In the previous blog in this series, we showed how to align the IT Vision with Business Strategy and objectives.  The next step in developing IT Strategy is to understand how current capabilities stack up against the IT Vision, i.e. perform a capabilities gap analysis.

Performing the capabilities gap analysis involves a few key steps:

1. Review the IT Vision:  Identify the key capabilities that will be required to support the IT Vision in terms of organization, process and technology
2. Perform a SWOT Analysis:  Identify the Strengths, Weaknesses, Opportunities and Threats for the current Organization, Processes and Technology solutions.
3. Establish the Gaps:  Compare the required capabilities against the SWOT analysis and prioritize the critical gaps

These few steps will ensure that the full extent of the gaps in IT capabilities is known.  This is one of the most important steps and it is critical to perform this activity with complete impartiality and without bias so as to unearth the true nature of the gaps.
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In summary, IT strategy needs to be aligned with business drivers and objectives to be effective.  While understanding the business context is the first step in the development of IT Strategy, the next step is to do a gap analysis between the capabilities that are required to fulfill the IT Vision and the current state of IT capabilities.  The next step to frame the IT Strategy will be explored in the next blog in this series.

How do you go about assessing your IT capabilities?​

So your organization or department has identified an area for improvement – great!  A team is assigned to tackle the challenge – fantastic!  Now, how can you make sure that the team will achieve results?  

A common pitfall of projects is a scope that is either ill-defined or vague or alternately, that is too broad and all-encompassing.  So how can you prevent this?  The key to success is in the set-up.  It’s all about the planning.

• First, discuss the improvement or idea for the project and brainstorm the desired end state.  What will the end state look like when improvements are made?  This becomes your team’s Vision Statement - a vision of what they are aiming towards. 

• Second, elaborate on the vision by defining, in more detail, what success will look like, for example, lower call hold times or increased sales.  Turn these into a Success Statement that will help the team visualize the future end state. Additionally, define key performance indicators or measures, of these successes, that can be tracked.  For example, customer service will be improved and a measure of that improvement might be: 80% of first time calls to the customer service hot line will be resolved when maybe currently, only 50% of first time calls are resolved.

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• Third, create the Project Scope Statement.  The Project Scope Statement will explain what the purpose of the project is, what it will take to perform it and what its expected outcomes will be. The Project Scope Statement will articulate, at a high level, the
  • project opportunity,
  • project success criteria,
  • expected project benefits,
  • project deliverables,
  • organizational impact,
  • project exclusions, constraints and assumptions. 

It is after these three steps that the project team and stakeholders will need to determine whether the “case for the project” is strong enough to be worthwhile, whether the resources and time required are manageable, and whether the vision or the future state successes are clear and measurable. ​

As the project plan, timeline and associated resources are being developed, you have the opportunity to make sure that the vision and objectives are turned into realistic tactics that can be executed.  This is the time when a large scope should be turned into sub-projects or a program with multiple projects; this is the time when an unclear scope becomes clear by defining what is in scope, what success looks like, versus what is not in scope and what is not going to be tackled. 

Remember, a critical element of a project’s success, is making sure that the team sees and feels that they are making progress.  It is better to have sub-teams and sub-projects that have clear objectives that roll up to a program or alternately, that you have clear project phases with clear milestones/results, than a massive team with overwhelming project objectives that cannot figure out how to tactically make progress.

And what do you do if your project has already started and your team is struggling with an unclear or overwhelming scope?  It may be time to take a step back, re-evaluate and determine what needs to change to allow the project and team to continue productively.  It may be time to refine or clarify the end-state, redefine what is “in” and what is “out” of scope and/or possibly add sub-teams and/or sub-projects to make the scope manageable again.  It is better to take corrective actions, at any point in a project, than continue working with a discouraged team, an ineffective and possibly costly project, and unlikely odds of achieving success. 
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What methods or tactics have helped your team manage scope?

​Our comprehensive PMO Framework covers the project lifecycle in 4 phases: Concept, Initiation, Delivery and Close.  Having a clear Framework, with a standard methodology, process and tools, is critical to seeing a project successfully through to the end. 
 
Just because a project has realized its expected outcomes or results, the project is not yet quite over!  The final project phase in our PMO Framework is the Close Phase.  Don’t miss the opportunity to dot the I’s and cross the T’s…there is tremendous value in learning from your project successes and mishaps.  
 
Below, are the key activities we recommend occur during the Close Phase of your project. 
 
PM Checklist for the Close Phase:
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• Obtain Customer & Stakeholder Acceptance of Project Outcome(s)
• Perform Project Performance Review
• Conduct “Lessons Learned” Session(s)
• Document “Lessons Learned”
• Assemble Sign-off Governance Document
• Review Sign-off Governance Document
• Administrative Close of Project

 
Often overlooked, the Close phase of a project is critical to making sure all activities are completed and documented.  Don’t miss the opportunity to bring your team and stakeholders together to learn from the project experience.  And don’t forget to celebrate a project well planned and executed!

What do you recommend occur during the close phase of a project?  Do your project teams perform a “Lessons Learned” exercise?

In the planning phase, we identify the what, who and why for change.  In the making the change phase, we execute the communication, measure the key performance indicators (KPIs) and make continuous improvements based on the measurements.

The final phase of our organizational change management approach occurs when the majority of the change has occurred.  At this point you are making sure that the changes are reinforced and maintained, and become ingrained in the way the organization works.

Measuring

• Measurement and tracking of the change continues
• Ongoing measurement may indicate that some additional tweaks to the People, Process and Technology elements are necessary and need to be made.

Communication

• Continue communicating the change and about the success of the change.

 Celebrate

• Finally, don’t forget to celebrate and reward your champions and employees

Even the best planned and executed change efforts can fail, if the messages and behaviors are not reinforced.  How have you developed an OCM approach for your organization and what you did to reinforce the change?

​Our comprehensive PMO Framework covers the project lifecycle in 4 phases: Concept, Initiation, Delivery and Close.  Having a clear Framework, with a standard methodology, process and tools, is critical to seeing a project successfully through to the end. 
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The “business” of each project happens during this, the third phase of a project: the Delivery phase.  It is during this phase that the actual project outcomes/expectations are created. In other words, this is the build phase of a project.
Whether your project follows an Agile approach or a Waterfall approach, the following PM Checklist applies to you.  See the PM Checklist for the Delivery Phase below:

• Manage the Project
• Complete Assigned Tasks
• Monitor & Control
• Governance Reviews
• Create & Publish Weekly Status Reports
• Monthly Project Steering Committee Meetings

Delivery is the operational part of the project where you execute on the work done in prior phases.  Because this phase is often the longest part of your project, the activities listed above will need to be executed repeatedly in order to effectively manage the project.

Please share your most critical tasks during the Delivery Phase of a project.

Assuming a well-executed Planning Phase, you would have identified who will be affected, what will change, and how they will change.  Move forward with these steps, to make the change:

Communication

•  Communicating about the “Case for Change” and following the Stakeholder Engagement and Communications Plans,

Measurement

•  Tracking, Measuring & Communicating the progress of the change (using KPIs, gap analyses, Dashboards),

 Managing People/Skills Issues

•  Working with HR to make sure that job descriptions are updated, hiring plans are developed, and training is arranged.

 Continuous Improvement

•  And finally, it is critical to ensure that any feedback is funneled to the right individuals that can resolve issues or tweak the change effort…(an example of a tweak might be around training needs – more or less training than originally planned).

This phase is typically the longest and needs to be executed repetitively throughout the effort to ensure consistent communication, measurement and improvement.  Note that making the change is necessary but not sufficient, you will need to continue to reinforce the change to ensure adoption. 

What elements are most critical to you when your organization is in the throes of making a change?

In the last blog in this series, we established that IT Strategy is the set of objectives, principles and plans that IT must use to support the company’s business strategy.  Therefore alignment with business strategy is key to ensure that IT Strategy is moving in the right direction.  The question is how do we achieve alignment?

Aligning with business strategy involves a few key steps:

1. Identify Strategic Drivers:  These may include business drivers, technology drivers, regulatory drivers or other external drivers within the business strategy
2. Understand Strategic Objectives:  These are the key critical objectives set within the business strategy.  They may be about targeting new customers segments, competing on new products, revenue objectives etc.
3. Document Initiatives:  See what strategic initiatives are already in flight and what IT’s role is in supporting these initiatives.
4. Define IT Capabilities:  What capabilities does IT need in terms of organization, process, technology etc. to address these strategic objectives.
5. Identify the IT Vision:  Establish the vision for IT in terms of capabilities that are needed to address the business strategy.

These few steps will ensure that IT capabilities will align with the needs of the business.  It must be noted that business strategy may change periodically as the company monitors the competitive landscape.  Therefore the IT organization must keep their eye on business strategy to ensure that they are responsive to any changes. 

It should also be noted that technology might from time-to-time provide some competitive advantages.  As an example, the automated reservation system Sabre, gave American Airlines a competitive advantage when it was first introduced.  Since then, all airlines have developed or adopted automated reservation systems and now there is no significant competitive advantage from this technology.  The point is that if the IT organization can build technology that provides a competitive advantage for the business, it should be included in the company’s business strategy.

In summary, IT strategy reflects the IT organization’s capabilities in support of the business strategy.  Therefore alignment with the business strategy is paramount for the development of the IT strategy.  Once IT and the business objectives are aligned, the next step is to look at the gaps in IT capabilities to deliver the business vision.  We will discuss this in more detail in our next blog in the series.
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How do you go about aligning your company’s IT and business strategies?

​IT personnel are very familiar with computer rooms, data centers, call centers and network operations centers (NOCs).  However, typically only a few IT personnel are charged with the responsibility of actually selecting or assessing such a facility.   This may become necessary due to company growth, acquisition of another company or to ensure that a provider’s facility is adequate to provide services to their customers.  Following a thoughtful approach to performing a site assessment will minimize the risks of having mission-critical systems operate out of a sub-standard facility.  In order to perform a thorough, quality assessment of a technical facility, there are a few key things to consider:

1. Prepare for Site Visits

• Identify point of contact at each facility and have all their contact information
• Obtain clearance to enter each facility ahead of time
• Collect all known records of each site including floor plans, rack layouts, known equipment inventory, etc.
  

2. Conduct the Site Assessment

• Perform a physical inspection of the surrounding area and take photographs
• Conduct an electrical and mechanical inspection including the generator, fiber and power access and egress facilities, chillers, etc.
• Document the physical security protocol, devices and obtain any local procedures or documents pertaining to securing site access
• Inside the facility, sketch the layout of the facility and storage areas, identify fiber and cable entry and exit locations, and perform physical inventory of all equipment, cooling units etc.
  

3. Develop Site Report

• Notate overall risks and gaps including inventory gaps, security gaps, local area risks (theft, parking facilities etc.), maintenance records, etc.
• Summarize external assessment of facility, access and egress, site security and road conditions
• Summarize mechanical/electrical rooms including generators, chillers, cables, cleanliness of area, maintenance records etc.
• Summarize internal facility including equipment layout, obvious structural issues, cabling and fiber runs, environmental conditions (humidity, temperature), security and facility access etc.

Using such a structured approach will ensure that your site assessments are well orchestrated with your site assessors producing the same thorough, quality of end results with minimal need for last-minute decision-making.  What other tips would you suggest to ensure a smooth site assessment?

A comprehensive PMO Framework is critical to seeing a project successfully through; a Framework we have used with clients includes 4 phases: Concept, Initiation, Delivery and Close. 
The initiation phase, the second of four phases, is critical because it is the phase in which you set yourself up for success!  You finalize your goals, your team, your schedule and budget.  In order to make sure you don’t miss any key activities during this phase, we have provided you with our PM Checklist below.

Initiation Phase:

• Finalize Project Scope Statement
• Finalize Project Team & Resource Plan
• Finalize Project Schedule & Milestones
• Finalize the Communication Plan
• Finalize the Risk Management Plan
• Define the Integrated Change Control Process
• Finalize the Project Budget
• Define the Acceptance Authority & Criteria by which to conclude the project
• Draft Document to present to the Governance Team for Go/No-go Decision

The activities undertaken during the Initiation phase ensure that you and your team are set up to succeed; you will confirm and finalize your goals and determine how you will achieve them.  This phase prepares you to launch your project with a realistic timeline and budget. 
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Are there any additional steps or suggestions you have for activities during the initiation phase?

​Before we understand IT Strategy we need to understand strategy itself.  Strategy is a word that is used often incorrectly or at least ambiguously.  This may be because of varying definitions that are provided by various sources.  Let’s demystify it.

According to the Oxford Dictionary, strategy is: A plan of action designed to achieve a long-term or overall aim. In plain English, strategy is nothing more than a plan to achieve a long-term goal.  Military leaders know that a strategy is a means to outflank and outwit an opponent by outthinking, out-planning and out-executing them.  This definition of strategy has more relevance to a business.

Professor Michael E. Porter of the Harvard Business School provides great insights about what a strategy is for a business.   According to Porter, Strategy is about doing something unique that is of value, uniquely.  Porter’s view is that by doing this, businesses can differentiate themselves and maintain a competitive advantage.
So, what is IT Strategy and can IT have its own strategy?  In a word, no.  By Porter’s definition an IT organization cannot have its own strategy, as it is not trying to differentiate itself from other technology groups.  Rather, it is supporting and enabling the strategy of the business as a whole.

So what then is IT strategy?  According to Gartner’s IT Glossary, IT Strategy is the discipline that defines how IT will be used to help businesses within their chosen business context.  In this perspective, the IT Strategy must ensure that IT has the capabilities to support the business strategy in terms of people, processes and technology.

Defining the elements of IT Strategy is a difficult exercise.  Here is an overview of how we recommend developing an IT Strategy:

1. Establish the Business Context: Ensure that there is clear alignment between strategic Business and IT goals and document IT’s vision based on these goals
2. Perform a Current State Assessment:  An assessment of the current state of IT will reveal gaps in capabilities against the strategic goals and the vision articulated
3. Develop the Framework:  Based on the assessment, identify key initiatives to improve IT capabilities
4. Develop the IT Strategy:  Prioritize the key initiatives and develop a roadmap to execute the strategy

We will continue to flesh these out more fully in future blogs.  Stay tuned!  Please tell us how you might go about developing IT Strategy.