Information Technology OR . . . a Change Journey Phil Pavitt 7
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Information Technology OR . . . a Change Journey Phil Pavitt 7
Information Technology OR . . . a Change Journey Phil Pavitt 7th December 2004 1 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 2 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” 3 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 4 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. 5 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 6 Differences 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 7 Recent Accenture CIO research on adoption rates in key technologies Doing Nothing Starting to investigate Starting a pilot Committing a major part of our business Virtualized storage (SAN/NAS) Web services/SOA Enterprise integration tools Wireless for workforce XML Document and workflow 13% 5% 18% 14% 13% 22% 23% 14% 5% 22% 4% 18% 23% 41% 26% 61% 55% 46% 41% 39% Open source applications VOIP Linux 18% 9% 35% 36% 36% 17% 23% 41% 35% 23% 14% 13% Virtualized server technology 39% 35% 17% 9% Dynamic resource provisioning 48% 26% 17% 9% Virtualized server pools 39% 57% 30% 30% 26% 9% 4% 4% RFID 8 Mastering five key pillars Basic Progressive Pioneering Replacing technology with better technology Business productivity innovations Strategy enabling innovations Industrialization Labor cost arbitrage Predictable and repeatable Cycle time focused delivery Integration Point integration solutions Enterprise integration Cross enterprise service oriented architecture Information Transaction data efficiency Business intelligence Real time insight Consolidate and standardize Internal onrequest Dynamically provisioned and externally secure Innovation Infrastructure 9 Change – Individual Level 10 Principles of Change 11 Principles of Change Sound change principles lessen the depth of the pain of change 12 Principles of Change 13 Principles of Change 14 Principles of Change 15 Principles of Change 16 Order Customer Experience Service Provision Business Infrastructure 17 Assure Bill Order Assure Bill Customer Touch Points – Direct Contact Customer Experience Sales & marketing order handling Billing & collections management Service Provision Service configuration and activation Billing and fulfilment Customer Touch Points – Field Force Business Infrastructure Resource & infrastructure allocated for delivery 18 Resource & infrastructure problem management & restoration Service provision data collection & analysis Order Assure Bill Customer Touch Points – Direct Contact Customer Experience Sales & marketing order handling Customer problem management Billing & collections management Service Provision Service configuration and activation Problem reporting & quality analysis Billing and fulfilment Customer Touch Issue Points – Field Force Business Infrastructure Resource & infrastructure allocated for delivery 19 Resource & infrastructure problem management & restoration Service provision data collection & analysis Order Assure Bill Customer Experience People People People Service Provision Process Process Process People – Field Force Business Infrastructure Resource 20 Resource Resource Refocusing IT Applied Knowledge SPECTATOR TEAM PLAYER LIVING DEAD TERRORIST Applied Activity 21 Framework Approach Change Agent Arena 1. Have a compelling reason to change Business Arena Cultural ‘Discovery’ audit – build ‘Burning Platform’ 2. Pull a powerful team together Strategic Vision and Alignment Workshop Develop governance and uncover values 3. Create a compelling picture of the new world 4. Change leadership modelling and development Facilitate strategy and planning 6. Communicate, communicate, communicate Increase the comparability Develop initial communications Create a compelling future ‘Top down and bottom up’ 5. Ensure those armed with the change agenda are capable of delivery Agree measures of success Coach change agents and deliver change tool kit Strategy and planning Increase competencies Develop communication strategy Augment IT for delivery of message Create ‘Your Future’ Mindset Create empowered culture 7. Expect that obstacles will occur and be prepared to move them Action workshops 8. Deliver some early wins ‘slay sacred Cows’ 9. Maintain momentum 10. Ensure the changes become embedded into the culture 22 Sustain change Trouble shooting Maintain measures for success IBT, coaching, Live Coaching & reviews Communicate & Measure Change Arena 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 23 Refocusing IT 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’ 24 Mapping IT to Process Find Customer GREAT OPENING 1 RAPPORT LISTEN 2 “Good Morning /. Afternoon This is . . .” 3 Good news. . . home straight Review History 25 Mapping IT to Process Enter New Incident GREAT OPENING 1 RAPPORT LISTEN 2 “Good Morning /. Afternoon This is . . .” 3 Good news. . . home straight 26 Mapping IT to Process ASSUME THE OUTCOME Close Call Positively 8 YOUR COMMITMENT IMPORTANT 7 5 6 Confirm Customer Need 27 IT Federalisation Where is IT in the Business Process value chain and where should it aspire to be? IT Today IT in Dec ’05 “A Slave of the Business” “We Partner the Business” Business Process Value Chain Cost Value Add Toolset Business Driven IT Strategy TODAY Cost Tool “IT will become the Business Partner for ntl” 28 Toolset Dec ‘05 Business Process Value Chain Value Add Tool IT Federalisation Typically, any debate on IT organisational structure is normally based on the appropriate level of decentralisation but ntl requires a federal model for IT. - Federal IT Model Centralised Model Functional IS Leadership Enterprise perspective TCO scale of economies No regional ownership Control of No regional cost control standards Critical Doesn’t meet mass of skills everyone’s needs Less responsive to end users Decentralised Model Local service Lines of ownership Users control priorities Responsiveness to diverse needs Potentially more costly Variable IS competencies Wheel reinvention No synergy Pooled experience Synergy The Federal IT model leverages the advantages of scale and enterprise leadership, whilst maintaining the flexibility of local responsiveness 29 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 30 “Do IT with the people not to the people” 31 ‘Either do or do not there is no try’ Yoda Pavitt 32 Q&A 33