business & it alignment from theory to practice · it and business alignment business agility...

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Business & IT Alignment

From theory to practice

The number 1

SUCCESS or

FAIL factor for

ITSM

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Business & IT alignment trends

Why we keep failing

The top ABC BITA issues

A case using a simulation as ‘enabler’ – how to get the business engaged and create buy-in

AND commit to improvements...

IT an enabler? ….or a chain around the neck!

The increasingImportance of

IT….

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Business & IT productivity

IT and Business alignment

Business agility &

speed to market

Business process

management & reengineering

IT cost, reliability & efficiency

and security

Increasing impact

ITSM as a strategic capability

Growing importance,

& dependency

Poor ability to execute

CobIT

ISO27..

20..

ITIL

Prince2

PMIDevOps

ISO38..

BiSL

KT

Togaf

Scrum Agile

CIO needs:

Nr 5: Leadership developmentand staff training

IT Transformation“….from Internal focus to outside-in, business focus and a Customer and Service culture…….”

Trends shaping the Future of ITSM

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The increasing importance of IT......

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Strategic Assets

People

Our IT peopleare becomingCritical assets forBusiness growth and continuity

…you mean HEis a Critical Asset?!!Boy are we indeep Doo Doo !...

…you mean HEis a Critical Asset?!!Boy are we indeep Doo Doo !...

…you mean HEis a Critical Asset?!!Boy are we indeep Doo Doo !...

ITSM a Strategic Asset!

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The NEED to engage the business….

ITSM as a STRATEGIC Asset

Business & IT Integration……

Engage with the business…

Effective ITSM cannot

happen without the business!

2nd largest reason for ITIL fail in Forrester report.29% Lack of business involvement or interest

Q?19961996

OGCITIL

Book

OGCITIL

Book

Understanding

&

Improving

Understanding

&

Improving

1996

OGCITIL

Book

Understanding

&

Improving

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The bad news….

Alignment still an issue

80% of business managers stated the importance

of IT in delivering Value in terms of lowering costs,improving productivity, acquiring and retainingcustomers

Only 15% of IT leaders said they were aligned.

Top 3 in Luftmans investigation

Understanding of IT by the business

Building Business skills in IT

Business & IT change management

IT solutions & Projects

70% IT Projects over Time, Budget orfail to deliver value

ITSM a Strategic Asset!

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A SERVICE

is a means of

delivering

VALUE to customers by

facilitating OUTCOMES

customers want toachieve withoutthe ownership of

specific

COSTS & RISKS.

ITIL® Service Strategy, TSO

Why are we going wrong?

Q?

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Experiential learning, Learning by DOING

Translating Theory intoPractice

Knowledge:

Expertise and skills acquired through

experience or education;

the practical or theoretical undertanding of a subject.

How can we effectively train people?…..and confront them with ABC?

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Using a simulation to address BITA

Using a simulation as a PILOT project.

Forrester

Pilot initiatives. Business & IT

working together focusing ondelivering value.

Bringing Business & IT people

together

Confront each other with attitude and

behavior

Working together to find a solution

Better understanding of each other

Agree improvement actions and

ownership

Customer wanted to raiseITIL maturity to level 3.

More aligned to business

Develop more business awareness & skills in IT

Show business value of

ITIL

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A Business & IT alignment case experience

Business Manager

IT Management

BusinessSimulation

Game Leader

CEO

Supplier

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Business IT

Noboby has a

Shared view of

Value, OutcomesCosts & Risks

They both

know the

BITA trends and why they

are here…

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Lack of ownership/initiative

for bridging the gap.

Lack of trust

Who’s job

Is it to break

Through this?

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Business Strategy

Not shared or Communicatedin time or clearly

You need to

ensure we can

sell Pizzasover the web

and achieve

our superbowl

targets

IT doesn’tUnderstand

what this meansto them or how

they can contribute

The businessforces its prioritychanges through

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No Business priority & investment mechanism.

What delivers the most value?

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Meanwhile…..

We need to make

Changes…….

Disks, servers, knownerrors, bugs,

throughput, speedTransactions, backbone….

…faster,newer, more powerful..

IT is busy looking

at the infrastructureIT

Infrastructure

What Planet doesIT come from?

What language

do they speak?

Businessmanager

It is unable to make

the business case

for it’s changes

No link to BusinessValue, Outcomes, Costs or Risks

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Inability to translatetechnology opportunities into

Business opportunities

400 US Govt agencies estimated$25 billion waste

125 UK CIOsestimated 3.5

Billion wasted

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IT tries to plan all

the business changes….

low business involvement& testing…

Change

calender

IT supportIT changes not made

…capacity fills….

…impact of poor changes felt…..

IT is firefighting and

forgets the business…

Business is unawareand not involved

‘Just like reality’ said the CIO and the business

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Lack of operational

fit & engagement

82% in a survey saidthey were losing money

Because of testing

failures….

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Increased incidents &outages…..

Infrastructure not maintained IT Support

IT Reports

IT metrics are

internally focused…

no relationto business .

Why am I

losing money?

What happenedto my strategy?

Businessmanager Business value

and outcomesnot achieved

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Lack of shared view

on strategy alignment& realization

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0 5 10 15 20 25

Higher IT costs

Delays in deploying IT solutions

Higher operating costs

Threats to business continuity

Lost business opportunities

Poor IT investment decisions

Decreased staff productivity

Damaged business reputation

Solutions don't meet business needs

Dissatisfied customersWhat is the

impact of all

This worst practice?

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SLM to focus not only on BRM but willtranslate into IT understanding and capability

CAB – more advisory role ‘Impact assess with

business’ – balance decisions on VOCR

Process managers – pragmatic approach to

CSI – improvements focused on VOCR

More investment in Problem management asresult of ‘Agile’ Project focus

Deploy Service portfolio management to help

business and IT gain better understanding andhelp prioritize

Customer take-aways

• Current programwrong focus

• Big change inattitude…..

WOW! I didn’trealize!...

• Shared goalsand commitmentto deploy

• Better understandingof each other

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Making ITSM as a STRATEGIC Asset

Effective ITSM cannot

happen without the business!

2nd largest reason for ITIL fail in Forrester report.29% Lack of business involvement or interest

Taking the first step……….

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What if we(you) do nothing?

Is this the your

Business & IT alignment

Strategy?

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What can you do?‘Knowledge translated into changed behavior,

to generate outcomes’

Lets make Monday

the 1st National

‘GO & meet a USER day’

Ask everybody in your IT org, what is definition of a

Service…then tell them in the context of YOUR organization

Invite business to come and present to IT

Use interactive sessions with business. Such as ABC workshop or use a simulation – explore, change attitude, agree behavior change.

Start showing, marketing V,O,C,R gains – build TRUST &

CREDIBILITY

Send EVERYBODY in IT into business for 1 day, then have

them present findings to team – V,O,C,R?

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The FUTURE is

YOUR’S to decide….

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Paul Wilkinson

p.wilkinson@gamingworks.nl

@Gamingpaul

Thank you