VIEWS: 55 PAGES: 4 CATEGORY: Technology Management POSTED ON: 2/19/2010
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.
Info-Tech Research Group IT-Business Alignment Measurement Tool Use this tool to help you measure your organization's IT-business alignment. Give your organization a score of 1-5 in the 38 categories below to arrive at an overall alignment score (see the Report Card tab to see how you did). Level 1 - Without process (no alignment) Level 2 - Beginning process Level 3 - Establishing process Level 4 - Improved process Level 5 - Optimal process (complete alignment) Communication Maturity Score Justification 1 IT management lacks understanding 2 Limited understanding by IT management Understanding of business by IT 3 Good understanding by IT management 4 Understanding encouraged among IT staff 5 Understanding required by all IT staff 1 Managers lack understanding 2 Limited understanding by managers Understanding of IT by business 3 Good understanding by managers 4 Understanding encouraged among staff 5 Understanding required of all staff 1 Casual conversations and meetings 2 Newsletters, reports, group e-mails Organizational learning 3 Training, departmental meetings 4 Formal methods sponsored by senior management 5 Learning monitored for effectiveness 1 Business to IT only, formal 2 One-way, somewhat informal Style and ease of access 3 Two-way, formal 4 Two-way, somewhat informal 5 Two-way, informal and flexible 1 Ad-hoc 2 Some structured sharing emerging Leveraging intellectual assets 3 Structured around key processes 4 Formal sharing at all levels 5 Formal sharing with partners 1 None, or use only as needed 2 Primary IT-business link IT-business liaison staff 3 Facilitate knowledge transfer 4 Facilitate relationship building 5 Building relationships with partners Competency/Value-Measurement Maturity Score Justification 1 Technical only 2 Technical and some cost; metrics rarely reviewed IT metrics 3 Review and act on technical and ROI metrics 4 Also measure effectiveness 5 Also measure business operations, HR, and partners 1 IT investments measured rarely, if ever 2 Cost/unit measured; rarely reviewed Business metrics 3 Review and act on ROI and cost metrics 4 Also measure customer value added 5 Use of Balanced Scorecard, includes partners 1 Value of IT investments rarely measured 2 Business and IT metrics not linked Link between IT and business metrics 3 Metrics becoming linked 4 Formally linked, reviewed and acted upon 5 Use of Balanced Scorecard, includes partners 1 Use sporadically 2 With units for technology performance Service level agreements 3 With units; becoming enterprise-wide 4 Enterprise-wide 5 Includes partners 1 Seldom or never 2 Sometimes benchmark informally Benchmarking 3 May benchmark formally, seldom act 4 Routinely benchmark, usually act 5 Rou
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