IFSM 301 – IT Decision Paper

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IFSM 301 – Week 6 Citations

(Murray)

(Sinek, 2009)

(Potts, 2008)

(Wailgum, 2004)

(Lukac, 2014)

(Potts, Is It Time to Reset Your IT Strategy, 2008)

(Office of the Chief Information Officer, 2016)

(Organizational Change Management Methodology)

Bibliography Lukac, E. (2014, September 17). Structuring IT Organizations for Service Excellence. (Deloitte)

Retrieved February 15, 2021, from The Wall Street Journal: https://deloitte.wsj.com/cio/2014/09/17/structuring-it-organizations-for-service- excellence/

Murray, K. A. (n.d.). Leadership Philosophy. Retrieved February 15, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/541520/viewContent/20543089/View

Office of the Chief Information Officer. (2016, November 17). Retrieved February 15, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/541520/viewContent/20543093/View

Organizational Change Management Methodology. (n.d.). Retrieved February 15, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/541520/viewContent/20543094/View

Potts, C. (2008, August 1). Is It Time to Reset Your IT Strategy. CIO, 26-28. Retrieved February 15, 2021, from https://learn.umgc.edu/d2l/le/content/541520/viewContent/20543110/View

Potts, C. (2008, September 1). Tools for Leading Business Change. CIO, 22-24. Retrieved February 15, 2021, from https://learn.umgc.edu/d2l/le/content/541520/viewContent/20543109/View

Sinek, S. (Performer). (2009, September). How Great Leaders Inspire Action. TedxPuget Sound, New Castle, Washington. Retrieved February 15, 2021, from https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en

Wailgum, T. (2004, July 4). IT Gets Organized: Introducing The Office of the CIO. Retrieved February 15, 2021, from CIO: https://www.cio.com/article/2442473/it-gets-organized-- introducing-the-office-of-the-cio.html

Leadership Philosophy

My philosophy is basic…provide the highest quality service possible to every person you encounter. We

are a value based, customer service organization and we need to have a patient-centered approach to

everything we do. We are caring for America’s heroes; both past and present. When we care for their

Family members, we are also caring for heroes, for they are the ones that are supporting the service

member and they are key players in our military team, which serves this nation. Every one of these

heroes that walks through our doors should feel like a VIP. What each one of us does on a daily basis

matters, regardless of our job. We all contribute to the mission. No one job is more important than the

other. If just one link (team member) in this chain fails to perform a portion of the mission to standard,

we all fail because we are not providing the best care possible to our beneficiaries. You have the ability

to make a positive difference in peoples’ lives every day. Every member of this team should ask

themselves, "Am I living by our values and making decisions that are consistent with these values when I

interact with patients and coworkers?"

Some key points:

- Know your chain of command and how to use it. You have not exhausted your chain of

command at BJACH until the issue reaches me.

- If you are lacking something to perform your mission, bring it to the attention of your chain of

command so we can promptly address it.

- Any patient safety issue should immediately be brought to the chain of command.

- Use the chain of command. When you need to go beyond it, keep your chain informed.

- Continually strive to improve processes in your individual work areas.

- If you see a problem, fix it or bring it to the attention of someone who can. Don't ignore it.

- Supporting each other is just as important as supporting the mission.

- Ask for help before it’s too late (in all aspects of your life and career).

- Continue the relentless pursuit of customer satisfaction. Customer/patient feedback is a

valuable tool to improve patient care.

- Basic military courtesy should be a part of everyday life.

- Always strive to do the right thing, even when no one is looking or when tempted to take the

“easy” wrong.

As a leader, I believe that all members of the team are important. Our civilian and contractor colleagues

are essential to the success of our mission. As a military leader, I believe, as the NCO creed says, that

Noncommissioned Officers are the backbone of the Army. I cannot over emphasize the importance of

quality leadership in the NCO corps. Quality leadership doesn’t stop with the NCO; officers must lead

from the front, by setting the example. Be sure that regularly scheduled performance counseling sessions

are conducted for military and civilian employees. Cover the good which should be sustained as well as

the areas which need improvement. Although I like to be informed, I believe in allowing leaders to lead,

managers to manage. A big part of my job is to provide you the support systems necessary for you to

accomplish your mission. Tell me what you need and don't worry how it will be resourced. Let me

worry about that.

Expectations of leaders at all levels:

- Take care of your people.

- Set the example of how the team should think and act because all will be watching you to

model your behavior.

- Know your people - keep them informed, be sensitive to their needs, make their lives as

predictable as possible.

- Develop your subordinates, military and civilian, so that they will be ready to lead others with

high quality, effective leadership skills.

- Don’t ask your Soldiers or civilian employees to do anything you aren’t willing to do yourself.

- Set the example in military bearing - weight, uniform, physical fitness, or civilian

professional appearance.

- Live the Army values – honor, integrity, courage, loyalty, respect, selfless service, and duty.

- Be innovative and receptive to new ideas.

- Support unit functions and activities and maintain Army and AMEDD customs and traditions.

- Remember, the AMEDD includes a Civilian Corps.

- Reward individuals for going above and beyond; we do not thank our people enough.

- Work hard, but don’t forget to have fun too.

I have my “pet peeves” like anyone else. These are the things that will cause an emotional response on

my part. In fairness, I’ll share those with you now. My trigger points include:

- Inconsistent and/or unfair treatment of others.

- Rudeness to a patient or fellow coworkers.

- Not giving the chain of command the opportunity to fix a problem before you take it outside

the facility for action to include using the patient complaints system to address internal

problems or disagreements.

- Answering with, “Because we’ve always done it that way,” when there is no understanding as

to the rationale for a process/action. This usually indicates lack of motivation or no

consideration of potential improvements.

- Trying to cover up an honest mistake rather than admit to it and learn from it.

- Blaming others for your mistakes or errors.

- Having no initiative to improve your work area. You should strive to leave an area better than

you found it.

Take pride in your profession. We are all here as volunteers, let’s strive to do our very best.

KELLY A. MURRAY

COL, MC

Commanding

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Simon Sinek · TEDxPuget Sound

How great leaders inspire action

00�05

How do you explain when things don't go as we assume?Or better, how do you explainwhen

others are able to achieve things that seem to defy all of the assumptions?For example:Why

is Apple so innovative?Year after year, after year, they're more innovative than all their

competition.And yet, they're just a computer company.They're just like everyone else.They

have the same access to the same talent, the same agencies, the same consultants, the

same media.Then why is it that they seem to have something different?Why is it that Martin

Luther King led the Civil Rights Movement?He wasn't the only man who suffered in pre-civil

rights America,and he certainly wasn't the only great orator of the day.Why him?And why is

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it that the Wright brotherswere able to figure out controlled, powered man flightwhen there

were certainly other teamswho were better qualified, better funded --and they didn't

achieve powered man flight,and the Wright brothers beat them to it.There's something else

at play here.

01�10

About three and a half years ago, I made a discovery.And this discovery profoundly changed

my view on how I thought the world worked,and it even profoundly changed the way in which

I operate in it.As it turns out, there's a pattern.As it turns out, all the great inspiring leaders

and organizations in the world,whether it's Apple or Martin Luther King or the Wright

brothers, they all think, act and communicate the exact same way.And it's the complete

opposite to everyone else.All I did was codify it, and it's probably the world's simplest idea. I

call it the golden circle.

02�00

Why? How? What?This little idea explainswhy some organizations and some leaders are able

to inspire where others aren't. Let me define the terms really quickly.Every single person,

every single organization on the planetknows what they do, 100 percent.Some know how

they do it,whether you call it your differentiated value propositionor your proprietary process

or your USP.But very, very few people or organizations know why they do what they do.And

by "why" I don't mean "to make a profit."That's a result. It's always a result.By "why," I mean:

What's your purpose?What's your cause? What's your belief?Why does your organization

exist?Why do you get out of bed in the morning?And why should anyone care?As a result,

the way we think, we act, the way we communicate is from the outside in, it's obvious.We go

from the clearest thing to the fuzziest thing.But the inspired leaders and the inspired

organizations -- regardless of their size, regardless of their industry --all think, act and

communicate from the inside out.

03�07

Let me give you an example. I use Apple because they're easy to understand and everybody

gets it. If Apple were like everyone else,a marketing message from them might sound like

this: "We make great computers.They're beautifully designed, simple to use and user

friendly.Want to buy one?" "Meh."That's how most of us communicate.That's how most

marketing and sales are done, that's how we communicate interpersonally.We say what we

do,we say how we're different or betterand we expect some sort of a behavior,a purchase, a

vote, something like that.Here's our new law firm:We have the best lawyers with the biggest

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g y gg

clients,we always perform for our clients.Here's our new car: It gets great gas mileage, it has

leather seats.Buy our car.But it's uninspiring.

03�53

Here's how Apple actually communicates. "Everything we do, we believe in challenging the

status quo.We believe in thinking differently.The way we challenge the status quo is by

making our products beautifully designed,simple to use and user friendly.We just happen to

make great computers.Want to buy one?"Totally different, right?You're ready to buy a

computer from me. I just reversed the order of the information.What it proves to us is that

people don't buy what you do;people buy why you do it.

04�29

This explains why every single person in this roomis perfectly comfortable buying a computer

from Apple.But we're also perfectly comfortablebuying an MP3 player from Apple, or a

phone from Apple,or a DVR from Apple.As I said before, Apple's just a computer

company.Nothing distinguishes them structurally from any of their competitors.Their

competitors are equally qualified to make all of these products. In fact, they tried.A few years

ago, Gateway came out with flat-screen TVs.They're eminently qualified to make flat-screen

TVs.They've been making flat-screen monitors for years.Nobody bought one.Dell came out

with MP3 players and PDAs,and they make great quality products,and they can make

perfectly well-designed products --and nobody bought one. In fact, talking about it now, we

can't even imaginebuying an MP3 player from Dell.Why would you buy one from a computer

company?But we do it every day.People don't buy what you do; they buy why you do it.The

goal is not to do business with everybody who needs what you have.The goal is to do

business with people who believe what you believe.

05�40

Here's the best part:None of what I'm telling you is my opinion. It's all grounded in the tenets

of biology.Not psychology, biology. If you look at a cross-section of the human brain, from

the top down, the human brain is actually broken into three major components that correlate

perfectly with the golden circle.Our newest brain, our Homo sapien brain,our

neocortex,corresponds with the "what" level.The neocortex is responsible for all of our

rational and analytical thought and language.The middle two sections make up our limbic

brains,and our limbic brains are responsible for all of our feelings, like trust and loyalty. It's

also responsible for all human behavior, all decision-making,and it has no capacity for

language.

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g g

06�28

In other words, when we communicate from the outside in, yes, people can understand vast

amounts of complicated information like features and benefits and facts and figures. It just

doesn't drive behavior.When we can communicate from the inside out,we're talking directly

to the part of the brain that controls behavior,and then we allow people to rationalize it with

the tangible things we say and do.This is where gut decisions come from.Sometimes you

can give somebody all the facts and figures,and they say, "I know what all the facts and

details say,but it just doesn't feel right."Why would we use that verb, it doesn't "feel"

right?Because the part of the brain that controls decision-makingdoesn't control

language.The best we can muster up is, "I don't know. It just doesn't feel right."Or sometimes

you say you're leading with your heart or soul. I hate to break it to you, those aren't other body

partscontrolling your behavior. It's all happening here in your limbic brain, the part of the brain

that controls decision-making and not language.

07�22

But if you don't know why you do what you do,and people respond to why you do what you

do, then how will you ever get people to vote for you, or buy something from you,or, more

importantly, be loyaland want to be a part of what it is that you do.The goal is not just to sell

to people who need what you have; the goal is to sell to people who believe what you

believe.The goal is not just to hire people who need a job; it's to hire people who believe what

you believe. I always say that, you know, if you hire people just because they can do a job,

they'll work for your money,but if they believe what you believe, they'll work for you with

blood and sweat and tears.Nowhere else is there a better example than with the Wright

brothers.

08�07

Most people don't know about Samuel Pierpont Langley.And back in the early 20th

century, the pursuit of powered man flight was like the dot com of the day.Everybody was

trying it.And Samuel Pierpont Langley had, what we assume, to be the recipe for

success.Even now, you ask people, "Why did your product or why did your company

fail?"and people always give you the same permutationof the same three things:under-

capitalized, the wrong people, bad market conditions. It's always the same three things, so

let's explore that.Samuel Pierpont Langleywas given 50,000 dollars by the War

Department to figure out this flying machine.Money was no problem.He held a seat at

Harvardandworkedat theSmithsonianandwasextremelywell-connected;heknewall the

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Harvardand worked at the Smithsonian and was extremely well connected;he knew all the

big minds of the day.He hired the best minds money could findand the market conditions

were fantastic.The New York Times followed him around everywhere,and everyone was

rooting for Langley.Then how come we've never heard of Samuel Pierpont Langley?

09�08

A few hundred miles away in Dayton, Ohio,Orville and Wilbur Wright, they had none of what

we consider to be the recipe for success.They had no money; they paid for their dream with

the proceeds from their bicycle shop.Not a single person on the Wright brothers' teamhad a

college education,not even Orville or Wilbur.And The New York Times followed them around

nowhere.

09�31

The difference was,Orville and Wilbur were driven by a cause, by a purpose, by a belief.They

believed that if they could figure out this flying machine, it'll change the course of the

world.Samuel Pierpont Langley was different.He wanted to be rich, and he wanted to be

famous.He was in pursuit of the result.He was in pursuit of the riches.And lo and behold,

look what happened.The people who believed in the Wright brothers' dreamworked with

them with blood and sweat and tears.The others just worked for the paycheck.They tell

stories of how every time the Wright brothers went out, they would have to take five sets of

parts,because that's how many times they would crash before supper.

10�13

And, eventually, on December 17th, 1903, the Wright brothers took flight,and no one was

there to even experience it.We found out about it a few days later.And further proof that

Langley was motivated by the wrong thing: the day the Wright brothers took flight,he quit.He

could have said, "That's an amazing discovery, guys,and I will improve upon your technology,"

but he didn't.He wasn't first, he didn't get rich, he didn't get famous, so he quit.

10�44

People don't buy what you do; they buy why you do it. If you talk about what you believe,you

will attract those who believe what you believe.

10�51

2/11/2021 Simon Sinek: How great leaders inspire action | TED Talk

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10�51

But why is it important to attract those who believe what you believe?Something called the

law of diffusion of innovation, if you don't know the law, you know the terminology.The first

2.5% of our population are our innovators.The next 13.5% of our population are our early

adopters.The next 34% are your early majority,your late majority and your laggards.The only

reason these people buy touch-tone phones is because you can't buy rotary phones

anymore.

11�21

(Laughter)

11�23

We all sit at various places at various times on this scale,but what the law of diffusion of

innovation tells us is that if you want mass-market success or mass-market acceptance of an

idea,you cannot have it until you achieve this tipping pointbetween 15 and 18 percent market

penetration,and then the system tips. I love asking businesses, "What's your conversion on

new business?"They love to tell you, "It's about 10 percent," proudly.Well, you can trip over

10% of the customers.We all have about 10% who just "get it."That's how we describe them,

right?That's like that gut feeling, "Oh, they just get it."

11�58

The problem is: How do you find the ones that get itbefore doing business versus the ones

who don't get it?So it's this here, this little gap that you have to close,as Jeffrey Moore calls

it, "Crossing the Chasm" --because, you see, the early majority will not try somethinguntil

someone else has tried it first.And these guys, the innovators and the early adopters, they're

comfortable making those gut decisions.They're more comfortable making those intuitive

decisions that are driven by what they believe about the worldand not just what product is

available.These are the people who stood in line for six hours to buy an iPhone when they

first came out,when you could have bought one off the shelf the next week.These are the

people who spent 40,000 dollarson flat-screen TVs when they first came out,even though

the technology was substandard.And, by the way, they didn't do it because the technology

was so great; they did it for themselves. It's because they wanted to be first.People don't buy

what you do; they buy why you do it and what you do simply proves what you believe. In fact,

people will do the things that prove what they believe.The reason that person bought the

iPhone in the first six hours, stood in line for six hours,was because of what they believed

about the world,and how they wanted everybody to see them: they were first.People don't

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buy what you do; they buy why you do it.

13�20

So let me give you a famous example,a famous failure and a famous success of the law of

diffusion of innovation.First, the famous failure. It's a commercial example.As we said before,

the recipe for success is money and the right people and the right market conditions.You

should have success then.Look at TiVo.From the time TiVo came out about eight or nine

years agoto this current day, they are the single highest-quality product on the market,hands

down, there is no dispute.They were extremely well-funded.Market conditions were

fantastic. I mean, we use TiVo as verb. I TiVo stuff on my piece-of-junk Time Warner DVR all

the time.

13�58

(Laughter)

14�01

But TiVo's a commercial failure.They've never made money.And when they went IPO, their

stock was at about 30 or 40 dollarsand then plummeted, and it's never traded above 10. In

fact, I don't think it's even traded above six,except for a couple of little spikes.

14�16

Because you see, when TiVo launched their product, they told us all what they had.They

said, "We have a product that pauses live TV,skips commercials, rewinds live TV and

memorizes your viewing habitswithout you even asking."And the cynical majority said, "We

don't believe you.We don't need it. We don't like it.You're scaring us."

14�41

What if they had said, "If you're the kind of person who likes to have total controlover every

aspect of your life,boy, do we have a product for you. It pauses live TV, skips

commercials,memorizes your viewing habits, etc., etc."People don't buy what you do; they

buy why you do it, and what you do simply serves as the proof of what you believe.

2/11/2021 Simon Sinek: How great leaders inspire action | TED Talk

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15�05

Now let me give you a successful example of the law of diffusion of innovation. In the summer

of 1963,250,000 people showed up on the mall in Washington to hear Dr. King speak.They

sent out no invitations,and there was no website to check the date.How do you do

that?Well, Dr. King wasn't the only man in Americawho was a great orator.He wasn't the only

man in America who suffered in a pre-civil rights America. In fact, some of his ideas were

bad.But he had a gift.He didn't go around telling people what needed to change in

America.He went around and told people what he believed. "I believe, I believe, I believe," he

told people.And people who believed what he believedtook his cause, and they made it their

own, and they told people.And some of those people created structures to get the word out

to even more people.And lo and behold, 250,000 people showed upon the right day at the

right time to hear him speak.

16�09

How many of them showed up for him?Zero.They showed up for themselves. It's what they

believed about America that got them to travel in a bus for eight hours to stand in the sun in

Washington in the middle of August. It's what they believed, and it wasn't about black versus

white:25% of the audience was white.

16�31

Dr. King believed that there are two types of laws in this world: those that are made by a

higher authority and those that are made by men.And not until all the laws that are made by

menare consistent with the laws made by the higher authoritywill we live in a just world. It

just so happened that the Civil Rights Movementwas the perfect thing to help him bring his

cause to life.We followed, not for him, but for ourselves.By the way, he gave the "I have a

dream" speech,not the "I have a plan" speech.

17�00

(Laughter)

17�04

Listen to politicians now, with their comprehensive 12-point plans.They're not inspiring

anybody.Because there are leaders and there are those who lead.Leaders hold a position of

th it b t th h l d i i Wh th th ' i di id l

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power or authority,but those who lead inspire us.Whether they're individuals or

organizations,we follow those who lead, not because we have to,but because we want

to.We follow those who lead, not for them, but for ourselves.And it's those who start with

"why" that have the ability to inspire those around themor find others who inspire them.

17�45

Thank you very much.

17�46

(Applause)

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2 2 s e p t e m b e r 1 , 2 0 0 8 | www.cio.com

Tools for Leading Business Change Enterprise architecture and IT portfolio management provide strategic tools for innovating and executing change. They are not about IT but about people, collaboration and culture.

As Holley was capturing CIOs’ visions of their future role, my own company was exploring the maturity of organizations’ strategic IT management. Of the CIOs in our survey, 69 percent said the focus of their company’s IT strategy was on operations and service management. For CIOs to turn around these historic expectations of themselves takes time and persistent tactics.

Yet the need for corporate change leadership has never been greater. Over the next three years, two- thirds of CEOs worldwide are planning extensive business-model innovation, according to the 2008 IBM Global CEO Survey, “The Enterprise of the Future.” However, while CEOs are planning signifi- cant change, they are not confident of their ability to manage it. The economic climate must only add to those doubts. Investments that collectively change

the business model—in IT and elsewhere—must be efficient and value-creating.

CEOs ought to be doubly concerned because tech- nology-sparked developments such as Web 2.0 are changing the business model anyway. According to a panel of venture capitalists during a recent innova- tion conference at Cambridge University, Web 2.0 is altering the relationship between employee and employer, putting each of us at the center of our own unique networks of collaborators and knowledge sharers. And it is already more of a social and cul- tural movement than a technological one.

Web 2.0 has also meant a shift in the nature of change. It represents a trend toward throwaway investments in change at employee and team levels, if not corporately. The VCs’ perspective is that the churn in Web 2.0 applications will be faster than

n less than five years’ time, the CIO is destined to become

an executive leader of business change, or else they will be absorbed into

another function. This prediction comes from research by a CIO head-

hunter, Cathy Holley. In 2002, Holley asked CIOs to envision their role 10

years into the future. Destiny takes time to unfold, but we can see their conclu-

sion being borne out.

Think Tank CHRIS POTTS

SEP01 COL THINK.indd 22 8/15/08 4:06:45 PM

before. This is influencing their investment strate- gies. We need to let these factors influence us, too.

Where Web 2.0 Meets IT Strategy Although technology has sparked business changes, these changes are primarily about peo- ple and culture. With the CIO as corporate strat- egist for technology-related developments, the executive team should look to her for guidance.

The increasing personalization of IT via Web 2.0 offers people more freedoms in the way they use technology and more accountability for their actions. To choose a way of working that delivers the most value, each of us can exploit our unique skills, knowledge, contacts and personal enter- prise. As a result, it is becoming harder for people who are at a distance from the corporate front lines—including those in IT—to be accountable for the design and execution of front- line processes. Accountability for what someone does with technology has to sit with that person and her immediate manager. This can represent a difficult cultural shift.

All these factors challenge how executives shape, invest in and manage the company’s architecture. The model is one in which personal enterprise and collaboration flourish, using throwaway solutions where appropriate. Overall,

it achieves the corporate strategy—both the commercial aims and the legal and regulatory responsibilities. It also protects everyone with an accountability structure that prevents harm to the company, its stakeholders and people’s own careers.

Tools of Change For CIOs, the 2012 vision of their role as leaders of change needs to come true as quickly as possible. Here’s why.

In recent years, CIOs have assembled two key capabilities a company needs for redesigning its business model and investing in change. First, to drive business-model innova- tion, they have been maturing the practice of enterprise archi- tecture. Second, CIOs have developed investment portfolio management to respond to the scrutiny boards have applied to IT costs and value and to execute the business-model inno- vations wrought by enterprise architecture.

However, the challenge CEOs and CIOs face is that these vital business capabilities are often led from within IT—and with an IT-oriented focus. So the next big step in the CIO’s strategy, in collaboration with the CEO, is to maneuver them into the wider business. This is not as easy as it may sound.

For example, if enterprise architecture traditionally is led by IT, then everyone else must now discover its true business potential and his or her own role in its success. For some

this can be a real surprise. They will find that true enter- prise architecture is founded on collaboration among the company’s executives and the people who work for them. It harnesses their collective enterprise and ideas for innovation into a business model that delivers the corporate strategy.

The tactics for investment portfolio management have a different challenge: the company’s existing culture for investing in change. For example, many companies care- fully scrutinize and prioritize changes to IT investment. But non-IT changes also involve investment, and they may be either executing or undermining the CEO’s corporate strat- egy. Experience shows that applying a single and consistent portfolio-management approach to all investments in change can trigger an unhelpful corporate response.

The CIO holds these two strategic tools for business-model innovation in her hands. How can she and the CEO maneuver them out of IT and into the business? Some suggestions:

Foster an understanding that developments like Web 2.0 ▪ bring new implications and opportunities for the compa- ny’s business model. Discuss the impact of these developments on the distribu- ▪ tion of accountabilities in the business model. Explore what an enterprise architecture looks like that ▪ encourages personal enterprise, collaboration and account- ability; achieves corporate strategy, and protects everyone from harmful mistakes. Show how investment portfolio management for the ▪ entire business can efficiently deliver value in a difficult economic climate. There is a pressing need for integrated leadership of busi-

ness and technology change. With enterprise architecture and investment portfolio management, CIOs have the two strategic tools upon which that leadership depends. The CIO’s challenge is to explain that these tools are about people and collaboration, not technology. CIO

Chris Potts advises companies on corporate and

IT strategy as a director with the IT consultancy

Dominic Barrow. He is also the author of FruITion:

Creating the Ultimate Corporate Strategy for Infor-

mation Technology. To comment on this article, go

to www.cio.com/article/437569.

2 4 s e P T e m B e r 1 , 2 0 0 8 | www.cio.com

More by Chris Potts

read a related blog post about InnOvatIOn at advice.cio.com/ node/4964.

cıo.com

The CIO holds two strategic tools for business-model innovation in her hands: enterprise architecture and investment portfolio management. How can she and the CEO maneuver them out of IT and into the business?

Think Tank CHRIS POTTS

SEP01 COL THINK.indd 24 8/15/08 4:06:50 PM

NEWS

IT Gets Organized: Introducing The Office of the CIO An Office of the CIO can improve IT management and free up the CIO. But it’s only as good as the deputies who fill the slots.

By Thomas Wailgum CIO | JUL 1, 2004 7:00 AM PST

Organizational structure is one tool that CIOs wield in their perennial effort to build a better IT group. Now a new

structure, the Office of the CIO, or OCIO, has gained favor in government and academic circles, and is spreading to

large companies in the private sector.

Simply put, an Office of the CIO structure is a team-oriented approach to IT management in which the CIO delegates

specialized IT roles-essentially, the ideal IT org chart. An OCIO is born out of a desire for solid IT governance

processes-a vision of repeatable IT processes, clear lines of project accountability and consistent communication of

standards. It’s meant to leave CIOs time to rub elbows with their executive brethren. Which is exactly what they

should be doing.

"Having an OCIO helps me improve the throughput and deal with the complexity that all of the businesses are

dealing with, because my time is now more focused on that very valuable face-to-face time that I can spend with my

peers and CEO," says Toyota Motor Sales CIO Barbra Cooper, who rolled out an OCIO structure in January. "I was

thinking of the OCIO as beginning to blur the lines between IT and the business function."

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2/11/2021 Structuring IT Organizations for Service Excellence - CIO Journal - WSJ

https://deloitte.wsj.com/cio/2014/09/17/structuring-it-organizations-for-service-excellence/ 1/5

IT organizations are gradually transitioning to a service orientation, helping business units

effectively shape and consume IT offerings and, ultimately, gain more value from them.

The notion of IT operating as a services provider, rather than

purely as a cost center forever disconnected from business

needs, has been widely discussed among CIOs. Whether you call

it the “service catalog” approach or an “IT service orientation,” the

thrust is the same: IT must operate in a more business-friendly

manner.

Several trends underpin the shift. With the advent of cloud computing and SaaS, IT organizations

realized they needed to stop obsessing about developing software and managing technology and

start becoming a true partner to the business. Compressed IT budgets since 2008 have further

fueled discussions about how to better structure IT departments. And the accelerating pace of

business dictates that IT become more transparent to business leaders and continually stay in

tune with their current and evolving needs. Finally, consumerization of IT has exacerbated the

trend, empowering business units to strike out on their own to procure technology, further

pressuring IT to evolve or get cut out of the loop completely.

Yet rather than organizing to offer holistic, business-aligned services, many IT departments are

still structured around their technical assets or capabilities—applications, servers, networks,

programming, analysis and operations—which doesn’t make it easy for business people. It’s no

wonder they get frustrated with IT.

There is a better way. The fundamental goal is for IT to describe and deliver services—everything

from email to credit card processing to website building—in ways that make sense to business

units. The “email service” includes everything required to deliver and manage email: application

support, network and data center support, storage management, and security. Mature IT catalogs

also list the unit price for each service and the process for acquiring them.

CIO Insights and Analysis from

Deloitte

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Structuring IT Organizations for Service Excellence

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Having a well-defined services catalog provides benefits for business and the IT department.

First, it drives accountability and potential cost savings, since the IT owner of a particular service

must focus on maximizing the efficient use of hardware, software, and people underlying the

service to deliver at the agreed-upon price. Second, a service catalog is created to meet specific

business needs. Built-in cost transparency and accountability make for better business-IT

alignment. Third, the consumption rate of distinct services—or the “market signals” they emit—

demonstrates value to the business. Therefore, IT can continually refine its offerings based on

demand. Fourth, a detailed, fully priced services catalog helps IT better analyze what to build and

what to buy.

Three Models for Service Orientation

To deliver IT in a modern service orientation, CIOs need to rethink their organization structure,

and align the organization around the services that are to be delivered. The options, which differ

mostly by the extent to which common IT capabilities are shared across the services, include:

The independent service line model. In this model, each IT “service line” manages its own

hardware, software, and support staff. For example, accounts receivable processing and

accounts payable processing may be two business services provided by IT as part of a finance

service line. Certain support functions, such as IT customer relationship management and

architecture, may be shared across service lines to maximize consistency and interoperability.

While this approach gives service line managers a great deal of control in defining the

parameters of engagement—including, for example, defining service level agreements (SLAs)

with users—it also increases the risk of having some duplicated technology across service lines,

which can limit opportunities for cost savings.

2/11/2021 Structuring IT Organizations for Service Excellence - CIO Journal - WSJ

https://deloitte.wsj.com/cio/2014/09/17/structuring-it-organizations-for-service-excellence/ 3/5

Source: Deloitte Development LLC

Leveraged model. In this model, common functions such as architecture, applications support,

and infrastructure support are shared across IT service lines. IT service line managers work first

with users to establish SLAs, and then with internal IT groups to negotiate “operational level

agreements” to meet their SLA commitments. This model is easier to adopt for a traditional IT

organization currently structured around technology assets but not all service line teams may

have sufficient power to get the support they need from technical groups. The silo structure of IT

may persist.

Source: Deloitte Development LLC

Hybrid model. There’s always a middle ground. In this model, only some of the technology

capabilities required to support business services are part of the service line structure—typically,

specialized applications teams. Other IT capabilities, including architecture and infrastructure, are

leveraged across service lines to help ensure consistency, interoperability, and cost control.

http://deloitte.wsj.com/cio/files/2014/09/Figure02_02.png

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Source: Deloitte Development LLC

An IT organization that’s structured around the services it provides also needs a “sales” function

to help clients understand the full range of services on tap. It’s also extremely helpful to have a

mature chargeback process based on customer usage, expressed in business terms.

Progressive IT organizations have begun the journey from operating through assets to operating

by services. For those organizations farther along, the results are improvements in organizational

flexibility, efficiency, and customer satisfaction.

—by Eugene Lukac, specialist leader, Deloitte Consulting LLP, Rajesh Srinivasa, associate

director, DTTL, and Gerardo Hernandez, senior manager, Deloitte Consulting Group S.C.

September 17, 2014, 12:01 am

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Is It Time to Reset Your IT Strategy? Running IT as a business has its benefits and its pitfalls. Here’s how you can go from managing IT efficiently to exploiting it strategically.

2 6 A U G U S T 1 , 2 0 0 8 | www.cio.com

rallying call of corporate strategies for IT in recent years

has been to run the IT department “like a business.” When the

technology-centric first generation of IT strategies reached a

point of diminishing returns, this next stage was both inevitable

and beneficial. With the bulk of IT spending shifting from investment in new

and exciting technologies to maintaining and replacing existing ones, applying

sound business discipline has kept that spending under control and has driven a necessary focus on operational performance and efficiency.

But with these benefits come pitfalls. If you’ve tried managing an internal IT department as a busi- ness you already know that you can’t take that very far, for the obvious reason that your IT department isn’t a business. It is a part of a business: a signifi- cant contributor to a value chain, not a self-con- tained value chain of its own. And the harder you try to create a separate value chain for IT, the harder it becomes to integrate it with the business.

Innovative companies have already moved to the next-generation strategy. Here, the CIO’s purpose is not to run a traditional IT department but to pro- vide corporate leadership to business functions that are investing in and exploiting IT in the context of

their business strategies and operating plans.

What to Watch Out For The benefits of running an IT department in a more efficient, businesslike way are well-known. The department’s purpose is clear to its staff and stakeholders. Its internal processes become ever more efficient, costing progressively less with no loss of value to the business units that fund them. Any activity that contributes to IT’s purpose and processes—but is not core to them—is market- tested to find and exploit the best sourcing option, whether in-house or outsourced.

However, alongside these benefits there are also risks. The most damaging to the CIO’s longer-term strategy is any attempt to run the department as a separate business rather than just running it in a

Applied Insight ChrIs PoTTs

AUG01 APPLIED.indd 26 7/21/08 3:00:30 PM

more businesslike way. There’s a world of difference between running IT

like a business, and trying to run it as one. It’s amazing how one word can fundamentally alter strategy. Run- ning IT like a business means adopting a businesslike mind-set, processes and financial disciplines. Run- ning it as a business means competing for revenue and investment in an open market, and going bankrupt if you run out of cash to cover your liabilities.

What happens if a CIO attempts to run her department as a business? Other departments will perceive that IT wants to be treated like a supplier. If the CIO’s chosen business is to be a provider of operational IT services, then that is what her “customers” expect her to concentrate on. In that case, contributing to corporate strategies will be an uphill battle.

The IT department might find another pitfall if it tries too hard to run itself as a business. The company’s business units will be reluctant to fund any material investment by IT in branding, marketing, selling or upgrading the management systems that support the IT department’s own productivity. Why should they? One of the cost advantages of an inter- nal department is that it doesn’t require all the capabilities a real supplier needs to compete. So the CIO is caught. She has placed herself in competition with external suppliers but without access to the investment that they have.

The IT department will find itself in a corner from which escape becomes diffi- cult. It lacks the means to compete with real IT suppliers and has separated itself from the business. It wants to be taken seriously in

the world of strategy, yet its primary business is operational. This is when taking the “IT department as a business” too far seriously undermines the next-generation strategy for IT.

From Efficient to Strategic The strategic IT focus is now on exploiting technology to cre- ate new business value. Today’s successful CIO is valued as a leader of a corporate strategy in which the company is an “expert customer” of IT. Managing operational delivery of IT services in a businesslike way is simply expected.

Unless the company is already an expert customer of IT, its people will need strategic leadership from trusted colleagues who do not have a vested interest in supplying technology services. If the IT department is behaving as a business sup- plying operational IT services, then who can everyone trust to provide the strategic leadership that the next generation of IT strategy demands?

A CIO who runs the IT department as if it were a separate

business will need to rethink her operating model. What have others done in such circumstances? They have divided their department’s activities into two groups: core capabili- ties and services. Core capabilities are those IT-related activi- ties that the company must have in-house and that make it an expert customer of technology. Services are activities that can be kept in-house or outsourced. Naturally, the CIO’s own activities fall under core capabilities rather than services.

After dividing IT’s activities into these categories, the CIO can benchmark her company’s core IT-related capabilities against the models of other innovative companies. In par- ticular, the company should excel at true enterprise archi- tecture (not just its technology components) and investing in business change. Together, these are the engine of strate- gic investment and value creation. The CIO may find her IT department’s strategic influence is low because these core capabilities are weak, missing or not integrated enough with their equivalents in the wider company.

Having explored the company’s strengths and weaknesses in its core capabilities as a customer of IT, the CIO faces a major choice. Does she develop the necessary capabilities within the IT department, or elsewhere in the company? If IT is perceived as a supplier, the first option is not open. So the CIO is faced with developing the core capabilities outside of IT. To do so, she may need to give up day-to-day control of IT service delivery and concentrate on corporate strategy.

Some CIOs have established a corporate-level team that develops and leads the company’s strategy and capabilities as an expert customer of IT, with no accountability for day- to-day delivery of IT services. Instead, accountability for IT operations is in the hands of a CTO or equivalent, who reports to an operations executive such as the COO.

This model, which separates the corporate strategy for IT from operational service delivery, may not suit everyone. But as we explore the options for maximizing IT’s strategic con- tribution, it’s essential to know it exists. CIO

Chris Potts advises companies on corporate and

IT strategy as a director with the IT consultancy

Dominic Barrow. He is also the author of FruI-

Tion: Creating the Ultimate Corporate Strategy

for Information Technology. To comment on this

article, go to www.cio.com/article/335813.

If you’ve tried managing an IT department as a business you know that you can’t take that very far, for the obvious reason: Your IT department isn’t a business.

More by Chris Potts

Read a related column, Let the BusI- ness DrIve I.t. strategy, at www .cio.com/article/135202.

cıo.com

2 8 A U G U S T 1 , 2 0 0 8 | www.cio.com

Applied Insight ChrIs PoTTs

AUG01 APPLIED.indd 28 7/21/08 3:00:35 PM

Chief of Staff Matt Nolan

Chief Technology Officer / Enterprise Architect VACANT

Senior Advisor, Cyber Jen Silk

Senior Advisor, Strategic Engagement & Communications Kathy Crouch

O ffi

ce o

f t he

C hi

In fo

rm at

io n

O ffi

ce r

Chief Information Security Officer Paul Cunningham

IT Program Manager, Enterprise Operations John Medici

Deputy CIO for Resources Management

Sarah Gamage

Human Capital & Administrative Management Office

Sonja Green, Director

Deputy CIO for Enterprise Policy, Portfolio Management & Governance

Allan Manuel

Principal Deputy CIO for Cyber

Cheryl Peace

Deputy CIO for Cybersecurity

Chief Information Officer (CIO)

Michael Johnson

Deputy CIO for Architecture, Engineering, Technology & Innovation

Principal Deputy CIO for Enterprise Information Resources Management

Robert Green

Deputy CIO for Enterprise Operations & Shared Services

IM-1

IM-30 IM-50 IM-60IM-10

IM-11 Enterprise Portfolio Management Office

Carol Blackston (Acting)

IM-21 Enterprise Cybersecurity

Programs Office

Antione Manson, Director

IM-31

Joint Cybersecurity Coordination Office

Director

IM-32

Cybersecurity Operations Office

Gordon Bass, Director

IM-33

Cybersecurity Operations Office

Gordon Bass, Director

IM-33

Enterprise Architecture Office

IM-51

Service Operations Office

Greg Doan, Director

IM-61

Service Maintenance Office

Bryan Long, Director

IM-62

Systems Engineering Office

Tom Saldari, Director

IM-52

Technology & Innovation Office

Al Gallo, Director

IM-53

Financial Management, Budget & Internal Controls Office

Steve Cox, Director

Financial Management Division (IM-12.1) Jeff Martin, Director

Budget & Internal Controls Division (IM-12.2) Chris Karis, Director

Customer Support Division (IM-61.1) John Dicus, Director

Applications Support Division (IM-61.2) Tony Castellano, Director

Enterprise Records Mgmt. Division (IM-23.1) Maria Levesque, Director

Privacy Mgmt. & Compliance Division (IM-23.2) Jerry Hanley, Director

IM-12 Enterprise Policy Development

& Implementation Office

IM-22

Enterprise Records Management, Privacy & Compliance Office

- Vacant

IM-23

Enterprise Data Collection, Validation, Analytics & Reporting Office

(

IM-24

Enterprise Governance Office

Nils Johanson, Director

IM-25

Acquisition Management Office

Alan Andon, Director

IM-13

IM-20

Director CIO, PDCIO, DCIO

Staff Division Director

Office of the Chief Information Officer

Senior Advisor, Information Resources Modernization Virginia Arreguin

Chief Privacy Officer VACANT

Deputy Chief of Staff Juana Silverio

Robert Green (Acting)Renee Forney (Acting)

Hugh Clapp,

Associate CIO for Cyber Operations Hugh Clapp

Effective 11/17/2016

Danica Wheelock

Denise Hill

Jackie Yang

Jake Wooley, Director

Organizational Change Management Methodology

Tools and Techniques to aid Project Implementation

Today’s Objectives

• Discuss the Organizational Change Management team and explore ways Organizational Change Management can work with Apps Delivery

• Cover Organizational Change Management tools

• Explain Organizational Change Management metrics

Implementation Success Factors

Source Understanding PeopleSoft 8 Lynn Anderson, Cap Gemini Ernst & Young

Project Management Project Initiation

Project Planning

Project Executing

Project Controlling

Project Closing

Process Integration

Organization Change Management

Managing Change-Planning

Managing Change-Execute

Preparing for Change

Closing/Monitoring Change

Selecting a Change Strategy

• Degree of resistance • Target population • The stakes • Time frame • Expertise • Dependency

OCM Materials and Tools

• Change Management Organizational Assessment

• Tailoring Spreadsheet • Comprehensive CM Plan • Functional Impacts Spreadsheet • Readiness Activities/Master Readiness

Tracking Spreadsheet • Readiness Checklists • Executive Reports • Organizational Change Management metrics

Organizational Readiness Assessment

• Change Management completes the Organizational Readiness Assessment by meeting with the – Project Manager – Project Sponsor – Project Subject Matter Expert

Assessment Objectives

• Scope of change • Impacted groups • Number of impacted employees • Type and amount of change • Timeframe for the project • Change culture • Organization value structure • Organization change capacity • Organization leadership style and power distribution • Organization past change history • Organization pre-disposition towards change • Sponsor model

Organizational Readiness Assessment

Risk Determination Table

Medium Risk

Low Risk

High Risk

Medium Risk

Change Traits

Organizational Traits

Threshold

Thr es hol d

17 34

105

Small Change They Do Not

Like Us

Big change They Do Not

Like Us

Small Change

They Like Us

Big Change They Like Us

OCM Tailoring Process

• The purpose of the OCM Tailoring process is to customize the OCM strategy and deliverables to the size and complexity of the project

• Next step after completing the Organizational Readiness Assessment

OCM Tailoring Spreadsheet

Comprehensive OCM Plan

Derived from the Assessment and OCM tailoring process

Provides guidance towards: • Sponsor Roadmap • Communication Plan • Readiness Strategy • Training • Coaching • Resistance Management

DTI Readiness Methodology

All Project Teams

I N P U T

Functional Impacts

Successful System Implementation

End Users

Readiness Checklist

Master Readiness Tracking Spreadsheet

Functional Impacts Documentation

Functional Impacts

• The result of an initiative – The “as is” state – The “to be” state – Begins to map between the two

• Functional impacts document project decisions that impact end- users

Examples of Functional Impacts

• New Technology Required • The way a task gets done is different • The task that a person does is different

(new roles) • Timelines – When the task must be

done is different • Integration – Who the person interacts

has changes • New Information is available