Business IT Investment Risks

Richard MouldsInterim CIO, The Royal British Legion

20th March 2013

Objective

To enable you to identify at least 1 lesson and 1 resource to act on

Agenda

• Introduction • Objective• Findings

– Research–Crash–Cranfield University

– Lessons Learned, NHS & BHF

• The Royal British Legion

Research - Crash

• Overambitious • Pride• Presumption• Pusillanimity• Credulity• Consultancy• Tailored Software• Concealment• Buck Passing• Lawyers

Moulds Management Consulting Ltd

Research-Cranfield University Top 10 Practices H% L% Diff.%

Transferral of lessons learned 73 32 41

Quantification of benefits 52 14 38

All benefits identified 56 19 37

Organisational change reviews 62 30 32

Overstating benefits 22 51 -29

Benefits delivery planning 45 19 26

Benefits review and evaluation 62 39 23

Organisational change planning 44 23 21

External reference sites used 45 24 21

External benchmarking used 35 16 19

Cranfield University Information Systems Research Centre

Risks, issues & lessons

Disaster = Multiple Issues

Lessons Learned • Google searches

• Lessons learned = 39.7 million hits• We fail to LL = 29.2 million hits

• Lessons learned = identify lesson & act on it ** • Identify lessons by assessing the:

– context– event – causes (root causes and critical success factors)

• Act on lessons

** Milton N (2010) The Lessons Learned Handbook http://

www.amazon.co.uk/The-Lessons-Learned-Handbook-Knowledge-Based/dp/1843345870/ref=cm_cr_pr_product_top

British Journal of Healthcare Management Dec. 2010

Moulds Management Consulting Ltd

HANDOUT

2 lessons identified

Business Cases•list all major risks, issues and lessons identified from at least one reference site visit for each option

Decision Making & Governance •ensure the project sponsor is a role model on how to raise and resolve difficult issues

Capabilities

CFG 2011 Risk report ‘Managing Risk: Operating in the new world’

…that there is a fundamental imbalance between supply and demand in the not-for-profit sector…charities are seeing growing demand for their services but are unable to invest enough to provide these services effectively …little sign of the situation improving in the foreseeable future…..many charities are faced with a business model that no longer works in the longer term.

http://www.cfg.org.uk/news/press-releases/2011/november/charities-facing-uphill-struggle-to-meet-demands-and-manage-risks.aspx

The Royal British Legion

• Armed Forces Sector

• TRBL Group of Charities

• Business IT investment to support new Operating Model

Armed Forces Charities - 2007/08 Political Iraq War 2003 -2011Afghanistan War 2001- to date USA,UK Australia, and the Afghan United Front - Operation Enduring Freedom.

Economic Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008.

SocialRapid growth in use of social media e.g. Facebook generationJune 2007 , the Pew Global Attitudes Project found international opposition to the war in Afghanistan . Only 4 / 47 countries favoured keeping foreign troops in AfghanistanSignificant empathy and expectations for UK armed forces

Technological Emergence of hi tech artificial limbs

Web 2.0 becoming mainstream

Sept. 2008 1504 M internet users, 22.5% of world pop.Compared to Dec. 2000361 M internet users, 5.8 % of world pop

Royal British Legion 2007/08 Strengths •Brand •Financial •75% market share

Opportunities•Political •Economic •Social •Technology

Weakness‘•Inward looking •Little focus on ‘market’

Threats •Political •Economic •Social •Technology

Armed Forces Charities 2011

• Royal British Legion Founded 1921 – Market share from 75% to 55% – Income broadly static – Brand 4th in top 125 Charities– Pathway 4 Growth – for beneficiaries

• Help for Hero’s Founded 2007 – Income £50 m, market share c. 20% – Brand 5th in top 125 Charities

TRBL Business & Operating Model for Services

FromPrimarily face to face

Limited reach & depth

Few national customer standards

ToFace to face, on phone online & self service Very low marginal costs

National output and outcome standards

TRBL Challenges & Lessons

• Challenges – Disconnect between

functions including IT

– Importance & relevance of IT Architecture

– Capability & Capacity • Partnership• Cloud based solution

• Lessons Identified – Build personal relationships

– Integrated IT assets = benefits for business model not just functionality

• Access• Business Systems• Data, data, data ……

– Balance Demand & Supply

Questions & Comments • Richard Moulds

• Interim CIO, Royal British Legion

• rmoulds@britishlegion.org.uk

• http://www.linkedin.com/in/richardmoulds

• M: 07834 320979