IT Strategic Planning: A IT Strategic Planning: A Tool for Navigating Tool for Navigating Treacherous IT WatersTreacherous IT Waters
IMTech SUN3 Workshop IMTech SUN3 Workshop
IT Strategic Planning: A IT Strategic Planning: A Tool for Navigating Tool for Navigating Treacherous IT WatersTreacherous IT Waters
IMTech SUN3 Workshop IMTech SUN3 Workshop
Phil CherninPhil Chernin
CDMCDM
27 April 200327 April 2003
Phil CherninPhil Chernin
CDMCDM
27 April 200327 April 2003
Workshop AgendaWorkshop AgendaWorkshop AgendaWorkshop Agenda
Morning Session (9-12)Morning Session (9-12)
– Part 1: Introduction (9-9:45)Part 1: Introduction (9-9:45)
– Part 2: Strategic IT Plan Fundamentals (9:45-10:45)Part 2: Strategic IT Plan Fundamentals (9:45-10:45)
– Break (10:45-11:00)Break (10:45-11:00)
– Part 3: Planning in the “Real World” (11:00-Noon)Part 3: Planning in the “Real World” (11:00-Noon)
Lunch (Noon-12:45)Lunch (Noon-12:45)
Afternoon Session (12:45-4:00)Afternoon Session (12:45-4:00)
– Case Study Workshop (12:45-3:00)Case Study Workshop (12:45-3:00)
– Wrap-Up and Group Discussion (3:00-4:00)Wrap-Up and Group Discussion (3:00-4:00)
Early Morning Session Early Morning Session (part 1): Introduction(part 1): IntroductionEarly Morning Session Early Morning Session (part 1): Introduction(part 1): Introduction
Learning Objectives; Who We Learning Objectives; Who We Are; Commonalities; Framing the Are; Commonalities; Framing the Problem; Reviewing HistoryProblem; Reviewing History
Learning Objectives; Who We Learning Objectives; Who We Are; Commonalities; Framing the Are; Commonalities; Framing the Problem; Reviewing HistoryProblem; Reviewing History
IntroductionIntroductionIntroductionIntroduction
Workshop OverviewWorkshop Overview– Describe agendaDescribe agenda
– Rules of engagement (breaks, etc.)Rules of engagement (breaks, etc.)
– Discussion is mandatoryDiscussion is mandatory
Participant IntroductionParticipant Introduction– Who am I?Who am I?
– What do I want to accomplish?What do I want to accomplish?
Parking LotParking Lot– Other goalsOther goals
– Post-workshop follow-upPost-workshop follow-up
Introduction
Participant BackgroundParticipant BackgroundParticipant BackgroundParticipant Background
Organization TypesOrganization Types– MunicipalMunicipal
– UtilitiesUtilities
– StateState
– OtherOther
Experience – has your organization Experience – has your organization performed a(n):performed a(n):– Strategic IT Plan?Strategic IT Plan?
– IT Assessment?IT Assessment?
– Organizational Strategic Plan?Organizational Strategic Plan?
Introduction
Workshop ObjectivesWorkshop ObjectivesWorkshop ObjectivesWorkshop Objectives
Understand strategic IT fundamentalsUnderstand strategic IT fundamentals Develop skills to articulate mission Develop skills to articulate mission
goals and “ask the right questions”goals and “ask the right questions” Become a more informed consumer of Become a more informed consumer of
IT servicesIT services Increase confidence in your ability to Increase confidence in your ability to
frame strategic IT discussionsframe strategic IT discussions
““Architect Analogy”Architect Analogy”
Introduction
Questions for you to think Questions for you to think about…about…Questions for you to think Questions for you to think about…about… What is the appropriate role of What is the appropriate role of
stakeholders in this process? (who are they stakeholders in this process? (who are they and what do they do?)and what do they do?)
How do I evaluate recommendations? How How do I evaluate recommendations? How do I prioritize recommendations?do I prioritize recommendations?
What is the appropriate project structure What is the appropriate project structure for completing A Strategic IT Plan?for completing A Strategic IT Plan?
What are the primary barriers to success What are the primary barriers to success for IT planning within my organization?for IT planning within my organization?
Introduction
A Strategic IT Plan provides a working A Strategic IT Plan provides a working vision that unites the organization vision that unites the organization behind a common goalbehind a common goal
A Strategic IT Plan provides a working A Strategic IT Plan provides a working vision that unites the organization vision that unites the organization behind a common goalbehind a common goal
SeniorManagement
IT Department
Construction Engineering Finance OperationsCustomer
Service
Strategic IT
Plan
Introduction
An IT Manager Gets Hit From All SidesAn IT Manager Gets Hit From All Sides
DIRECTOR / EXECUTIVE
BOARD
DIRECTOR / EXECUTIVE
BOARD
OPERATIONSOPERATIONS
CITY HALLCITY HALL
CUSTOMERS /PUBLIC
CUSTOMERS /PUBLIC
FACILITIES CIPFACILITIES CIP
IT DEPARTMENT
•“Moving Targets”•Maintenance•Schedule uncertainty•Cost constraints•Multiple stakeholders
Introduction
IT Departments Typically Face These IT Departments Typically Face These Types of ProblemsTypes of ProblemsIT Departments Typically Face These IT Departments Typically Face These Types of ProblemsTypes of Problems
Inflexible business processesInflexible business processes Gap between business & IT strategyGap between business & IT strategy Information “islands”Information “islands” Legacy systemsLegacy systems Limited resourcesLimited resources Few/minimal IT system standardsFew/minimal IT system standards ““Moving target” goalsMoving target” goals Unclear decision-making processesUnclear decision-making processes
Introduction
Water Utilities Have Historically Water Utilities Have Historically Under-valued IT ProfessionalsUnder-valued IT ProfessionalsWater Utilities Have Historically Water Utilities Have Historically Under-valued IT ProfessionalsUnder-valued IT Professionals
““IT” Fixes My PCIT” Fixes My PC ““IT” Gets The Utility Bills OutIT” Gets The Utility Bills Out ““IT” Doesn’t Know Anything About Our IT” Doesn’t Know Anything About Our
Engineering SystemsEngineering Systems
- LIMS- LIMS - CMMS- CMMS - SCADA- SCADA
- CAD- CAD - GIS- GIS - Models- Models
IMTech Registration < 500IMTech Registration < 500
Introduction
But The Role of the Water Utility But The Role of the Water Utility IT Professionals is ChangingIT Professionals is ChangingBut The Role of the Water Utility But The Role of the Water Utility IT Professionals is ChangingIT Professionals is Changing
““IT” IT” ControlsControls My PC Purchases My PC Purchases ““IT” IT” IntegratesIntegrates the Billing System the Billing System ““IT” is a Player at the Strategic Business IT” is a Player at the Strategic Business
Level Level – 1970’s – Manager of Data Processing1970’s – Manager of Data Processing
– 1980’s – MIS Manager1980’s – MIS Manager
– 1990’s – IT Director1990’s – IT Director
– 2000’s – Chief Information Officer2000’s – Chief Information Officer
Introduction
The Stature of the IT Professional The Stature of the IT Professional Has Risen BecauseHas Risen BecauseThe Stature of the IT Professional The Stature of the IT Professional Has Risen BecauseHas Risen Because
Creating Useful Information From the “Junk Creating Useful Information From the “Junk Yard of Data” Will Get More Difficult Before it Yard of Data” Will Get More Difficult Before it Gets EasierGets Easier
Appropriate Computers and Electronic Devices Appropriate Computers and Electronic Devices are Critical to Job Performanceare Critical to Job Performance
Integrated Software Systems Dramatically Integrated Software Systems Dramatically Enhance Productivity Enhance Productivity
Cyber-security is a Executive-level ConcernCyber-security is a Executive-level Concern Electronic Transactions are the Life Blood of a Electronic Transactions are the Life Blood of a
Modern UtilityModern Utility
Introduction
Benefits of a Strategic IT PlanBenefits of a Strategic IT PlanBenefits of a Strategic IT PlanBenefits of a Strategic IT Plan
Enhance communicationsEnhance communications Greater efficiencyGreater efficiency Clear statement of benefits/costs and Clear statement of benefits/costs and
trade-offstrade-offs Integration of entire organizationIntegration of entire organization Universal buy-in/supportUniversal buy-in/support Decision process is open, “living” Decision process is open, “living”
documentdocument Roadmap in support of future technologiesRoadmap in support of future technologies
Introduction
Early Morning Session Early Morning Session (part 2): Strategic Plan (part 2): Strategic Plan FundamentalsFundamentals
Early Morning Session Early Morning Session (part 2): Strategic Plan (part 2): Strategic Plan FundamentalsFundamentals
Strategic IT Plan Defined; Step-Strategic IT Plan Defined; Step-by-Step Plan Development (in by-Step Plan Development (in the Ideal…) the Ideal…)
Strategic IT Plan Defined; Step-Strategic IT Plan Defined; Step-by-Step Plan Development (in by-Step Plan Development (in the Ideal…) the Ideal…)
A Strategic IT Plan is integral to a A Strategic IT Plan is integral to a continuous program life-cyclecontinuous program life-cycleA Strategic IT Plan is integral to a A Strategic IT Plan is integral to a continuous program life-cyclecontinuous program life-cycle
Organizational Strategic Plan• Program Goals• IT Assessment
Organizational Strategic Plan• Program Goals• IT Assessment
Strategic IT PlanStrategic IT PlanTactical Action Plan• Implement Projects• Manage Schedule
Tactical Action Plan• Implement Projects• Manage Schedule
Fundamentals
What is a Strategic IT Plan?What is a Strategic IT Plan?What is a Strategic IT Plan?What is a Strategic IT Plan?
Strategic IT PlanDecision-making process
Technology Management
Constraints($, time)
Legacy SystemRequirements
StakeholderInput
Existing Skills & Capability
Resources
Outputs• Budget• Prioritized Projects• Schedule• Documentation• Etc.
BusinessNeeds/Goals
From Organizational Plan To Tactical Action Plan
Fundamentals
What Does a Strategic IT Plan What Does a Strategic IT Plan Accomplish?Accomplish?What Does a Strategic IT Plan What Does a Strategic IT Plan Accomplish?Accomplish? Describes organizational IT needs and Describes organizational IT needs and
challengeschallenges Identifies high-level IT goalsIdentifies high-level IT goals Prioritizes IT issuesPrioritizes IT issues Provides communication framework Provides communication framework
– Ensures that managers and staff are “on the Ensures that managers and staff are “on the same page”same page”
– Identifies clear, measurable performance metricsIdentifies clear, measurable performance metrics
Articulates “path forward”Articulates “path forward”
Fundamentals
Limitations of a Strategic IT PlanLimitations of a Strategic IT PlanLimitations of a Strategic IT PlanLimitations of a Strategic IT Plan
Does not contain a set of functional Does not contain a set of functional specificationsspecifications
Does not provide a resource-loaded Does not provide a resource-loaded schedule or budgetschedule or budget
Recommendation may be to conduct Recommendation may be to conduct ‘further study’‘further study’
Fundamentals
Strategic IT Planning Step-By-Strategic IT Planning Step-By-StepStepStrategic IT Planning Step-By-Strategic IT Planning Step-By-StepStep
1.1. Develop strategic visionDevelop strategic vision
2.2. Perform gap analysis (technology, Perform gap analysis (technology, organization, constraints)organization, constraints)
3.3. Develop/evaluate alternativesDevelop/evaluate alternatives
4.4. Document decision processDocument decision process
1. Strategic Vision
2. Gap Analysis
3. EvaluateAlternatives
4. DocumentDecisions
Fundamentals
1. Develop Strategic Vision1. Develop Strategic Vision1. Develop Strategic Vision1. Develop Strategic Vision
Identify key participants/steering committeeIdentify key participants/steering committee Determine the program goals and metricsDetermine the program goals and metrics Bound the problemBound the problem Outline communication processOutline communication process
– Who is the target audience?Who is the target audience?
– How will input be incorporated?How will input be incorporated?
– What will are the IT plan deliverables?What will are the IT plan deliverables?
– Roles and responsibilityRoles and responsibility
Define the role of core systems (in a business context)Define the role of core systems (in a business context)
– FinancialFinancial
– Spatial (GIS, CAD)Spatial (GIS, CAD)
– Customer informationCustomer information
– Regulatory complianceRegulatory compliance
Fundamentals
2. Perform Gap Analysis2. Perform Gap Analysis2. Perform Gap Analysis2. Perform Gap Analysis
Where are we? Where do we need to Where are we? Where do we need to be?be?
What problems did the IT assessment What problems did the IT assessment identify?identify?
What are the technology issues?What are the technology issues? What are the organizational constraints?What are the organizational constraints?
– Resource scarcity and/or conflictsResource scarcity and/or conflicts
– Department skill set evaluationDepartment skill set evaluation
– Business process impactsBusiness process impacts
Fundamentals
IT Gap Analysis compares cIT Gap Analysis compares current stateurrent state vs. vs. ddesired state esired state and determines what is and determines what is needed to get thereneeded to get there
Desired StateExisting State
Perform FinalInspection
ReviewFinal
Quantities
Produce RecordPlans
ComputeFinal
Quantities
Compare FinalQuantities
AdjustPayment Items
ReconcileWeekly
Inspection Notesand As-builtRed-lines
Perform FinalInspection
Issue Payment
PerformQuantities Check
Issue Payment
RecommendedChange
Fundamentals
3. Develop and Evaluate 3. Develop and Evaluate AlternativesAlternatives3. Develop and Evaluate 3. Develop and Evaluate AlternativesAlternatives Create performance metricsCreate performance metrics
– Clear, concise, and measurableClear, concise, and measurable
– Tied to organizational goalsTied to organizational goals
Refine business process impactsRefine business process impacts– Risk reduction needs (backup, emergency)Risk reduction needs (backup, emergency)
– Development standardsDevelopment standards
– InfrastructureInfrastructure
– Business support (staff, support)Business support (staff, support)
Identify projects and initiativesIdentify projects and initiatives Evaluate and select projectsEvaluate and select projects Assess budget and schedule implicationsAssess budget and schedule implications
Fundamentals
0 $10 $20 $30 $40 $50 $600
20
40
60
80
100
120
140
160
180
200
Total Benefit
CumulativeWeighted
PerformanceBenefit
These projects produce major benefits relative to their total cumulative costs
Total Cost
Total Cumulative Cost ($ Millions)
Portfolio (ROI) Analysis identifies the Portfolio (ROI) Analysis identifies the optimal level of investmentoptimal level of investment
Fundamentals
4. Document Decision Process4. Document Decision Process4. Document Decision Process4. Document Decision Process
5-Year strategic plan5-Year strategic plan Decision process mapDecision process map Communications planCommunications plan Technology requirements documentTechnology requirements document Project roles and responsibilitiesProject roles and responsibilities Executive summaryExecutive summary
Fundamentals
A Decision Process Map lists the key A Decision Process Map lists the key decision-makers and their rolesdecision-makers and their rolesA Decision Process Map lists the key A Decision Process Map lists the key decision-makers and their rolesdecision-makers and their roles
Executive Board
IT Department Staff
1. StrategicVision
2. GapAnalysis
3. EvaluateAlternatives
4. DocumentDecisions
Articulategoals
AssessCurrent
situation
Prelim.Project
List
Senior Mgmt.
Status
FinalReview
Stakeholders
PublicMeeting
SteeringCommittee
Fundamentals
There are many types of project There are many types of project outputs, each designed for a outputs, each designed for a different audiencedifferent audience
There are many types of project There are many types of project outputs, each designed for a outputs, each designed for a different audiencedifferent audience Project ReportProject Report
Executive SummaryExecutive Summary
NewsletterNewsletter
Web site contentWeb site content
Public MeetingPublic Meeting
PowerPoint presentationPowerPoint presentation
Decision modelsDecision models
Press releasesPress releases
One-on-one review One-on-one review sessionssessions
Project schedulesProject schedules
Management PlanManagement Plan
Technical/functional Technical/functional specificationsspecifications
RFPRFP
Flyers/handoutsFlyers/handouts
Budget analysisBudget analysis
Prioritized project listPrioritized project list
Fundamentals
Project Output Pros and ConsProject Output Pros and ConsProject Output Pros and ConsProject Output Pros and Cons
Project NameProject Name ProPro ConCon
Full ReportFull Report Formal documentFormal document
Very detailedVery detailed
Sits on shelfSits on shelf
Time consumingTime consuming
Executive Executive SummarySummary
Concise link Concise link between goals and between goals and project selectionproject selection
Multi-useMulti-use
Lose detailLose detail
Risk losing full Risk losing full picturepicture
Decision ModelDecision Model Interactive/iterativeInteractive/iterative
Captures Captures institutional institutional knowledgeknowledge
Different type of Different type of expertise to maintainexpertise to maintain
Prioritized List of Prioritized List of ProjectsProjects
Roadmap for Roadmap for implementationimplementation
Lack of rationaleLack of rationale
Fundamentals
Outsourcing Strategic IT Outsourcing Strategic IT Planning - Boston Water Planning - Boston Water & Sewer Commission & Sewer Commission (BWSC) Case Study(BWSC) Case Study
Outsourcing Strategic IT Outsourcing Strategic IT Planning - Boston Water Planning - Boston Water & Sewer Commission & Sewer Commission (BWSC) Case Study(BWSC) Case Study
What works and why; Lessons What works and why; Lessons Learned; Pros and Cons of Learned; Pros and Cons of OutsourcingOutsourcing
What works and why; Lessons What works and why; Lessons Learned; Pros and Cons of Learned; Pros and Cons of OutsourcingOutsourcing
Contact: Ron Sitcawich, MIS Director 617- 989-7000
BWSC at a GlanceBWSC at a GlanceBWSC at a GlanceBWSC at a Glance
Water distribution and Water distribution and sewer collection for sewer collection for Boston areaBoston area
Approximately 87,000 Approximately 87,000 customer accountscustomer accounts
Serve population of Serve population of approximately 1 million approximately 1 million peoplepeople
1,000 miles of water and 1,000 miles of water and 1,400 miles of sewer and 1,400 miles of sewer and drainsdrains
Real-World Planning
BWSC’s MIS DepartmentBWSC’s MIS DepartmentBWSC’s MIS DepartmentBWSC’s MIS Department
Responsible for Responsible for supporting hardware, supporting hardware, software, and software, and application application developmentdevelopment
– 19 MIS staff19 MIS staff
– 270 PC users270 PC users
– 6 Enterprise 6 Enterprise applicationsapplications
GIS
WOMS HR/FMS
Facility Manag.
CIS
MISMIS
Fleet
Real-World Planning
BWSC Led Two Major Planning BWSC Led Two Major Planning InitiativesInitiativesBWSC Led Two Major Planning BWSC Led Two Major Planning InitiativesInitiatives
19961996 Infrastructure incapable of Infrastructure incapable of
handling robust, mission-handling robust, mission-critical systemscritical systems
– Limited number of PCsLimited number of PCs
– Several PC-based Several PC-based databasesdatabases
– No software/hardware No software/hardware standardsstandards
– Lack of centralized Lack of centralized databasedatabase
Looming Y2K threatLooming Y2K threat
20022002 Successfully implemented Successfully implemented
83% of 1996 plan’s 83% of 1996 plan’s recommendationsrecommendations
Newly upgraded Newly upgraded software/hardware software/hardware infrastructure infrastructure
Standardization on Standardization on Microsoft and OracleMicrosoft and Oracle
Implemented new mission-Implemented new mission-critical systems for GIS, critical systems for GIS, HR/FMS, Fleet, Facilities HR/FMS, Fleet, Facilities Management, and WOMSManagement, and WOMS
Real-World Planning
BWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan Approach
BWSC developed goals/objectives for PlansBWSC developed goals/objectives for Plans
– 1996: Develop IT Standards & identify mission-critical system 1996: Develop IT Standards & identify mission-critical system solutionssolutions
– 2002: Capitalize on data integration without compromising 2002: Capitalize on data integration without compromising lifecycle of applicationslifecycle of applications
Hired consultants to assist with development of Strategic IT Hired consultants to assist with development of Strategic IT PlanPlan
– 1996: Coopers & Lybrand1996: Coopers & Lybrand
– 2002: PriceWaterhouseCoopers2002: PriceWaterhouseCoopers
BWSC assembled Steering Committee comprised of Key BWSC assembled Steering Committee comprised of Key Department Heads and Executive Office to review/approve Department Heads and Executive Office to review/approve plan & evaluate recommendationsplan & evaluate recommendations
BWSC initiates implementation of recommendations with BWSC initiates implementation of recommendations with some support from vendors/consultantssome support from vendors/consultants
Real-World Planning
Strategic IT Plan Key Strategic IT Plan Key RecommendationsRecommendationsStrategic IT Plan Key Strategic IT Plan Key RecommendationsRecommendations
19961996 Upgrade hardware and Upgrade hardware and
networknetwork
Standardize on Oracle, Standardize on Oracle, Microsoft Office, and Microsoft Office, and Windows NTWindows NT
Replace existing GIS & Replace existing GIS & HR/FMS mission-critical HR/FMS mission-critical systems systems
20022002 Provide access to data Provide access to data
vertically & horizontallyvertically & horizontally
Integrate data from existing Integrate data from existing mission-critical systems via mission-critical systems via web portalweb portal
Standardize systems Standardize systems integration and application integration and application developmentdevelopment
Upgrade existing mission-Upgrade existing mission-critical systems and critical systems and implement new CMSimplement new CMS
Real-World Planning
Putting the Plans into PracticePutting the Plans into PracticePutting the Plans into PracticePutting the Plans into Practice
Initiatives led by MIS with Executive Initiatives led by MIS with Executive SponsorshipSponsorship
– Budget for initiatives comes from MIS departmentBudget for initiatives comes from MIS department
Steering Committee assembled to help Steering Committee assembled to help manage/guide each initiativemanage/guide each initiative
– Comprised of key Department heads & Executive OfficeComprised of key Department heads & Executive Office
Project Champion appointed from either MIS or Project Champion appointed from either MIS or key stakeholder departmentkey stakeholder department
Implementation team comprised of staff from Implementation team comprised of staff from key department(s)key department(s)
– Best and brightest, not necessarily most senior staffBest and brightest, not necessarily most senior staff
Real-World Planning
Lessons LearnedLessons LearnedLessons LearnedLessons Learned
To properly evaluate recommendations, must fully To properly evaluate recommendations, must fully understand concepts, need, risks & benefitsunderstand concepts, need, risks & benefits
Assemble implementation teams to carry out Assemble implementation teams to carry out recommendationsrecommendations
Project Champion should report directly to Executive Project Champion should report directly to Executive OfficeOffice
– Reduces internal/political obstaclesReduces internal/political obstacles
People resist change inherently People resist change inherently
– Assign staff who support change and be prepared to Assign staff who support change and be prepared to remove/replace team members remove/replace team members
Don’t let consultant/vendor do all the work during Don’t let consultant/vendor do all the work during implementationimplementation
– Provides IT staff opportunity to gain skillsProvides IT staff opportunity to gain skills
Real-World Planning
This type of approach is This type of approach is successful when…successful when…This type of approach is This type of approach is successful when…successful when… An organization has strong leadershipAn organization has strong leadership
The leaders within the organization have a The leaders within the organization have a firm understanding of the business practices of firm understanding of the business practices of its departments its departments
The overall business mission of the The overall business mission of the organization is clearly definedorganization is clearly defined
Stakeholder buy-in is achievable during Stakeholder buy-in is achievable during implementation rather than planningimplementation rather than planning
MIS staff have strong implementation skillsMIS staff have strong implementation skills
Real-World Planning
Pros/Cons of Outsourcing Pros/Cons of Outsourcing Strategic IT Plan DevelopmentStrategic IT Plan DevelopmentPros/Cons of Outsourcing Pros/Cons of Outsourcing Strategic IT Plan DevelopmentStrategic IT Plan Development
ProsPros Objective assessment Objective assessment
Does not tax in-house Does not tax in-house resourcesresources
Can be completed within Can be completed within an aggressive timelinean aggressive timeline
Incorporates industry Incorporates industry perspective/trendsperspective/trends
ConsCons May be expensiveMay be expensive
Risk of receiving generic Risk of receiving generic recommendationsrecommendations
Recommendation details Recommendation details not always explicitnot always explicit
Recommendations may Recommendations may be based upon newest be based upon newest technologies rather than technologies rather than best solutionbest solution
Real-World Planning
The Real World: Strategic IT The Real World: Strategic IT Planning in an Organizational Planning in an Organizational ContextContext
The Real World: Strategic IT The Real World: Strategic IT Planning in an Organizational Planning in an Organizational ContextContext
Politics; Customers; Vendors; Politics; Customers; Vendors; Boundaries; Communications Boundaries; Communications and Resultsand Results
Politics; Customers; Vendors; Politics; Customers; Vendors; Boundaries; Communications Boundaries; Communications and Resultsand Results
Strategic IT Planning is a “People Strategic IT Planning is a “People Process”Process”Strategic IT Planning is a “People Strategic IT Planning is a “People Process”Process” Business needs and organizational Business needs and organizational
considerations drive the planning processconsiderations drive the planning process Key question: “How can we solve our problems Key question: “How can we solve our problems
given program constraints and our existing given program constraints and our existing implementation environment?”implementation environment?”
Stakeholder buy-in is Stakeholder buy-in is ABSOLUTELY ESSENTIALABSOLUTELY ESSENTIAL Integration and coordination between activities Integration and coordination between activities
increases success rate dramaticallyincreases success rate dramatically Technology is an enabler of these initiativesTechnology is an enabler of these initiatives
Real-World Planning
Why Do Projects Fail?Why Do Projects Fail?Why Do Projects Fail?Why Do Projects Fail?
80% fail because of organizational reasons80% fail because of organizational reasons The most common causes of failure are:The most common causes of failure are:
– Unclear goals and metricsUnclear goals and metrics
– Wrong problem definitionWrong problem definition
– Insufficient stakeholder buy-in/consensusInsufficient stakeholder buy-in/consensus
– ““Jumping to a solution”Jumping to a solution”
– Lack of coordinationLack of coordination Net result - a structured process is needed to:Net result - a structured process is needed to:
– Address user concernsAddress user concerns
– Enhance confidence in the decisions/outcomeEnhance confidence in the decisions/outcome
Real-World Planning
To be successful you need a To be successful you need a structured decision process that:structured decision process that:To be successful you need a To be successful you need a structured decision process that:structured decision process that:
Identifies the key players and determines Identifies the key players and determines their authority or influencetheir authority or influence
Clearly articulates how decisions will be Clearly articulates how decisions will be made and implementedmade and implemented
Promotes trust in the process so that Promotes trust in the process so that decision-makers don’t reserve judgment decision-makers don’t reserve judgment until the very enduntil the very end
Is tailored to address what the Is tailored to address what the stakeholders stakeholders really really wantwant
Real-World Planning
What Are The Drivers In the What Are The Drivers In the Political Process?Political Process?What Are The Drivers In the What Are The Drivers In the Political Process?Political Process?
““No surprises”No surprises” Process vs. outcomeProcess vs. outcome Risk aversionRisk aversion Budget sensitivityBudget sensitivity Political momentumPolitical momentum Personal relationshipsPersonal relationships CredibilityCredibility
Real-World Planning
Stakeholder Evaluation DiagramStakeholder Evaluation DiagramStakeholder Evaluation DiagramStakeholder Evaluation Diagram
IssueIssue Stakeholder Stakeholder GroupGroup
Key Key PeoplePeople
Impact / Impact / SignificanceSignificance
Key Key DriversDrivers
Potential Potential ResponseResponse
Real-World Planning
Customers Play An Important Customers Play An Important Role In Decision-makingRole In Decision-makingCustomers Play An Important Customers Play An Important Role In Decision-makingRole In Decision-making How do you define customers?How do you define customers?
Do you have more than one type of customer?Do you have more than one type of customer?
How do customers interact with the How do customers interact with the organization?organization?
How is customer satisfaction determined?How is customer satisfaction determined?
What are the chief customer concerns?What are the chief customer concerns?
How involved should customers be in the How involved should customers be in the decision-making process?decision-making process?
Real-World Planning
Customers Can Have Different Customers Can Have Different Levels of Involvement in the Levels of Involvement in the Decision ProcessDecision Process
Customers Can Have Different Customers Can Have Different Levels of Involvement in the Levels of Involvement in the Decision ProcessDecision Process No involvementNo involvement LimitedLimited
– Receive summary of decisionsReceive summary of decisions
– Ability to register commentsAbility to register comments
– Pre-planning workshopsPre-planning workshops IntermediateIntermediate
– Regular updatesRegular updates
– Review-&-commentReview-&-comment Full partnershipFull partnership
– Steering Committee representationSteering Committee representation
Real-World Planning
There are a number of boundaries There are a number of boundaries and constraints that can affect a and constraints that can affect a project’s viabilityproject’s viability
There are a number of boundaries There are a number of boundaries and constraints that can affect a and constraints that can affect a project’s viabilityproject’s viability
ScheduleSchedule RegulationsRegulations FundingFunding ResourcesResources Organizational skillsOrganizational skills Political feasibilityPolitical feasibility Existing business processesExisting business processes Stakeholder buy-in (internal & external)Stakeholder buy-in (internal & external)
Real-World Planning
Vendors: Complete Annoyance Vendors: Complete Annoyance or Necessary Evil?or Necessary Evil?Vendors: Complete Annoyance Vendors: Complete Annoyance or Necessary Evil?or Necessary Evil? ProsPros
– Provide valuable insightProvide valuable insight
– Worked on numerous implementationsWorked on numerous implementations
– Have experience with leading-edge technologiesHave experience with leading-edge technologies
ConsCons– Always trying to “sell something”Always trying to “sell something”
– Take time to manageTake time to manage
– Can be pestsCan be pests
– Don’t always sell what is needed mostDon’t always sell what is needed most
Key: defining the proper role for vendorsKey: defining the proper role for vendors
Real-World Planning
Communications StrategyCommunications StrategyCommunications StrategyCommunications Strategy
Who is the target audience?Who is the target audience? How are they used to seeing How are they used to seeing
information presented?information presented? How much time/ability do they have to How much time/ability do they have to
absorb this information?absorb this information? What are stakeholders planning to do What are stakeholders planning to do
with this information?with this information? What is the purpose of presenting this What is the purpose of presenting this
information?information?
Real-World Planning
““Know The Players” and Design an Know The Players” and Design an Appropriate Decision ProcessAppropriate Decision Process““Know The Players” and Design an Know The Players” and Design an Appropriate Decision ProcessAppropriate Decision Process
Perform a detailed stakeholder analysisPerform a detailed stakeholder analysis Develop clear program goalsDevelop clear program goals Bound the problem, limit the scopeBound the problem, limit the scope Establish clear participant roles and Establish clear participant roles and
responsibilitiesresponsibilities Consider organizational, political and Consider organizational, political and
technical issuestechnical issues
Real-World Planning
TechnologyBackbone
Technology Solutions
Project TaskActivity j f m a m j y a s o LOE CostEstablish Computing Standards 460 48,300$ Implement Quick-fixes 202 21,210$ Design Integration Strategy 160 16,800$ Convene Steering Committee 24 2,520$ Recieve VendorPresentations 360 37,800$ Review UCA Progress 80 8,400$ Establish Asset Inventory 3600 378,000$ Design spatial Integration 280 29,400$
Technology
Infrastructure
Automated Meter Reading
Automated Meter Reading
Permits andLicenses
Permits andLicenses
Accounts ReceivableAccounts Receivable
Arrears ArrearsField ForceAutomation
Field ForceAutomation
LaboratoryInformation
LaboratoryInformation
BillingBilling
GISGIS
Public Relations
Public Relations
Customer Service
Customer Service
Capital ProjectsPlanning
Capital ProjectsPlanning
Work ManagementWork Management
People Improvements
Business Improvements
Technology Improvements
A Strategic IT Plan Integrates All A Strategic IT Plan Integrates All Dimensions of Defined ImprovementDimensions of Defined Improvement
Real-World Planning
Afternoon Session: Afternoon Session: Case Study WorkshopCase Study WorkshopAfternoon Session: Afternoon Session: Case Study WorkshopCase Study Workshop
Workshop – PM AgendaWorkshop – PM AgendaWorkshop – PM AgendaWorkshop – PM Agenda
Split into groups of 6-8Split into groups of 6-8– People from same organization or background People from same organization or background
should split into different groupsshould split into different groups
Identify a real-life strategic IT planning Identify a real-life strategic IT planning effort (or an organization that needs effort (or an organization that needs one)one)
Complete workshop exercises step-by-Complete workshop exercises step-by-stepstep
Recap/discuss issues with entire groupRecap/discuss issues with entire group
Workshop – Case Study Workshop – Case Study ExercisesExercisesWorkshop – Case Study Workshop – Case Study ExercisesExercises
Exercise 1: Identify Key Stakeholders & Exercise 1: Identify Key Stakeholders & Program IssuesProgram Issues
Exercise 2: Define Program Goals & Exercise 2: Define Program Goals & MetricsMetrics
Exercise 3: Select/Evaluate ProjectsExercise 3: Select/Evaluate Projects Exercise 4: Review Analytical Tool Exercise 4: Review Analytical Tool
OutputsOutputs Exercise 5: Discuss Communications Exercise 5: Discuss Communications
FormatsFormats
Exercise 1a: Evaluate Key Exercise 1a: Evaluate Key StakeholdersStakeholdersExercise 1a: Evaluate Key Exercise 1a: Evaluate Key StakeholdersStakeholders
IssueIssue Stakeholder Stakeholder GroupGroup
Key PeopleKey People Impact / Impact / SignificanceSignificance
Key Key DriversDrivers
Potential Potential ResponseResponse
Worst-case Worst-case “Walk “Walk Away”Away”
Directions:1. Select a project with which you are familiar.2. List your project stakeholders.
Exercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesExercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssues
Givens,Constraints
Key ProblemAreas
ImplementationDetails
Directions:1. Determine the project constraints, major issues, and implementation
details.2. Discuss your conclusions.
Exercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesExercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesDirections:1. Determine the project constraints, major issues, and implementation
details.2. Discuss your conclusions.
Exercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance MetricsExercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance Metrics
Program Goal
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5
Metric 1
Metric 2
Metric 3
Metric 1
Metric 2
Directions:1. Identify at least 5 program-level goals for your project.2. For each goal, define at least one performance metric.
Exercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance MetricsExercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance Metrics
Directions:1. Identify at least 5 program-level goals for your project.2. For each goal, define at least one performance metric.
Exercise 3: Select/Evaluate 5 IT Exercise 3: Select/Evaluate 5 IT ProjectsProjectsExercise 3: Select/Evaluate 5 IT Exercise 3: Select/Evaluate 5 IT ProjectsProjects
Project Project NumberNumber
Project NameProject Name ProPro ConCon
11
22
33
44
55
Directions:1. Identify at least 5 IT projects to implement.2. Compare/contrast their performance against the pre-defined metrics
from Exercise 2.
Exercise 4: Review Some Exercise 4: Review Some Analytical Tool Outputs (Group Analytical Tool Outputs (Group Session)Session)
Exercise 4: Review Some Exercise 4: Review Some Analytical Tool Outputs (Group Analytical Tool Outputs (Group Session)Session)
Directions:1. Review tool outputs from several third party decision analysis and
software simulation packages.2. Discuss the strengths and weaknesses of each output and identify the
appropriate use for each tool.
Informal Project Prioritization Divides Projects Informal Project Prioritization Divides Projects Into Three Tiers Based On ROIInto Three Tiers Based On ROI
0 $1200
20
40
60
80
100
Project Cost
ProjectPerformance
$20 $40 $60 $80 $100
Not Cost Effective
Possible Projects
Probable Projects
Automate Financial ReportingAutomate Work Orders
Implement Automated Meter Reading
0 $10 $20 $30 $40 $50 $600
20
40
60
80
100
120
140
160
180
200
Total Benefit
CumulativeWeighted
PerformanceBenefit
These projects produce major benefits relative to their total cumulative costs
Total Cost
Total Cumulative Cost ($ Millions)
Portfolio Analysis Evaluates and Defines the Appropriate Project Mix Across the Entire Organization
Decision Tree Analysis Focuses On Decision Tree Analysis Focuses On Issues Dominated By Risk & Issues Dominated By Risk & UncertaintyUncertainty
Decision Tree Analysis Focuses On Decision Tree Analysis Focuses On Issues Dominated By Risk & Issues Dominated By Risk & UncertaintyUncertainty
Implementation Schedule Slip (months)
Total Cost vs. Implementation Schedule Delays
Tot
al C
ost
(k$)
0 1 2 3 4 5 6 7 8
Optimal decision changesif schedule slips more than 6 months
Some Tools Compare and Contrast Some Tools Compare and Contrast Projects According to Multiple CriteriaProjects According to Multiple CriteriaSome Tools Compare and Contrast Some Tools Compare and Contrast Projects According to Multiple CriteriaProjects According to Multiple Criteria
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
Cu
mu
lati
ve C
rite
ria
Sco
res
1 10 6 7 2 3 5 4 9 8
Projects
Contribution by Criteria
Organizational Fit
Legacy Systems
Data Access
Reliability
Schedule
See Benefit Cost
Back to INPUT Worksheet
Click to Sort by Score
Exercise 5: Identify 5 Appropriate & Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for 3 “Bad” Communications Formats for your Projectyour Project
Exercise 5: Identify 5 Appropriate & Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for 3 “Bad” Communications Formats for your Projectyour Project Project ReportProject Report
Executive SummaryExecutive Summary
NewsletterNewsletter
Web site contentWeb site content
Public MeetingPublic Meeting
PowerPoint presentationPowerPoint presentation
Decision modelsDecision models
Press releasesPress releases
One-on-one review One-on-one review sessionssessions
Project schedulesProject schedules
Management PlanManagement Plan
Technical/functional Technical/functional specificationsspecifications
RFPRFP
Flyers/handoutsFlyers/handouts
Budget analysisBudget analysis
Prioritized project listPrioritized project list
Others? Feel free to “go Others? Feel free to “go off the board”….off the board”….
Strategic IT Plan Case Study – Strategic IT Plan Case Study – Summary (Activity & Purpose)Summary (Activity & Purpose)Strategic IT Plan Case Study – Strategic IT Plan Case Study – Summary (Activity & Purpose)Summary (Activity & Purpose) Exercise 1: Key Stakeholders & Program IssuesExercise 1: Key Stakeholders & Program Issues
– Know your target audience and the important questionsKnow your target audience and the important questions
Exercise 2: Program Goals & MetricsExercise 2: Program Goals & Metrics
– Define the organizational goals and how you will measure Define the organizational goals and how you will measure successsuccess
Exercise 3: Select/Evaluate ProjectsExercise 3: Select/Evaluate Projects
– Identify and compare only projects that address mission goalsIdentify and compare only projects that address mission goals
Exercise 4: Analytical Tool OutputsExercise 4: Analytical Tool Outputs
– Use tools that provide the appropriate level of insightUse tools that provide the appropriate level of insight
Exercise 5: Communications FormatsExercise 5: Communications Formats
– Distill/present data in a way your target audience can Distill/present data in a way your target audience can understand and absorbunderstand and absorb
Strategic IT Plan Case Study – Strategic IT Plan Case Study – Remaining Program ActivitiesRemaining Program ActivitiesStrategic IT Plan Case Study – Strategic IT Plan Case Study – Remaining Program ActivitiesRemaining Program Activities Budget and schedulingBudget and scheduling
Technology analysis/selectionTechnology analysis/selection
Incorporation of legacy systemsIncorporation of legacy systems
Facilitating a group decision-making processFacilitating a group decision-making process
Organizational impact assessmentOrganizational impact assessment
Business process redesign (BPR)Business process redesign (BPR)
Project management (delivery)Project management (delivery)
Public relations/public involvementPublic relations/public involvement
Ongoing progress assessmentOngoing progress assessment
Regulatory compliance managementRegulatory compliance management
Summary/DiscussionSummary/DiscussionSummary/DiscussionSummary/Discussion
IT Systems Should Support the IT Systems Should Support the Business PlanBusiness Plan
VISION/MISSIONVISION/MISSION
BUSINESS PRACTICESBUSINESS PRACTICESPEOPLE PRACTICESPEOPLE PRACTICES
TECHNOLOGY SYSTEMSTECHNOLOGY SYSTEMS
John Naisbitt, IT Visionary
“ You have to know WHY before HOW….”
Phil Perkins, Pillsbury, CIO
“First ask, what is the business problem that this application is trying to solve? ”
Miriam Heller, Professor, U of H
“No matter how brilliantly designed and engineered the IT system, the system is limited if it does not address business requirements up front.”
Strategic IT
Plan
A Sound Strategic IT Plan Incorporates A Sound Strategic IT Plan Incorporates Both Organizational and Technical Both Organizational and Technical ConcernsConcerns
A Sound Strategic IT Plan Incorporates A Sound Strategic IT Plan Incorporates Both Organizational and Technical Both Organizational and Technical ConcernsConcerns
DataData
InformationInformation
KnowledgeKnowledgeInsightInsightInsightInsight
ImplementationImplementationImplementationImplementation
ProcessProcessPeoplePeople
Strategic IT Planning GuidelinesStrategic IT Planning GuidelinesStrategic IT Planning GuidelinesStrategic IT Planning Guidelines
Strategic IT Planning is an organizational / Strategic IT Planning is an organizational / people-centered processpeople-centered process
Business and stakeholder needs should drive Business and stakeholder needs should drive the solutionthe solution
Technology is an enabler of program goalsTechnology is an enabler of program goals Developing a clear set of goals & metrics Developing a clear set of goals & metrics
increases the chance of successincreases the chance of success Participants require a “no surprises” decision Participants require a “no surprises” decision
and implementation processand implementation process Tailor your process (and outputs) to your Tailor your process (and outputs) to your
target audiencetarget audience
Strategic IT Planning StepsStrategic IT Planning StepsStrategic IT Planning StepsStrategic IT Planning Steps
1.1. Develop strategic visionDevelop strategic vision
2.2. Perform gap analysis (technology, Perform gap analysis (technology, organization, constraints)organization, constraints)
3.3. Develop/evaluate alternativesDevelop/evaluate alternatives
4.4. Document decision processDocument decision process
1. StrategicVision
2. GapAnalysis
3. EvaluateAlternatives
4. DocumentDecisions
Developing A Strategic IT Plan Developing A Strategic IT Plan Provides A Wealth of Program Provides A Wealth of Program BenefitsBenefits
Developing A Strategic IT Plan Developing A Strategic IT Plan Provides A Wealth of Program Provides A Wealth of Program BenefitsBenefits Clear directionClear direction Alignment between program goals and Alignment between program goals and
implementationimplementation Increased communication (internal & external)Increased communication (internal & external) Stakeholder buy-inStakeholder buy-in Greater efficiencyGreater efficiency Reduced riskReduced risk Program flexibilityProgram flexibility Enhanced credibilityEnhanced credibility
Questions for you to think Questions for you to think about…about…Questions for you to think Questions for you to think about…about… What is the appropriate role of What is the appropriate role of
stakeholders in this process? (who are they stakeholders in this process? (who are they and what do they do?)and what do they do?)
How do I evaluate recommendations? How How do I evaluate recommendations? How do I prioritize recommendations?do I prioritize recommendations?
What is the appropriate project structure What is the appropriate project structure for completing A Strategic IT Plan?for completing A Strategic IT Plan?
What are the primary barriers to success What are the primary barriers to success for IT planning within my organization?for IT planning within my organization?
Introduction
Questions/ConcernsQuestions/ConcernsQuestions/ConcernsQuestions/Concerns
Contact InformationContact InformationContact InformationContact Information
Vasken MissirlianVasken Missirlian
– Phone: 949-752-5452Phone: 949-752-5452
– E-mail: E-mail: [email protected]@cdm.com
Phil CherninPhil Chernin
– Phone: 800-343-7004Phone: 800-343-7004
– E-mail: E-mail: [email protected]@cdm.com
Jon SpangenbergJon Spangenberg
– Phone: 925-933-2900 Phone: 925-933-2900
– E-mail: E-mail: [email protected]@cdm.com