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SIM Fairfield/Westchester Meeting September 21, 2006 Rye Brook, NY Presenter: Jack M Cooper.

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Presentation on theme: "SIM Fairfield/Westchester Meeting September 21, 2006 Rye Brook, NY Presenter: Jack M Cooper."— Presentation transcript:

1 SIM Fairfield/Westchester Meeting September 21, 2006 Rye Brook, NY Presenter: Jack M Cooper

2 How Senior Management in IT is being viewed form the Top! Board of Directors and other executives in the enterprise

3 Importance of managing IT in all directions “ 360 IT Management” 1. Your own personal score card: What % of your time do you do managing? UpwardAcross Downward Downward 2. IT project score card: What % of project expenses are used in measuring? 2. IT project score card: What % of project expenses are used in measuring?Costs Benefits Benefits

4 “Lessons Learned on the importance of how Senior Management in an Enterprise Views IT” Senior Management in an Enterprise: Member of Board of Directors CEO and CFO COO and division Presidents Members of Executive Committees

5 Background used in developing: “Lessons Learned on the importance of how Senior Management View IT” Member of Board of Directors in publicly and privately held firms Partner in Venture Capital firms that invest in early stage high tech ventures IT Management Consultant (working with Boards, and senior management not so much about how to do an IT system, but more importantly what, why, when, and how much) Adjunct Professor in Fordham University MBA program (Management and Information Systems Departments) Formerly: President CSX Technology, IT Services and Outsourcing firm CIO - CSX, Large Transportation Company - J. E. Seagram, Global Wine and Sprits Enterprise - Bristol-Myers, Diversified Pharma Company

6 “Lessons Learned on the importance of how Senior Management View IT” 1. There is a major short fall in senior IT management: the upward and across management of IT value. 2. This has become a critical factor in limiting the success of IT with the complexity and costs in implementing online real time systems which require business process change within a firm and across loosely connected supply chains. 3. There are Keys to change this senior IT management short fall. 4. There are Winds of Change that need to identified and understood.

7 the Winds of Change: Identifying the Winds of Change: 1. Sharply increased downward management from Board of Directors and Senior Management and Senior Management SOX: Board of Directors Audit Committee, CEO, COO, and CFO SOX: Board of Directors Audit Committee, CEO, COO, and CFO Post 2001: profit and competitive pressures, deep costs reductions Post 2001: profit and competitive pressures, deep costs reductions 2. Problems with the perception of IT Phase 1 (before 1990): Overvalued, it has got to be good Phase 1 (before 1990): Overvalued, it has got to be good Phase 2 (1990 to 2001): Difficult to deliver new functionality, Phase 2 (1990 to 2001): Difficult to deliver new functionality, on-line real time systems required, but not easily achieved, changes to business processes and consumer buying habits Phase 3 (2001 to present): Undervalued, poorly defined “Basic IT Business Values”, costs control pressures, and the lack Phase 3 (2001 to present): Undervalued, poorly defined “Basic IT Business Values”, costs control pressures, and the lack of continuous “360 management of IT”

8 “An idea without a plan, priority and timeliness is no more than a dream” Ram Charan, Author: Execution: The Discipline of Getting things done E-Board Strategies: How to Survive and Win Boards That Deliver: Advancing Corporate Governance From Compliance to Competitive Advantage What the CEO Wants You to Know: How Your Company Really Works Know-How: The 8 Skills That Separate People Who Perform from Those Who Don't plus several other business management books

9 Building a game plan and making it work for the upward and across management of the perception of IT: 1. Know where and how the values of IT have an impact on your firm, your organization, and you! 2. Know who the players are, inline and stealth, their business backgrounds and what turns them on! 3. Properly prepare and make quality connections! 4. Carefully Balance Risks and Rewards

10 Building a game plan and making it work for the upward and across management of the perception of IT: 1. Know where and how the values of IT can have an impact on your firm, your organization, and you! You: Creating a highly effective network for promotions and new positions from within and outside a firm. Your organization: Strengthening IT position to gain support and funding for strategic systems and services Your firm: Directing IT resources to be focused on and tightly interlocked with the current and future goals and objectives of the enterprise. Critical success factor “elevator ride”: Must have ready available, off the top of your head, a 40 second “Basic IT Business Value” description for any major IT projects, and current IT issues inside and outside of your firm. Not so much how but what, why, and when.

11 B uilding a game plan and making it work for the upward and across management of the perception of IT: B oard of Directors’ score card: “Basic IT Business Value”: 1. Payoff: ROI > 15% Cash positive in < 12 months Closely aligned with strategic direction of the firm 2. Project management : Users management ownership of values/payoffs Modular in funding with short time frame for deliverables 3. Fully regulatory compliant SOX, federal and state governments 4. Senior level officers of firm supportive with CFO a must 5. Funding availability

12 B uilding a game plan and making it work for the upward management of the perception of IT: “Basic IT Business Value” description: A. “Holy grail” areas for IT value: 1. Top line growth 2. Bottom line improvements in cash costs reductions 3. Asset utilization and productivity 4. Compliance with Gov Regulations 5. Security and access control B. Before frame: Current problems and their impact C. After frame: Impact of benefits and values gained by the new system

13 Building a game plan and making it work for the upward and across management of the perception of IT: 2. Know who the players are, inline and stealth, their business backgrounds and what turns them on! Insight into Board members: Who are the Board members Committees Assignment (SOX): Audit and Governance Their firm’s IT initiatives: MRP, SOA, CRM, etc Their business background (big difference): accounting, legal, finance, marketing, sales, etc Their outside interest: golf, sports, charity work, etc Same things for all other senior officers in the firm 33

14 Building a game plan and making it work for the upward and across management of the perception of IT: 3. Properly prepare and make quality connections! Keys to success in making quality connections: to 1 rule for time spent on preparing for a meeting 2. Carefully manage governance of project development : lines of authority must be well defined and committees must have focus and effective leadership 3. Early user partnership and a strong sense of user ownership 4. Build strong imbedded IT support across all parts of the company organization. Use GE model: Hire each year MBAs on a rotational program that will develop managers for export to other departments 2. Identify and/or develop reasons for quality meetings

15 Building a game plan and making it work for the upward and across management of the perception of IT: 4. Balancing Risks and Rewards Starting premise: Never enough funding to do all that is wanted and project size and costs will grow! Smart play: Gain users participation and acceptance early Focus on short term deliverables What % of IT projects are successfully delivered: On time With in Budget Benefits of project delivered

16 Building a game plan and making it work for the upward and across management of the perception of IT: Rules for being in the 10% success club: 1. Senior management support (formal and stealth) 2. Razor sharp alignment of IT with enterprise’s strategy 3. Early involvement and a strong sense of user ownership 4. Clear and concise description of project benefits and costs with well defined measurements -you can’t manage something you can’t measure- 5. In-depth and focused technology skills and resources with rigorous project management and clear project mile-stones -not a project with out a stop and start date- 6. Continuous management of well defined expectations/perceptions

17 Summary: “Lessons Learned” 1. There is a major short fall in IT management upward and across 2. This short fall has become a critical factor limiting the success of IT 3. Keys to changing this IT management short fall: Well defined “Basic IT Business Values” Early partnership with users and user management Clearly defined measurements of costs, values, and deliverables Careful balance between Risks and Rewards Build an IT management network across the company Continuous “360 management of IT”

18 Jack M. Cooper President and CEO JM Cooper & Associate


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