1. IT Strategic Planning

2. The Role of IT in the Enterprise
Technology has no value unless there is a business context
Technology must provide a stable foundation upon which the business can predictably operate
Technology must facilitate innovation that allows enterprises to be competitive in their market space.

3. Why do a Strategic Plan? Expectation Setting Creditability
Business and IT are on the same page!
Creditability
IT consumes between 6 and 10% on average as a percentage of total revenue*
Establishes a policy for decision making
Priorities are set according to alignment with strategy
Focuses resources on key priorities
IT is at risk of failure without it!!!
Short-term, quick fix solutions become the norm
“You are the architect of your fortune.”
*Source: Forrester Research, Inc.

4. Business and IT Alignment
As a partner/enabler to the business
Shared strategies are key
Objectives that align to enterprise strategies
Shared accountability for results
Measurable performance indicators that show contribution to company goals
Communication of IT objectives, strategies and measures must be in business terms
Information Technology is a strategic asset to the enterprise

5. Aligning Capabilities with Business Strategy
Environment
Determine IT
Capabilities To
Meet Business
Objectives
Define IT
Needs
Develop
Requirements
For
Capabilities
Business
Mission
Business
Identity

6. IT As a Business Operation: Managing the IT Portfolio
Document and track costs and business benefits
Consider both new investments ongoing operations
Integrate technology life cycle management
Appoint IT and business process owner responsible for realizing planned results
Business process owners should be held accountable for projected results such as headcount reduction or process efficiency.

7. IT as a Business Operation: Driving Stability
Considerations include:
Architecture
Security
Risk (DR, Change Management, Compliance)
Standards and process methodologies are employed
ITIL/CobIT
CMMI
Six Sigma/ISO 20000

8. IT as a Business Operation: Measuring Performance
Tracking and measuring “services”
Performance and availability
Tracking and measuring delivery
Project milestones, quality, cost
Tracking and communicating continuous improvement

9. Strategic Direction (a)
The Plan
(d)
(c)
(b)
(a)
Document
Start here
Business Enablers (b)
“What Business enablers do we need to strengthen in order to achieve Business Excellence”
Strategic Direction (a)
Mission Statement
“Why do we exist?”
CSFs and KPIs (c)
Critical Success Factors
“What is critical to our success in achieving our objectives?”
Key Performance Indicators “How will we measure our progress?”
Vision
“What will our future look like?”
Strategy
“How will we achieve the mission?”
Strategic Objectives
“How will we measure our progress?”
Breakthrough Planning (d)
“What are the Breakthroughs required to achieve the results we need?”

10. Planning Process: Micro Level
Innovation Requirements
Develop Break-through Plan / Prioritization
Breakthrough Estimation
Review Breakthrough
Initiatives
Changes
needed?
Revise the Plan
Assure the Stable Foundation
“Keeping the ship afloat”
Develop Sustain / Enhance Plan
Review Sustaining
Initiatives
Changes
needed?
Revise the Plan
Sustain / Enhance Estimation
Breakthroughs, Budgeting, Plan Finalization
Plan Finalization
Develop a Communications Plan
“What does this mean to me?” Job descriptions/personal performance objectives
Communicate the Plan
Execute the Plan
Plan execution (metrics, G&O’s, Ownership)
Review Plan
Changes
needed?
Revise the Plan
Achieve your objective

11. (Technology, Process, Training)
Executing the Plan IT
Strategic
Plan
IT Investment Process
(Technology, Process, Training)
Portfolio Management
IT Governance Process

12. Measuring the Results
Record the action that will be taken to get the item back on target
Status:
 = Above target
 = On target
 = Slightly below target
 = Well below target
Trend:
 = Improving
 = Declining
 = Steady
Concern:
L = Low
M = Medium
H = High
Explain why the item has deviated from its targeted value

13. Not a One Size Fits all Model
Characteristics that Drive Planning
Role of Technology in Product and Service Offerings
John Deere versus Microsoft
Business Volatility
Pharma versus Manufacturing
Competitive Pressure
Highly competitive versus stable
Organizational Structure
Centralized versus decentralized
Geographic Scope
Local versus international

14. When and How Often to Plan?
When Should Strategic Planning Be Done?
Volatile Marketplace with Rapidly Changing Products and Services
Detailed, comprehensive plan once or twice a year
mission, vision, values, environmental scan, issues, goals, strategies, objectives, responsibilities, time lines, budgets, etc
Stable Marketplace
Planning might be carried out once a year and only certain parts of the planning process, for example, action planning
objectives, responsibilities, time lines, budgets, etc are updated each year
Other Guidelines
When an organization is just getting started. (The strategic plan is usually part of an overall business plan, along with a marketing plan, financial plan and operational/management plan.)
In preparation for a new major venture, for example, developing a new department, division, major new product or line of products, etc.
Strategic planning should also be conducted at least once a year in order to be ready for the coming fiscal year (the financial management of an organization is usually based on a year-to- year, or fiscal year, basis).
Copyright InteQ Corporation

15. Copyright 2006. InteQ Corporation
When to Review the Plan
Stable Marketplace
Quarterly
Volatile Marketplace
Monthly – or as necessary
Copyright InteQ Corporation

16. Contact Information
Compliance Process Partners
Phone:
Valerie Arraj