Creating and Using Effective IT

Strategic Plans

Louis Boyle
Vice President
Gartner Executive Programs

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Most Organizations Have IT Strategies
That Look Like This
APPLICATIONS DATA

Intrnet Cust
Cust Support
CNN/fn site
Investor
Lofty Goal 1
A24 RS.COM

A28 - Store Msgs

A8 - Comm System
S
T
Or they look
Or they
Relations A10 - Order Routing
Email Systems A49 - Hitlist
O

likemost this…
Corp User A26 - Answers Online
R

Our IT clients say we’re Lofty Goal 2

Group 1 A22 - Web Store
Srvc Cntr Tbls Locator
Dealer A23 - Service Center E
Settlement Web Locator

can look
RMAC DR
A29 - Corp Elec Msg

IT
Model/Qty
Sears Pymt A4 - Store File Sys
System
DB2 Mkt Info
Credit Card
System
perfectly aligned A57 - Cust Trk Load
A15 - RadioShack
Replenishment We use the IT
Service Center
POS
A50 - Customer Load C
Strategic
like
Retail Str POS

Telecom Dept
RS Invt Sumry

Retail Store
A39 - Srvc Pln Rnwl

A52 - Profiler Report

A53 - Name & Addr

Hygiene

A58 - Customer Mnt

U
S
T
O
advanced
Plan
Operational to
technology
Plan
Equifax, Martel,

this……
Checkfast or

meet our needs

Input of Texas A48 - Flyer Selection
(3rd Party)
A33 - RS Srv Pln
M
RSTS DSA
Tbls
Srv Cntr Cust Mnt

A1 -Credit Card Apps

E
Email Server
Rebuy Dept A60 - Economic
R
Advertise/ Census
Ad Support A38 - Srvc Pln Cnfrm
Ad Circulation Letter

Real Estate
Promo Dist
A12 - Model Quantity
Order Routing
A30 - RS One-Each
Customer
A13 - Srvc Cntr Phy
TPS History
Inv & On-line Recaps
Experion
A2 - Credit Plan Mnt
Cellular Act
A5 - Prepaid Cellular
Daily Reports
System A9 - RS Store P
Perpetual Inventory
Intern’l
Loss Prev
Stores
A37 - Srvc Pln
Display
R
Store Systems A32 - New Bus SVP
Mail
O
Python
POS Support
A25 Price Lookup D
Replenishment
System
A17 - Stock Mnt
A19 - Merch Promo
U
Merch Adj
Pln
A31, A45 - Service
C
DC Order Mgt Plan Price Cntrl &
T
Testimonial
System Tranmt
DC Billing A27 -Srv Pln Rpt/Mnt
Printer
A46 - Srvc Pln Sales
Financial Sys Entry
DB2 Load A18 - Merch Pricing
Corp Stk File
Intrnl Audit
Distribution
Lofty Goal 3 A34- Srv Plns
Amercican Bankers

ID Task Name Start Finish Duration

Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006

We have the best

System
A11 - RS Inventory &
Contract Srvc Sales Month End 1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7 5/14 5/21 5/28 6/4 6/11 6/18 6/25 7/2 7/9 7/16 7/23 7/30 8/6 8/13 8/20 8/27 9/3 9/10 9/17 9/24 10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17
Reporting

IT
RSU Central
POS Rcv Invc
A47 EBIS ODS
Fran Store 1 Install PMO 1/16/2006 1/30/2006 2w 1d
Payroll/HRMS A62 - Flash Sales

Perp Inventory
Warehouse
Billing
NAILS
WinLook
Have a fully open, A40 - RS Validation
and DB2 Load

A43 - TRACE

A59 - LOOK!
2 Upgrade LAN

3 Upgrade Desktops
1/16/2006

2/17/2006
2/16/2006

3/30/2006
4w 4d

6w
IT workforce
Invent Merch
POS Sales Rpt

modern, reliable
A14 - POS
4 Install ERP System 1/31/2006 6/19/2006 20w
- it does what needs
Vision
Sales Processing
Web Dev
Service Center A3 - Return Check S
Apps
5 Install SCM System 6/20/2006 7/31/2006 6w
RS Merch
(RSMS) A6 - BANCTEC A
L
IT infrastructure
6 Install CRM System 8/1/2006 9/11/2006 6w
to be done
RSTS System A20 - RS Buyer Sales
Planning /Proj Sys
Acct/Bookkeep
A61 - Sales Reporting
E
7 Implement Customer Self-Service 9/12/2006 10/23/2006 6w
S

(Magnifying glasses
Stock Mnt
A64 - Fran DR Entry
Comm System

Store File A42 - Online Inquiry 8 Implement HR System 6/20/2006 7/31/2006 6w

Sys
Multi-Mkt Price

Census
A51 - Geostore
Analysis
9 Institute Employee Self Service 8/1/2006 8/18/2006 2w 4d
Bureau
A44 - Mkt Incremtal

are at the back

American Rpts
Banker Assoc 10 Institute Rewards System 10/24/2006 11/20/2006 4w
Promo Order A16 - Service Center
Reporting
A&A Import/
Export 11 Implement BPM System 9/12/2006 10/23/2006 6w
Journaling
System Legend
POS Invt Tran 12 Implement other BPM System 10/24/2006 11/13/2006 3w
Facility Party

of the room)
National Parts
VSAM Stock,
Store or
Product Activity 13 Implement BAM System 11/14/2006 11/27/2006 2w
Control Files
Stock File Eff
Pricing
14 Implement Enterprise DW 11/28/2006 12/18/2006 3w

15 Execute Mobility Strategy 12/19/2006 12/25/2006 1w

Key Issues

1. What are the primary steps

in establishing a good IT
strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Key Issues

1. What are the primary

steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
 Plan Definitions: Strategic or Tactical

• Strategic
- A plan or technique for achieving some
end; distinguished from tactical, short
term
• Longer-term (> 1 year) objectives and goals
• Significant impact on the business
• Tactical / Operational
- Adroit maneuvering to gain an objective
• Short-term (<1 year) activities and operations
• Plan
- Method for the attainment of objectives
• Planning
- Ongoing process to develop the method
for attainment of objectives
“I don’t believe in plans, but planning is invaluable”
 The Perception of IT Value
Enlightened
Management
Deploying
bleeding Customer-
Consolidation edge driven
Transformational enterprise
commercial
technology change

Aggressiveness Deploying Department-

Finance-
of change Evolutionary mature based
driven
commercial change and
agenda enterprise
applications IT focus

Use IT to
Focus on Improve
Status quo speed up
reducing Efficiency
existing
IT costs marginally
processes

Cost Center Modernization Innovation

Acceptance of IT as
an enabler of change
Administrative Process Map:
IT Governance Aligns these Processes
Political Agenda

Business Strategic Plan

Business Case Inputs
IT Strategic Plan Desires
• Organizational Capacity
• Cost
• Time Cross-Agency Budget Cutting
Investment Prioritization
• Risk
• Procurement
• Portfolio Performance Budget Decisions

Strategic Sourcing

Human Resources Acquisition

Tactical
Execution
Project Management
Corporate
Performance Service Delivery
Management
Strategic Plan Development: Road Map

Develop Target
Business
Architecture
Solutions
Strategy Plan Strategy
(Business View)

Summarize Conduct IT Develop Develop

Strategic Develop IT Assessment Management & Migration
Business Direction and Gap Governance Approach &
Direction Analysis Processes Road Map

Delivery
Technology Develop Target Strategy
Trends Service (IT View)
Delivery Model
Use a Self-Assessment: How Do You Rate?
This is an informal assessment. For each area, rate these factors, where 1 means you have
not started or have a largely ad hoc approach and 5 means you have reached leading practice.
SCORE
A1. Business strategy - Clearly defined business strategy _____
A2. IT strategy - Strategy clear to all and contribution recognized _____
B1. Business applications - Major systems support the business strategy explicitly _____
B2. Personal productivity - Right tools are in place to get the job done _____
B3. Information management - Timely information is available and of the right quality _____
C1. Service management - Internal IT processes conform to quality framework; e.g., ITIL _____
C2. Technology environment - Reliable and cost-effective IT service delivery _____
C3. Asset management - Resources are well managed _____
D1. Architecture framework - Well-defined and stable architectural plan _____
D2. Progress achieved - Getting progressively closer to desired architecture each year _____
E1. Human resources - Right skills and teams in place _____
E2. Organization - Structure best to deliver IT services _____
E3. Client relationships - Strong relationships exist with our clients _____
F1. IT governance - Clarity about who makes decisions _____
F2. Performance metrics - Scorecards highlight critical success factors _____
F3. Budgets - Quality of budget processes and charges for services _____

Source: "How to Run an IT Strategy Self-Assessment Workshop" (G00129417)

Consider a Workshop Approach –
Deliverables-driven Teach, Coach & Critique

• Create a game plan:

- Gain a common understanding of what needs to be done
to create your information technology plan
- Plan outline
- Level of detail
• Prioritize and scope plan activities based on
deliverables
• Develop plan via workshops-based, facilitated
approach
- Teach, coach & critique
• Assign ownership and establish timetables
Creating the Future State:
Use a Common Requirements Vision
• Audience: Senior management
• Scope: Environmental trends, enterprise
business strategies, business change 20 Pages
requirements, business information
requirements, information technology
requirements, solution requirements
• Matrix: Relationship between environmental
trends, enterprise business strategies,
business change requirements, business
information requirements, information
technology requirements, solution requirements
• Goals
- Obtain senior executive sign-off on requirements
via governance process
- Gain support of architecture process
What Is A “Common Requirements Vision”

• A process for discussing, CRV Hierarchy

capturing and documenting:
Environmental
- Set of enterprise Trends

business strategies
Enterprise
- Set of common strategic
Business
requirements derived Strategies
from ENTERPRISE
business strategies Business Business Information Business

- Position on the impact of Change Information Technology Solutions

environmental trends to Requirements Requirements Requirements Requirements

the enterprise
• The resulting document EBA EIA ETA ESA

The CRV document is an articulation of what

will drive the enterprise's future state
Why Does the CRV Help With the Problem?
• Identify, discuss and
document strategies 1.
- Question the meaning and
implications of each 2.
- Analyze the compatibility
- Highlight the inconsistencies
3.
- Clarify the confusion
• Go deeper than the 4.
strategies
• Articulate what is NEEDED!
5.
Create a common forum of discussion
on matters of strategic alignment
Intended Outcomes
Business and IT leadership
collaborate on business and IT
planning
IT is planned and executed
holistically, end-to-end, to support
business needs and application
changes
Infrastructure and application life
cycles are tightly linked with business
process life cycles
We save time and money and reduce
risk through repeatable, reusable
solutions that are developed and
applied to similar problems
Business value takes precedence
over product centricity
 Business Solution Requirements
EBS 1: Due to longer sales cycles and smaller contract amounts,
increase market penetration by increasing product proposals to
qualified prospects by 35%, growing from 1,000 to 1,350 per month by
mid-2004

BCR 1: Reduce “opportunity to proposal”
conversion time by 60%, from 10 to 4 business
days
BCR 3: Implement lead and opportunity
management process
BCR 8: Automate sales proposal generation
capability, including appropriate approvals and
workflow to reduce opportunity-to-proposal
conversion time
BIR 1: Sales/sales administration requires details of product/offering
information in real time
BIR 3: Marketing, channel partners, and sales require knowledge of
customers, prospects, proposals, leads, marketing programs and
campaigns, value generated for customers (customer satisfaction),
support delivery metrics on demand
BIR 10: Sales/marketing/product planning must have detailed
knowledge of all successful consulting engagements to evaluate as
standard products upon completion from consulting team

ITR 2: Provide access and support for operational systems 24x7

ITR 4: Provide real-time access to operational information sources from
offices, customer locations, and while traveling
ITR 5: Provide a real-time accessible integrated view of customer and product
information and consulting engagements
ITR 7: Provide a mechanism for sharing documents in a collaborative
environment across the enterprise
ITR 8: Provide cross-enterprise workflow management capabilities

BSR 1: Implement an integrated prospect lead management, forecasting/customer repository solution

BSR 6: Implement a coordinated, enterprisewide proposal factory to be utilized by product planning, customer fulfillment, sales,
development, and consulting
Going From CRV to Future State
Transformation steps:
• CRV-level requirements suggest potential initiatives to be
considered for project portfolio
• CRV-level requirements are NOT current project-level
requirements, but they should be compared to current and
planned projects to incorporate/accommodate future needs in
current implementations
• CRV should be revisited periodically (as new strategic plans
are developed) and when major environmental trends or
business factors indicate significant change (such as a
merger/acquisition)
• Maintain linkages among trends, strategies and requirements
• Use CRV to help give future context to all planning activities
Create the Migratory Road Map
IT Investments IT Program 2006/07 2007/08 2008/09 2009/10

LOB
Service
Most Strategic IT
Improv. Plans Have 3-to-5
Projects
Year Planning
Horizons

Customer
Service
Rather than have
Facing a laundry list of
Projects
initiatives, make sure
you demonstrate how
the plan will be
implemented over time.
This will indicate
priorities, synergies
IT Cost and set proper
Saving
Projects expectations
(especially support for priority
business-side needs)
Key Issues

1. What are the primary

steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Core Ingredients of IT Strategy

Essential Ingredients
to Address the Building
Core Building Blocks Blocks of IT Strategies
 Business Strategy • Direct Link Between Business
 Application and IT Strategy
Strategy
• Sound IT Governance
 Infrastructure
Strategy • Definition of the IT
Environment
 Architecture
 People/Sourcing
• Major Initiatives
 Financial • People/Resources
• Risks
• Measures of Success

Source: "A Primer for Strategic IT Plans" (G00144281)

Strategic Plans: Seven Key Questions
1. Does the IT strategy substantiate mutually owned
expectations developed by all stakeholders?
2. Are critical drivers influencing the direction of the IT strategy
accounted for?
3. Is the IT investment direction and alignment with
business/mission needs and priorities made explicitly clear?
4. Is the IT strategic plan client-centric?
5. Does the IT plan contain performance measures that can
gauge progress and success?
6. Does the plan outline the governance process to execute
the strategic planning process and approved IT investment
decisions?
7. Does it market the business value of IT effectively?

Source: "Key Questions That Government IT Strategic Plans Should Address" (G00144046)
 Strategy as a Continuous Process

Vision Challenges
External: Scenarios Opportunities Plan
Political Strategies Best practices Build
Budget Analyze/synthesize Execute
Clients
Partners Processes
Technologies Resources
BU/IT
Scan and sense Learn Build Offerings
Channels
Internal: Communication
Resources Policies
Processes Technologies
Staffing
Management Innovate and adapt Execute
Faster cycle times Processes
Better results Metrics
Key Issues

1. What are the primary

steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Sample Measurement Areas by Profile
Focus of IT Doer
Cost
Responsiveness
Relationship
Alignment/Vision
Efficiency Profile
• Total cost of ownership
• Standards/economies of scale
• IT core processes (ITIL,
COBIT, CMM-I, etc.)
• Benchmarking, TCO
• Process automation
• Performance-based human
capital practices
Service Provider
Process Profile
• Program/project impact
• Relationship management
• Optimized sourcing
• Resource management
• Business process expertise
• Service-based
chargeback/pricing
• Performance contracts (SLAs)
• Competitive assessments
• IT architecture
Counselor Value Seeker
Transformation Profile
• Governance
• IT portfolio management
• Innovation delivery
• Business/financial
management (ROI)
• High-performance workplace
Goals, Objectives, Strategies
and Measures*

Objective 1.1
Provide the infrastructure needed to support
service delivery

Strategies:
• Build and maintain Michigan's infrastructure
• Implement an asset management process statewide.
• Bridge the digital divide
• Improve ease of use

Objective 1.2
Provide reliable, responsible stewardship of data,
information, and increase the number of online
services

Strategies:
• Continue to expand Michigan.gov by adding services
• Protect data and citizen privacy through a
comprehensive security strategy
• Deliver business continuity and disaster recovery plans

*A CRV derivative
Goals, Programs and Target Measures
Activities

Desired
Goal Results and
Measures

Objective
IT Scorecards Linked to Strategic Plans
Can Assist in Governance
Strategic Service-Level Customer
IT Performance Overview
Contribution PerformanceIT Operations
Satisfaction
• Performance against budget •SLA performance
Effective
• Benchmarks •Business risk reduction
Alignment Business/IT

External
Business
• System/application reliability Customer •Security/EA
Partnership
assessments
Business & Public Contribution Orientation
Value of IT
Application
Business Value
Management of IT Organization
Delivery Performance
IT Investments Vision • Quarterly/annual
Performanceassessment surveys
• IT contribution to performance
goals/outcomes and • Benchmarks and trends
IT
• Value contributions in

Internal
Staff Capability
time/quality/cost impact
Strategy Process
& Effectiveness Excellence
Major program/project
Business Responsiveness
Customer
Architecture
Satisfaction
Innovation Operational
performance
• Help desk performance
Internal Cost of
Evolution Improvement Excellence • Cost/ schedule
Quality and benefit realization
Measures
• Problem resolution cycle times
Knowledge performance (variances)
Management Information
• Contribution
• Choice of vendor satisfaction to PMA, PART, High Risk
Emerging Assurance
List reduction, etc. assessments
Service Capability Technologies
Improvement Research Asset Retirement and Disposition
 IT Governance ≠ IT Management
They Are Not the Same
What IT Governance Is:
Collective decisions and guidance about:

 How IT should be used in the

business (policies, principles)
 Who makes What decisions How
(clear accountabilities)
 Business cases and investments
(priorities, ownership and benefits
realization)
IT Performance Scorecards
Can Report on Progress
Strategic Service-Level Customer
Contribution Performance Satisfaction

Effective
Alignment Business/IT

External
Business Customer Partnership
Business & Public Contribution Orientation
Value of IT
Application
Management of Delivery
IT Investments Vision Performance
and IT

Internal
Staff Capability Strategy Process
& Effectiveness Excellence
Business Responsiveness
Architecture Innovation Operational
Internal Cost of
Evolution Improvement Excellence Quality Measures
Knowledge
Management Information
Emerging Assurance
Service Capability Technologies
Improvement Research Asset Retirement and Disposition
IT Strategy for Your Organization
• Apply this to your context
• Quick self-assessment
• Develop your game plan
- Approach
- Scope (especially what’s NOT in it), TOC
- Major milestones
- Deliverables based, outcomes oriented
- Make it an active, working tool
Recommendations
 Follow a process in creating your strategic
IT plan; it is not about producing a document.
 Strategic IT planning is not self-directed
or self-implementing – use EA for planning
and portfolio management to implement.
 Make sure your completed process can answer the six
basic questions.
 Use your strategic plan by populating it with
performance measures to demonstrate progress,
success, and areas for change.
 Having planned the work, work the plan
(NO SHELF DOCUMENT!)
Creating and Using Effective IT
Strategic Plans

Louis Boyle
Vice President
Gartner Executive Programs

Notes accompany this presentation. Please select Notes Page view.

These materials can be reproduced only with written approval from Gartner.
Such approvals must be requested via e-mail: vendor.relations@gartner.com.
Gartner is a registered trademark of Gartner, Inc. or its affiliates.