1. The Do’s And Don’ts Of Building An IT Organization Chart Mark Cecere, Principal Analyst May 7, 2013. Call in at 10:55 a.m. Eastern time Webinar

2. © 2013 Forrester Research, Inc. Reproduction Prohibited2 Agenda › Background on organizational design › Elements to consider › Six structural scenarios

3. © 2013 Forrester Research, Inc. Reproduction Prohibited3 Source: Q4 2012 IT Organization, Innovation, And Governance Online Survey Probability of a redesign of IT “What is the probability that your company will redesign your IT organization within the next 18 months?”

4. © 2013 Forrester Research, Inc. Reproduction Prohibited4 Base: 119 business and IT leaders Source: Q4 2012 IT Organization, Innovation, And Governance Online Survey Activities to change the IT organization “In order to change your organization, which of the following are the most important activities?” (Please choose three)

5. © 2013 Forrester Research, Inc. Reproduction Prohibited5 Effort and risk of IT redesign “Please rank the following steps in an organizational transformation in terms of level of effort and level of risk” (On a scale of 1 [no risk/effort] to 5 [extremely high level of risk/effort])

6. © 2013 Forrester Research, Inc. Reproduction Prohibited6 Base: 99 business and IT leaders Source: Q4 2012 IT Organization, Innovation, And Governance Online Survey Probability of using a consultancy for a redesign of IT About one-third said there was a greater than 50% chance of using a consulting firm.

7. © 2013 Forrester Research, Inc. Reproduction Prohibited7 Agenda › Background on organizational design › Elements to consider › Six structural scenarios

8. © 2013 Forrester Research, Inc. Reproduction Prohibited8 Elements to consider in a restructuring

9. © 2013 Forrester Research, Inc. Reproduction Prohibited9 Source: Q4 2012 IT Organization, Innovation, And Governance Online Survey Goals of an IT redesign

10. © 2013 Forrester Research, Inc. Reproduction Prohibited10 Base: 118 business and IT leaders; Source: Q4 2012 IT Organization, Innovation, And Governance Online Survey Barriers to changing an IT organization

11. © 2013 Forrester Research, Inc. Reproduction Prohibited11 Elements to consider in a restructuring

12. © 2013 Forrester Research, Inc. Reproduction Prohibited12 Role focus versus how much they need to change Applications, architecture, infrastructure, and business RMs are the highest priorities. Architecture, planning, and applications have the greatest need to change.

13. © 2013 Forrester Research, Inc. Reproduction Prohibited13 Major groups and their attributes

14. © 2013 Forrester Research, Inc. Reproduction Prohibited14 Elements to consider in a restructuring

15. © 2013 Forrester Research, Inc. Reproduction Prohibited15 Effect of QA placed within infrastructure group Placing QA within infrastructure reinforces QA’s influence and accountability.

16. © 2013 Forrester Research, Inc. Reproduction Prohibited16 Agenda › Background on organizational design › Elements to consider › Six structural scenarios

17. © 2013 Forrester Research, Inc. Reproduction Prohibited17 Six structural recommendations Recommendations Primary positive impacts Primary negative impacts Consolidate some projectmanagers within thePMO. Maximize accountability andindependence for PM. Difficult to implement, may reduce application life cycle Consolidate architects frommultiple operational groups. Increased accountability forarchitecture within functionalgroups. Influence for direction settingfunctions and independence from daily firefighting are compromised.

18. © 2013 Forrester Research, Inc. Reproduction Prohibited18 Six structural recommendations (cont.) Recommendations Primary positive impacts Primary negative impacts Put relationship managers (RMs) within applications. Influence, accountability, andresponsiveness increased withinapps silos. Efficiency is maintainedthrough part-time role. Independence, accountability,and responsiveness across appsgroups are compromised. “Change the business” PMOsshouldbe outside of IT. Responsiveness and accountabilityto business needs are maximized. Influence and efficiency arereduced by homeless PM.

19. © 2013 Forrester Research, Inc. Reproduction Prohibited19 Six structural recommendations (cont.) Recommendations Primary positive impacts Primary negative impacts Separate new development from application maintenance. Manageability, efficiency, andresponsivenessto global needs are maximized. Difficult to implement Accountability is reduced. Detach purchasing from vendormanagement. Manageability is increased. Level of effort is low. Accountabilitycan be reduced.

20. © 2013 Forrester Research, Inc. Reproduction Prohibited20 Structure of a transportation logistics company

21. © 2013 Forrester Research, Inc. Reproduction Prohibited21 Structure of a large oil and gas company

22. © 2013 Forrester Research, Inc. Reproduction Prohibited22 Structure of a midsized P&C company

23. © 2013 Forrester Research, Inc. Reproduction Prohibited23 Final thoughts › Structure is never enough by itself – you need effective culture, leadership and processes › However, structure can provide the path of least resistance … or an ongoing barrier

24. © 2013 Forrester Research, Inc. Reproduction Prohibited24 Forrester's Forum For CIOs Mastering Tomorrow's Business Outcomes 10 June - 11 June, 2013 | London Our dedicated program for CIOs will teach you how to lead your organization in developing efficient and resilient technologies and processes focused on business outcomes. Register with Promo Code “CIOE13WEB” to save £100! Why Attend? › Accelerate your success. › Learn from your peers and other experts in the field. › Engage with Forrester analysts. › Connect with peers. › Get an exclusive first look at new research and survey data. Visit www.forrester.com/CIO13EMEA 10-11 June, 2013 London

25. Thank you Marc Cecere mcecere@forrester.com