Evolving IT / Business Alignment Executive Committee approves IT strategic plan Corporate Investment Council approves projects Functional Divisions approve projects

IT/Business Alignment Peggy Willingham Managing Director, Strategy Management Alaska Air Group, Inc.

Background Education –BA Sociology, MS Project Management Alaska Airlines – 20 years –Finance, Workers Comp, Environmental Affairs, Safety, Project Management, Strategic Planning –Strategy Management Department Strategic Planning Lean Six Sigma (process improvement) Project Management Change Management Chair, Investment Council

Projects Are Investment Decisions Select the best investments Focus precious resources to execute company strategy Balance the portfolio for maximum return Measure business results

Prepare Project Proposal Sponsor & Division Controllers Select Initiatives Strategic Planning Plan Resources Investment Council Develop Business Case Sponsor, Controllers & Stakeholders Execute Project Sponsor, PMO & Project Team Approve & Schedule Projects Investment Council Strategic Resource Execution & Planning Allocation Measurement Measure Results Sponsor, PMO & Controllers Initiatives Major Projects Project Planning, Selection and Execution

2008 Lessons Learned  Focus on just a few really important things  Make organization and process improvements first, technology later  Measure inputs, not just outputs  Manage projects well

Measuring Business Results

2009 Lessons Learned  Measure inputs, not just outputs  Understand what is going to move the needle, and by how much  Manage change  Respond to changing business needs

Introducing the Resource Committee  Cross-divisional group of resource owners (IT, Corporate Real Estate, PMO, Lean Six Sigma)  Focuses on the docket of emerging projects  When can it start?  If it needs to be accelerated it, what will it displace?  Identifies and escalates resource conflicts

2010 Lessons Learned  Focus on just a few really important things  Make enterprise and implementation risks part of the discussion  Execution, execution, execution

Kris - Lessons Learned  Look for solutions outside your organization  Find partners to help  Timing can be everything. Look for opportunities to work on big problems. Make the case for change.  Strive for support from the top  Be persistent, but patient. Change happens iteratively. Tell stories, use data and lessons learned to further push agenda.