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Budgets
11 Annual Lights- Documentation Budgets specifically apply assessed Corporate
On Budget budgeting
according to portfolios (through alignment) and
company practices business strategic intentions.
12 Performance Documentation IT metrics consistent with business Performance
Measurement strategic intentions. measurement
according to
Metrics company practices
263
The IT Impact Management Program to Implement Right Decisions/Right Results


By focusing on the corporate process connections (capital budgeting, cor-
porate budgeting, annual plan, performance measurement, etc.) and their own-
ers, and by introducing the Value Chain deliverables as components required in
their processes, goals, and a specific plan for applying them, can be delivered.
The truly important thing here is that controlled IT spend and improved IT
bottom-line impact goals are directly in the interests of the corporate process
owners, and they should be interested in helping to achieve the goals.


THE IT IMPACT MANAGEMENT PROGRAM TO IMPLEMENT
RIGHT DECISIONS/RIGHT RESULTS AND NIE PRACTICES
We encourage management teams to adopt one or more elements of the
Strategy-to-Bottom-Line Value Chain, based on the goals established in the meth-
ods described above. However, management teams must understand that, to be
effective, outcomes have to connect to budget and management actions for both
IT and business. For example, as we have pointed out, prioritization without
affecting project budgets, or alignment without affecting lights-on budgets, does
not accomplish anything. Planning that does not change projects, or change
budgets, does not accomplish anything.
As a result, achieving the management process goals we suggest can require
a long-term, possibly multi-phased effort. It is very unlikely, in our view, that
company or IT management can accomplish all elements at one time. Given the
culture issues, the difficulty of change, and the significant number of players
affected, it may make more sense to explicitly adopt a multiphase, multiprocess-
cycle approach. This makes a program approach important. (We want to be clear
on this. It is very useful for a management team to perform one of the NIE prac-
tices, such as prioritization. As we discussed in Chapter 11, this experience can
have a major impact on management culture, and encourage further adoption
of NIE practices. Accordingly, we do not discourage a management team from
considering adopting one practice as a starting point, as a proof of concept. But
we also emphasize that, to actually affect the IT spend and IT™s bottom-line
impact, the connection to corporate processes is needed. Adopting one practice
is a starting point but probably will not provide the significant outcomes for
which we hope.)
Companies do best by adopting an overall “program” approach to imple-
menting a Right Decisions/Right Results and NIE practices. We introduced IT
Impact Management in Chapter 6, and described its role in addressing practi-
cal problems in Chapter 7. In addition to thinking through the above sugges-
tions for defining the as-is, and the culture management and maturity model
instruments, a program approach establishes an overall framework for the
effort. This framework identifies participants, establishes methods for commu-
nications, defines overall goals, and generally works to assure that all manage-
ment groups are on the same page with respect to the need for and the planned
changes expected to be implemented. Exhibit 13.11 reminds us of the many
groups affected.
264 DEFINE WHAT™S NEXT


EXHIBIT 13.11 Management Processes Involved in the Value Chain

Budget
Corporate
Procurement
Strategic Business Unit Planning
Capital Budget
Planning
Measurement




Strategic Business Projects
IT Agenda Unit Budget
Annual Plan

Strategic
Project
Projects
IT
Plan
Requirements

IT
Strategic Annual Lights-On
IT Plan Plan Budget




Enterprise Architecture Systems Development IT Finance
IT Procurement
Project Management (PMO) IT Planning IT Measurement




A Program
A program for a particular company will depend on the specific problem and
circumstance, as well as its culture and politics. Generally, however, a program
consists of four basic elements.

1. Define the program requirements.
2. Manage the program stakeholders.
3. Establish program participants.
4. Create bottom-line impact.

Note that this program discussion does not deal with content ” that is, the
specific practices or deliverables to be addressed. Those are defined by the
roadmap approaches we described above. Here, we assume that we know where
we want to go (e.g., prioritization, planning); now the issue is how to get there,
in general terms.
The primary flavor of this program is based on managing the many players
and organizations affected. In simple terms, we are dealing with issues that cross
the IT and business unit barriers. But within that simplicity, we are dealing with
multiple parts of IT (e.g., enterprise architecture, systems development, IT plan-
ning, IT financial management, IT governance) and multiple parts of the business
(e.g., corporate processes like budget and planning, business unit management,
individual user departments).
265
The IT Impact Management Program to Implement Right Decisions/Right Results


Also, note that we have dealt with issues of management participation as
parts of each individual practice (e.g., in prioritization: who participates in scor-
ing projects, who carries out business case development, what standards are
associated with that, etc.). Here, we are focusing on the overall set of activities.
We cannot lose sight of the fact that our success is ultimately based on making
the connections all the way from business strategic intentions to the actions that
ultimately affect the IT spend and IT™s bottom-line impact. As we have observed
before, it is not merely a question of completing a practice (e.g., prioritization);
it™s a matter of getting the results of that practice into annual plans, budgets,
and ultimately action.
The focus here, then, is on the program approaches that will succeed in
making the connections to action and ultimately bottom-line impact. The fol-
lowing discussion will refer back to the Chapter 7 presentation of practical prob-
lems as the impediments to success. The IT Impact Management program
approach is designed to specifically overcome those impediments. They are in
the nature of suggestions, as every company situation is unique. But they are
suggestions rooted in the experience of companies that have been successful in
adopting the concepts and practices described in this book.

1. Define the program requirements. This is the process of defining exactly
what can be accomplished and the tasks needed to accomplish it. The key


EXHIBIT 13.12 Establish the Program
IT Impact Management Practical Problem
Addressed
Establish Build the program to be responsive to the politics in Legacy and entitlement
the a positive, responsive way. Management roles
program Focus on doing what™s practical, in terms of Company processes
responding to the politics.

Determine hurdles, impediments, and problems, and All
strategize to respond to each, with specific program
elements.

Establish a phased approach to the adoption of Process disconnects
Value Chain and NIE Practices. Legacy and entitlement
Plan the program to do something tactical and simple Company processes
in the short term.
It ain™t broke
Establish a clear, simple, practical vision of the Management roles
problem being solved and the outcome to be It ain™t broke
produced.
Management expectations
Establish continuing means for communicating this
vision to all managers affected.

Establish a clear and simple theme and banner Management expectations
headline (e.g., we™re examining lights-on budget, with It ain™t broke
focus on affordability).

Focus on measuring outcomes and, if needed, Management expectations
establish a parallel Performance Measurement/
Metrics project.
266 DEFINE WHAT™S NEXT


is to match the program against culture, politics, and practical outcomes. A
general framework is shown in Exhibit 13.12.
2. Manage the program stakeholders. This consists of the actions to keep the
program on track and connected to the managers and business units affected
by it. The key is to communicate effectively to all managers involved. A gen-
eral framework is shown in Exhibit 13.13.


EXHIBIT 13.13 Stakeholder Management
IT Impact Management Practical Problem
Addressed

Manage the Establish one-on-one personal connections to the Process disconnects
program other corporate and IT process owners (e.g., Management roles
stakeholders budgets, CFOs, PMO, performance measurement,
Company processes
enterprise architecture); getting them on board with
respect to the problem and outcome.

Create strawman example of results and Multiple perspectives
management benefits to be derived.

Conduct continuous communication of vision, Process disconnects
outcomes, and intermediate results to peer Management roles
managers, both within IT and the business.
It ain™t broke
Multiple perspectives
Hold the hands of every IT manager with respect to Legacy and entitlement
the process and the outcomes. It ain™t broke



3. Establish program participants. This consists of a single basic step of estab-
lishing workgroups for each practice area. Though simple, this is an under-
lying foundation, for it addresses most of the major problems in doing this
work. Getting management directly involved, from senior to each business
unit to each process area, is the core idea for addressing culture and process
disconnects and setting management expectations. A framework is shown
in Exhibit 13.14.


EXHIBIT 13.14 Program Participants
IT Impact Management Practical Problem
Addressed

Establish Establish a management workgroup for each Management roles
program practice. Management expectations
participants
It ain™t broke
Multiple perspectives




4. Create bottom-line impact. This is the outcome we™re seeking. The key idea
is to provide leadership and suggested content, throughout all the practices
267
Conclusion to Chapter 13


and through engaging all managers and workgroups. A framework is shown
in Exhibit 13.15.

Although the above IT Impact Management discussion is intended as a
framework, with suggestions, experience has shown that they are the kinds of
things needed to be successful.


EXHIBIT 13.15 Bottom-Line Impact
IT Impact Management Practical Problem
Addressed

Create Provide the leadership for each workgroup. Process disconnects
bottom-line
Develop the strawman inputs to things like Strategic Process disconnects
impact
Intentions. Multiple perspectives
Use prototype for data collection, analysis, and Process disconnects
demonstration of outcome. It ain™t broke
Persist through several cycles. Process disconnects
Company processes
Management expectations




CONCLUSION TO CHAPTER 13
The challenge we address is how both business and IT leadership can work

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