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Information Technology
OR . . . a Change JourneyPhil Pavitt 7th December 2004
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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
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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”
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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
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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.
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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
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Differences In The Way IT Is Managed Influences Business ValueDifferences 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
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Starting a pilot
Committing a major part
of our businessDoing
NothingStarting to investigate
61%4%22%13%Virtualized storage (SAN/NAS)
9%26%
17%
17%
35%41%23%
26%41%23%18%
4%30%57%RFID
39%22%13%XML Document and workflow
23%36%18%Open source applications
9%35%39%Virtualized server technology
14%36%9%VOIP13%17%35%Linux
41%5%14%Wireless for workforce
9%26%48%Dynamic resource provisioning
46%14%18%Enterprise integration tools
4%30%39%Virtualized server pools
55%23%5%Web services/SOA
Recent Accenture CIO research on adoption rates in key technologiesRecent Accenture CIO research on adoption rates in key technologies
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Integration
Industrialization
Innovation
Information
Infrastructure
Replacing technology with
better technology
Strategy enabling
innovations
Labor cost arbitrage
Cycle time focused delivery
Predictable and
repeatable
Business productivity innovations
Cross enterprise service oriented
architecture
Basic Progressive Pioneering
Enterprise integration
Point integration solutions
Real time insight
Business intelligence
Transaction data efficiency
Dynamically provisioned and externally secure
Internal on-request
Consolidate and
standardize
Mastering five key pillars
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Change – Individual Level
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Principles of Change
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Sound changeprinciples
lessenthe depth of
the pain of change
Sound changeprinciples
lessenthe depth of
the pain of change
Principles of Change
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Principles of Change
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Principles of Change
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Principles of Change
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Principles of Change
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ServiceProvision
CustomerExperience
BusinessInfrastructure
Order Assure Bill
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Billing andfulfilmentBilling andfulfilment
Serviceconfiguration
and activation
Serviceconfiguration
and activation
Billing &collections
management
Billing &collections
management
Sales &marketing
order handling
Sales &marketing
order handling
Resource &infrastructure
problem management & restoration
Resource &infrastructure
problem management & restoration
Serviceprovision data
collection &analysis
Serviceprovision data
collection &analysis
Resource &infrastructureallocated for
delivery
Resource &infrastructureallocated for
delivery
ServiceProvision
CustomerExperience
BusinessInfrastructure
Order Assure BillCustomer Touch Points – Direct ContactCustomer Touch Points – Direct Contact
Customer Touch Points – Field ForceCustomer Touch Points – Field Force
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ServiceProvision
CustomerExperience
BusinessInfrastructure
Order Assure Bill
Problemreporting &
quality analysis
Problemreporting &
quality analysis
Billing andfulfilmentBilling andfulfilment
Serviceconfiguration
and activation
Serviceconfiguration
and activation
Customerproblem
management
Customerproblem
management
Billing &collections
management
Billing &collections
management
Sales &marketing
order handling
Sales &marketing
order handling
Resource &infrastructure
problem management & restoration
Resource &infrastructure
problem management & restoration
Serviceprovision data
collection &analysis
Serviceprovision data
collection &analysis
Resource &infrastructureallocated for
delivery
Resource &infrastructureallocated for
delivery
Customer Touch Points – Direct ContactCustomer Touch Points – Direct Contact
Customer Touch Points – Field ForceCustomer Touch Points – Field ForceIssueIssue
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ProcessProcess ProcessProcessProcessProcess
PeoplePeople PeoplePeoplePeoplePeople
ResourceResource ResourceResourceResourceResource
ServiceProvision
CustomerExperience
BusinessInfrastructure
Order Assure Bill
People – Field ForcePeople – Field Force
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Applied Activity
Applied Knowledge
SPECTATOR TEAM PLAYER
LIVING DEAD TERRORIST
Refocusing IT
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Framework Approach1. Have a compelling reason to change1. Have a compelling reason to change
2. Pull a powerful team together2. Pull a powerful team together
3. Create a compelling picture of the new world3. Create a compelling picture of the new world
4. Change leadership modelling and development4. Change leadership modelling and development
5. Ensure those armed with the change agenda are capable of delivery5. Ensure those armed with the change agenda are capable of delivery
6. Communicate, communicate, communicate6. Communicate, communicate, communicate
7. Expect that obstacles will occur and be prepared to move them7. Expect that obstacles will occur and be prepared to move them
8. Deliver some early wins8. Deliver some early wins
9. Maintain momentum9. Maintain momentum
10. Ensure the changes become embedded into the culture10. Ensure the changes become embedded into the cultureSustainchangeSustainchange
‘slay sacredCows’‘slay sacredCows’
ActionworkshopsActionworkshops
Create ‘Your Future’MindsetCreate ‘Your Future’Mindset
Develop communicationstrategyDevelop communicationstrategy
Coach change agents anddeliver change tool kit Coach change agents anddeliver change tool kit
Facilitate strategy and planningFacilitate strategy and planning
Create a compelling future‘Top down and bottom up’ Create a compelling future‘Top down and bottom up’
Strategic Vision and Alignment WorkshopDevelop governance and uncover values Strategic Vision and Alignment WorkshopDevelop governance and uncover values
Cultural ‘Discovery’ audit – build ‘Burning Platform’Cultural ‘Discovery’ audit – build ‘Burning Platform’
Change Arena Change Agent Arena Business Arena
Agree measures of successAgree measures of success
Increase the comparabilityIncrease the comparability
Develop initial communicationsDevelop initial communications
Strategy and planningStrategy and planning
Increase competenciesIncrease competencies
Augment IT fordelivery of messageAugment IT fordelivery of message
Create empoweredcultureCreate empoweredculture
Trouble shootingTrouble shooting
Maintain measuresfor successMaintain measuresfor success
IBT, coaching, Live Coaching & reviewsIBT, coaching, Live Coaching & reviews
Com
mu
nic
ate
& M
easu
reC
om
mu
nic
ate
& M
easu
re
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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
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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’
Refocusing IT
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11 2233
GREAT OPENING
RAPPORT
“Good Morning /.AfternoonThis is . . .”
Good news. . .home straight
LISTEN
FindCustom
er
FindCustom
er
ReviewHistoryReviewHistory
Mapping IT to Process
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11 2233
GREAT OPENING
RAPPORT
Good news. . .home straight
LISTEN
Enter New
Incident
Enter New
Incident
Mapping IT to Process
“Good Morning /.AfternoonThis is . . .”
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55
66
88
77
YOUR COMMITMENTO
BJE
CTIO
N?
NO
CH
ALLEN
GE!
IMPORTANT
ASSUME THE
OUTCOME
ConfirmCustom
erNeed
ConfirmCustom
erNeed
Close Call
Positively
Close Call
Positively
Mapping IT to Process
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IT FederalisationWhere is IT in the Business Process value chain and where should it aspire
to be?IT Today“A Slave of the
Business”
IT in Dec ’05“We Partner the Business”
Busi
ness
Pro
cess
Valu
e C
hain
Value Add Toolset
Cost Tool
TODAY
Business DrivenIT Strategy
Busi
ness
Pro
cess
Valu
e C
hain
Value Add Toolset
Cost Tool
Dec ‘05
“IT will become the Business Partner for ntl”
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IT FederalisationTypically, any debate on IT organisational structure is normally based on the appropriate level of decentralisation but ntl requires a federal model for IT.
Functional ISLeadershipEnterprise
perspective
- Federal IT Model -
Decentralised ModelCentralised Model
TCO scale of
economiesControl of standards
Critical mass of
skills
Local service Lines of
ownershipUsers control
prioritiesResponsiveness to diverse needs
Potentially more costly
Variable IS competencies
Wheel reinvention
No synergy
Less responsive to end users
No regional ownership
No regional cost control
Doesn’t meet everyone’s needs
The Federal IT model leverages the advantages of scale and enterprise leadership, whilst maintaining the flexibility of local responsiveness
Pooled experience
Synergy
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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
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“Do IT with the people
not to the people”
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‘Either do or do not there is no try’
Yoda Pavitt
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Q & A