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Creating Successful Partnerships: What Business Leaders Expect From Their Technology Organization

Creating Successful Partnerships: What Business Leaders Expect From Their Technology Organization. Topics. The IT Dilemma What Executives Are Saying Suggestions When IT Works Discussion. The IT Dilemma. More than ½ of IT projects go over time/budget; 31% are cancelled

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Creating Successful Partnerships: What Business Leaders Expect From Their Technology Organization

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  1. Creating Successful Partnerships:What Business Leaders Expect From Their Technology Organization Strategic Services for Today’s CIO!

  2. Topics • The IT Dilemma • What Executives Are Saying • Suggestions • When IT Works • Discussion

  3. The IT Dilemma • More than ½ of IT projects go over time/budget; 31% are cancelled • Only 16% of IT projects (9% in large organizations) are completed within original time/budget • Of those completed, only 42% deliver planned benefits

  4. The IT Dilemma • 10% of IT teams work on projects with no defined benefits for the organization • IT projects failures account for $75 BILLION in losses • Failure attributed to poor project management 60% time • BUT IT improves productivity

  5. The IT Dilemma • IT budgets are between 2% - 9% of revenue; averaging 3% to 4% • 2 out of 13 organizations believe their IT departments are critical • 11 of 13 companies believe that their IT is a necessary but burdensome “cost pit” • BUT IT spending continues to rise

  6. “…I don’t know enough about technology to understand the issues and get out of this mess…” The IT Dilemma

  7. IT Ineffectiveness • What is the level of satisfaction with and confidence in IT? • Do budgetproblems exist? • How well does IT support the organization’s strategy? • How well does IT manage their human resources?

  8. Signs of Dissatisfaction • Dissatisfaction/lack confidence in IT • Lack of control of IT • Differing goals and priorities • IT left out of decision making • Business units hire their own IT • Blame IT • IT department isolates itself

  9. Signs of Budget Problems • Spending more than peers • Expansion of IT without expansion business • High level of outside purchasing • Emergency IT spending • Difficulty forecasting IT budgets • Large budget variances • IT does not have capacity to support business initiatives

  10. Signs of Project Ineffectiveness • No clear successes/little progress • No consolidated project list • No distinction between IT internal and business projects • Large number of projects/no priorities • Lack of good project documentation • Poor quality & reliability

  11. Signs of HR Mismanagement • Lack of ownership of results by IT • Troubled IT staff/lots of gossip • Large number recent hires • High or no attrition • Org chart not clear/disparate titles • Inexperienced IT managers • Poor screening & hiring decisions • Poor interaction between IT & business • Excessive use of vacation/sick time & working from home

  12. “…the leadership gap caused by inadequate preparation [of IT staff] for management responsibilities…” Root Cause

  13. Before Software applications IT Operations Business process understanding Project management Management of technical staff Vendor management IT architecture and standards After IT org design IT governance Business alignment Business Strategy Standard & policy setting HR management Executive team participation Financial management & budgeting Comparison of Skills

  14. What Executives Are Saying • Alignment • Make sure your focus is our focus • Business Focus • The infrastructure is important but so are the applications • Business Savvy • Get out more to better understand our needs and wants

  15. What Executives Are Saying • Collaboration • Work with your peers and support their efforts • Communication • Help me understand you without making me feel or look stupid • Commitments • Deliver on your promises as promised

  16. What Executives Are Saying • Consulting • Look around and ahead to make recommendations to improve our delivery of services • Cost Control • Understand and control your costs

  17. Suggestions • You • Find Your Fit • Develop Management/Leadership Skills • Hire for your weaknesses • Them • Teach Them Your Language • Press For Ownership • Know “IT Maturity Level”

  18. IT Hierarchy of Needs Setting Business Agenda Self Actualization Alignment Self Respect Effective IT Mgmt Belonging & Affection Business Applications Safety & Security O&I Stability Physiological Needs

  19. Suggestions • Your Technology Organization • Walk in Their Shoes (Planning) • Build Relationships • Implement Best Practices • Have a Resource Allocation Plan • Develop Consulting Skills

  20. When IT Works • IT Leader • Part of the leadership team • Promoted or given additional responsibilities that are more general • Customers (end users) • Consult IT first/early • Focus on business needs • Seek your guidance

  21. When IT Works • IT Staff • Focus on customers • Are out in the organization • Asked to participate on organization-wide committees and projects • Respectful and respected

  22. Discussion Strategic Services for Today’s CIO!

  23. Resources • CIO as Superhero?, Massey, 2007. www.govtech.com/pcio/articles/104748 • The Executives Guide to IT, 2nd Edition, Baschab & Piot, 2007.

  24. Liza Lowery Masseyliza@ciocollaborative.comwww.ciocollaborative.com702-743-4634 Strategic Services for Today’s CIO!

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