12™s Appendix A offers considerably more information
about the maturity model for each practice, which can assist in determining the
best as-is and to-be answers.

Method 3: Setting Goals Based on Practical Problems
Chapter 7 introduced seven basic problems affecting management perspectives
about IT. By determining whether the problems discussed in Chapter 7 apply to
a company, management can set goals adopting Right Decisions/Right Results.
Exhibit 13.7 provides a short instrument for this purpose; each Practical Prob-
lem statement can be answered with a simple “yes” or “no.”
Based on “yes” answers to the questions in Exhibit 13.7, goals for address-
ing the problems can be adopted. Exhibit 13.8 identifies specific goals that can
be accomplished, in terms of specific directions for overcoming culture and
process difficulties. These solutions were suggested in Chapter 7 as part of IT
Impact Management, discussed below.

EXHIBIT 13.7 Establishing the As-Is for Practical Problems
Practical Current As-Is”Practical Problem
Problem Company Description

Process Existing management processes are unable to consistently carry
Disconnects through from business planning to IT action to bottom-line results.

Legacy and The company™s existing IT applications, infrastructures, and
Entitlement project backlogs are the legacy of the current inadequate
strategy-to-results management practices and prevent starting
with a clean slate. Managers feel entitled to “their” systems
and support.

Management The company™s management culture prevents business and IT
Roles management from playing the roles needed to effectively direct
and apply IT resources to achieve maximum bottom-line impact.

Company The new or changed management practices that connect
Processes business and IT will have to coexist and work with many other
existing company management practices (e.g., capital budgets,
HR, management performance/compensation, corporate
budgets, purchasing, and so forth).

Management Senior company managers expect only financial returns from
Expectations IT and simple ROI-based measurement of its alignment and

It Ain™t Broke Business and IT managers get what they need from current
processes, and they resist new processes that appear to make it
more difficult to obtain what they need.

Multiple The company does not speak with one voice.

EXHIBIT 13.8 To-Be Goals
To-Be”IT Impact Management Goals
Connect and coordinate with company practices”budgets and planning.
Disconnects Connect with people performing these practices.
Engage management across the company in NIE practices.
Legacy and Examine 100% of IT spend from affordability perspective.
Entitlement Engage management in prioritization and alignment, and alignment
assessment for quality and service level.

Management Management involvement in decision making through prioritization, alignment,
Roles budget, and planning.

Company Employ Strategy-to-Bottom-Line Value Chain fr om business planning through
Processes technology management through corporate budget processes.
Engage the corporate process owners (e.g., CFO, corporate budgets) in the
NIE practices and the deliverables of the Value Chain.

Management Engage senior management and management process owners in strategic
Expectations intention thinking, through prioritization and IT spend control.

It Ain™t Broke IT Impact Management, a program management approach focusing on
management engagement in NIE practices that establishes the basis by which
they understand the objectives and outcomes.

Multiple All business units are represented in management groups in each NIE
Perspectives process.
Setting Goals from a Corporate Governance and Process Perspective

We suggest a company can adopt the goals listed in Exhibit 13.8, which will
serve to focus on exactly what needs to be accomplished. While this practical
problem approach is not as practice-specific as the other two methods, it works
well to establish goals for management process change. These goals can also be
established in conjunction with the specific steps to be taken, as identified in the
first two methods.

The focus, until this point, has been on specific IT management processes such
as prioritization and alignment, and on IT performance in its role in the company.
An alternative is to view the as-is problems from a corporate or company-
wide perspective. The Strategy-to-Bottom-Line Value Chain, introduced in Chap-
ter 6, gives the right perspective on this.

EXHIBIT 13.9 Strategy-to-Bottom-Line Value Chain

Strategic IT Planning Annual IT Planning
The Business Enterprise: Lines of Business, Departments
7 Business Plan
3 (Annual)
(Strategic Business Strategic IT Projects Budget
5 8
Strategic IT Project Plan
Requirements (Annual)
Assessed Lights-On
Strategic IT Plan
Portfolios Budget
9 IT Plan
(Alignment, (Annual)
Technology) The IT Enterprise: Four “Lights-On” Asset Pools

Performance Measurement Metrics 12

Effective Planning
in the
Appropriate Resource Decisions
Business IT
Strategies Actions
Workable Budgets, Projects, and
Operational Plans
Value Chain
Performance Measurement Metrics

The corporate or company-wide management processes that produce the
business strategic plan (Deliverable 1 as shown in Exhibit 13.9), annual plans
(Deliverables 7, 8, and 9) and budgets (Deliverables 10 and 11) provide an alter-
native point for introducing Right Decisions/Right Results and NIE practices.
Often, the CFO of the organization, who typically owns these processes, is a
good leverage point.

The CFO, for example, should be vitally interested in controlling IT spend
and improving IT bottom-line impact. As a consequence, the NIE practices can
be supported and encouraged by the CFO as a means for submitting and review-
ing IT plans and/or budgets. The core idea is to use the discipline and company-
wide standards that come with corporate processes such as budgeting and capital
planning as a vehicle for introducing change into IT management methods. This
approach also directly addresses the process disconnect problems that we™ve dis-
cussed throughout the book.
The goals for adopting Right Decisions/Right Results and the NIE practices
are based on working backward from these corporate process deliverables.
(See Chapter 6 for a complete definition of each of the deliverables shown in
Exhibits 13.9 and 13.10.)

EXHIBIT 13.10 Establishing the Roadmap
Deliverable Deliverable Roadmap Perspective Corporate
Name Description Process
1 Business Mission plus Required as part of project business Capital, corporate
Strategic budgeting
weighted strategic case documentation: specifically, how the
Intentions intentions project supports business strategic
2 Assessed As-is alignment, Required as part of annual plan or Annual plan
Portfolios budget submission.
service, quality,
technology, use Required as input to IT project planning,
Strategic Planning

with specific reference to the gaps to-be
filled by the project.
3 Strategic IT Strategic Intentions
Agenda for to Strategic
Use of IT Initiatives
4 Strategic IT Strategic Intentions
Plan to Strategic
5 IT Strategic Initiatives”3 to 5
Requirements years horizon”
portfolio format

6 Projects Real, doable Business case requires connection to Capital, corporate
projects budgeting
strategic intentions; reference to as-is
assessed portfolios.
7 Annual Project One year annual Prioritized against strategic intentions. Capital budgeting,
Plan horizon”with corporate
portfolio format budgeting
8 Annual Documentation
Annual/Tactical Planning

Business Plan according to
company practices
9 Annual IT Plan Documentation Strategies and plans connected to Annual plan
according to business strategic intentions and the
company practices Strategic IT Agenda.
10 Annual Documentation Prioritized against strategic intentions. Capital, corporate
and Capital budgeting
according to
Projects company practices


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