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