; Step 2.2 - How Aligned Are You
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Step 2.2 - How Aligned Are You


Aligning IT & Business Goals – Step-by-Step Program The purpose of Business& IT Alignment is to optimize the value that IT contributes to the enterprise. Use this step-by-step program – rich with proven tools & research - as the first step to successfully outlining a strategic roadmap for your organization. An organization has successfully aligned IT strategy to business strategy when there is: • A shared understanding of how IT applications, technologies and services will contribute to business objectives – today and in the future. • A shared focus on where to expend scarce resources, time and money; the tradeoffs the enterprise is prepared to make. • A credible working relationship between the IT organization and the rest of the business evidenced by reliable daily operations, responsive problem management and predictable, innovative solution delivery. Info-Tech’s Aligning IT & Business Goals program includes tools & related research to complete three main steps: 1. Set Conditions to Achieve Alignment 2. Determine IT Value Imperatives 3. Assess IT Organizational Alignment 4. Develop IT Vision and Mission When you have completed our Aligning IT & Business Goals program you will have: • Support from key executives to participate in developing the IT Strategy. • An understanding of how emerging technologies, applications and trends can or will impact your enterprise and your IT organization. • Clear expectations of how IT will contribute to reaching the company’s business goals and objectives. • A defined articulation of IT’s role in, and value to, the enterprise for the strategic horizon.

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									How Aligned Are You?
IT-business alignment has long been among the top concerns for CIOs. Poor alignment leads to
failed projects, wasted resources, and the pursuit of initiatives that do not contribute to
competitive advantage. Start improving the alignment between IT and business by identifying
your strengths and weaknesses. Use this article and its associated tool to measure your
alignment and establish a baseline for improvement.

Action Plan

Use Info-Tech's "IT/Business Alignment Measurement Tool" to            What Presents an
score    your    alignment    across   six   dimensions,   including   Obstacle to IT-Business
Communication         Maturity,   Competency/Value-Measurement         Alignment?
Maturity, Governance Maturity, Partnership Maturity, Architecture
and Technology Maturity, and Human Resources Maturity.                 Arbitrarily capping IT
                                                                       spending (according to 79
Our approach has been adapted from a similar one advocated by          percent of CIOs).
Professor Jerry Luftman from the Stevens Institute of Technology.
The same methodology has also been used by over sixty Global           IT budgeting practices (39

2000 companies, and is a derivative of the Capability Maturity         percent of CIOs).

Model developed by Carnegie Mellon's Software Engineering              Poor governance practices
Institute.                                                             (26 percent of CIOs).

    1. Gather a team of IT and business representatives to             - CIO Insight, Nov. 2003
         conduct the assessment. Go through the 38 sections
         and come to a consensus as to your company's rating for
         each issue. This should either take the form of a facilitated group session, or as an
         independent activity where individuals meet afterwards to discuss the results. Be
         honest with your assessment - no one's perfect (global companies that completed the
         assessment for the first time generally rated their companies as a two overall, with
         some alignment practices rated as threes). Divergent opinions among IT and business
         reps should signify o
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