IT Strategic Planning: A Tool for Navigating Treacherous IT ...

IT Strategic Planning: A IT Strategic Planning: A Tool for Navigating Tool for Navigating Treacherous IT WatersTreacherous IT Waters

IMTech SUN3 Workshop IMTech SUN3 Workshop

IT Strategic Planning: A IT Strategic Planning: A Tool for Navigating Tool for Navigating Treacherous IT WatersTreacherous IT Waters

IMTech SUN3 Workshop IMTech SUN3 Workshop

Phil CherninPhil Chernin

CDMCDM

27 April 200327 April 2003


CDMCDM

27 April 200327 April 2003

Workshop AgendaWorkshop AgendaWorkshop AgendaWorkshop Agenda

Morning Session (9-12)Morning Session (9-12)

– Part 1: Introduction (9-9:45)Part 1: Introduction (9-9:45)

– Part 2: Strategic IT Plan Fundamentals (9:45-10:45)Part 2: Strategic IT Plan Fundamentals (9:45-10:45)

– Break (10:45-11:00)Break (10:45-11:00)

– Part 3: Planning in the “Real World” (11:00-Noon)Part 3: Planning in the “Real World” (11:00-Noon)

Lunch (Noon-12:45)Lunch (Noon-12:45)

Afternoon Session (12:45-4:00)Afternoon Session (12:45-4:00)

– Case Study Workshop (12:45-3:00)Case Study Workshop (12:45-3:00)

– Wrap-Up and Group Discussion (3:00-4:00)Wrap-Up and Group Discussion (3:00-4:00)

Early Morning Session Early Morning Session (part 1): Introduction(part 1): IntroductionEarly Morning Session Early Morning Session (part 1): Introduction(part 1): Introduction

Learning Objectives; Who We Learning Objectives; Who We Are; Commonalities; Framing the Are; Commonalities; Framing the Problem; Reviewing HistoryProblem; Reviewing History

Learning Objectives; Who We Learning Objectives; Who We Are; Commonalities; Framing the Are; Commonalities; Framing the Problem; Reviewing HistoryProblem; Reviewing History

IntroductionIntroductionIntroductionIntroduction

Workshop OverviewWorkshop Overview– Describe agendaDescribe agenda

– Rules of engagement (breaks, etc.)Rules of engagement (breaks, etc.)

– Discussion is mandatoryDiscussion is mandatory

Participant IntroductionParticipant Introduction– Who am I?Who am I?

– What do I want to accomplish?What do I want to accomplish?

Parking LotParking Lot– Other goalsOther goals

– Post-workshop follow-upPost-workshop follow-up

Introduction

Participant BackgroundParticipant BackgroundParticipant BackgroundParticipant Background

Organization TypesOrganization Types– MunicipalMunicipal

– UtilitiesUtilities

– StateState

– OtherOther

Experience – has your organization Experience – has your organization performed a(n):performed a(n):– Strategic IT Plan?Strategic IT Plan?

– IT Assessment?IT Assessment?

– Organizational Strategic Plan?Organizational Strategic Plan?

Introduction

Workshop ObjectivesWorkshop ObjectivesWorkshop ObjectivesWorkshop Objectives

Understand strategic IT fundamentalsUnderstand strategic IT fundamentals Develop skills to articulate mission Develop skills to articulate mission

goals and “ask the right questions”goals and “ask the right questions” Become a more informed consumer of Become a more informed consumer of

IT servicesIT services Increase confidence in your ability to Increase confidence in your ability to

frame strategic IT discussionsframe strategic IT discussions

““Architect Analogy”Architect Analogy”

Introduction

Questions for you to think Questions for you to think about…about…Questions for you to think Questions for you to think about…about… What is the appropriate role of What is the appropriate role of

stakeholders in this process? (who are they stakeholders in this process? (who are they and what do they do?)and what do they do?)

How do I evaluate recommendations? How How do I evaluate recommendations? How do I prioritize recommendations?do I prioritize recommendations?

What is the appropriate project structure What is the appropriate project structure for completing A Strategic IT Plan?for completing A Strategic IT Plan?

What are the primary barriers to success What are the primary barriers to success for IT planning within my organization?for IT planning within my organization?

Introduction

A Strategic IT Plan provides a working A Strategic IT Plan provides a working vision that unites the organization vision that unites the organization behind a common goalbehind a common goal

A Strategic IT Plan provides a working A Strategic IT Plan provides a working vision that unites the organization vision that unites the organization behind a common goalbehind a common goal

SeniorManagement

IT Department

Construction Engineering Finance OperationsCustomer

Service

Strategic IT

Plan

Introduction

An IT Manager Gets Hit From All SidesAn IT Manager Gets Hit From All Sides

DIRECTOR / EXECUTIVE

BOARD

DIRECTOR / EXECUTIVE

BOARD

OPERATIONSOPERATIONS

CITY HALLCITY HALL

CUSTOMERS /PUBLIC

CUSTOMERS /PUBLIC

FACILITIES CIPFACILITIES CIP

IT DEPARTMENT

•“Moving Targets”•Maintenance•Schedule uncertainty•Cost constraints•Multiple stakeholders

Introduction

IT Departments Typically Face These IT Departments Typically Face These Types of ProblemsTypes of ProblemsIT Departments Typically Face These IT Departments Typically Face These Types of ProblemsTypes of Problems

Inflexible business processesInflexible business processes Gap between business & IT strategyGap between business & IT strategy Information “islands”Information “islands” Legacy systemsLegacy systems Limited resourcesLimited resources Few/minimal IT system standardsFew/minimal IT system standards ““Moving target” goalsMoving target” goals Unclear decision-making processesUnclear decision-making processes

Introduction

Water Utilities Have Historically Water Utilities Have Historically Under-valued IT ProfessionalsUnder-valued IT ProfessionalsWater Utilities Have Historically Water Utilities Have Historically Under-valued IT ProfessionalsUnder-valued IT Professionals

““IT” Fixes My PCIT” Fixes My PC ““IT” Gets The Utility Bills OutIT” Gets The Utility Bills Out ““IT” Doesn’t Know Anything About Our IT” Doesn’t Know Anything About Our

Engineering SystemsEngineering Systems

- LIMS- LIMS - CMMS- CMMS - SCADA- SCADA

- CAD- CAD - GIS- GIS - Models- Models

IMTech Registration < 500IMTech Registration < 500

Introduction

But The Role of the Water Utility But The Role of the Water Utility IT Professionals is ChangingIT Professionals is ChangingBut The Role of the Water Utility But The Role of the Water Utility IT Professionals is ChangingIT Professionals is Changing

““IT” IT” ControlsControls My PC Purchases My PC Purchases ““IT” IT” IntegratesIntegrates the Billing System the Billing System ““IT” is a Player at the Strategic Business IT” is a Player at the Strategic Business

Level Level – 1970’s – Manager of Data Processing1970’s – Manager of Data Processing

– 1980’s – MIS Manager1980’s – MIS Manager

– 1990’s – IT Director1990’s – IT Director

– 2000’s – Chief Information Officer2000’s – Chief Information Officer

Introduction

The Stature of the IT Professional The Stature of the IT Professional Has Risen BecauseHas Risen BecauseThe Stature of the IT Professional The Stature of the IT Professional Has Risen BecauseHas Risen Because

Creating Useful Information From the “Junk Creating Useful Information From the “Junk Yard of Data” Will Get More Difficult Before it Yard of Data” Will Get More Difficult Before it Gets EasierGets Easier

Appropriate Computers and Electronic Devices Appropriate Computers and Electronic Devices are Critical to Job Performanceare Critical to Job Performance

Integrated Software Systems Dramatically Integrated Software Systems Dramatically Enhance Productivity Enhance Productivity

Cyber-security is a Executive-level ConcernCyber-security is a Executive-level Concern Electronic Transactions are the Life Blood of a Electronic Transactions are the Life Blood of a

Modern UtilityModern Utility

Introduction

Benefits of a Strategic IT PlanBenefits of a Strategic IT PlanBenefits of a Strategic IT PlanBenefits of a Strategic IT Plan

Enhance communicationsEnhance communications Greater efficiencyGreater efficiency Clear statement of benefits/costs and Clear statement of benefits/costs and

trade-offstrade-offs Integration of entire organizationIntegration of entire organization Universal buy-in/supportUniversal buy-in/support Decision process is open, “living” Decision process is open, “living”

documentdocument Roadmap in support of future technologiesRoadmap in support of future technologies

Introduction

Early Morning Session Early Morning Session (part 2): Strategic Plan (part 2): Strategic Plan FundamentalsFundamentals

Early Morning Session Early Morning Session (part 2): Strategic Plan (part 2): Strategic Plan FundamentalsFundamentals

Strategic IT Plan Defined; Step-Strategic IT Plan Defined; Step-by-Step Plan Development (in by-Step Plan Development (in the Ideal…) the Ideal…)

Strategic IT Plan Defined; Step-Strategic IT Plan Defined; Step-by-Step Plan Development (in by-Step Plan Development (in the Ideal…) the Ideal…)

A Strategic IT Plan is integral to a A Strategic IT Plan is integral to a continuous program life-cyclecontinuous program life-cycleA Strategic IT Plan is integral to a A Strategic IT Plan is integral to a continuous program life-cyclecontinuous program life-cycle

Organizational Strategic Plan• Program Goals• IT Assessment

Organizational Strategic Plan• Program Goals• IT Assessment

Strategic IT PlanStrategic IT PlanTactical Action Plan• Implement Projects• Manage Schedule

Tactical Action Plan• Implement Projects• Manage Schedule

Fundamentals

What is a Strategic IT Plan?What is a Strategic IT Plan?What is a Strategic IT Plan?What is a Strategic IT Plan?

Strategic IT PlanDecision-making process

Technology Management

Constraints($, time)

Legacy SystemRequirements

StakeholderInput

Existing Skills & Capability

Resources

Outputs• Budget• Prioritized Projects• Schedule• Documentation• Etc.

BusinessNeeds/Goals

From Organizational Plan To Tactical Action Plan

Fundamentals

What Does a Strategic IT Plan What Does a Strategic IT Plan Accomplish?Accomplish?What Does a Strategic IT Plan What Does a Strategic IT Plan Accomplish?Accomplish? Describes organizational IT needs and Describes organizational IT needs and

challengeschallenges Identifies high-level IT goalsIdentifies high-level IT goals Prioritizes IT issuesPrioritizes IT issues Provides communication framework Provides communication framework

– Ensures that managers and staff are “on the Ensures that managers and staff are “on the same page”same page”

– Identifies clear, measurable performance metricsIdentifies clear, measurable performance metrics

Articulates “path forward”Articulates “path forward”

Fundamentals

Limitations of a Strategic IT PlanLimitations of a Strategic IT PlanLimitations of a Strategic IT PlanLimitations of a Strategic IT Plan

Does not contain a set of functional Does not contain a set of functional specificationsspecifications

Does not provide a resource-loaded Does not provide a resource-loaded schedule or budgetschedule or budget

Recommendation may be to conduct Recommendation may be to conduct ‘further study’‘further study’

Fundamentals

Strategic IT Planning Step-By-Strategic IT Planning Step-By-StepStepStrategic IT Planning Step-By-Strategic IT Planning Step-By-StepStep

1.1. Develop strategic visionDevelop strategic vision

2.2. Perform gap analysis (technology, Perform gap analysis (technology, organization, constraints)organization, constraints)

3.3. Develop/evaluate alternativesDevelop/evaluate alternatives

4.4. Document decision processDocument decision process

1. Strategic Vision

2. Gap Analysis

3. EvaluateAlternatives

4. DocumentDecisions

Fundamentals

1. Develop Strategic Vision1. Develop Strategic Vision1. Develop Strategic Vision1. Develop Strategic Vision

Identify key participants/steering committeeIdentify key participants/steering committee Determine the program goals and metricsDetermine the program goals and metrics Bound the problemBound the problem Outline communication processOutline communication process

– Who is the target audience?Who is the target audience?

– How will input be incorporated?How will input be incorporated?

– What will are the IT plan deliverables?What will are the IT plan deliverables?

– Roles and responsibilityRoles and responsibility

Define the role of core systems (in a business context)Define the role of core systems (in a business context)

– FinancialFinancial

– Spatial (GIS, CAD)Spatial (GIS, CAD)

– Customer informationCustomer information

– Regulatory complianceRegulatory compliance

Fundamentals

2. Perform Gap Analysis2. Perform Gap Analysis2. Perform Gap Analysis2. Perform Gap Analysis

Where are we? Where do we need to Where are we? Where do we need to be?be?

What problems did the IT assessment What problems did the IT assessment identify?identify?

What are the technology issues?What are the technology issues? What are the organizational constraints?What are the organizational constraints?

– Resource scarcity and/or conflictsResource scarcity and/or conflicts

– Department skill set evaluationDepartment skill set evaluation

– Business process impactsBusiness process impacts

Fundamentals

IT Gap Analysis compares cIT Gap Analysis compares current stateurrent state vs. vs. ddesired state esired state and determines what is and determines what is needed to get thereneeded to get there

Desired StateExisting State

Perform FinalInspection

ReviewFinal

Quantities

Produce RecordPlans

ComputeFinal

Quantities

Compare FinalQuantities

AdjustPayment Items

ReconcileWeekly

Inspection Notesand As-builtRed-lines

Perform FinalInspection

Issue Payment

PerformQuantities Check

Issue Payment

RecommendedChange

Fundamentals

3. Develop and Evaluate 3. Develop and Evaluate AlternativesAlternatives3. Develop and Evaluate 3. Develop and Evaluate AlternativesAlternatives Create performance metricsCreate performance metrics

– Clear, concise, and measurableClear, concise, and measurable

– Tied to organizational goalsTied to organizational goals

Refine business process impactsRefine business process impacts– Risk reduction needs (backup, emergency)Risk reduction needs (backup, emergency)

– Development standardsDevelopment standards

– InfrastructureInfrastructure

– Business support (staff, support)Business support (staff, support)

Identify projects and initiativesIdentify projects and initiatives Evaluate and select projectsEvaluate and select projects Assess budget and schedule implicationsAssess budget and schedule implications

Fundamentals

0 $10 $20 $30 $40 $50 $600

20

40

60

80

100

120

140

160

180

200

Total Benefit

CumulativeWeighted

PerformanceBenefit

These projects produce major benefits relative to their total cumulative costs

Total Cost

Total Cumulative Cost ($ Millions)

Portfolio (ROI) Analysis identifies the Portfolio (ROI) Analysis identifies the optimal level of investmentoptimal level of investment

Fundamentals

4. Document Decision Process4. Document Decision Process4. Document Decision Process4. Document Decision Process

5-Year strategic plan5-Year strategic plan Decision process mapDecision process map Communications planCommunications plan Technology requirements documentTechnology requirements document Project roles and responsibilitiesProject roles and responsibilities Executive summaryExecutive summary

Fundamentals

A Decision Process Map lists the key A Decision Process Map lists the key decision-makers and their rolesdecision-makers and their rolesA Decision Process Map lists the key A Decision Process Map lists the key decision-makers and their rolesdecision-makers and their roles

Executive Board

IT Department Staff

1. StrategicVision

2. GapAnalysis



Articulategoals

AssessCurrent

situation

Prelim.Project

List

Senior Mgmt.

Status

FinalReview

Stakeholders

PublicMeeting

SteeringCommittee

Fundamentals

There are many types of project There are many types of project outputs, each designed for a outputs, each designed for a different audiencedifferent audience

There are many types of project There are many types of project outputs, each designed for a outputs, each designed for a different audiencedifferent audience Project ReportProject Report

Executive SummaryExecutive Summary

NewsletterNewsletter

Web site contentWeb site content

Public MeetingPublic Meeting

PowerPoint presentationPowerPoint presentation

Decision modelsDecision models

Press releasesPress releases

One-on-one review One-on-one review sessionssessions

Project schedulesProject schedules

Management PlanManagement Plan

Technical/functional Technical/functional specificationsspecifications

RFPRFP

Flyers/handoutsFlyers/handouts

Budget analysisBudget analysis

Prioritized project listPrioritized project list

Fundamentals

Project Output Pros and ConsProject Output Pros and ConsProject Output Pros and ConsProject Output Pros and Cons

Project NameProject Name ProPro ConCon

Full ReportFull Report Formal documentFormal document

Very detailedVery detailed

Sits on shelfSits on shelf

Time consumingTime consuming

Executive Executive SummarySummary

Concise link Concise link between goals and between goals and project selectionproject selection

Multi-useMulti-use

Lose detailLose detail

Risk losing full Risk losing full picturepicture

Decision ModelDecision Model Interactive/iterativeInteractive/iterative

Captures Captures institutional institutional knowledgeknowledge

Different type of Different type of expertise to maintainexpertise to maintain

Prioritized List of Prioritized List of ProjectsProjects

Roadmap for Roadmap for implementationimplementation

Lack of rationaleLack of rationale

Fundamentals

Outsourcing Strategic IT Outsourcing Strategic IT Planning - Boston Water Planning - Boston Water & Sewer Commission & Sewer Commission (BWSC) Case Study(BWSC) Case Study

Outsourcing Strategic IT Outsourcing Strategic IT Planning - Boston Water Planning - Boston Water & Sewer Commission & Sewer Commission (BWSC) Case Study(BWSC) Case Study

What works and why; Lessons What works and why; Lessons Learned; Pros and Cons of Learned; Pros and Cons of OutsourcingOutsourcing

What works and why; Lessons What works and why; Lessons Learned; Pros and Cons of Learned; Pros and Cons of OutsourcingOutsourcing

Contact: Ron Sitcawich, MIS Director 617- 989-7000

BWSC at a GlanceBWSC at a GlanceBWSC at a GlanceBWSC at a Glance

Water distribution and Water distribution and sewer collection for sewer collection for Boston areaBoston area

Approximately 87,000 Approximately 87,000 customer accountscustomer accounts

Serve population of Serve population of approximately 1 million approximately 1 million peoplepeople

1,000 miles of water and 1,000 miles of water and 1,400 miles of sewer and 1,400 miles of sewer and drainsdrains

Real-World Planning

BWSC’s MIS DepartmentBWSC’s MIS DepartmentBWSC’s MIS DepartmentBWSC’s MIS Department

Responsible for Responsible for supporting hardware, supporting hardware, software, and software, and application application developmentdevelopment

– 19 MIS staff19 MIS staff

– 270 PC users270 PC users

– 6 Enterprise 6 Enterprise applicationsapplications

GIS

WOMS HR/FMS

Facility Manag.

CIS

MISMIS

Fleet

Real-World Planning

BWSC Led Two Major Planning BWSC Led Two Major Planning InitiativesInitiativesBWSC Led Two Major Planning BWSC Led Two Major Planning InitiativesInitiatives

19961996 Infrastructure incapable of Infrastructure incapable of

handling robust, mission-handling robust, mission-critical systemscritical systems

– Limited number of PCsLimited number of PCs

– Several PC-based Several PC-based databasesdatabases

– No software/hardware No software/hardware standardsstandards

– Lack of centralized Lack of centralized databasedatabase

Looming Y2K threatLooming Y2K threat

20022002 Successfully implemented Successfully implemented

83% of 1996 plan’s 83% of 1996 plan’s recommendationsrecommendations

Newly upgraded Newly upgraded software/hardware software/hardware infrastructure infrastructure

Standardization on Standardization on Microsoft and OracleMicrosoft and Oracle

Implemented new mission-Implemented new mission-critical systems for GIS, critical systems for GIS, HR/FMS, Fleet, Facilities HR/FMS, Fleet, Facilities Management, and WOMSManagement, and WOMS

Real-World Planning

BWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan ApproachBWSC’s Strategic IT Plan Approach

BWSC developed goals/objectives for PlansBWSC developed goals/objectives for Plans

– 1996: Develop IT Standards & identify mission-critical system 1996: Develop IT Standards & identify mission-critical system solutionssolutions

– 2002: Capitalize on data integration without compromising 2002: Capitalize on data integration without compromising lifecycle of applicationslifecycle of applications

Hired consultants to assist with development of Strategic IT Hired consultants to assist with development of Strategic IT PlanPlan

– 1996: Coopers & Lybrand1996: Coopers & Lybrand

– 2002: PriceWaterhouseCoopers2002: PriceWaterhouseCoopers

BWSC assembled Steering Committee comprised of Key BWSC assembled Steering Committee comprised of Key Department Heads and Executive Office to review/approve Department Heads and Executive Office to review/approve plan & evaluate recommendationsplan & evaluate recommendations

BWSC initiates implementation of recommendations with BWSC initiates implementation of recommendations with some support from vendors/consultantssome support from vendors/consultants

Real-World Planning

Strategic IT Plan Key Strategic IT Plan Key RecommendationsRecommendationsStrategic IT Plan Key Strategic IT Plan Key RecommendationsRecommendations

19961996 Upgrade hardware and Upgrade hardware and

networknetwork

Standardize on Oracle, Standardize on Oracle, Microsoft Office, and Microsoft Office, and Windows NTWindows NT

Replace existing GIS & Replace existing GIS & HR/FMS mission-critical HR/FMS mission-critical systems systems

20022002 Provide access to data Provide access to data

vertically & horizontallyvertically & horizontally

Integrate data from existing Integrate data from existing mission-critical systems via mission-critical systems via web portalweb portal

Standardize systems Standardize systems integration and application integration and application developmentdevelopment

Upgrade existing mission-Upgrade existing mission-critical systems and critical systems and implement new CMSimplement new CMS

Real-World Planning

Putting the Plans into PracticePutting the Plans into PracticePutting the Plans into PracticePutting the Plans into Practice

Initiatives led by MIS with Executive Initiatives led by MIS with Executive SponsorshipSponsorship

– Budget for initiatives comes from MIS departmentBudget for initiatives comes from MIS department

Steering Committee assembled to help Steering Committee assembled to help manage/guide each initiativemanage/guide each initiative

– Comprised of key Department heads & Executive OfficeComprised of key Department heads & Executive Office

Project Champion appointed from either MIS or Project Champion appointed from either MIS or key stakeholder departmentkey stakeholder department

Implementation team comprised of staff from Implementation team comprised of staff from key department(s)key department(s)

– Best and brightest, not necessarily most senior staffBest and brightest, not necessarily most senior staff

Real-World Planning

Lessons LearnedLessons LearnedLessons LearnedLessons Learned

To properly evaluate recommendations, must fully To properly evaluate recommendations, must fully understand concepts, need, risks & benefitsunderstand concepts, need, risks & benefits

Assemble implementation teams to carry out Assemble implementation teams to carry out recommendationsrecommendations

Project Champion should report directly to Executive Project Champion should report directly to Executive OfficeOffice

– Reduces internal/political obstaclesReduces internal/political obstacles

People resist change inherently People resist change inherently

– Assign staff who support change and be prepared to Assign staff who support change and be prepared to remove/replace team members remove/replace team members

Don’t let consultant/vendor do all the work during Don’t let consultant/vendor do all the work during implementationimplementation

– Provides IT staff opportunity to gain skillsProvides IT staff opportunity to gain skills

Real-World Planning

This type of approach is This type of approach is successful when…successful when…This type of approach is This type of approach is successful when…successful when… An organization has strong leadershipAn organization has strong leadership

The leaders within the organization have a The leaders within the organization have a firm understanding of the business practices of firm understanding of the business practices of its departments its departments

The overall business mission of the The overall business mission of the organization is clearly definedorganization is clearly defined

Stakeholder buy-in is achievable during Stakeholder buy-in is achievable during implementation rather than planningimplementation rather than planning

MIS staff have strong implementation skillsMIS staff have strong implementation skills

Real-World Planning

Pros/Cons of Outsourcing Pros/Cons of Outsourcing Strategic IT Plan DevelopmentStrategic IT Plan DevelopmentPros/Cons of Outsourcing Pros/Cons of Outsourcing Strategic IT Plan DevelopmentStrategic IT Plan Development

ProsPros Objective assessment Objective assessment

Does not tax in-house Does not tax in-house resourcesresources

Can be completed within Can be completed within an aggressive timelinean aggressive timeline

Incorporates industry Incorporates industry perspective/trendsperspective/trends

ConsCons May be expensiveMay be expensive

Risk of receiving generic Risk of receiving generic recommendationsrecommendations

Recommendation details Recommendation details not always explicitnot always explicit

Recommendations may Recommendations may be based upon newest be based upon newest technologies rather than technologies rather than best solutionbest solution

Real-World Planning

The Real World: Strategic IT The Real World: Strategic IT Planning in an Organizational Planning in an Organizational ContextContext

The Real World: Strategic IT The Real World: Strategic IT Planning in an Organizational Planning in an Organizational ContextContext

Politics; Customers; Vendors; Politics; Customers; Vendors; Boundaries; Communications Boundaries; Communications and Resultsand Results

Politics; Customers; Vendors; Politics; Customers; Vendors; Boundaries; Communications Boundaries; Communications and Resultsand Results

Strategic IT Planning is a “People Strategic IT Planning is a “People Process”Process”Strategic IT Planning is a “People Strategic IT Planning is a “People Process”Process” Business needs and organizational Business needs and organizational

considerations drive the planning processconsiderations drive the planning process Key question: “How can we solve our problems Key question: “How can we solve our problems

given program constraints and our existing given program constraints and our existing implementation environment?”implementation environment?”

Stakeholder buy-in is Stakeholder buy-in is ABSOLUTELY ESSENTIALABSOLUTELY ESSENTIAL Integration and coordination between activities Integration and coordination between activities

increases success rate dramaticallyincreases success rate dramatically Technology is an enabler of these initiativesTechnology is an enabler of these initiatives

Real-World Planning

Why Do Projects Fail?Why Do Projects Fail?Why Do Projects Fail?Why Do Projects Fail?

80% fail because of organizational reasons80% fail because of organizational reasons The most common causes of failure are:The most common causes of failure are:

– Unclear goals and metricsUnclear goals and metrics

– Wrong problem definitionWrong problem definition

– Insufficient stakeholder buy-in/consensusInsufficient stakeholder buy-in/consensus

– ““Jumping to a solution”Jumping to a solution”

– Lack of coordinationLack of coordination Net result - a structured process is needed to:Net result - a structured process is needed to:

– Address user concernsAddress user concerns

– Enhance confidence in the decisions/outcomeEnhance confidence in the decisions/outcome

Real-World Planning

To be successful you need a To be successful you need a structured decision process that:structured decision process that:To be successful you need a To be successful you need a structured decision process that:structured decision process that:

Identifies the key players and determines Identifies the key players and determines their authority or influencetheir authority or influence

Clearly articulates how decisions will be Clearly articulates how decisions will be made and implementedmade and implemented

Promotes trust in the process so that Promotes trust in the process so that decision-makers don’t reserve judgment decision-makers don’t reserve judgment until the very enduntil the very end

Is tailored to address what the Is tailored to address what the stakeholders stakeholders really really wantwant

Real-World Planning

What Are The Drivers In the What Are The Drivers In the Political Process?Political Process?What Are The Drivers In the What Are The Drivers In the Political Process?Political Process?

““No surprises”No surprises” Process vs. outcomeProcess vs. outcome Risk aversionRisk aversion Budget sensitivityBudget sensitivity Political momentumPolitical momentum Personal relationshipsPersonal relationships CredibilityCredibility

Real-World Planning

Stakeholder Evaluation DiagramStakeholder Evaluation DiagramStakeholder Evaluation DiagramStakeholder Evaluation Diagram

IssueIssue Stakeholder Stakeholder GroupGroup

Key Key PeoplePeople

Impact / Impact / SignificanceSignificance

Key Key DriversDrivers

Potential Potential ResponseResponse

Real-World Planning

Customers Play An Important Customers Play An Important Role In Decision-makingRole In Decision-makingCustomers Play An Important Customers Play An Important Role In Decision-makingRole In Decision-making How do you define customers?How do you define customers?

Do you have more than one type of customer?Do you have more than one type of customer?

How do customers interact with the How do customers interact with the organization?organization?

How is customer satisfaction determined?How is customer satisfaction determined?

What are the chief customer concerns?What are the chief customer concerns?

How involved should customers be in the How involved should customers be in the decision-making process?decision-making process?

Real-World Planning

Customers Can Have Different Customers Can Have Different Levels of Involvement in the Levels of Involvement in the Decision ProcessDecision Process

Customers Can Have Different Customers Can Have Different Levels of Involvement in the Levels of Involvement in the Decision ProcessDecision Process No involvementNo involvement LimitedLimited

– Receive summary of decisionsReceive summary of decisions

– Ability to register commentsAbility to register comments

– Pre-planning workshopsPre-planning workshops IntermediateIntermediate

– Regular updatesRegular updates

– Review-&-commentReview-&-comment Full partnershipFull partnership

– Steering Committee representationSteering Committee representation

Real-World Planning

There are a number of boundaries There are a number of boundaries and constraints that can affect a and constraints that can affect a project’s viabilityproject’s viability

There are a number of boundaries There are a number of boundaries and constraints that can affect a and constraints that can affect a project’s viabilityproject’s viability

ScheduleSchedule RegulationsRegulations FundingFunding ResourcesResources Organizational skillsOrganizational skills Political feasibilityPolitical feasibility Existing business processesExisting business processes Stakeholder buy-in (internal & external)Stakeholder buy-in (internal & external)

Real-World Planning

Vendors: Complete Annoyance Vendors: Complete Annoyance or Necessary Evil?or Necessary Evil?Vendors: Complete Annoyance Vendors: Complete Annoyance or Necessary Evil?or Necessary Evil? ProsPros

– Provide valuable insightProvide valuable insight

– Worked on numerous implementationsWorked on numerous implementations

– Have experience with leading-edge technologiesHave experience with leading-edge technologies

ConsCons– Always trying to “sell something”Always trying to “sell something”

– Take time to manageTake time to manage

– Can be pestsCan be pests

– Don’t always sell what is needed mostDon’t always sell what is needed most

Key: defining the proper role for vendorsKey: defining the proper role for vendors

Real-World Planning

Communications StrategyCommunications StrategyCommunications StrategyCommunications Strategy

Who is the target audience?Who is the target audience? How are they used to seeing How are they used to seeing

information presented?information presented? How much time/ability do they have to How much time/ability do they have to

absorb this information?absorb this information? What are stakeholders planning to do What are stakeholders planning to do

with this information?with this information? What is the purpose of presenting this What is the purpose of presenting this

information?information?

Real-World Planning

““Know The Players” and Design an Know The Players” and Design an Appropriate Decision ProcessAppropriate Decision Process““Know The Players” and Design an Know The Players” and Design an Appropriate Decision ProcessAppropriate Decision Process

Perform a detailed stakeholder analysisPerform a detailed stakeholder analysis Develop clear program goalsDevelop clear program goals Bound the problem, limit the scopeBound the problem, limit the scope Establish clear participant roles and Establish clear participant roles and

responsibilitiesresponsibilities Consider organizational, political and Consider organizational, political and

technical issuestechnical issues

Real-World Planning

TechnologyBackbone

Technology Solutions

Project TaskActivity j f m a m j y a s o LOE CostEstablish Computing Standards 460 48,300$ Implement Quick-fixes 202 21,210$ Design Integration Strategy 160 16,800$ Convene Steering Committee 24 2,520$ Recieve VendorPresentations 360 37,800$ Review UCA Progress 80 8,400$ Establish Asset Inventory 3600 378,000$ Design spatial Integration 280 29,400$

Technology

Infrastructure

Automated Meter Reading

Automated Meter Reading

Permits andLicenses

Permits andLicenses

Accounts ReceivableAccounts Receivable

Arrears ArrearsField ForceAutomation

Field ForceAutomation

LaboratoryInformation

LaboratoryInformation

BillingBilling

GISGIS

Public Relations

Public Relations

Customer Service

Customer Service

Capital ProjectsPlanning

Capital ProjectsPlanning

Work ManagementWork Management

People Improvements

Business Improvements

Technology Improvements

A Strategic IT Plan Integrates All A Strategic IT Plan Integrates All Dimensions of Defined ImprovementDimensions of Defined Improvement

Real-World Planning

Afternoon Session: Afternoon Session: Case Study WorkshopCase Study WorkshopAfternoon Session: Afternoon Session: Case Study WorkshopCase Study Workshop

Workshop – PM AgendaWorkshop – PM AgendaWorkshop – PM AgendaWorkshop – PM Agenda

Split into groups of 6-8Split into groups of 6-8– People from same organization or background People from same organization or background

should split into different groupsshould split into different groups

Identify a real-life strategic IT planning Identify a real-life strategic IT planning effort (or an organization that needs effort (or an organization that needs one)one)

Complete workshop exercises step-by-Complete workshop exercises step-by-stepstep

Recap/discuss issues with entire groupRecap/discuss issues with entire group

Workshop – Case Study Workshop – Case Study ExercisesExercisesWorkshop – Case Study Workshop – Case Study ExercisesExercises

Exercise 1: Identify Key Stakeholders & Exercise 1: Identify Key Stakeholders & Program IssuesProgram Issues

Exercise 2: Define Program Goals & Exercise 2: Define Program Goals & MetricsMetrics

Exercise 3: Select/Evaluate ProjectsExercise 3: Select/Evaluate Projects Exercise 4: Review Analytical Tool Exercise 4: Review Analytical Tool

OutputsOutputs Exercise 5: Discuss Communications Exercise 5: Discuss Communications

FormatsFormats

Exercise 1a: Evaluate Key Exercise 1a: Evaluate Key StakeholdersStakeholdersExercise 1a: Evaluate Key Exercise 1a: Evaluate Key StakeholdersStakeholders

IssueIssue Stakeholder Stakeholder GroupGroup

Key PeopleKey People Impact / Impact / SignificanceSignificance

Key Key DriversDrivers

Potential Potential ResponseResponse

Worst-case Worst-case “Walk “Walk Away”Away”

Directions:1. Select a project with which you are familiar.2. List your project stakeholders.

Exercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesExercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssues

Givens,Constraints

Key ProblemAreas

ImplementationDetails

Directions:1. Determine the project constraints, major issues, and implementation

details.2. Discuss your conclusions.

Exercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesExercise 1b: Identify Program Exercise 1b: Identify Program IssuesIssuesDirections:1. Determine the project constraints, major issues, and implementation

details.2. Discuss your conclusions.

Exercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance MetricsExercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance Metrics

Program Goal

Goal 1 Goal 2 Goal 3 Goal 4 Goal 5

Metric 1

Metric 2

Metric 3

Metric 1

Metric 2

Directions:1. Identify at least 5 program-level goals for your project.2. For each goal, define at least one performance metric.

Exercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance MetricsExercise 2: Define Program Exercise 2: Define Program Goals & Performance MetricsGoals & Performance Metrics

Directions:1. Identify at least 5 program-level goals for your project.2. For each goal, define at least one performance metric.

Exercise 3: Select/Evaluate 5 IT Exercise 3: Select/Evaluate 5 IT ProjectsProjectsExercise 3: Select/Evaluate 5 IT Exercise 3: Select/Evaluate 5 IT ProjectsProjects

Project Project NumberNumber

Project NameProject Name ProPro ConCon

11

22

33

44

55

Directions:1. Identify at least 5 IT projects to implement.2. Compare/contrast their performance against the pre-defined metrics

from Exercise 2.

Exercise 4: Review Some Exercise 4: Review Some Analytical Tool Outputs (Group Analytical Tool Outputs (Group Session)Session)

Exercise 4: Review Some Exercise 4: Review Some Analytical Tool Outputs (Group Analytical Tool Outputs (Group Session)Session)

Directions:1. Review tool outputs from several third party decision analysis and

software simulation packages.2. Discuss the strengths and weaknesses of each output and identify the

appropriate use for each tool.

Informal Project Prioritization Divides Projects Informal Project Prioritization Divides Projects Into Three Tiers Based On ROIInto Three Tiers Based On ROI

0 $1200

20

40

60

80

100

Project Cost

ProjectPerformance

$20 $40 $60 $80 $100

Not Cost Effective

Possible Projects

Probable Projects

Automate Financial ReportingAutomate Work Orders

Implement Automated Meter Reading

0 $10 $20 $30 $40 $50 $600

20

40

60

80

100

120

140

160

180

200

Total Benefit

CumulativeWeighted

PerformanceBenefit

These projects produce major benefits relative to their total cumulative costs

Total Cost

Total Cumulative Cost ($ Millions)

Portfolio Analysis Evaluates and Defines the Appropriate Project Mix Across the Entire Organization

Decision Tree Analysis Focuses On Decision Tree Analysis Focuses On Issues Dominated By Risk & Issues Dominated By Risk & UncertaintyUncertainty

Decision Tree Analysis Focuses On Decision Tree Analysis Focuses On Issues Dominated By Risk & Issues Dominated By Risk & UncertaintyUncertainty

Implementation Schedule Slip (months)

Total Cost vs. Implementation Schedule Delays

Tot

al C

ost

(k$)

0 1 2 3 4 5 6 7 8

Optimal decision changesif schedule slips more than 6 months

Some Tools Compare and Contrast Some Tools Compare and Contrast Projects According to Multiple CriteriaProjects According to Multiple CriteriaSome Tools Compare and Contrast Some Tools Compare and Contrast Projects According to Multiple CriteriaProjects According to Multiple Criteria

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

Cu

mu

lati

ve C

rite

ria

Sco

res

1 10 6 7 2 3 5 4 9 8

Projects

Contribution by Criteria

Organizational Fit

Legacy Systems

Data Access

Reliability

Schedule

See Benefit Cost

Back to INPUT Worksheet

Click to Sort by Score

Exercise 5: Identify 5 Appropriate & Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for 3 “Bad” Communications Formats for your Projectyour Project

Exercise 5: Identify 5 Appropriate & Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for 3 “Bad” Communications Formats for your Projectyour Project Project ReportProject Report

Executive SummaryExecutive Summary

NewsletterNewsletter

Web site contentWeb site content

Public MeetingPublic Meeting

PowerPoint presentationPowerPoint presentation

Decision modelsDecision models

Press releasesPress releases

One-on-one review One-on-one review sessionssessions

Project schedulesProject schedules

Management PlanManagement Plan

Technical/functional Technical/functional specificationsspecifications

RFPRFP

Flyers/handoutsFlyers/handouts

Budget analysisBudget analysis

Prioritized project listPrioritized project list

Others? Feel free to “go Others? Feel free to “go off the board”….off the board”….

Strategic IT Plan Case Study – Strategic IT Plan Case Study – Summary (Activity & Purpose)Summary (Activity & Purpose)Strategic IT Plan Case Study – Strategic IT Plan Case Study – Summary (Activity & Purpose)Summary (Activity & Purpose) Exercise 1: Key Stakeholders & Program IssuesExercise 1: Key Stakeholders & Program Issues

– Know your target audience and the important questionsKnow your target audience and the important questions

Exercise 2: Program Goals & MetricsExercise 2: Program Goals & Metrics

– Define the organizational goals and how you will measure Define the organizational goals and how you will measure successsuccess

Exercise 3: Select/Evaluate ProjectsExercise 3: Select/Evaluate Projects

– Identify and compare only projects that address mission goalsIdentify and compare only projects that address mission goals

Exercise 4: Analytical Tool OutputsExercise 4: Analytical Tool Outputs

– Use tools that provide the appropriate level of insightUse tools that provide the appropriate level of insight

Exercise 5: Communications FormatsExercise 5: Communications Formats

– Distill/present data in a way your target audience can Distill/present data in a way your target audience can understand and absorbunderstand and absorb

Strategic IT Plan Case Study – Strategic IT Plan Case Study – Remaining Program ActivitiesRemaining Program ActivitiesStrategic IT Plan Case Study – Strategic IT Plan Case Study – Remaining Program ActivitiesRemaining Program Activities Budget and schedulingBudget and scheduling

Technology analysis/selectionTechnology analysis/selection

Incorporation of legacy systemsIncorporation of legacy systems

Facilitating a group decision-making processFacilitating a group decision-making process

Organizational impact assessmentOrganizational impact assessment

Business process redesign (BPR)Business process redesign (BPR)

Project management (delivery)Project management (delivery)

Public relations/public involvementPublic relations/public involvement

Ongoing progress assessmentOngoing progress assessment

Regulatory compliance managementRegulatory compliance management

Summary/DiscussionSummary/DiscussionSummary/DiscussionSummary/Discussion

IT Systems Should Support the IT Systems Should Support the Business PlanBusiness Plan

VISION/MISSIONVISION/MISSION

BUSINESS PRACTICESBUSINESS PRACTICESPEOPLE PRACTICESPEOPLE PRACTICES

TECHNOLOGY SYSTEMSTECHNOLOGY SYSTEMS

John Naisbitt, IT Visionary

“ You have to know WHY before HOW….”

Phil Perkins, Pillsbury, CIO

“First ask, what is the business problem that this application is trying to solve? ”

Miriam Heller, Professor, U of H

“No matter how brilliantly designed and engineered the IT system, the system is limited if it does not address business requirements up front.”

Strategic IT

Plan

A Sound Strategic IT Plan Incorporates A Sound Strategic IT Plan Incorporates Both Organizational and Technical Both Organizational and Technical ConcernsConcerns

A Sound Strategic IT Plan Incorporates A Sound Strategic IT Plan Incorporates Both Organizational and Technical Both Organizational and Technical ConcernsConcerns

DataData

InformationInformation

KnowledgeKnowledgeInsightInsightInsightInsight

ImplementationImplementationImplementationImplementation

ProcessProcessPeoplePeople

Strategic IT Planning GuidelinesStrategic IT Planning GuidelinesStrategic IT Planning GuidelinesStrategic IT Planning Guidelines

Strategic IT Planning is an organizational / Strategic IT Planning is an organizational / people-centered processpeople-centered process

Business and stakeholder needs should drive Business and stakeholder needs should drive the solutionthe solution

Technology is an enabler of program goalsTechnology is an enabler of program goals Developing a clear set of goals & metrics Developing a clear set of goals & metrics

increases the chance of successincreases the chance of success Participants require a “no surprises” decision Participants require a “no surprises” decision

and implementation processand implementation process Tailor your process (and outputs) to your Tailor your process (and outputs) to your

target audiencetarget audience

Strategic IT Planning StepsStrategic IT Planning StepsStrategic IT Planning StepsStrategic IT Planning Steps

1.1. Develop strategic visionDevelop strategic vision

2.2. Perform gap analysis (technology, Perform gap analysis (technology, organization, constraints)organization, constraints)

3.3. Develop/evaluate alternativesDevelop/evaluate alternatives

4.4. Document decision processDocument decision process

1. StrategicVision

2. GapAnalysis



Developing A Strategic IT Plan Developing A Strategic IT Plan Provides A Wealth of Program Provides A Wealth of Program BenefitsBenefits

Developing A Strategic IT Plan Developing A Strategic IT Plan Provides A Wealth of Program Provides A Wealth of Program BenefitsBenefits Clear directionClear direction Alignment between program goals and Alignment between program goals and

implementationimplementation Increased communication (internal & external)Increased communication (internal & external) Stakeholder buy-inStakeholder buy-in Greater efficiencyGreater efficiency Reduced riskReduced risk Program flexibilityProgram flexibility Enhanced credibilityEnhanced credibility

Questions for you to think Questions for you to think about…about…Questions for you to think Questions for you to think about…about… What is the appropriate role of What is the appropriate role of

stakeholders in this process? (who are they stakeholders in this process? (who are they and what do they do?)and what do they do?)

How do I evaluate recommendations? How How do I evaluate recommendations? How do I prioritize recommendations?do I prioritize recommendations?

What is the appropriate project structure What is the appropriate project structure for completing A Strategic IT Plan?for completing A Strategic IT Plan?

What are the primary barriers to success What are the primary barriers to success for IT planning within my organization?for IT planning within my organization?

Introduction

Questions/ConcernsQuestions/ConcernsQuestions/ConcernsQuestions/Concerns

Contact InformationContact InformationContact InformationContact Information

Vasken MissirlianVasken Missirlian

– Phone: 949-752-5452Phone: 949-752-5452

– E-mail: E-mail: [email protected]@cdm.com


– Phone: 800-343-7004Phone: 800-343-7004


Jon SpangenbergJon Spangenberg

– Phone: 925-933-2900 Phone: 925-933-2900


IT Strategic Planning: A Tool for Navigating Treacherous IT ...

Business

Transcript of IT Strategic Planning: A Tool for Navigating Treacherous IT ...