ITStrategicPlanningA ToolforNavigatingTre acherous

IT Strategic Planning: A Tool for Navigating Treacherous IT WatersIMTech SUN3 Workshop : IT Strategic Planning: A Tool for Navigating Treacherous IT Waters IMTech SUN3 Workshop Phil Chernin CDM 27 April 2003


Workshop Agenda : Workshop Agenda Morning Session (9-12) Part 1: Introduction (9-9:45) Part 2: Strategic IT Plan Fundamentals (9:45-10:45) Break (10:45-11:00) Part 3: Planning in the “Real World” (11:00-Noon) Lunch (Noon-12:45) Afternoon Session (12:45-4:00) Case Study Workshop (12:45-3:00) Wrap-Up and Group Discussion (3:00-4:00)


Early Morning Session (part 1): Introduction : Early Morning Session (part 1): Introduction Learning Objectives; Who We Are; Commonalities; Framing the Problem; Reviewing History


Introduction : Introduction Workshop Overview Describe agenda Rules of engagement (breaks, etc.) Discussion is mandatory Participant Introduction Who am I? What do I want to accomplish? Parking Lot Other goals Post-workshop follow-up Introduction


Participant Background : Participant Background Organization Types Municipal Utilities State Other Experience – has your organization performed a(n): Strategic IT Plan? IT Assessment? Organizational Strategic Plan? Introduction


Workshop Objectives : Workshop Objectives Understand strategic IT fundamentals Develop skills to articulate mission goals and “ask the right questions” Become a more informed consumer of IT services Increase confidence in your ability to frame strategic IT discussions “Architect Analogy” Introduction


Questions for you to think about… : Questions for you to think about… What is the appropriate role of stakeholders in this process? (who are they and what do they do?) How do I evaluate recommendations? How do I prioritize recommendations? What is the appropriate project structure for completing A Strategic IT Plan? What are the primary barriers to success for IT planning within my organization? Introduction


A Strategic IT Plan provides a working vision that unites the organization behind a common goal : A Strategic IT Plan provides a working vision that unites the organization behind a common goal Senior Management IT Department Construction Engineering Finance Operations Customer Service Strategic IT Plan Introduction


Slide9 : An IT Manager Gets Hit From All Sides DIRECTOR / EXECUTIVE BOARD CITY HALL CUSTOMERS /PUBLIC FACILITIES CIP “Moving Targets” Maintenance Schedule uncertainty Cost constraints Multiple stakeholders Introduction


IT Departments Typically Face These Types of Problems : IT Departments Typically Face These Types of Problems Inflexible business processes Gap between business & IT strategy Information “islands” Legacy systems Limited resources Few/minimal IT system standards “Moving target” goals Unclear decision-making processes Introduction


Water Utilities Have Historically Under-valued IT Professionals : Water Utilities Have Historically Under-valued IT Professionals “IT” Fixes My PC “IT” Gets The Utility Bills Out “IT” Doesn’t Know Anything About Our Engineering Systems - LIMS - CMMS - SCADA - CAD - GIS - Models IMTech Registration < 500 Introduction


But The Role of the Water Utility IT Professionals is Changing : But The Role of the Water Utility IT Professionals is Changing “IT” Controls My PC Purchases “IT” Integrates the Billing System “IT” is a Player at the Strategic Business Level 1970’s – Manager of Data Processing 1980’s – MIS Manager 1990’s – IT Director 2000’s – Chief Information Officer Introduction


The Stature of the IT Professional Has Risen Because : The Stature of the IT Professional Has Risen Because Creating Useful Information From the “Junk Yard of Data” Will Get More Difficult Before it Gets Easier Appropriate Computers and Electronic Devices are Critical to Job Performance Integrated Software Systems Dramatically Enhance Productivity Cyber-security is a Executive-level Concern Electronic Transactions are the Life Blood of a Modern Utility Introduction


Benefits of a Strategic IT Plan : Benefits of a Strategic IT Plan Enhance communications Greater efficiency Clear statement of benefits/costs and trade-offs Integration of entire organization Universal buy-in/support Decision process is open, “living” document Roadmap in support of future technologies Introduction


Early Morning Session (part 2): Strategic Plan Fundamentals : Early Morning Session (part 2): Strategic Plan Fundamentals Strategic IT Plan Defined; Step-by-Step Plan Development (in the Ideal…)


A Strategic IT Plan is integral to a continuous program life-cycle : A Strategic IT Plan is integral to a continuous program life-cycle Organizational Strategic Plan Program Goals IT Assessment Strategic IT Plan Tactical Action Plan Implement Projects Manage Schedule Fundamentals


What is a Strategic IT Plan? : What is a Strategic IT Plan? Strategic IT Plan Decision-making process Technology Management Constraints ($, time) Legacy System Requirements Stakeholder Input Existing Skills & Capability Resources Outputs Budget Prioritized Projects Schedule Documentation Etc. Business Needs/Goals From Organizational Plan To Tactical Action Plan Fundamentals


What Does a Strategic IT Plan Accomplish? : What Does a Strategic IT Plan Accomplish? Describes organizational IT needs and challenges Identifies high-level IT goals Prioritizes IT issues Provides communication framework Ensures that managers and staff are “on the same page” Identifies clear, measurable performance metrics Articulates “path forward” Fundamentals


Limitations of a Strategic IT Plan : Limitations of a Strategic IT Plan Does not contain a set of functional specifications Does not provide a resource-loaded schedule or budget Recommendation may be to conduct ‘further study’ Fundamentals


Strategic IT Planning Step-By-Step : Strategic IT Planning Step-By-Step Develop strategic vision Perform gap analysis (technology, organization, constraints) Develop/evaluate alternatives Document decision process 1. Strategic Vision 2. Gap Analysis 3. Evaluate Alternatives 4. Document Decisions Fundamentals


1. Develop Strategic Vision : 1. Develop Strategic Vision Identify key participants/steering committee Determine the program goals and metrics Bound the problem Outline communication process Who is the target audience? How will input be incorporated? What will are the IT plan deliverables? Roles and responsibility Define the role of core systems (in a business context) Financial Spatial (GIS, CAD) Customer information Regulatory compliance Fundamentals


2. Perform Gap Analysis : 2. Perform Gap Analysis Where are we? Where do we need to be? What problems did the IT assessment identify? What are the technology issues? What are the organizational constraints? Resource scarcity and/or conflicts Department skill set evaluation Business process impacts Fundamentals


Slide23 : IT Gap Analysis compares current state vs. desired state and determines what is needed to get there Fundamentals


3. Develop and Evaluate Alternatives : 3. Develop and Evaluate Alternatives Create performance metrics Clear, concise, and measurable Tied to organizational goals Refine business process impacts Risk reduction needs (backup, emergency) Development standards Infrastructure Business support (staff, support) Identify projects and initiatives Evaluate and select projects Assess budget and schedule implications Fundamentals


Slide25 : 0 $10 $20 $30 $40 $50 $60 0 20 40 60 80 100 120 140 160 180 200 n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n Total Benefit Cumulative Weighted Performance Benefit These projects produce major benefits relative to their total cumulative costs Total Cost Total Cumulative Cost ($ Millions) Portfolio (ROI) Analysis identifies the optimal level of investment Fundamentals


4. Document Decision Process : 4. Document Decision Process 5-Year strategic plan Decision process map Communications plan Technology requirements document Project roles and responsibilities Executive summary Fundamentals


A Decision Process Map lists the key decision-makers and their roles : A Decision Process Map lists the key decision-makers and their roles Executive Board IT Department Staff 1. Strategic Vision 2. Gap Analysis 3. Evaluate Alternatives 4. Document Decisions Articulate goals Assess Current situation Prelim. Project List Senior Mgmt. Status Final Review Stakeholders Public Meeting Steering Committee Fundamentals


There are many types of project outputs, each designed for a different audience : There are many types of project outputs, each designed for a different audience Project Report Executive Summary Newsletter Web site content Public Meeting PowerPoint presentation Decision models Press releases One-on-one review sessions Project schedules Management Plan Technical/functional specifications RFP Flyers/handouts Budget analysis Prioritized project list Fundamentals


Project Output Pros and Cons : Project Output Pros and Cons Fundamentals


Outsourcing Strategic IT Planning - Boston Water & Sewer Commission (BWSC) Case Study : Outsourcing Strategic IT Planning - Boston Water & Sewer Commission (BWSC) Case Study What works and why; Lessons Learned; Pros and Cons of Outsourcing Contact: Ron Sitcawich, MIS Director 617- 989-7000


BWSC at a Glance : BWSC at a Glance Water distribution and sewer collection for Boston area Approximately 87,000 customer accounts Serve population of approximately 1 million people 1,000 miles of water and 1,400 miles of sewer and drains Real-World Planning


BWSC’s MIS Department : BWSC’s MIS Department Responsible for supporting hardware, software, and application development 19 MIS staff 270 PC users 6 Enterprise applications GIS WOMS HR/FMS Facility Manag. CIS MIS Fleet Real-World Planning


BWSC Led Two Major Planning Initiatives : BWSC Led Two Major Planning Initiatives 1996 Infrastructure incapable of handling robust, mission-critical systems Limited number of PCs Several PC-based databases No software/hardware standards Lack of centralized database Looming Y2K threat 2002 Successfully implemented 83% of 1996 plan’s recommendations Newly upgraded software/hardware infrastructure Standardization on Microsoft and Oracle Implemented new mission-critical systems for GIS, HR/FMS, Fleet, Facilities Management, and WOMS Real-World Planning


BWSC’s Strategic IT Plan Approach : BWSC’s Strategic IT Plan Approach BWSC developed goals/objectives for Plans 1996: Develop IT Standards & identify mission-critical system solutions 2002: Capitalize on data integration without compromising lifecycle of applications Hired consultants to assist with development of Strategic IT Plan 1996: Coopers & Lybrand 2002: PriceWaterhouseCoopers BWSC assembled Steering Committee comprised of Key Department Heads and Executive Office to review/approve plan & evaluate recommendations BWSC initiates implementation of recommendations with some support from vendors/consultants Real-World Planning


Strategic IT Plan Key Recommendations : Strategic IT Plan Key Recommendations 1996 Upgrade hardware and network Standardize on Oracle, Microsoft Office, and Windows NT Replace existing GIS & HR/FMS mission-critical systems 2002 Provide access to data vertically & horizontally Integrate data from existing mission-critical systems via web portal Standardize systems integration and application development Upgrade existing mission-critical systems and implement new CMS Real-World Planning


Putting the Plans into Practice : Putting the Plans into Practice Initiatives led by MIS with Executive Sponsorship Budget for initiatives comes from MIS department Steering Committee assembled to help manage/guide each initiative Comprised of key Department heads & Executive Office Project Champion appointed from either MIS or key stakeholder department Implementation team comprised of staff from key department(s) Best and brightest, not necessarily most senior staff Real-World Planning


Lessons Learned : Lessons Learned To properly evaluate recommendations, must fully understand concepts, need, risks & benefits Assemble implementation teams to carry out recommendations Project Champion should report directly to Executive Office Reduces internal/political obstacles People resist change inherently Assign staff who support change and be prepared to remove/replace team members Don’t let consultant/vendor do all the work during implementation Provides IT staff opportunity to gain skills Real-World Planning


This type of approach is successful when… : This type of approach is successful when… An organization has strong leadership The leaders within the organization have a firm understanding of the business practices of its departments The overall business mission of the organization is clearly defined Stakeholder buy-in is achievable during implementation rather than planning MIS staff have strong implementation skills Real-World Planning


Pros/Cons of Outsourcing Strategic IT Plan Development : Pros/Cons of Outsourcing Strategic IT Plan Development Pros Objective assessment Does not tax in-house resources Can be completed within an aggressive timeline Incorporates industry perspective/trends Cons May be expensive Risk of receiving generic recommendations Recommendation details not always explicit Recommendations may be based upon newest technologies rather than best solution Real-World Planning


The Real World: Strategic IT Planning in an Organizational Context : The Real World: Strategic IT Planning in an Organizational Context Politics; Customers; Vendors; Boundaries; Communications and Results


Strategic IT Planning is a “People Process” : Strategic IT Planning is a “People Process” Business needs and organizational considerations drive the planning process Key question: “How can we solve our problems given program constraints and our existing implementation environment?” Stakeholder buy-in is ABSOLUTELY ESSENTIAL Integration and coordination between activities increases success rate dramatically Technology is an enabler of these initiatives Real-World Planning


Why Do Projects Fail? : Why Do Projects Fail? 80% fail because of organizational reasons The most common causes of failure are: Unclear goals and metrics Wrong problem definition Insufficient stakeholder buy-in/consensus “Jumping to a solution” Lack of coordination Net result - a structured process is needed to: Address user concerns Enhance confidence in the decisions/outcome Real-World Planning


To be successful you need a structured decision process that: : To be successful you need a structured decision process that: Identifies the key players and determines their authority or influence Clearly articulates how decisions will be made and implemented Promotes trust in the process so that decision-makers don’t reserve judgment until the very end Is tailored to address what the stakeholders really want Real-World Planning


What Are The Drivers In the Political Process? : What Are The Drivers In the Political Process? “No surprises” Process vs. outcome Risk aversion Budget sensitivity Political momentum Personal relationships Credibility Real-World Planning


Stakeholder Evaluation Diagram : Stakeholder Evaluation Diagram Real-World Planning


Customers Play An Important Role In Decision-making : Customers Play An Important Role In Decision-making How do you define customers? Do you have more than one type of customer? How do customers interact with the organization? How is customer satisfaction determined? What are the chief customer concerns? How involved should customers be in the decision-making process? Real-World Planning


Customers Can Have Different Levels of Involvement in the Decision Process : Customers Can Have Different Levels of Involvement in the Decision Process No involvement Limited Receive summary of decisions Ability to register comments Pre-planning workshops Intermediate Regular updates Review-&-comment Full partnership Steering Committee representation Real-World Planning


There are a number of boundaries and constraints that can affect a project’s viability : There are a number of boundaries and constraints that can affect a project’s viability Schedule Regulations Funding Resources Organizational skills Political feasibility Existing business processes Stakeholder buy-in (internal & external) Real-World Planning


Vendors: Complete Annoyance or Necessary Evil? : Vendors: Complete Annoyance or Necessary Evil? Pros Provide valuable insight Worked on numerous implementations Have experience with leading-edge technologies Cons Always trying to “sell something” Take time to manage Can be pests Don’t always sell what is needed most Key: defining the proper role for vendors Real-World Planning


Communications Strategy : Communications Strategy Who is the target audience? How are they used to seeing information presented? How much time/ability do they have to absorb this information? What are stakeholders planning to do with this information? What is the purpose of presenting this information? Real-World Planning


“Know The Players” and Design an Appropriate Decision Process : “Know The Players” and Design an Appropriate Decision Process Perform a detailed stakeholder analysis Develop clear program goals Bound the problem, limit the scope Establish clear participant roles and responsibilities Consider organizational, political and technical issues Real-World Planning


Slide52 : Technology Backbone Technology Solutions Project Task Technology Infrastructure People Improvements A Strategic IT Plan Integrates All Dimensions of Defined Improvement Real-World Planning


Afternoon Session: Case Study Workshop : Afternoon Session: Case Study Workshop


Workshop – PM Agenda : Workshop – PM Agenda Split into groups of 6-8 People from same organization or background should split into different groups Identify a real-life strategic IT planning effort (or an organization that needs one) Complete workshop exercises step-by-step Recap/discuss issues with entire group


Workshop – Case Study Exercises : Workshop – Case Study Exercises Exercise 1: Identify Key Stakeholders & Program Issues Exercise 2: Define Program Goals & Metrics Exercise 3: Select/Evaluate Projects Exercise 4: Review Analytical Tool Outputs Exercise 5: Discuss Communications Formats


Exercise 1a: Evaluate Key Stakeholders : Exercise 1a: Evaluate Key Stakeholders Directions: Select a project with which you are familiar. List your project stakeholders.


Exercise 1b: Identify Program Issues : Exercise 1b: Identify Program Issues Directions: Determine the project constraints, major issues, and implementation details. Discuss your conclusions.


Exercise 1b: Identify Program Issues : Exercise 1b: Identify Program Issues Directions: Determine the project constraints, major issues, and implementation details. Discuss your conclusions.


Exercise 2: Define Program Goals & Performance Metrics : Exercise 2: Define Program Goals & Performance Metrics Directions: Identify at least 5 program-level goals for your project. For each goal, define at least one performance metric.


Exercise 2: Define Program Goals & Performance Metrics : Exercise 2: Define Program Goals & Performance Metrics Directions: Identify at least 5 program-level goals for your project. For each goal, define at least one performance metric.


Exercise 3: Select/Evaluate 5 IT Projects : Exercise 3: Select/Evaluate 5 IT Projects Directions: Identify at least 5 IT projects to implement. Compare/contrast their performance against the pre-defined metrics from Exercise 2.


Exercise 4: Review Some Analytical Tool Outputs (Group Session) : Exercise 4: Review Some Analytical Tool Outputs (Group Session) Directions: Review tool outputs from several third party decision analysis and software simulation packages. Discuss the strengths and weaknesses of each output and identify the appropriate use for each tool.


Slide63 : Informal Project Prioritization Divides Projects Into Three Tiers Based On ROI 0 $120 0 20 40 60 80 100 Project Cost Project Performance $20 $40 $60 $80 $100 n n n n n n n n n n n n n n n n n n n n Not Cost Effective Possible Projects Probable Projects Automate Financial Reporting Automate Work Orders Implement Automated Meter Reading


Slide64 : 0 $10 $20 $30 $40 $50 $60 0 20 40 60 80 100 120 140 160 180 200 n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n Total Benefit Cumulative Weighted Performance Benefit These projects produce major benefits relative to their total cumulative costs Total Cost Total Cumulative Cost ($ Millions) Portfolio Analysis Evaluates and Defines the Appropriate Project Mix Across the Entire Organization


Decision Tree Analysis Focuses On Issues Dominated By Risk & Uncertainty : Decision Tree Analysis Focuses On Issues Dominated By Risk & Uncertainty Implementation Schedule Slip (months) Total Cost vs. Implementation Schedule Delays Total Cost (k$) 0 1 2 3 4 5 6 7 8 Optimal decision changes if schedule slips more than 6 months


Some Tools Compare and Contrast Projects According to Multiple Criteria : Some Tools Compare and Contrast Projects According to Multiple Criteria


Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for your Project : Exercise 5: Identify 5 Appropriate & 3 “Bad” Communications Formats for your Project Project Report Executive Summary Newsletter Web site content Public Meeting PowerPoint presentation Decision models Press releases One-on-one review sessions Project schedules Management Plan Technical/functional specifications RFP Flyers/handouts Budget analysis Prioritized project list Others? Feel free to “go off the board”….


Strategic IT Plan Case Study – Summary (Activity & Purpose) : Strategic IT Plan Case Study – Summary (Activity & Purpose) Exercise 1: Key Stakeholders & Program Issues Know your target audience and the important questions Exercise 2: Program Goals & Metrics Define the organizational goals and how you will measure success Exercise 3: Select/Evaluate Projects Identify and compare only projects that address mission goals Exercise 4: Analytical Tool Outputs Use tools that provide the appropriate level of insight Exercise 5: Communications Formats Distill/present data in a way your target audience can understand and absorb


Strategic IT Plan Case Study – Remaining Program Activities : Strategic IT Plan Case Study – Remaining Program Activities Budget and scheduling Technology analysis/selection Incorporation of legacy systems Facilitating a group decision-making process Organizational impact assessment Business process redesign (BPR) Project management (delivery) Public relations/public involvement Ongoing progress assessment Regulatory compliance management


Summary/Discussion : Summary/Discussion


Slide71 : IT Systems Should Support the Business Plan Strategic IT Plan


A Sound Strategic IT Plan Incorporates Both Organizational and Technical Concerns : A Sound Strategic IT Plan Incorporates Both Organizational and Technical Concerns


Strategic IT Planning Guidelines : Strategic IT Planning Guidelines Strategic IT Planning is an organizational / people-centered process Business and stakeholder needs should drive the solution Technology is an enabler of program goals Developing a clear set of goals & metrics increases the chance of success Participants require a “no surprises” decision and implementation process Tailor your process (and outputs) to your target audience


Strategic IT Planning Steps : Strategic IT Planning Steps Develop strategic vision Perform gap analysis (technology, organization, constraints) Develop/evaluate alternatives Document decision process 1. Strategic Vision 2. Gap Analysis 3. Evaluate Alternatives 4. Document Decisions


Developing A Strategic IT Plan Provides A Wealth of Program Benefits : Developing A Strategic IT Plan Provides A Wealth of Program Benefits Clear direction Alignment between program goals and implementation Increased communication (internal & external) Stakeholder buy-in Greater efficiency Reduced risk Program flexibility Enhanced credibility


Questions for you to think about… : Questions for you to think about… What is the appropriate role of stakeholders in this process? (who are they and what do they do?) How do I evaluate recommendations? How do I prioritize recommendations? What is the appropriate project structure for completing A Strategic IT Plan? What are the primary barriers to success for IT planning within my organization? Introduction


Questions/Concerns : Questions/Concerns


Contact Information : Contact Information Vasken Missirlian Phone: 949-752-5452 E-mail: missirlianvd@cdm.com Phil Chernin Phone: 800-343-7004 E-mail: cherninPR@cdm.com Jon Spangenberg Phone: 925-933-2900 E-mail: spangenbergjg@cdm.com