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Managing Perceptions of IT Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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Page 1: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Managing Perceptions of IT

Chapter 4

4-1© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Page 2: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

The Importance of Perception

In spite of significant achievements in its delivery

of services, negative perceptions of IT persist.

These negative perceptions tend to be undervalued by IT

managers.4-2

Page 3: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

The Dangers of NOT Managing Perceptions

1. Stakeholders’ expectations and perceptions influence the quality of the Business-IT relationship.

2. Internal IT perception is key to enhancing external IT perception.

3. Misperceptions can result in improper judgments or poor decisions. 4-3

Page 4: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Factors that Affect the Business-IT Relationship

The sub-function of IT that the user deals with – different parts of the business can have significantly different IT experiences depending upon which group or function they deal with.

The needs and interests of business stakeholders – what different business leaders want from IT will affect their perception. 4-4

Page 5: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Factors that Affect the Business-IT Relationship Continued

Level in the corporate hierarchy – the CEO-CIO relationship is key to how IT is viewed by the organization.

The rising bar of expectations – expectations of IT are constantly changing.

4-5

Page 6: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Common Perceptions of IT (Overby, 2005)

IT costs too much.

IT takes too long to deliver.

IT fails to deliver competitive differentiation.

IT is not aligned with business strategy.

4-6

Page 7: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Common Perceptions of IT Continued (Overby, 2005)

IT doesn’t do the right things.

IT doesn’t do things right.

IT doesn’t add value.

IT is a barrier to change.

IT is inflexible.4-7

Page 8: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Maslow’s Hierarchy of Needs

Self-Actualization

Esteem

Love and Belonging

Safety

Physiological

4-8

Page 9: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

The IT Hierarchy of Needs

4-9

Figure 4.1

Page 10: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Steps in Managing Perceptions

1. Understanding Current Perceptions

2. Addressing Perceptual Problems

3. Monitoring Perceptions on an Ongoing Basis

4-10

Page 11: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Understanding Current Perceptions

IT needs mechanisms for understanding aggregate perceptions.

Perceptions are important because they guide subconscious behavior.

Perceptions often reflect reality.

Focus on overall perceptions not individual responses. 4-11

Page 12: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Addressing Perceptual Problems

Ensure that the IT function understands and practices a set of core IT values.

Build from the Bottom up. Ensure that IT is considered competent and credible.

Use focused metrics and communication to retrain perceptions.

4-12

Page 13: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Monitor Perceptions on an Ongoing Basis

Perception of the value IT adds to the organization will increase as IT addresses lower-level business needs.

IT should monitor the perception of value of every initiative.

Use formal and informal assessment to monitor perception. 4-13

Page 14: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Indicators of Positive IT Perception

Competence

Credibility

Relationship

Trust

Value4-14

Page 15: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Competence

IT services are considered reliable and high quality by the business.

Migration to new technology is managed effectively.

Infrastructure supports current business needs.

Service levels are consistently high.4-15

Page 16: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Credibility

IT provides technological leadership to the organization.

Middle-level business managers are strong supporters of information systems.

The IT department consistently meets its commitments to users.

Project management is a core competency.

4-16

Page 17: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Relationship

IT and line management share the responsibility for developing IT projects.

The IT department is consulted about most business decisions.

IT staff understand the business well.

IT employees are actively recruited by other areas of the business. 4-17

Page 18: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Trust

IT plans are closely tied to the organization’s strategic plans.The IT leadership team has a unified vision of its mission and values.The organization considers IT leadership to be strong.The role of IT has been clearly articulated to the organization.

4-18

Page 19: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Value

IT investments are positioning the firm well for the future.IT is actively involved in the organization’s long-term planning activities.The CIO is a member of the organization’s senior management team.Top executives consider IT to be a source of strategic advantage. 4-19

Page 20: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Business-IT Partner Review

Address Questions in the Areas of:

Behaviors & Attitudes

Technology Leadership

Execution Excellence

4-20

Page 21: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Behavior & Attitude Questions

Do the Business and IT effectively collaborate, sharing information, resources, and expertise to accomplish objectives?

Do the Business and IT display a Can-Do attitude sense of urgency, inclusion, and flexibility?

4-21

Page 22: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Technology Leadership Questions

Does IT demonstrate and apply insight into leading-edge technologies?

Does IT envision alternatives and introduce ideas that meet the needs of the business?

4-22

Page 23: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Execution Excellence Questions

Do the Business and IT assume joint accountability for arriving at solutions that meet both their needs?Do the Business and IT define the best mix of capability, cost, and schedule to maximize the value to the business?Do the Business and IT appropriately staff projects, using the right people with the right skills at the right level?

4-23

Page 24: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Execution Excellence Questions

Do the Business and IT communicate relevant issues with appropriate advance notice and with adequate information?

Do the Business and IT meet project commitments with regard to scope, schedule, and budget?

4-24

Page 25: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Conclusion

Positive perceptions of IT are built by addressing:(1) competence(2) credibility(3) relationships(4) trust

4-25

Page 26: Chapter 4 4-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

© 2009 Pearson Education, Inc.  Publishing as Prentice Hall 4-26

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Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall