Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004

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Information Technology

OR . . . a Change JourneyPhil Pavitt 7th December 2004

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Agenda

• The principles of change

• The CEO view of IT

• Re-focusing IT to accommodate change methods

• IT Federalisation – increasing the partnership with business

• Conclusions

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The Pain of IT Change

• Millennium Bug

• National Air Traffic Service (NATS) - Swanwick

• Sainsbury’s

• Department of Works and Pensions

• Child Support Agency

“Results in . . . stress for the business and stress for IT”

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The CEO View of the CIO

Gartner research indicates . . .

•CEOs and CIOs view the CEO – CIO relationship differently

•CEOs are looking for the right relationship for the enterprise

•Recommends CIOs tailor their approach to their situation

•Create an action plan based on proven practices

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The CEO View of the CIO

Burson Marsteller research shows . . .

•5% of the Fortune Global 500 companies have CIO skills on their board.

•These 5% of companies have outperformed the industry index by 6.4% per year since the CIO skilled member was elected.*

* This claim is based on 313 companies with available information about their directors, with 15 companies having CIO experienced directors and 298 companies without CIO experienced directors.

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Bain and Company

Survey . . . ‘Is IT a Bottleneck to Growth?’

Study conducted on executives at 359 companies . . . • IT Spend 7.4% of revenue where

execs view IT as a significant enabler of growth

• IT Spend 4.7% of revenue where execs view IT as an inhibitor

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Differences In The Way IT Is Managed Influences Business ValueDifferences In The Way IT Is Managed Influences Business Value

Investing outperforms austerity in technology

Poor performance in managing technology leads to austerity

Innovation delivers results – but timing is everything

Cost efficient technology organizations can waste a lot of time

Huge productivity differences from person to person and organization to organization

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Starting a pilot

Committing a major part

of our businessDoing

NothingStarting to investigate

61%4%22%13%Virtualized storage (SAN/NAS)

9%26%

17%

17%

35%41%23%

26%41%23%18%

4%30%57%RFID

39%22%13%XML Document and workflow

23%36%18%Open source applications

9%35%39%Virtualized server technology

14%36%9%VOIP13%17%35%Linux

41%5%14%Wireless for workforce

9%26%48%Dynamic resource provisioning

46%14%18%Enterprise integration tools

4%30%39%Virtualized server pools

55%23%5%Web services/SOA

Recent Accenture CIO research on adoption rates in key technologiesRecent Accenture CIO research on adoption rates in key technologies

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Integration

Industrialization

Innovation

Information

Infrastructure

Replacing technology with

better technology

Strategy enabling

innovations

Labor cost arbitrage

Cycle time focused delivery

Predictable and

repeatable

Business productivity innovations

Cross enterprise service oriented

architecture

Basic Progressive Pioneering

Enterprise integration

Point integration solutions

Real time insight

Business intelligence

Transaction data efficiency

Dynamically provisioned and externally secure

Internal on-request

Consolidate and

standardize

Mastering five key pillars

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Change – Individual Level

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Principles of Change

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Sound changeprinciples

lessenthe depth of

the pain of change

Sound changeprinciples

lessenthe depth of

the pain of change


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15


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ServiceProvision

CustomerExperience

BusinessInfrastructure

Order Assure Bill

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Billing andfulfilmentBilling andfulfilment

Serviceconfiguration

and activation


and activation

Billing &collections

management


management

Sales &marketing

order handling

Sales &marketing

order handling

Resource &infrastructure

problem management & restoration



Serviceprovision data

collection &analysis



Resource &infrastructureallocated for

delivery


delivery

ServiceProvision

CustomerExperience


Order Assure BillCustomer Touch Points – Direct ContactCustomer Touch Points – Direct Contact

Customer Touch Points – Field ForceCustomer Touch Points – Field Force

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ServiceProvision

CustomerExperience


Order Assure Bill

Problemreporting &

quality analysis

Problemreporting &

quality analysis

Billing andfulfilmentBilling andfulfilment


and activation


and activation

Customerproblem

management

Customerproblem

management


management


management

Sales &marketing

order handling

Sales &marketing

order handling










delivery


delivery

Customer Touch Points – Direct ContactCustomer Touch Points – Direct Contact

Customer Touch Points – Field ForceCustomer Touch Points – Field ForceIssueIssue

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ProcessProcess ProcessProcessProcessProcess

PeoplePeople PeoplePeoplePeoplePeople

ResourceResource ResourceResourceResourceResource

ServiceProvision

CustomerExperience


Order Assure Bill

People – Field ForcePeople – Field Force

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Applied Activity

Applied Knowledge

SPECTATOR TEAM PLAYER

LIVING DEAD TERRORIST

Refocusing IT

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Framework Approach1. Have a compelling reason to change1. Have a compelling reason to change

2. Pull a powerful team together2. Pull a powerful team together

3. Create a compelling picture of the new world3. Create a compelling picture of the new world

4. Change leadership modelling and development4. Change leadership modelling and development

5. Ensure those armed with the change agenda are capable of delivery5. Ensure those armed with the change agenda are capable of delivery

6. Communicate, communicate, communicate6. Communicate, communicate, communicate

7. Expect that obstacles will occur and be prepared to move them7. Expect that obstacles will occur and be prepared to move them

8. Deliver some early wins8. Deliver some early wins

9. Maintain momentum9. Maintain momentum

10. Ensure the changes become embedded into the culture10. Ensure the changes become embedded into the cultureSustainchangeSustainchange

‘slay sacredCows’‘slay sacredCows’

ActionworkshopsActionworkshops

Create ‘Your Future’MindsetCreate ‘Your Future’Mindset

Develop communicationstrategyDevelop communicationstrategy

Coach change agents anddeliver change tool kit Coach change agents anddeliver change tool kit

Facilitate strategy and planningFacilitate strategy and planning

Create a compelling future‘Top down and bottom up’ Create a compelling future‘Top down and bottom up’

Strategic Vision and Alignment WorkshopDevelop governance and uncover values Strategic Vision and Alignment WorkshopDevelop governance and uncover values

Cultural ‘Discovery’ audit – build ‘Burning Platform’Cultural ‘Discovery’ audit – build ‘Burning Platform’

Change Arena Change Agent Arena Business Arena

Agree measures of successAgree measures of success

Increase the comparabilityIncrease the comparability

Develop initial communicationsDevelop initial communications

Strategy and planningStrategy and planning

Increase competenciesIncrease competencies

Augment IT fordelivery of messageAugment IT fordelivery of message

Create empoweredcultureCreate empoweredculture

Trouble shootingTrouble shooting

Maintain measuresfor successMaintain measuresfor success

IBT, coaching, Live Coaching & reviewsIBT, coaching, Live Coaching & reviews

Com

mu

nic

ate

& M

easu

reC

om

mu

nic

ate

& M

easu

re

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Refocusing IT

• Achieve Business ownership

• Systems are at the heart of businesses

• IT Change often results in failure for systems to be implemented fully

• Mapping business processes is essential

• Scenario based learning

• Linking IT to Customer and business behaviour

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3Cs - Communications, Consultation and Coaching

• Communications – ‘No surprises’

• Consultation – ‘Get people involved, do it with them NOT to them’

• Coaching – ‘Show how the IBI solution will benefit the organisation’

Refocusing IT

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11 2233

GREAT OPENING

RAPPORT

“Good Morning /.AfternoonThis is . . .”

Good news. . .home straight

LISTEN

FindCustom

er

FindCustom

er

ReviewHistoryReviewHistory

Mapping IT to Process

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11 2233

GREAT OPENING

RAPPORT

Good news. . .home straight

LISTEN

Enter New

Incident

Enter New

Incident


“Good Morning /.AfternoonThis is . . .”

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55

66

88

77

YOUR COMMITMENTO

BJE

CTIO

N?

NO

CH

ALLEN

GE!

IMPORTANT

ASSUME THE

OUTCOME

ConfirmCustom

erNeed

ConfirmCustom

erNeed

Close Call

Positively

Close Call

Positively


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IT FederalisationWhere is IT in the Business Process value chain and where should it aspire

to be?IT Today“A Slave of the

Business”

IT in Dec ’05“We Partner the Business”

Busi

ness

Pro

cess

Valu

e C

hain

Value Add Toolset

Cost Tool

TODAY

Business DrivenIT Strategy

Busi

ness

Pro

cess

Valu

e C

hain

Value Add Toolset

Cost Tool

Dec ‘05

“IT will become the Business Partner for ntl”

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IT FederalisationTypically, any debate on IT organisational structure is normally based on the appropriate level of decentralisation but ntl requires a federal model for IT.

Functional ISLeadershipEnterprise

perspective

- Federal IT Model -

Decentralised ModelCentralised Model

TCO scale of

economiesControl of standards

Critical mass of

skills

Local service Lines of

ownershipUsers control

prioritiesResponsiveness to diverse needs

Potentially more costly

Variable IS competencies

Wheel reinvention

No synergy

Less responsive to end users

No regional ownership

No regional cost control

Doesn’t meet everyone’s needs

The Federal IT model leverages the advantages of scale and enterprise leadership, whilst maintaining the flexibility of local responsiveness

Pooled experience

Synergy

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Conclusions

• IT should be the advocate of change

• All change should be collaborative with the business

• Senior sponsorship

• Direct and measurable benefit

• Equally focus on Systems, Process and People

• Have strong leadership

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“Do IT with the people

not to the people”

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‘Either do or do not there is no try’

Yoda Pavitt

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Q & A

Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004

Documents

Transcript of Information Technology OR . . . a Change Journey Phil Pavitt 7 th December 2004