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9331 Bluebonnet Boulevard Baton Rouge, LA 70810 225-769-2676 www.consultssa.com Louisiana Council of Information Services Directors Maximizing Internal.

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Presentation on theme: "9331 Bluebonnet Boulevard Baton Rouge, LA 70810 225-769-2676 www.consultssa.com Louisiana Council of Information Services Directors Maximizing Internal."— Presentation transcript:

1 9331 Bluebonnet Boulevard Baton Rouge, LA Louisiana Council of Information Services Directors Maximizing Internal IT Effectiveness

2 Presentation Overview Introduction Identifying the four keys Breaking down the four keys Questions and answers

3 Presenter’s Background Over 24 years of IT-related experience Industry experience includes finance, healthcare, IT outsourcing, and state government Consulting for just over three years –Organizational restructure –Business process redesign –Project management/facilitation –Interim IT management

4 Identifying the Four Keys 1. IT Governance Practices 3. Customer Service and Marketing 4. Performance Management 2. Organizational Structure Effective IT Requires: Proper interconnectivity Proper balance of roles Proper alignment of focus

5 Defining the Four Keys 1.Governance: How your business organization manages utilization of IT resources (e.g. people, funding, and assets) 2.IT Organization Structure: How well your application support aligns with your agency operations structure 3.Customer Service and Marketing: Getting your IT staff to operate like an external party that has to earn their business and promoting your services 4.Performance Management: Using employee performance reviews to reinforce a customer service philosophy

6 Key 1: Effective IT Governance IT governance is specifying the decision rights and accountability framework to encourage desirable behaviors in the use of IT Effective IT governance requires a significant amount of management time and attention Well-designed IT governance arrangements distribute IT decision making to those responsible for outcomes Source: IT Governance: How Top Performers Manage I/T Decision Rights for Superior Results By: Peter Weill and Jeanne W. Ross

7 Key 1: Effective IT Governance cont… The best predicator of IT governance performance is the percentage of managers in leadership roles who can accurately describe IT governance Research shows that organizations implementing effective IT governance to support their business strategies realize superior results Source: IT Governance: How Top Performers Manage I/T Decision Rights for Superior Results By: Peter Weill and Jeanne W. Ross

8 IT Governance Must Address … What decisions to make Who should make the decisions How to make and monitor the decisions Source: IT Governance: How Top Performers Manage I/T Decision Rights for Superior Results By: Peter Weill and Jeanne W. Ross

9 Governance Structure Models Model 1: For small organizations where a single tiered central steering committee, chaired by highest level executive, can effectively govern IT deployment for entire organization Model 2: For medium size organizations that have two to four operational divisions that are highly dependent on IT resources Model 3: For large organizations the have five or more operational divisions highly dependent on IT resources

10 IT Governance Structure: Model 2 Administrative Steering Committee Division A Steering Committee Division B Steering Committee eServices Inter/Intranet Chaired by Secretary or appointed official Meets bi-monthly or quarterly Defines IT governance structure Sets decision parameters for committees Approval board for IT business policies Includes steering committee chairs Includes senior IT executive IT Steering Committees (ITSC) Chaired by appointed official Meets bi-weekly or monthly Plan/prioritize division projects Management level participants Governance Committee (ITGC)

11 IT Governance Structure: Model 3 Executive Committee (ITEC) Chaired by high appointed official Meets monthly initially Includes Steering Committee chairs Approval board for IT Business policies Oversees multi-division IT initiatives IT Steering Committees (ITSC) Chaired by ITGC member Meets monthly Plan/prioritize area projects Management level participants Governance Committee (ITGC) Chaired by Secretary or appointed official Includes appointed officials Meets quarterly Approves decision parameters for ITGC Oversees/approves governance structure Includes ITGC chair and IT Director Administrative Steering Committee Division A Steering Committee Division B Steering Committee eServices Inter/Intranet

12 Important Governance Factors Ideally, your highest level governance committee should be chaired by the agency Secretary Active involvement by the highest level of organization management Committees should be chaired by business executives

13 Important Governance Factors cont… Committees should be organized around key business operations or divisions rather than IT operations Top IT executive should sit on the organization’s highest level executive business committee Formalized business based methodology for prioritizing IT projects

14 IT Governance Practices Example: Project Priority Matrix Priority Business Drivers WTABCDScore Return on Investment 6.0 > 30 % ( ) 6.0 > 20 % ( ) 4.5 > 15 % ( ) 3.0 > 10 % ( ) 1.0 Efficiency Gains - One-Time Savings - Annual Savings > $500K ( ) 6.0 > $250K ( ) 4.0 > $100K ( ) 2.0 < $100K ( ) 0.0 Marketing Impact - Improves Customer Service - Provides New Service High ( ) 5.0 Medium ( ) 4.0 Low ( ) 2.0 Indirect ( ) 1.0 Scope of Impact - Multi-Department - Single Department > or = 6 ( ) 6.0 > or = 4 ( ) 4.0 > or = 2 ( ) 2.0 = 1 ( ) 1.0 Business Risk: - Key IT Resources - Implementation Timeline Hi/Long ( ) 5.0 Lo/Long ( ) 4.0 Hi/Short ( ) 3.0 Lo/Short ( ) 1.0

15 Key 2: Business-Driven IT Structure Application team structure needs to effectively align with major operational divisions and governance structure “Big Picture” thinking is prevalent amongst the IT management team Single point of accountability for these IT areas: –Overall agency IT management –Business applications management –Infrastructure management and support –eServices development and support

16 Aligning Applications with Business Operations

17 Business-Driven IT Model I/T Foundation: Balancing Business Needs and Technology Infrastructure Customer Demands Business Services Application Requirements Technical Infrastructure Customer  Vendor

18 Key 3: Customer Service and Marketing Developing an “Internal Consultant” mindset –Every encounter with a customer is a perception opportunity (favorable or unfavorable) –Of the individual and the IT division Getting IT personnel to identify with the business operations rather than the IT business Develop IT business practices that make it easier on the customers to do business with IT Job shadowing: spending time walking in your customer’s shoes in their element

19 Key 3: Customer Service and Marketing cont… When IT organizations do their job best, customers notice you least; IT becomes transparent When things are going well you sometimes have to promote your organization, it’s called marketing You have to be pro-active in telling your customers about your organization and your efforts; consider an IT Road Show The link: the better your customer services are the more credibility your marketing efforts will have

20 Key 4: Performance Management Developing a performance management system that encourages the desired behaviors related to customer service Highly-disciplined management team that provides consistent and equitable evaluation of personnel –Maintain a personnel folder on each direct report and their direct reports –Top IT executive serves a single point of preview and feedback on every personnel review Assemble a management team that understands their role is to put their staff in the best possible position to be successful

21 Include Customer Service in Employee Reviews Solicit customer feedback and include in each employee’s performance review Require IT staff to spend a half to a full day each quarter job shadowing a customer Require each employee to provide a half page report on what they learned and share with the entire IT staff

22 Assessing Where You are Today Ask your staff: –What business are you in? Ask your managers: –Are our processes designed to make life easier for our IT staff or for our customer? –Have you seen demonstrations of applications you do not have to support? Ask your employees: –How much time do you spend with your customer learning their business operations? Ask your customers: –What is the most valuable service IT provides?

23 Suggested Reading IT Governance: How Top Performers Manage IT Decision Rights for Superior Results, by Peter Weill and Jeanne W. Ross Flawless Consulting: A Guide to Getting Your Expertise Used, by Peter Block How to Market The I/S Department Internally, by L. Paul Ouelette

24 Errol Labat SSA Consultants (225) Thank You! Questions?


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