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?​

​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?

The success of an organization often lies with whether or not you have the right people in the right roles at the right time.  According to Harvard Business Review, 88% of organizations with more than 100 employees, rely on assessment tools for external hiring.  These assessments can measure competency, work ethic, personality, situational behavior and more recently added - emotional intelligence.  But how often is an employee assessed post hire? 

​Ideally, an employee will continue to grow and move within an organization and therefore the attributes that were assessed at hiring, may not be the attributes that are needed most for the current role being performed. In leadership roles, additional areas of measurement can be based on demonstrating leadership qualities, adherence to an organization’s core values, presentation skills, project management and stakeholder management.

We break down our employee assessment objectives into four categories and review the performance against them twice a year with each employee.

1. Client: objectives that relate to the performance of client activities, regardless of whether it is billable or non-billable
2. Internal: objectives that relate to the performance of company specific activities, typically organizational or internal department support
3. Personal: objectives that relate to what the employee wants to achieve within a project or activity or an area of personal or interpersonal development that the manager desires for the employee
4. Leadership: objectives that relate to an employee’s activities that demonstrate their mastery of our organization’s selected leadership attributes of communication, decision making and judgement, developing self and others, respect and passion

Each category of objectives has a different weight depending on the role of the employee.  For example, a client facing employee has a higher client category weighting in comparison to an internal employee that has a higher internal category weighting.  We believe that there is not a one size fits all approach to performance management, which is why we developed a performance assessment structure that is consistent but adjusts to fit the role of the employee, where they are today.

Ensuring your employees fully understand and agree with the expectations that you have for them as they grow and move within the organization is vital to enabling the overall organization’s success.   With clear objectives, all parts of your organization will be working towards the same goals based on the attributes that matter to your organization and culture.

What process does your organization use to assess an individual’s performance?

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• Initial Level

At the lowest level of maturity we usually find limited project governance or executive sponsorship, poorly defined or not adhered to project management (PM) processes, and lack of consistent tools, processes or training.  Project success often hinges on a few extremely motivated individuals.

• Developing Level

In the second level of maturity most fledgling PMOs start to have tools and templates and some processes but not all projects use them.  By the third level, Defined, we usually find a formal project management framework that has been adopted by all and a PMO organization focused on consistent, predictable project performance.  PM processes are established, projects are reviewed regularly by a governing body and people are being trained and mentored, equipping them with the right skills for the projects they are assigned to.

• Defined Level

What is most exciting at the third stage, is that an organization starts to reap significant benefits from their PMO.  They can more reliably count on the project timelines and budgets and know that, with their guidance, their teams are equipped to succeed.   Executives can start comparing projects based on the same, standard metrics allowing them to make critical decisions around resource allocation, budgets, schedules and critical milestones. 

• Managed & Optimized Levels

By the fourth and fifth maturity stages, the organization relies heavily on transparency into their projects’ progress and objectives in order to make business decisions.  The PMO data and information are key to the organization’s operation.

Once you have determined what level of maturity your PMO is performing at, you may identify areas or aspects that are lagging – for instance you may be collecting standard project data monthly onto a paper template, but would benefit by developing a database to collect project data and metrics so all have access and can compare projects on-line, real-time.  Or maybe you identify areas that can mature to the next level, for instance you have an IT PMO but the entire organizations’ projects could benefit from its structure and methodology! 

Work with your PMO, project governance team and project managers to determine which efforts would benefit your organization the most and prioritize the efforts creating a roadmap for near-term, mid-term and long-term accomplishments.  Most organizations never get to the highest level of PMO maturity; the effort and cost to get there outweighs the benefits to some.  Either way, a review of your PMO’s maturity will give you insights into what is working well and what could benefit from improvement.  A Roadmap can help your organization keep its eye on the ball and reap the rewards of an increasingly mature PMO.

Does your organization periodically assess the maturity of your PMO?  Do you have a PMO Roadmap for continuous improvement?