Build a Cloud Security Strategy

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  • Leveraging the cloud introduces IT professionals to a new world that they are tasked with securing.
  • With many cloud vendors proposing to share the security responsibility, it can be a challenge for organizations to develop a clear understanding of how they can best secure their data off premises.

Our Advice

Critical Insight

  • Cloud security is not fundamentally different from security on premises.
  • While some of the mechanics are different, the underlying principles are the same. Accountability doesn’t disappear.
  • By virtue of its broad network accessibility, the cloud does expose decisions to extreme scrutiny, however.

Impact and Result

  • The business is adopting a cloud environment and it must be secured, which includes:
    • Ensuring business data cannot be leaked or stolen.
    • Maintaining privacy of data and other information.
    • Securing the network connection points.
  • This blueprint and associated tools are scalable for all types of organizations within various industry sectors.

Build a Cloud Security Strategy Research & Tools

Start Here – read the Executive Brief

Read our concise Executive Brief to find out why you should build a cloud security strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Explore security considerations for the cloud

Explore how the cloud changes the required controls and implementation strategies for a variety of different security domains.

  • Build a Cloud Security Strategy – Phase 1: Explore Security Considerations for the Cloud
  • Cloud Security Information Security Gap Analysis Tool
  • Cloud Security Strategy Template

2. Prioritize initiatives and construct a roadmap

Develop your organizational approach to various domains of security in the cloud, considering the cloud’s unique risks and challenges.

  • Build a Cloud Security Strategy – Phase 2: Prioritize Initiatives and Construct a Roadmap
[infographic]

Workshop: Build a Cloud Security Strategy

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Define Your Approach

The Purpose

Define your unique approach to improving security in the cloud.

Key Benefits Achieved

An understanding of the organization’s requirements for cloud security.

Activities

1.1 Define your approach to cloud security.

1.2 Define your governance requirements.

1.3 Define your cloud security management requirements.

Outputs

Defined cloud security approach

Defined governance requirements

2 Respond to Cloud Security Challenges

The Purpose

Explore challenges posed by the cloud in various areas of security.

Key Benefits Achieved

An understanding of how the organization needs to evolve to combat the unique security challenges of the cloud.

Activities

2.1 Explore cloud asset management.

2.2 Explore cloud network security.

2.3 Explore cloud application security.

2.4 Explore log and event management.

2.5 Explore cloud incident response.

2.6 Explore cloud eDiscovery and forensics.

2.7 Explore cloud backup and recovery.

Outputs

Understanding of cloud security strategy components (cont.).

3 Build Cloud Security Roadmap

The Purpose

Identify initiatives to mitigate challenges posed by the cloud in various areas of security.

Key Benefits Achieved

A roadmap for improving security in the cloud.

Activities

3.1 Define tasks and initiatives.

3.2 Finalize your task list

3.3 Consolidate gap closure actions into initiatives.

3.4 Finalize initiative list.

3.5 Conduct a cost-benefit analysis.

3.6 Prioritize initiatives and construct a roadmap.

3.7 Create effort map.

3.8 Assign initiative execution waves.

3.9 Finalize prioritization.

3.10 Incorporate initiatives into a roadmap.

3.11 Schedule initiatives.

3.12 Review your results.

Outputs

Defined task list.

Cost-benefit analysis

Roadmap

Effort map

Initiative schedule

Network Segmentation

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  • Parent Category Name: Network Management
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  • Many legacy networks were built for full connectivity and overlooked potential security ramifications.
  • Malware, ransomware, and bad actors are proliferating. It is not a matter of if you will be compromised but how can the damage be minimized.
  • Cyber insurance will detective control, not a preventative one. Prerequisite audits will look for appropriate segmentation.

Our Advice

Critical Insight

  • Lateral movement amplifies damage. Contain movement within the network through segmentation.
  • Good segmentation is a balance between security and manageability. If solutions are too complex, they won’t be updated or maintained.
  • Network services and users change over time, so must your segmentation strategy. Networks are not static; your segmentation must maintain pace.

Impact and Result

  • Create a common understanding of what is to be built, for whom, and why.
  • Define what services will be offered and how they will be governed.
  • Understand which assets that you already have can jump start the project.

Network Segmentation Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Network Segmentation Deck – A deck to help you minimize risk by controlling traffic flows within the network.

Map out appropriate network segmentation to minimize risk in your network.

  • Network Segmentation Storyboard
[infographic]

Further reading

Network Segmentation

Protect your network by controlling the conversations within it.

Executive Summary

Info-Tech Insight

Lateral movement amplifies damage

From a security perspective, bad actors often use the tactic of “land and expand.” Once a network is breached, if east/west or lateral movement is not restricted, an attacker can spread quickly within a network from a small compromise.

Good segmentation is a balance between security and manageability

The ease of management in a network is usually inversely proportional to the amount of segmentation in that network. Highly segmented networks have a lot of potential complications and management overhead. In practice, this often leads to administrators being confused or implementing shortcuts that circumvent the very security that was intended with the segmentation in the first place.

Network services and users change over time, so must your segmentation strategy

Network segmentation projects should not be viewed as singular or “one and done.” Services and users on a network are constantly evolving; the network segmentation strategy must adapt with these changes. Be sure to monitor and audit segmentation deployments and change or update them as required to maintain a proper risk posture.

Executive Summary

Your Challenge

Common Obstacles

Info-Tech’s Approach

Networks are meant to facilitate communication, and when devices on a network cannot communicate, it is generally seen as an issue. The simplest answer to this is to design flat, permissive networks. With the proliferation of malware, ransomware, and advanced persistent threats (ATPs) a flat or permissive network is an invitation for bad actors to deliver more damage at an increased pace.

Cyber insurance may be viewed as a simpler mitigation than network reconfiguration or redesign, but this is not a preventative solution, and the audits done before policies are issued will flag flat networks as a concern.

Network segmentation is not a “bolt on” fix. To properly implement a minimum viable product for segmentation you must, at a minimum:

  • Understand the endpoints and their appropriate traffic flows.
  • Understand the technologies available to implement segmentation.

Implementing appropriate segmentation often involves elements of (if not a full) network redesign.

To ensure the best results in a timely fashion, Info-Tech recommends a methodology that consists of:

  • Understand the network (or subset thereof) and prioritizing segmentation based on risk.
  • Align the appropriate segmentation methodology for each surfaced segment to be addressed.
  • Monitor the segmented environment for compliance and design efficacy, adding to and modifying existing as required.

Info-Tech Insight

The aim of networking is communication, but unfettered communication can be a liability. Appropriate segmentation in networks, blocking communications where they are not required or desired, restricts lateral movement within the network, allowing for better risk mitigation and management.

Network segmentation

Compartmentalization of risk:

Segmentation is the practice of compartmentalizing network traffic for the purposes of mitigating or reducing risk. Segmentation methodologies can generally be grouped into three broad categories:

1. Physical Segmentation

The most common implementation of physical segmentation is to build parallel networks with separate hardware for each network segment. This is sometimes referred to as “air gapping.”

2. Static Virtual Segmentation

Static virtual segmentation is the configuration practice of using technologies such as virtual LANs (VLANs) to assign ports or connections statically to a network segment.

3. Dynamic Virtual Segmentation

Dynamic virtual segmentation assigns a connection to a network segment based on the device or user of the connection. This can be done through such means as software defined networking (SDN), 802.1x, or traffic inspection and profiling.

Common triggers for network segmentation projects

1. Remediate Audit Findings

Many security audits (potentially required for or affecting premiums of cyber insurance) will highlight the potential issues of non-segmented networks.

2. Protect Vulnerable Technology Assets

Whether separating IT and OT or segmenting off IoT/IIoT devices, keeping vulnerable assets separated from potential attack vectors is good practice.

3. Minimize Potential for Lateral Movement

Any organization that has experienced a cyber attack will realize the value in segmenting the network to slow a bad actor’s movement through technology assets.

How do you execute on network segmentation?

The image contains a screenshot of the network segmentation process. The process includes: identify risk, design segmentation, and operate and optimize.

Identify risks by understanding access across the network

Gain visibility

Create policy

Prioritize change

"Security, after all, is a risk business. As companies don't secure everything, everywhere, security resilience allows them to focus their security resources on the pieces of the business that add the most value to an organization, and ensure that value is protected."

– Helen Patton,

CISO, Cisco Security Business Group, qtd. In PR News, 2022

Discover the data flows within the network. This should include all users on the network and the environments they are required to access as well as access across environments.

Examine the discovered flows and define how they should be treated.

Change takes time. Use a risk assessment to prioritize changes within the network architecture.

Understand the network space

A space is made up of both services and users.

Before starting to consider segmentation solutions, define whether this exercise is aimed at addressing segmentation globally or at a local level. Not all use cases are global and many can be addressed locally.

When examining a network space for potential segmentation we must include:

  • Services offered on the network
  • Users of the network

To keep the space a consumable size, both of these areas should be approached in the abstract. To abstract, users and services should be logically grouped and generalized.

Groupings in the users and services categories may be different across organizations, but the common thread will be to contain the amount of groupings to a manageable size.

Service Groupings

  • Are the applications all components of a larger service or environment?
  • Do the applications serve data of a similar sensitivity?
  • Are there services that feed data and don’t interact with users (IoT, OT, sensors)?

User Groupings

  • Do users have similar security profiles?
  • Do users use a similar set of applications?
  • Are users in the same area of your organization chart?
  • Have you considered access by external parties?

Info-Tech Insight

The more granular you are in the definition of the network space, the more granular you can be in your segmentation. The unfortunate corollary to this is that the difficulty of managing your end solution grows with the granularity of your segmentation.

Create appropriate policy

Understand which assets to protect and how.

Context is key in your ability to create appropriate policy. Building on the definition of the network space that has been created, context in the form of the appropriateness of communications across the space and the vulnerabilities of items within the space can be layered on.

To decide where and how segmentation might be appropriate, we must first examine the needs of communication on the network and their associated risk. Once defined, we can assess how permissive or restrictive we should be with that communication.

The minimum viable product for this exercise is to define the communication channel possibilities, then designate each possibility as one of the following:

  • Permissive – we should freely allow this traffic
  • Restricted – we should allow some of the traffic and/or control it
  • Rejected – we should not allow this traffic

Appropriate Communications

  • Should a particular group of users have access to a given service?
  • Are there external users involved in any grouping?

Potential Vulnerabilities

  • Are the systems in question continually patched/updated?
  • Are the services exposed designed with the appropriate security?

Prioritize the potential segmentation

Use risk as a guide to prioritize segmentation.

For most organizations, the primary reason for network segmentation is to improve security posture. It follows that the prioritization of initiatives and/or projects to implement segmentation should be based on risk.

When examining risk, an organization needs to consider both:

  • Impact and likelihood of visibility risk in respect to any given asset, data, or user
  • The organization’s level of risk tolerance

The assets or users that are associated with risk levels higher than the tolerance of the organization should be prioritized to be addressed.

Service Risks

  • If this service was affected by an adverse event, what would the impact on the organization be?

User Risks

  • Are the users in question FTEs as opposed to contractors or outsourced resources?
  • Is a particular user group more susceptible to compromise than others?

Info-Tech Insight

Be sure to keep this exercise relative so that a clear ranking occurs. If it turns out that everything is a priority, then nothing is a priority. When ranking things relative to others in the exercise, we ensure clear “winners” and “losers.”

Assess risk and prioritize action

1-3 hours

  1. Define a list of users and services that define the network space to be addressed. If the lists are too long, use an exercise like affinity diagramming to appropriately group them into a smaller subset.
  2. Create a matrix from the lists (put users and services along the rows and columns). In the intersecting points, label how the traffic should be treated (e.g. Permissive, Restricted, Rejected).
  3. Examine the matrix and assess the intersections for risk using the lens of impact and likelihood of an adverse event. Label the intersections for risk level with one of green (low impact/likelihood), yellow (medium impact/likelihood), or red (high impact/likelihood).
  4. Find commonalities within the medium/high areas and list the users or services as priorities to be addressed.
Input Output
  • Network, application, and security documentation
  • A prioritized list of areas to address with segmentation
Materials Participants
  • Whiteboard/Flip Charts

OR

  • Excel spreadsheet
  • Network Team
  • Application Team
  • Security Team
  • Data Team

Design segmentation

Segmentation comes in many flavors; decide which is right for the specific circumstance.

Methodology

Access control

"Learning to choose is hard. Learning to choose well is harder. And learning to choose well in a world of unlimited possibilities is harder still, perhaps too hard."

― Barry Schwartz, The Paradox of Choice: Why More Is Less

What is the best method to segment the particular user group, service, or environment in question?

How can data or user access move safely and securely between network segments?

Decide on which methods work for your circumstances

You always have options…

There are multiple lenses to look through when making the decision of what the correct segmentation method might be for any given user group or service. A potential subset could include:

  • Effort to deploy
  • Cost of the solution
  • Skills required to operate
  • Granularity of the segmentation
  • Adaptability of the solution
  • Level of automation in the solution

Info-Tech Insight

Network segmentation within an organization is rarely a one-size-fits-all proposition. Be sure to look at each situation that has been identified to need segmentation and align it with an appropriate solution. The overall number of solutions deployed has to maintain a balance between that appropriateness and the effort to manage multiple environments.

Framework to examine segmentation methods

To assess we need to understand.

To assess when technologies or methodologies are appropriate for a segmentation use case, we need to understand what those options are. We will be examining potential segmentation methods and concepts within the following framework:

WHAT

A description of the segmentation technology, method, or concept.

WHY

Why would this be used over other choices and/or in what circumstances?

HOW

A high-level overview of how this option could or would be deployed.

Notional assessments will be displayed in a sidebar to give an idea of Effort, Cost, Skills, Granularity, Adaptability, and Automation.

Implement

Notional level of effort to implement on a standard network
Cost

Relative cost of implementing this segmentation strategy
Maintain

Notional level of time and skills needed to maintain
Granularity

How granular this type of segmentation is in general
Adaptability

The ability of the solution to be easily modified or changed
Automation

The level of automation inherent in the solution

Air gap

… And never the twain shall meet.

– Rudyard Kipling, “The Ballad of East and West.”

WHAT

Air gapping is a strategy to protect portions of a network by segmenting those portions and running them on completely separate hardware from the primary network. In an air gap scenario, the segmented network cannot have connectivity to outside networks. This difference makes air gapping a very specific implementation of parallel networks (which are still segmented and run on separate hardware but can be connected through a control point).

WHY

Air gap is a traditional choice when environments need to be very secure. Examples where air gaps exist(ed) are:

  • Operational technology (OT) networks
  • Military networks
  • Critical infrastructure

HOW

Most networks are not overprovisioned to a level that physical segmentation can be done without purchasing new equipment. The major steps required for constructing an air gap include:

  • Design segmentation
  • Purchase and install new hardware
  • Cable to new hardware

The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

Info-Tech Insight

An air gapped network is the ultimate in segmentation and security … as long as the network does not require connectivity. It is unfortunately rare in today’s world that a network will stand on its own without any need for external connectivity.

VLAN

Do what you can, with what you’ve got…

– Theodore Roosevelt

WHAT

Virtual local area networks (VLANs) are a standard feature on today’s firewalls, routers, and manageable switches. This configuration option allows for network traffic to be segmented into separate virtual networks (broadcast domains) on existing hardware. This segmentation is done at layer 2 of the OSI model. All traffic will share the same hardware but be partitioned based on “tags” that the local device applies to the traffic. Because of these tags, traffic is handled separately at layer 2 of the OSI model, but traffic can pass between segments at layer 3 (e.g. IP layer).

WHY

VLANs are commonly used because most existing deployments already have the technology available without extra licensing. VLANs are also potentially used as foundational components in more complex segmentation strategies such as static or dynamic overlays.

HOW

VLANs allow for segmentation of a device at the port level. VLAN strategies are generally on a location level (e.g. most VLAN deployments are local to a site, though the same structure may be used among sites). To deploy VLANs you must:

  • Define VLAN segments
  • Assign ports appropriately

The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

Info-Tech Insight

VLANs are tried and true segmentation workhorses. The fact that they are already included in modern manageable solutions means that there is very little reason to not have some level of segmentation within a network.

Micro-segmentation

Everyone is against micromanaging, but macro managing means you’re working on the big picture but don’t understand the details.

– Henry Mintzberg

WHAT

Micro-segmentation is used to secure and control network traffic between workloads. This is a foundational technology when implementing zero trust or least-privileged access network designs. Segmentation is done at or directly adjacent to the workload (on the system or its direct network connectivity) through firewall or similar policy controls. The controls are set to only allow the network communication required to execute the workload and is limited to appropriate endpoints. This restrictive design restricts all traffic (including east-west) and reduces the attack surface.

WHY

Micro-segmentation is primarily used:

  • In server-to-server communication.
  • When lateral movement by bad actors is identified as a concern.

HOW

Micro-segmentation can be deployed at different places within the connectivity depending on the technologies used:

  • Workload/server (e.g. server firewall)
  • VM network overlay (e.g. VMware NSX)
  • Network port (e.g. ACL, firewall, ACI)
  • Cloud native (e.g. Azure Firewall)

Info-Tech Insight

Micro-segmentation is necessary in the data center to limit lateral movement. Just be sure to be thorough in defining required communication as this technology works on allowlists, not traditional blocklists.

Static overlay

Adaptability is key.

– Marc Andreessen

WHAT

Static overlays are a form of virtual segmentation that allows multiple network segments to exist on the same device. Most of these solutions will also allow for these segments to expand across multiple devices or sites, creating overlay virtual networks on top of the existing physical networks. The static nature of the solution is because the ports that participate in the overlays are statically assigned and configured. Connectivity between devices and sites is done through encapsulation and may have a dynamic component of the control plane handled through routing protocols.

WHY

Static overlays are commonly deployed when the need is to segment different use cases or areas of the organization consistently across sites while allowing easy access within the segments between sites. This could be representative of segmenting a department like Finance or extending a layer 2 segment across data centers.

HOW

Static overlays are can segment and potentially extend a layer 2 or layer 3 network. These solutions could be executed with technologies such as:

  • VXLAN (Virtual eXtensible LAN)
  • MPLS (Multi Protocol Label Switching)
  • VRF (Virtual Routing & Forwarding)

The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

Info-Tech Insight

Static overlays are commonly deployed by telecommunications providers when building out their service offerings due to the multitenancy requirements of the network.

Dynamic overlay

Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.

– George S. Patton

WHAT

A dynamic overlay segmentation solution has the ability to make security or traffic decisions based on policy. Rather than designing and hardcoding the network architecture, the policy is architected and the network makes decisions based on that policy. Differing levels of control exist in this space, but the underlying commonality is that the segmentation would be considered “software defined” (SDN).

WHY

Dynamic overlay solutions provide the most flexibility of the presented solutions. Some use cases such as BYOD or IoT devices may not be easily identified or controlled through static means. As a general rule of thumb, the less static the network is, the more dynamic your segmentation solution must be.

HOW

Policy is generally applied at the network ingress. When applying policy, which policy to be applied can be identified through different methodologies such as:

  • Authentication (e.g. 802.1x)
  • Device agents
  • Device profiling

The image contains a screenshot that demonstrates pie graphs with the notional assessments: Effort, Cost, Skills, Granularity, and Automation.

Info-Tech Insight

Dynamic overlays allow for more flexibility through its policy-based configurations. These solutions can provide the highest value when positioned where we have less control of the points within a network (e.g. BYOD scenarios).

Define how your segments will communicate

No segment is an island…

Network segmentation allows for protection of devices, users, or data through the act of separating the physical or virtual networks they are on. Counter to this protective stance, especially in today’s networks, these devices, users, or data tend to need to interact with each other outside of the neat lines we draw for them. Proper network segmentation has to allow for the transfer of assets between networks in a safe and secure manner.

Info-Tech Insight

The solutions used to facilitate the controlled communication between segments has to consider the friction to the users. If too much friction is introduced, people will try to find a way around the controls, potentially negating the security that is intended with the solution.

Potential access methods

A ship in harbor is safe, but that is not what ships are built for.

– John A. Shedd

Firewall

Two-way controlled communication

Firewalls are tried and true control points used to join networks. This solution will allow, at minimum, port-level control with some potential for deeper inspection and control beyond that.

  • Traditionally firewalls are sized to handle internet-bound (North-South) traffic. When being used between segments, (East-West) loads are usually much higher, necessitating a more powerful device.

Jump Box

A place between worlds

Also sometimes referred to as a “Bastion Host,” a jump box is a special-purpose computer/server that has been hardened and resides on multiple segments of a network. Administrators or users can log into this box and use it to securely use the tools installed to act on other segments of the network.
  • Jump box security is of utmost importance. Special care should be taken in hardening, configuration, and application installed to ensure that users cannot use the box to tunnel or traverse between the segments outside of well-defined and controlled circumstances.

Protocol Gateway

Command-level control

A protocol gateway is a specific and special subset of a firewall. Whereas a firewall is a security generalist, a protocol gateway is designed to understand and have rule-level control over the commands passing through it within defined protocols. This granularity, for example, allows for control and filtering to only allow defined OT commands to be passed to a secure SCADA network.
  • Protocol gateways are generally specific feature sets of a firewall and traditionally target OT network security as their core use case.

Network Pump

One-way data extraction

A network pump is a concept designed to allow data to be transferred from a secure network to a less secure network while still protecting against covert channels such as using the ACK within a transfer to transmit data. A network pump will consist of trusted processes and schedulers that allow for data to pass but control channels to be sufficiently modified so as to not allow security concerns.
  • Network pumps would generally be deployed in the most security demanding of environments and are generally not “off the shelf” products.

Operate and optimize

Security is not static. Monitor and iterate on policies within the environment.

Monitor

Iterate

Two in three businesses (68%) allow more employee data access than necessary.

GetApp's 2022 Data Security Survey Report

Are the segmentation efforts resulting in the expected traffic changes? Are there any anomalies that need investigation?

Using the output from the monitoring stage, refine and optimize the design by iterating on the process.

Monitor for efficacy, compliance, and the unknown

Monitor to ensure your intended results and to identify new potential risks.

Monitoring network segments

A combination of passive and active monitoring is required to ensure that:

  • The rules that have been deployed are working as expected.
  • Appropriate proof of compliance is in place for auditing and insurance purposes.
  • Environments are being monitored for unexpected traffic.

Active monitoring goes beyond the traditional gathering of information for alerts and dashboards and moves into the space of synthetic users and anomaly detection. Using these strategies helps to ensure that security is enforced appropriately and responses to issues are timely.

"We discovered in our research that insider threats are not viewed as seriously as external threats, like a cyberattack. But when companies had an insider threat, in general, they were much more costly than external incidents. This was largely because the insider that is smart has the skills to hide the crime, for months, for years, sometimes forever."

– Dr. Larry Ponemon, Chairman Ponemon Institute, at SecureWorld Boston

Info-Tech Insight

Using solutions like network detection and response (NDR) will allow for monitoring to take advantage of advanced analytical techniques like artificial intelligence (AI) and machine learning (ML). These technologies can help identify anomalies that a human might miss.

Monitoring options

It’s not what you look at that matters, it’s what you see.

– Henry David Thoreau

Traditional

Monitor cumulative change in a variable

Traditional network monitoring is a minimum viable product. With this solution variables can be monitored to give some level of validation that the segmentation solution is operating as expected. Potential areas to monitor include traffic volumes, access-list (ACL) matches, and firewall packet drops.
  • This is expected baseline monitoring. Without at least this level of visibility, it is hard to validate the solutions in place

Rules Based

Inspect traffic to find a match against a library of signatures

Rules-based systems will monitor traffic against a library of signatures and alert on any matches. These solutions are good at identifying the “known” issues on the network. Examples of these systems include security incident and event management (SIEM) and intrusion detection/prevention systems (IDS/IPS).
  • These solutions are optimally used when there are known signatures to validate traffic against.
  • They can identify known attacks and breaches.

Anomaly Detection

Use computer intelligence to compare against baseline

Anomaly detection systems are designed to baseline the network traffic then compare current traffic against that to find anomalies using technologies like Bayesian regression analysis or artificial intelligence and machine learning (AI/ML). This strategy can be useful in analyzing large volumes of traffic and identifying the “unknown unknowns.”
  • Computers can analyze large volumes of data much faster than a human. This allows these solutions to validate traffic in (near) real-time and alert on things that are out of the ordinary and would not be easily visible to a human.

Synthetic Data

Mimic potential traffic flows to monitor network reaction

Rather than wait for a bad actor to find a hole in the defenses, synthetic data can be used to mimic real-world traffic to validate configuration and segmentation. This often takes the form of real user monitoring tools, penetration testing, or red teaming.
  • Active monitoring or testing allows a proactive stance as opposed to a reactive one.

Gather feedback, assess the situation, and iterate

Take input from operating the environment and use that to optimize the process and the outcome.

Optimize through iteration

Output from monitoring must be fed back into the process of maintaining and optimizing segmentation. Network segmentation should be viewed as an ongoing process as opposed to a singular structured project.

Monitoring can and will highlight where and when the segmentation design is successful and when new traffic flows arise. If these inputs are not fed back through the process, designs will become stagnant and admins or users will attempt to find ways to circumvent solutions for ease of use.

"I think it's very important to have a feedback loop, where you're constantly thinking about what you've done and how you could be doing it better. I think that's the single best piece of advice: constantly think about how you could be doing things better and questioning yourself."

– Elon Musk, qtd. in Mashable, 2012

Info-Tech Insight

The network environment will not stay static; flows will change as often as required for the business to succeed. Take insights from monitoring the environment and integrate them into an iterative process that will maintain relevance and usability in your segmentation.

Bibliography

Andreessen, Marc. “Adaptability is key.” BrainyQuote, n.d.
Barry Schwartz. The Paradox of Choice: Why More Is Less. Harper Perennial, 18 Jan. 2005.
Capers, Zach. “GetApp’s 2022 Data Security Report—Seven Startling Statistics.” GetApp,
19 Sept. 2022.
Cisco Systems, Inc. “Cybersecurity resilience emerges as top priority as 62 percent of companies say security incidents impacted business operations.” PR Newswire, 6 Dec. 2022.
“Dynamic Network Segmentation: A Must-Have for Digital Businesses in the Age of Zero Trust.” Forescout Whitepaper, 2021. Accessed Nov. 2022.
Eaves, Johnothan. “Segmentation Strategy - An ISE Prescriptive Guide.” Cisco Community,
26 Oct. 2020. Accessed Nov. 2022.
Kambic, Dan, and Jason Fricke. “Network Segmentation: Concepts and Practices.” Carnegie Mellon University SEI Blog, 19 Oct. 2020. Accessed Nov. 2022.
Kang, Myong H., et al. “A Network Pump.” IEEE Transactions on Software Engineering, vol. 22 no. 5, May 1996.
Kipling, Rudyard. “The Ballad of East and West.” Ballads and Barrack-Room Ballads, 1892.
Mintzberg, Henry. “Everyone is against micro managing but macro managing means you're working at the big picture but don't know the details.” AZ Quotes, n.d.
Murphy, Greg. “A Reimagined Purdue Model For Industrial Security Is Possible.” Forbes Magazine, 18 Jan. 2022. Accessed Oct. 2022.
Patton, George S. “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” BrainyQuote, n.d.
Ponemon, Larry. “We discovered in our research […].” SecureWorld Boston, n.d.
Roosevelt, Theodore. “Do what you can, with what you've got, where you are.” Theodore Roosevelt Center, n.d.
Sahoo, Narendra. “How Does Implementing Network Segmentation Benefit Businesses?” Vista Infosec Blog. April 2021. Accessed Nov. 2022.
“Security Outcomes Report Volume 3.” Cisco Secure, Dec 2022.
Shedd, John A. “A ship in harbor is safe, but that is not what ships are built for.” Salt from My Attic, 1928, via Quote Investigator, 9 Dec. 2023.
Singleton, Camille, et al. “X-Force Threat Intelligence Index 2022” IBM, 17 Feb. 2022.
Accessed Nov. 2022.
Stone, Mark. “What is network segmentation? NS best practices, requirements explained.” AT&T Cyber Security, March 2021. Accessed Nov. 2022.
“The State of Breach and Attack Simulation and the Need for Continuous Security Validation: A Study of US and UK Organizations.” Ponemon Institute, Nov. 2020. Accessed Nov. 2022.
Thoreau, Henry David. “It’s not what you look at that matters, it’s what you see.” BrainyQuote, n.d.
Ulanoff, Lance. “Elon Musk: Secrets of a Highly Effective Entrepreneur.” Mashable, 13 April 2012.
“What Is Microsegmenation?” Palo Alto, Accessed Nov. 2022.
“What is Network Segmentation? Introduction to Network Segmentation.” Sunny Valley Networks, n.d.

Assess the Viability of M365-O365 Security Add-Ons

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The technical side of IT security demands the best security possible, but the business side of running IT demands that you determine what is cost-effective and can still do the job. You likely shrugged off the early iterations of Microsoft’s security efforts, but you may have heard that things have changed. Where do you start in evaluating Microsoft’s security products in terms of effectiveness? The value proposition sounds tremendous to the CFO, “free” security as part of your corporate license, but how does it truly measure up and how do you articulate your findings to the business?

Our Advice

Critical Insight

Microsoft’s security products have improved to the point where they are often ranked competitively with mainstream security products. Depending on your organization’s licensing of Office 365/Microsoft 365, some of these products are included in what you’re already paying for. That value proposition is hard to deny.

Impact and Result

Determine what is important to the business, and in what order of priority.

Take a close look at your current solution and determine what are table stakes, what features you would like to have in its replacement, and what your current solution is missing.

Consider Microsoft’s security solutions using an objective methodology. Sentiment will still be a factor, but it shouldn’t dictate the decision you make for the good of the business.

Assess the Viability of M365/O365 Security Add-Ons Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to assess the viability of M365/O365 security add-ons. Review Info-Tech’s methodology and understand the four key steps to completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Review your current state

Examine what you are licensed for, what you are paying, what you need, and what your constraints are.

  • Microsoft 365/Office 365 Security Add-Ons Assessment Tool

2. Assess your needs

Determine what is “good enough” security and assess the needs of your organization.

3. Select your path

Decide what you will go with and start planning your next steps.

[infographic]

Switching Software Vendors Overwhelmingly Drives Increased Satisfaction

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Organizations risk being locked in a circular trap of inertia from auto-renewing their software. With inertia comes complacency, leading to a decrease in overall satisfaction. Indeed, organizations are uniformly choosing to renew their software – even if they don’t like the vendor!

Our Advice

Critical Insight

Renewal is an opportunity cost. Switching poorly performing software substantially drives increased satisfaction, and it potentially lowers vendor costs in the process. To realize maximum gains, it’s essential to have a repeatable process in place.

Impact and Result

Realize the benefits of switching by using Info-Tech’s five action steps to optimize your vendor switching processes:

  1. Identify switch opportunities.
  2. Evaluate your software.
  3. Build the business case.
  4. Optimize selection method.
  5. Plan implementation.

Switching Software Vendors Overwhelmingly Drives Increased Satisfaction Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Why you should consider switching software vendors

Use this outline of key statistics to help make the business case for switching poorly performing software.

  • Switching Existing Software Vendors Overwhelmingly Drives Increased Satisfaction Storyboard

2. How to optimize your software vendor switching process

Optimize your software vendor switching processes with five action steps.

[infographic]

Optimize the Service Desk With a Shift-Left Strategy

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  • Tier 2 and 3 specialists lose time and resources working on tickets instead of more complex projects.
  • The service desk finds themselves resolving the same incidents over and over, wasting manual work on tasks that could be automated.
  • Employees expect modern, consumer-like experiences when they need help; they want to access information and resources from wherever they are and have the tools to solve their problems themselves without waiting for help.

Our Advice

Critical Insight

  • It can be difficult to overcome the mindset that difficult functions need to be escalated. Shift left involves a cultural change to the way the service desk works, and overcoming objections and getting buy-in up front is critical.
  • Many organizations have built a great knowledgebase but fail to see the value of it over time as it becomes overburdened with overlapping and out-of-date information. Knowledge capture, updating, and review must be embedded into your processes if you want to keep the knowledgebase useful.
  • Similarly, the self-service portal is often deployed out of the box with little input from end users and fails to deliver its intended benefits. The portal needs to be designed from the end user’s point of view with the goal of self-resolution if it will serve its purpose of deflecting tickets.

Impact and Result

  • Embrace a shift-left strategy by moving repeatable service desk tasks and requests into lower-cost delivery channels such as self-help tools and automation.
  • Shift work from Tier 2 and 3 support to Tier 1 through good knowledge management practices that empower the first level of support with documented solutions to recurring issues and free up more specialized resources for project work and higher value tasks.
  • Shift knowledge from the service desk to the end user by enabling them to find their own solutions. A well-designed and implemented self-service portal will result in fewer logged tickets to the service desk and empowered, satisfied end users.
  • Shift away manual repetitive work through the use of AI and automation.
  • Successfully shifting this work left can reduce time to resolve, decrease support costs, and increase end-user satisfaction.

Optimize the Service Desk With a Shift-Left Strategy Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to understand why a shift-left strategy can help to optimize your service desk, review Info-Tech's methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Prepare to shift left

Assess whether you’re ready to optimize the service desk with a shift-left strategy, get buy-in for the initiative, and define metrics to measure success.

  • Optimize the Service Desk With a Shift-Left Strategy – Phase 1: Prepare to Shift Left
  • Shift-Left Prerequisites Assessment
  • Shift-Left Strategy
  • Shift-Left Stakeholder Buy-In Presentation

2. Design shift-left model

Build strategy and identify specific opportunities to shift service support left to Level 1 through knowledge sharing and other methods, to the end-user through self-service, and to automation and AI.

  • Optimize the Service Desk With a Shift-Left Strategy – Phase 2: Design Shift Left Model
  • Shift-Left Action Plan
  • Knowledge Management Workflows (Visio)
  • Knowledge Management Workflows (PDF)
  • Self-Service Portal Checklist
  • Self-Service Resolution Workflow (Visio)
  • Self-Service Resolution Workflow (PDF)

3. Implement and communicate

Identify, track, and implement specific shift-left opportunities and document a communications plan to increase adoption.

  • Optimize the Service Desk With a Shift-Left Strategy – Phase 3: Implement & Communicate
  • Incident Management Workflow (Visio)
  • Incident Management Workflow (PDF)
[infographic]

Workshop: Optimize the Service Desk With a Shift-Left Strategy

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Prepare to Shift Left

The Purpose

Define how shift left would apply in your organization, get buy-in for the initiative, and define metrics to measure success.

Key Benefits Achieved

Defined scope and objectives for the shift-left initiative

Buy-in for the program

Metrics to keep the project on track and evaluate success

Activities

1.1 Review current service desk structure

1.2 Discuss challenges

1.3 Review shift-left model and discuss how it would apply in your organization

1.4 Complete the Shift-Left Prerequisites Assessment

1.5 Complete a RACI chart for the project

1.6 Define and document objectives

1.7 Review the stakeholder buy-in presentation

1.8 Document critical success factors

1.9 Define KPIs and metrics

Outputs

Shift-left scope

Completed shift-left prerequisites assessment

RACI chart

Defined objectives

Stakeholder buy-in presentation

Critical success factors

Metrics to measure success

2 Plan to Shift to Level 1

The Purpose

Build strategy and identify specific opportunities to shift service support left to Level 1 through knowledge sharing and other methods.

Key Benefits Achieved

Identified initiatives to shift work to Level 1

Documented knowledge management process workflows and strategy

Activities

2.1 Identify barriers to Level 1 resolution

2.2 Discuss knowledgebase challenges and areas for improvement

2.3 Optimize KB input process

2.4 Optimize KB usage process

2.5 Optimize KB review process

2.6 Discuss and document KCS strategy and roles

2.7 Document knowledge success metrics

2.8 Brainstorm additional methods of increasing FLR

Outputs

KB input workflow

KB usage workflow

KB review workflow

KCS strategy and roles

Knowledge management metrics

Identified opportunities to shift to Level 1

3 Plan to Shift to End User and Automation

The Purpose

Build strategy and identify specific opportunities to shift service support left to the end user through self-service and to automation and AI.

Key Benefits Achieved

Identified initiatives to shift work to self-service and automation

Evaluation of self-service portal and identified opportunities for improvement

Activities

3.1 Review existing self-service portal and discuss vision

3.2 Identify opportunities to improve portal accessibility, UI, and features

3.3 Evaluate the user-facing knowledgebase

3.4 Optimize the ticket intake form

3.5 Document plan to improve, communicate, and evaluate portal

3.6 Map the user experience with a workflow

3.7 Document your AI strategy

3.8 Identify candidates for automation

Outputs

Identified opportunities to improve portal

Improvements to knowledgebase

Improved ticket intake form

Strategy to communicate and measure success of portal

Self-service resolution workflow

Strategy to apply AI and automation

Identified opportunities to shift tasks to automation

4 Build Implementation and Communication Plan

The Purpose

Build an action plan to implement shift left, including a communications strategy.

Key Benefits Achieved

Action plan to track and implement shift-left opportunities

Communications plan to increase adoption

Activities

4.1 Examine process workflows for shift-left opportunities

4.2 Document shift-left-specific responsibilities for each role

4.3 Identify and track shift-left opportunities in the action plan

4.4 Brainstorm objections and responses

4.5 Document communications plan

Outputs

Incident management workflow with shift-left opportunities

Shift left responsibilities for key roles

Shift-left action plan

Objection handling responses

Communications plan

Build a Data Classification MVP for M365

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  • Resources are the primary obstacle to getting a foot hold in O365 governance, whether it is funding or FTE resources.
  • Data is segmented and is difficult to analyze when you can’t see it or manage the relationships between sources.
  • Organizations expect results early and quickly and a common obstacle is that building a proper data classification framework can take more than two years and the business can't wait that long.

Our Advice

Critical Insight

  • Data classification is the lynchpin to ANY effective governance of O/M365 and your objective is to navigate through this easily and effectively and build a robust, secure, and viable governance model.
  • Start your journey by identifying what and where your data is and how much data you have. You need to understand what sensitive data you have and where it is stored before you can protect it or govern that data.
  • Ensure there is a high-level leader who is the champion of the governance objective.

Impact and Result

  • Using least complex sensitivity labels in your classification are your building blocks to compliance and security in your data management schema; they are your foundational steps.

Build a Data Classification MVP for M365 Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Build a Data Classification MVP for M365 Deck – A guide for how to build a minimum-viable product for data classification that end users will actually use.

Discover where your data resides, what governance helps you do, and what types of data you're classifying. Then build your data and security protection baselines for your retention policy, sensitivity labels, workload containers, and both forced and unforced policies.

  • Build a Data Classification MVP for M365 Storyboard
[infographic]

Further reading

Build a Data Classification MVP for M365

Kickstart your governance with data classification users will actually use!

Executive Summary

Info-Tech Insight

  • Creating an MVP gets you started in data governance
    Information protection and governance are not something you do once and then you are done. It is a constant process where you start with the basics (a minimum-viable product or MVP) and enhance your schema over time. The objective of the MVP is reducing obstacles to establishing an initial governance position, and then enabling rapid development of the solution to address a variety of real risks, including data loss prevention (DLP), data retention, legal holds, and data labeling.
  • Define your information and protection strategy
    The initial strategy is to start looking across your organization and identifying your customer data, regulatory data, and sensitive information. To have a successful data protection strategy you will include lifecycle management, risk management, data protection policies, and DLP. All key stakeholders need to be kept in the loop. Ensure you keep track of all available data and conduct a risk analysis early. Remember, data is your highest valued intangible asset.
  • Planning and resourcing are central to getting started on MVP
    A governance plan and governance decisions are your initial focus. Create a team of stakeholders that include IT and business leaders (including Legal, Finance, HR, and Risk), and ensure there is a top-level leader who is the champion of the governance objective, which is to ensure your data is safe, secure, and not prone to leakage or theft, and maintain confidentiality where it is warranted.

Executive Summary

Your Challenge
  • Today, the amount of data companies are gathering is growing at an explosive rate. New tools are enabling unforeseen channels and ways of collaborating.
  • Combined with increased regulatory oversight and reporting obligations, this makes the discovery and management of data a massive undertaking. IT can’t find and protect the data when the business has difficulty defining its data.
  • The challenge is to build a framework that can easily categorize and classify data yet allows for sufficient regulatory compliance and granularity to be useful. Also, to do it now because tomorrow is too late.
 Common Obstacles

Data governance has several obstacles that impact a successful launch, especially if governing M365 is not a planned strategy. Below are some of the more common obstacles:

  • Resources are the primary obstacle to starting O365 governance, whether it is funding or people.
  • Data is segmented and is difficult to analyze when you can’t see it or manage the relationships between sources.
  • Organizations expect results early and quickly and a common obstacle is that building a "proper data classification framework” is a 2+ year project and the business can't wait that long.
 Info-Tech’s Approach
  • Start with the basics: build a minimum-viable product (MVP) to get started on the path to sustainable governance.
  • Identify what and where your data resides, how much data you have, and understand what sensitive data needs to be protected.
  • Create your team of stakeholders, including Legal, records managers, and privacy officers. Remember, they own the data and should manage it.
  • Categorization comes before classification, and discovery comes before categorization. Use easy-to-understand terms like high, medium, or low risk.

Info-Tech Insight

Data classification is the lynchpin to any effective governance of O/M365 and your objective is to navigate through this easily and effectively and build a robust, secure, and viable governance model. Start your journey by identifying what and where your data is and how much data do you have. You need to understand what sensitive data you have and where it is stored before you can protect or govern it. Ensure there is a high-level leader who is the champion of the governance objectives. Data classification fulfills the governance objectives of risk mitigation, governance and compliance, efficiency and optimization, and analytics.

Questions you need to ask

Four key questions to kick off your MVP.

1

Know Your Data

Do you know where your critical and sensitive data resides and what is being done with it?

Trying to understand where your information is can be a significant project.

2

Protect Your Data

Do you have control of your data as it traverses across the organization and externally to partners?

You want to protect information wherever it goes through encryption, etc.

3

Prevent Data Loss

Are you able to detect unsafe activities that prevent sharing of sensitive information?

Data loss prevention (DLP) is the practice of detecting and preventing data breaches, exfiltration, or unwanted destruction of sensitive data.

4

Govern Your Data

Are you using multiple solutions (or any) to classify, label, and protect sensitive data?

Many organizations use more than one solution to protect and govern their data, making it difficult to determine if there are any coverage gaps.

Classification tiers

Build your schema.

Pyramid visualization for classification tiers. The top represents 'Simplicity', and the bottom 'Complexity' with the length of the sides at each level representing the '# of policies' and '# of labels'. At the top level is 'MVP (Minimum-Viable Product) - Confidential, Internal (Subcategory: Personal), Public'. At the middle level is 'Regulated - Highly Confidential, Confidential, Sensitive, General, Internal, Restricted, Personal, Sub-Private, Public'. And a the bottom level is 'Government (DOD) - Top Secret (TS), Secret, Confidential, Restricted, Official, Unclassified, Clearance'

Info-Tech Insight

Deciding on how granular you go into data classification will chiefly be governed by what industry you are in and your regulatory obligations – the more highly regulated your industry, the more classification levels you will be mandated to enforce. The more complexity you introduce into your organization, the more operational overhead both in cost and resources you will have to endure and build.

Microsoft MIP Topology

Microsoft Information Protection (MIP), which is Microsoft’s Data Classification Services, is the key to achieving your governance goals. Without an MVP, data classification will be overwhelming; simplifying is the first step in achieving governance.

A diagram of multiple offerings all connected to 'MIP Data Classification Service'. Circled is 'Sensitivity Labels' with an arrow pointing back to 'MIP' at the center.
(Source: Microsoft, “Microsoft Purview compliance portal”)

Info-Tech Insight

Using least-complex sensitivity labels in your classification are your building blocks to compliance and security in your data management schema; they are your foundational steps.

MVP RACI Chart

Data governance is a "takes a whole village" kind of effort.

Clarify who is expected to do what with a RACI chart.

End User M365 Administrator Security/ Compliance Data Owner
Define classification divisions R A
Appy classification label to data – at point of creation A R
Apply classification label to data – legacy items R A
Map classification divisions to relevant policies R A
Define governance objectives R A
Backup R A
Retention R A
Establish minimum baseline A R

What and where your data resides

Data types that require classification.

 Logos for 'Microsoft', 'Office 365', and icons for each program included in that package.
M365 Workload Containers
Icon for MS Exchange. Icon for MS SharePoint.Icon for MS Teams. Icon for MS OneDrive. Icon for MS Project Online.
Email
  • Attachments
 Site Collections, Sites Sites Project Databases
Contacts Teams and Group Site Collections, Sites Libraries and Lists Sites
Metadata Libraries and Lists Documents
  • Versions
 Libraries and Lists
Teams Conversations Documents
  • Versions
 Metadata Documents
  • Versions
Teams Chats Metadata Permissions
  • Internal Sharing
  • External Sharing
 Metadata
Permissions
  • Internal Sharing
  • External Sharing
 Files Shared via Teams Chats Permissions
  • Internal Sharing
  • External Sharing

Info-Tech Insight

Knowing where your data resides will ensure you do not miss any applicable data that needs to be classified. These are examples of the workload containers; you may have others.

Discover and classify on- premises files using AIP

AIP helps you manage sensitive data prior to migrating to Office 365:
  • Use discover mode to identify and report on files containing sensitive data.
  • Use enforce mode to automatically classify, label, and protect files with sensitive data.
Can be configured to scan:
  • SMB files
  • SharePoint Server 2016, 2013
 Stock image of a laptop uploading to the cloud with a padlock and key in front of it.
  • Map your network and find over-exposed file shares.
  • Protect files using MIP encryption.
  • Inspect the content in file repositories and discover sensitive information.
  • Classify and label file per MIP policy.
 Azure Information Protection scanner helps discover, classify, label, and protect sensitive information in on-premises file servers. You can run the scanner and get immediate insight into risks with on-premises data. Discover mode helps you identify and report on files containing sensitive data (Microsoft Inside Track and CIAOPS, 2022). Enforce mode automatically classifies, labels, and protects files with sensitive data.

Info-Tech Insight

Any asset deployed to the cloud must have approved data classification. Enforcing this policy is a must to control your data.

Understanding governance

Microsoft Information Governance

Information Governance
  • Retention policies for workloads
  • Inactive and archive mailboxes

Arrow pointing down-right

Records Management
  • Retention labels for items
  • Disposition review

Arrow pointing down-left

Retention and Deletion

‹——— Connectors for Third-Party Data ———›

Information governance manages your content lifecycle using solutions to import, store, and classify business-critical data so you can keep what you need and delete what you do not. Backup should not be used as a retention methodology since information governance is managed as a “living entity” and backup is a stored information block that is “suspended in time.” Records management uses intelligent classification to automate and simplify the retention schedule for regulatory, legal, and business-critical records in your organization. It is for that discrete set of content that needs to be immutable.
(Source: Microsoft, “Microsoft Purview compliance portal”)

Retention and backup policy decision

Retention is not backup.

Info-Tech Insight

Retention is not backup. Retention means something different: “the content must be available for discovery and legal document production while being able to defend its provenance, chain of custody, and its deletion or destruction” (AvePoint Blog, 2021).

Microsoft Responsibility (Microsoft Protection) Weeks to Months Customer Responsibility (DLP, Backup, Retention Policy) Months to Years
Loss of service due to natural disaster or data center outage Loss of data due to departing employees or deactivated accounts
Loss of service due to hardware or infrastructure failure Loss of data due to malicious insiders or hackers deleting content
Short-term (30 days) user error with recycle bin/ version history (including OneDrive “File Restore”) Loss of data due to malware or ransomware
Short-term (14 days) administrative error with soft- delete for groups, mailboxes, or service-led rollback Recovery from prolonged outages
Long-term accidental deletion coverage with selective rollback

Understand retention policy

What are retention policies used for? Why you need them as part of your MVP?

Do not confuse retention labels and policies with backup.

Remember: “retention [policies are] auto-applied whereas retention label policies are only applied if the content is tagged with the associated retention label” (AvePoint Blog, 2021).

E-discovery tool retention policies are not turned on automatically.

Retention policies are not a backup tool – when you activate this feature you are unable to delete anyone.

“Data retention policy tools enable a business to:

  • “Decide proactively whether to retain content, delete content, or retain and then delete the content when needed.
  • “Apply a policy to all content or just content meeting certain conditions, such as items with specific keywords or specific types of sensitive information.
  • “Apply a single policy to the entire organization or specific locations or users.
  • “Maintain discoverability of content for lawyers and auditors, while protecting it from change or access by other users. […] ‘Retention Policies’ are different than ‘Retention Label Policies’ – they do the same thing – but a retention policy is auto-applied, whereas retention label policies are only applied if the content is tagged with the associated retention label.

“It is also important to remember that ‘Retention Label Policies’ do not move a copy of the content to the ‘Preservation Holds’ folder until the content under policy is changed next.” (Source: AvePoint Blog, 2021)

Definitions

Data classification is a focused term used in the fields of cybersecurity and information governance to describe the process of identifying, categorizing, and protecting content according to its sensitivity or impact level. In its most basic form, data classification is a means of protecting your data from unauthorized disclosure, alteration, or destruction based on how sensitive or impactful it is.

Once data is classified, you can then create policies; sensitive data types, trainable classifiers, and sensitivity labels function as inputs to policies. Policies define behaviors, like if there will be a default label, if labeling is mandatory, what locations the label will be applied to, and under what conditions. A policy is created when you configure Microsoft 365 to publish or automatically apply sensitive information types, trainable classifiers, or labels.

Sensitivity label policies show one or more labels to Office apps (like Outlook and Word), SharePoint sites, and Office 365 groups. Once published, users can apply the labels to protect their content.

Data loss prevention (DLP) policies help identify and protect your organization's sensitive info (Microsoft Docs, April 2022). For example, you can set up policies to help make sure information in email and documents is not shared with the wrong people. DLP policies can use sensitive information types and retention labels to identify content containing information that might need protection.

Retention policies and retention label policies help you keep what you want and get rid of what you do not. They also play a significant role in records management.

Data examples for MVP classification

  • Examples of the type of data you consider to be Confidential, Internal, or Public.
  • This will help you determine what to classify and where it is.
Internal Personal, Employment, and Job Performance Data
  • Social Security Number
  • Date of birth
  • Marital status
  • Job application data
  • Mailing address
  • Resume
  • Background checks
  • Interview notes
  • Employment contract
  • Pay rate
  • Bonuses
  • Benefits
  • Performance reviews
  • Disciplinary notes or warnings
Confidential Information
  • Business and marketing plans
  • Company initiatives
  • Customer information and lists
  • Information relating to intellectual property
  • Invention or patent
  • Research data
  • Passwords and IT-related information
  • Information received from third parties
  • Company financial account information
  • Social Security Number
  • Payroll and personnel records
  • Health information
  • Self-restricted personal data
  • Credit card information
Internal Data
  • Sales data
  • Website data
  • Customer information
  • Job application data
  • Financial data
  • Marketing data
  • Resource data
Public Data
  • Press releases
  • Job descriptions
  • Marketing material intended for general public
  • Research publications

New container sensitivity labels (MIP)

New container sensitivity labels

Public Private
Privacy
  1. Membership to group is open; anyone can join
  2. “Everyone except external guest” ACL onsite; content available in search to all tenants
  1. Only owner can add members
  2. No access beyond the group membership until someone shares it or changes permissions
Allowed Not Allowed
External guest policy
  1. Membership to group is open; anyone can join
  2. “Everyone except external guest” ACL onsite; content available in search to all tenants
  1. Only owner can add members
  2. No access beyond the group membership until someone shares it or changes permissions

What users will see when they create or label a Team/Group/Site

Table of what users will see when they create or label a team/group/site highlighting 'External guest policy' and 'Privacy policy options' as referenced above.
(Source: Microsoft, “Microsoft Purview compliance portal”)

Info-Tech Insights

Why you need sensitivity container labels:
  • Manage privacy of Teams Sites and M365 Groups
  • Manage external user access to SPO sites and teams
  • Manage external sharing from SPO sites
  • Manage access from unmanaged devices

Data protection and security baselines

Data Protection Baseline

“Microsoft provides a default assessment in Compliance Manager for the Microsoft 365 data protection baseline" (Microsoft Docs, June 2022). This baseline assessment has a set of controls for key regulations and standards for data protection and general data governance. This baseline draws elements primarily from NIST CSF (National Institute of Standards and Technology Cybersecurity Framework) and ISO (International Organization for Standardization) as well as from FedRAMP (Federal Risk and Authorization Management Program) and GDPR (General Data Protection Regulation of the European Union).

Security Baseline

The final stage in M365 governance is security. You need to implement a governance policy that clearly defines storage locations for certain types of data and who has permission to access it. You need to record and track who accesses content and how they share it externally. “Part of your process should involve monitoring unusual external sharing to ensure staff only share documents that they are allowed to” (Rencore, 2021).

Info-Tech Insights

  • Controls are already in place to set data protection policy. This assists in the MVP activities.
  • Finally, you need to set your security baseline to ensure proper permissions are in place.

Prerequisite baseline

Icon of crosshairs.
Security

MFA or SSO to access from anywhere, any device

Banned password list

BYOD sync with corporate network

Icon of a group.
Users

Sign out inactive users automatically

Enable guest users

External sharing

Block client forwarding rules

Icon of a database.
Resources

Account lockout threshold

OneDrive

SharePoint

Icon of gears.
Controls

Sensitivity labels, retention labels and policies, DLP

Mobile application management policy

Building baselines

Sensitivity Profiles: Public, Internal, Confidential; Subcategory: Highly Confidential

Microsoft 365 Collaboration Protection Profiles

Sensitivity Public External Collaboration Internal Highly Confidential
Description Data that is specifically prepared for public consumption Not approved for public consumption, but OK for external collaboration External collaboration highly discouraged and must be justified Data of the highest sensitivity: avoid oversharing, internal collaboration only
Label details
  • No content marking
  • No encryption
  • Public site
  • External collaboration allowed
  • Unmanaged devices: allow full access
  • No content marking
  • No encryption
  • Private site
  • External collaboration allowed
  • Unmanaged devices: allow full access
  • Content marking
  • Encryption
  • Private site
  • External collaboration allowed but monitored
  • Unmanaged devices: limited web access
  • Content marking
  • Encryption
  • Private site
  • External collaboration disabled
  • Unmanaged devices: block access
Teams or Site details Public Team or Site open discovery, guests are allowed Private Team or Site members are invited, guests are allowed Private Team or Site members are invited, guests are not allowed
DLP None Warn Block

Please Note: Global/Compliance Admins go to the 365 Groups platform, the compliance center (Purview), and Teams services (Source: Microsoft Documentation, “Microsoft Purview compliance documentation”)

Info-Tech Insights

  • Building baseline profiles will be a part of your MVP. You will understand what type of information you are addressing and label it accordingly.
  • Sensitivity labels are a way to classify your organization's data in a way that specifies how sensitive the data is. This helps you decrease risks in sharing information that shouldn't be accessible to anyone outside your organization or department. Applying sensitivity labels allows you to protect all your data easily.

MVP activities

PRIMARY
ACTIVITIES 		Define Your Governance
The objective of the MVP is reducing barriers to establishing an initial governance position, and then enabling rapid progression of the solution to address a variety of tangible risks, including DLP, data retention, legal holds, and labeling.
Decide on your classification labels early.

CATEGORIZATION





CLASSIFICATION

MVP
Data Discovery and Management
AIP (Azure Information Protection) scanner helps discover, classify, label, and protect sensitive information in on-premises file servers. You can run the scanner and get immediate insight into risks with on-premises data.
Baseline Setup
Building baseline profiles will be a part of your MVP. You will understand what type of information you are addressing and label it accordingly. Microsoft provides a default assessment in Compliance Manager for the Microsoft 365 data protection baseline.
Default M365 settings
Microsoft provides a default assessment in Compliance Manager for the Microsoft 365 data protection baseline. This baseline assessment has a set of controls for key regulations and standards for data protection and general data governance.
SUPPORT
ACTIVITIES 		Retention Policy
Retention policy is auto-applied. Decide whether to retain content, delete content, or retain and then delete the content. 		Sensitivity Labels
Automatically enforce policies on groups through labels; classify groups. 		Workload Containers
M365: SharePoint, Teams, OneDrive, and Exchange, where your data is stored for labels and policies. 		Unforced Policies
Written policies that are not enforceable by controls in Compliance Manager such as acceptable use policy. 		Forced Policies
Restrict sharing controls to outside organizations. Enforce prefix or suffix to group or team names.

ACME Company MVP for M/O365

PRIMARY
ACTIVITIES		Define Your Governance


Focus on ability to use legal hold and GDPR compliance.

CATEGORIZATION





CLASSIFICATION

MVP
Data Discovery and Management


Three classification levels (public, internal, confidential), which are applied by the user when data is created. Same three levels are used for AIP to scan legacy sources.

Baseline Setup


All data must at least be classified before it is uploaded to an M/O365 cloud service.

Default M365 settings


Turn on templates 1 8 the letter q and the number z

SUPPORT
ACTIVITIES		Retention Policy


Retention policy is auto-applied. Decide whether to retain content, delete content, or retain and then delete the content.

Sensitivity Labels


Automatically enforce policies on groups through labels; classify groups.

Workload Containers


M365: SharePoint, Teams, OneDrive, and Exchange, where your data is stored for labels and policies.

Unforced Policies


Written policies that are not enforceable by controls in Compliance Manager such as acceptable use policy.

Forced Policies


Restrict sharing controls to outside organizations. Enforce prefix or suffix to group or team names.

Related Blueprints

Govern Office 365

Office 365 is as difficult to wrangle as it is valuable. Leverage best practices to produce governance outcomes aligned with your goals.

Map your organizational goals to the administration features available in the Office 365 console. Your governance should reflect your requirements.

Migrate to Office 365 Now

Jumping into an Office 365 migration project without careful thought of the risks of a cloud migration will lead to project halt and interruption. Intentionally plan in order to expose risk and to develop project foresight for a smooth migration.

Microsoft Teams Cookbook

Remote work calls for leveraging your Office 365 license to use Microsoft Teams – but IT is unsure about best practices for governance and permissions. Moreover, IT has few resources to help train end users with Teams best practices

IT Governance, Risk & Compliance

Several blueprints are available on a broader topic of governance, from Make Your IT Governance Adaptable to Improve IT Governance to Drive Business Results and Build an IT Risk Management Program.

Bibliography

“Best practices for sharing files and folders with unauthenticated users.” Microsoft Build, 28 April 2022. Accessed 2 April 2022.

“Build and manage assessments in Compliance Manager.” Microsoft Docs, 15 June 2022. Web.

“Building a modern workplace with Microsoft 365.” Microsoft Inside Track, n.d. Web.

Crane, Robert. “June 2020 Microsoft 365 Need to Know Webinar.” CIAOPS, SlideShare, 26 June 2020. Web.

“Data Classification: Overview, Types, and Examples.” Simplilearn, 27 Dec. 2021. Accessed 11 April 2022.

“Data loss prevention in Exchange Online.” Microsoft Docs, 19 April 2022. Web.

Davies, Nahla. “5 Common Data Governance Challenges (and How to Overcome Them).” Dataversity. 25 October 2021. Accessed 5 April 2022.

“Default labels and policies to protect your data.” Microsoft Build, April 2022. Accessed 3 April 2022.

M., Peter. "Guide: The difference between Microsoft Backup and Retention." AvePoint Blog, 9 Oct. 2021. Accessed 4 April 2022.

Meyer, Guillaume. “Sensitivity Labels: What They Are, Why You Need Them, and How to Apply Them.” nBold, 6 October 2021. Accessed 2 April 2022.

“Microsoft 365 guidance for security & compliance.” Microsoft, 27 April 2022. Accessed 28 April 2022.

“Microsoft Purview compliance portal.” Microsoft, 19 April 2022. Accessed 22 April 2022.

“Microsoft Purview compliance documentation.” Microsoft, n.d. Accessed 22 April 2022.

“Microsoft Trust Center: Products and services that run on trust.” Microsoft, 2022. Accessed 3 April 2022.

“Protect your sensitive data with Microsoft Purview.” Microsoft Build, April 2022. Accessed 3 April 2022.

Zimmergren, Tobias. “4 steps to successful cloud governance in Office 365.” Rencore, 9 Sept. 2021. Accessed 5 April 2022.

Integrate IT Risk Into Enterprise Risk

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  • Parent Category Name: IT Governance, Risk & Compliance
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  • IT risks, when considered, are identified and classified separately from the enterprise-wide perspective.
  • IT is expected to own risks over which they have no authority or oversight.
  • Poor behaviors, such as only considering IT risks when conducting compliance or project due diligence, have been normalized.

Our Advice

Critical Insight

  • Stop avoiding risk – integrate it. This provides a holistic view of uncertainty for the organization to drive innovative new approaches to optimize the organization’s ability to respond to risk.

Impact and Result

  • Understand gaps in the organization’s current approach to risk management practices.
  • Establish a standardized approach for how IT risks impact the enterprise as a whole.
  • Drive a risk-aware organization toward innovation and consider alternative options for how to move forward.
  • Integrate IT risks into the foundational risk practice.

Integrate IT Risk Into Enterprise Risk Research & Tools

Integrated Risk Management Capstone – A framework for how IT risks can be integrated into your organization’s enterprise risk management program to enable strategic risk-informed decisions.

This is a capstone blueprint highlighting the benefits of an integrated risk management program that uses risk information and data to inform strategic decision making. Throughout this research you will gain insight into the five core elements of integrating risk through assessing, governing, defining the program, defining the process, and implementing.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

  • Integrate IT Risk Into Enterprise Risk Capstone
  • Integrated Risk Maturity Assessment
  • Risk Register Tool

Infographic

Further reading

Integrate IT Risk Into Enterprise Risk

Don’t fear IT risks, integrate them.

EXECUTIVE BRIEF

Analyst Perspective

Having siloed risks is risky business for any enterprise.

Photo of Valence Howden, Principal Research Director, CIO Practice.
Valence Howden
Principal Research Director, CIO Practice 		Photo of Petar Hristov Research Director, Security, Privacy, Risk & Compliance.
Petar Hristov
Research Director, Security, Privacy, Risk & Compliance 		Photo of Ian Mulholland Research Director, Security, Risk & Compliance.
Ian Mulholland
Research Director, Security, Risk & Compliance 		Photo of Brittany Lutes, Senior Research Analyst, CIO Practice.
Brittany Lutes
Senior Research Analyst, CIO Practice 		Photo of Ibrahim Abdel-Kader, Research Analyst, CIO Practice
Ibrahim Abdel-Kader
Research Analyst, CIO Practice

Every organization has a threshold for risk that should not be exceeded, whether that threshold is defined or not.

In the age of digital, information and technology will undoubtedly continue to expand beyond the confines of the IT department. As such, different areas of the organization cannot address these risks in silos. A siloed approach will produce different ways of identifying, assessing, responding to, and reporting on risk events. Integrated risk management is about embedding IT uncertainty to inform good decision making across the organization.

When risk is integrated into the organization's enterprise risk management program, it enables a single view of all risks and the potential impact of each risk event. More importantly, it provides a consistent view of the risk event in relation to uncertainty that might have once been seemingly unrelated to IT.

And all this can be achieved while remaining within the enterprise’s clearly defined risk appetite.

Executive Summary

Your Challenge

Most organizations fail to integrate IT risks into enterprise risks:

  • IT risks, when considered, are identified and classified separately from the enterprise-wide perspective.
  • IT is expected to own risks over which they have no authority or oversight.
  • Poor behaviors, such as only considering IT risks when conducting compliance or project due diligence, have been normalized.

Common Obstacles

IT leaders have to overcome these obstacles when it comes to integrating risk:

  • Making business leaders aware of, involved in, and able to respond to all enterprise risks.
  • A lack of data or information being used to support a holistic risk management process.
  • A low level of enterprise risk maturity.
  • A lack of risk management capabilities.

Info-Tech’s Approach

By leveraging the Info-Tech Integrated Risk approach, your business can better address and embed risk by:

  • Understanding gaps in the organization’s current approach to risk management practices.
  • Establishing a standardized approach for how IT risks impact the enterprise as a whole.
  • Driving a risk-aware organization toward innovation and considering alternative options for how to move forward.
  • Helping integrate IT risks into the foundational risk practice.

Info-Tech Insight

Stop avoiding risk – integrate it. This provides a holistic view of uncertainty for the organization to drive innovative new approaches to optimize its ability to respond to risk.

What is integrated risk management?

  • Integrated risk management is the process of ensuring all forms of risk information, including information and technology, are considered and included in the enterprise’s risk management strategy.
  • It removes the siloed approach to classifying risks related to specific departments or areas of the organization, recognizing that each of those risks is a threat to the overarching enterprise.
  • Aggregating the different threats or uncertainty that might exist within an organization allows for informed decisions to be made that align to strategic goals and continue to drive value back to the business.
  • By holistically considering the different risks, the organization can make informed decisions on the best course of action that will reduce any negative impacts associated with the uncertainty and increase the overall value.

Enterprise Risk Management (ERM)

  • IT
  • Security
  • Digital
  • Vendor/Third Party
  • Other

Enterprise risk management is the practice of identifying and addressing risks to your organization and using risk information to drive better decisions and better opportunities.

IT risk is enterprise risk

Multiple types of risk, 'Finance', 'IT', 'People', and 'Digital', funneling into 'ENTERPRISE RISKS'. IT risks have a direct and often aggregated impact on enterprise risks and opportunities in the same way other business risks can. This relationship must be understood and addressed through integrated risk management to ensure a consistent approach to risk.

Your challenge

Embedding IT risks into the enterprise risk management program is challenging because:

  • Most organizations classify risks based on the departments or areas of the business where the uncertainty is likely to happen.
  • Unnecessary expectations are placed on the IT department to own risks over which they have no authority or oversight.
  • Risks are often only identified when conducting due diligence for a project or ensuring compliance with regulations and standards.

Risk-mature organizations have a unique benefit in that they often have established an overarching governance framework and embedded risk awareness into the culture.

35% — Only 35% of organizations had embraced ERM in 2020. (Source: AICPA and NC State Poole College of Management)

12% — Only 12% of organizations are leveraging risk as a tool to their strategic advantage. (Source: AICPA and NC State Poole College of Management)

Common obstacles

These barriers make integrating IT risks difficult to address for many organizations:

  • IT risks are not seen as enterprise risks.
  • The organization’s culture toward risk is not defined.
  • The organization’s appetite and threshold for risk are not defined.
  • Each area of the organization has a different method of identifying, assessing, and responding to risk events.
  • Access to reliable and informative data to support risk management is difficult to obtain.
  • Leadership does not see the business value of integrating risk into a single management program.
  • The organization’s attitudes and behaviors toward risk contradict the desired and defined risk culture.
  • Skills, training, and resources to support risk management are lacking, let alone those to support integrated risk management.

Integrating risks has its challenges

62% — Accessing and disseminating information is the main challenge for 62% of organizations maturing their organizational risk management. (Source: OECD)

20-28% — Organizations with access to machine learning and analytics to address future risk events have 20 to 28% more satisfaction. (Source: Accenture)

Integrate Risk and Use It to Your Advantage

Accelerate and optimize your organization by leveraging meaningful risk data to make intelligent enterprise risk decisions.

Risk management is more than checking an audit box or demonstrating project due diligence.

Risk Drivers
  • Audit & compliance
  • Preserve value & avoid loss
  • Previous risk impact driver
  • Major transformation
  • Strategic opportunities
 Arrow pointing right. Only 7% of organizations are in a “leading” or “aspirational” level of risk maturity. (OECD, 2021) 63% of organizations struggle when it comes to defining their appetite toward strategy related risks. (“Global Risk Management Survey,” Deloitte, 2021) Late adopters of risk management were 70% more likely to use instinct over data or facts to inform an efficient process. (Clear Risk, 2020) 55% of organizations have little to no training on ERM to properly implement such practices. (AICPA, NC State Poole College of Management, 2021)
1. Assess Enterprise Risk Maturity 3. Build a Risk Management Program Plan 4. Establish Risk Management Processes 5. Implement a Risk Management Program
2. Determine Authority with Governance
Unfortunately, less than 50% of those in risk focused roles are also in a governance role where they have the authority to provide risk oversight. (Governance Institute of Australia, 2020)
IT can improve the maturity of the organization’s risk governance and help identify risk owners who have authority and accountability.

Governance and related decision making is optimized with integrated and aligned risk data.

List of 'Integrated Risk Maturity Categories': '1. Context & Strategic Direction', '2. Risk Culture and Authority', '3. Risk Management Process', and '4. Risk Program Optimization'. The five types of a risk in Enterprise Risk Management.

ERM incorporates the different types of risk, including IT, security, digital, vendor, and other risk types.

The program plan is meant to consider all the major risk types in a unified approach.

The 'Risk Process' cycle starting with '1. Identify', '2. Assess', '3. Respond', '4. Monitor', '5. Report', and back to the beginning. Implementation of an integrated risk management program requires ongoing access to risk data by those with decision making authority who can take action.

Integrated Risk Mapping — Downside Risk Focus

A diagram titled 'Risk and Controls' beginning with 'Possible Sources' and a list of sources, 'Control Activities' to prevent, the 'RISK EVENT', 'Recovery Activities' to recover, and 'Possible Repercussions' with a list of ramifications.

Integrated Risk Mapping — Downside and Upside Risk

Third-Party Risk Example

Example of a third-party risk mapped onto the diagram on the previous slide, but with potential upsides mapped out as well. The central risk event is 'Vendor exposes private customer data'. Possible Sources of the downside are 'External Attack' with likelihood prevention method 'Define security standard requirements for vendor assessment' and 'Exfiltration of data through fourth-party staff' with likelihood prevention method 'Ensure data is properly classified'. Possible Sources of the upside are 'Application rationalization' with likelihood optimization method 'Reduce number of applications in environment' and 'Review vendor assessment practices' with likelihood optimization method 'Improve vendor onboarding'. Possible Repercussions on the downside are 'Organization unable to operate in jurisdiction' with impact minimization method 'Engage in-house risk mitigation responses' and 'Fines levied against organization' with impact minimization method 'Report incident to any regulators'. Possible Repercussions on the upside are 'Easier vendor integration and management' with impact utilization method 'Improved vendor onboarding practices' and 'Able to bid on contracts with these requirements' with impact utilization method 'Vendors must provide attestations (e.g. SOC or CMMC)'.

Insight Summary

Overarching insight

Stop fearing risk – integrate it. Integration leads to opportunities for organizations to embrace innovation and new digital technologies as well as reducing operational costs and simplifying reporting.

Govern risk strategically

Governance of risk management for information- and technology-related events is often misplaced. Just because it's classified as an IT risk does not mean it shouldn’t be owned by the board or business executive.

Assess risk maturity

Integrating risk requires a baseline of risk maturity at the enterprise level. IT can push integrating risks, but only if the enterprise is willing to adopt the attitudes and behaviors that will drive the integrated risk approach.

Manage risk

It is not a strategic decision to have different areas of the organization manage the risks perceived to be in their department. It’s the easy choice, but not the strategic one.

Implement risk management

Different areas of an enterprise apply risk management processes differently. Determining a single method for identification, assessment, response, and monitoring can ensure successful implementation of enterprise risk management.

Tactical insight

Good risk management will consider both the positives and negatives associated with a risk management program by recognizing both the upside and downside of risk event impact and likelihood.

Integrated risk benefits

IT Benefits

  • IT executives have a responsibility but not accountability when it comes to risk. Ensure the right business stakeholders have awareness and ability to make informed risk decisions.
  • Controls and responses to risks that are within the “IT” realm will be funded and provided with sufficient support from the business.
  • The business respects and values the role of IT in supporting the enterprise risk program, elevating its role into business partner.

Business Benefits

  • Business executives and boards can make informed responses to the various forms of risk, including those often categorized as “IT risks.”
  • The compounding severity of risks can be formally assessed and ideally quantified to provide insight into how risks’ ramifications can change based on scenarios.
  • Risk-informed decisions can be used to optimize the business and drive it toward adopting innovation as a response to risk events.
  • Get your organization insured against cybersecurity threats at the lowest premiums possible.

Measure the value of integrating risk

  • Reduce Operating Costs

    • Organizations can reduce their risk operating costs by 20 to 30% by adopting enterprise-wide digital risk initiatives (McKinsey & Company).

  • Increase Cybersecurity Threat Preparedness

    • Increase the organization’s preparedness for cybersecurity threats. 79% of organizations that were impacted by email threats in 2020 were not prepared for the hit (Diligent)

  • Increase Risk Management’s Impact to Drive Strategic Value

    • Currently, only 3% of organizations are extensively using risk management to drive their unique competitive advantage, compared to 35% of companies who do not use it at all (AICPA & NC State Poole College of Management).

  • Reduce Lost Productivity for the Enterprise

    • Among small businesses, 76% are still not considering purchasing cyberinsurance in 2021, despite the fact that ransomware attacks alone cost Canadian businesses $5.1 billion in productivity in 2020 (Insurance Bureau of Canada, 2021).

“31% of CIO’s expected their role to expand and include risk management responsibilities.” (IDG “2021 State of the CIO,” 2021)

Make integrated risk management sustainable

58%

Focus not just on the preventive risk management but also the value-creating opportunities. With 58% of organizations concerned about disruptive technology, it’s an opportunity to take the concern and transform it into innovation. (Accenture)

70%

Invest in tools that have data and analytics features. Currently, “gut feelings” or “experience” inform the risk management decisions for 70% of late adopters. (Clear Risk)

54%

Align to the strategic vision of the board and CEO, given that these two roles account for 54% of the accountability associated with extended enterprise risk management. (Extended Enterprise Risk Management Survey, 2020,” Deloitte)

63%

Include IT leaders in the risk committee to help informed decision making. Currently 63% of chief technology officers are included in the C‑suite risk committee. (AICPA & NC State Poole College of Management)

Successful adoption of integrated risk management is often associated with these key elements.

Assessment

Assess your organization’s method of addressing risk management to determine if integrated risk is possible

Assessing the organization’s risk maturity

Mature or not, integrated risk management should be a consideration for all organizations

The first step to integrating risk management within the enterprise is to understand the organization’s readiness to adopt practices that will enable it to successfully integrate information.

In 2021, we saw enterprise risk management assessments become one of the most common trends, particularly as a method by which the organization can consolidate the potential impacts of uncertainties or threats (Lawton, 2021). A major driver for this initiative was the recognition that information and technology not only have enterprise-wide impacts on the organization’s risk management but that IT has a critical role in supporting processes that enable effective access to data/information.

A maturity assessment has several benefits for an organization: It ensures there is alignment throughout the organization on why integrated risk is the right approach to take, it recognizes the organization’s current risk maturity, and it supports the organization in defining where it would like to go.

Pie chart titled 'Organizational Risk Management Maturity Assessment Results' showing just under half 'Progressing', a third 'Established', a seventh 'Emerging', and a very small portion 'Leading or Aspirational'.

Integrated Risk Maturity Categories

 Semi-circle with colored points indicating four categories.

1

Context & Strategic Direction Understand the organization’s main objectives and how risk can support or enhance those objectives.

2

Risk Culture and Authority Examine if risk-based decisions are being made by those with the right level of authority and if the organization’s risk appetite is embedded in the culture.

3

Risk Management Process Determine if the current process to identify, assess, respond to, monitor, and report on risks is benefitting the organization.

4

Risk Program Optimization Consider opportunities where risk-related data is being gathered, reported, and used to make informed decisions across the enterprise.

Maturity should inform your approach to risk management

The outcome of the risk maturity assessment should inform how risk management is approached within the organization.

A row of waves starting light and small and becoming taller and darker in steps. The levels are 'Non-existent', 'Basic', 'Partially Integrated', 'Mostly Integrated', 'Fully Integrated', and 'Optimized'.

For organizations with a low maturity, remaining superficial with risk will offer more benefits and align to the enterprise’s risk tolerance and appetite. This might mean no integrated risk is taking place.

However, organizations that have higher risk maturity should begin to integrate risk information. These organizations can identify the nuances that would affect the severity and impact of risk events.

Integrated Risk Maturity Assessment

The purpose of the Integrated Risk Maturity Assessment is to assess the organization's current maturity and readiness for integrated risk management (IRM).

Frequently and continually assessing your organization’s maturity toward integrated risk ensures the right risk management program can be adopted by your organization.

Integrated Risk Maturity Assessment

A simple tool to understand if your organization is ready to embrace integrated risk management by measuring maturity across four key categories: Context & Strategic Direction, Risk Culture & Authority, Risk Management Process, and Risk Program Optimization

Sample of the Integrated Risk Maturity Assessment deliverable.

Use the results from this integrated risk maturity assessment to determine the type of risk management program that can and should be adopted by your organization.

Some organizations will need to remain siloed and focused on IT risk management only, while others will be able to integrate risk-related information to start enabling automatic controls that respond to this data.

Manage Third-Party Service Security Outsourcing

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  • Parent Category Name: Security Processes & Operations
  • Parent Category Link: /security-processes-and-operations
  • A lack of high-skill labor increases the cost of internal security, making outsourcing more appealing.
  • It is unclear what processes could or should be outsourced versus what functions should remain in-house.
  • It is not feasible to have 24/7/365 monitoring in-house for most firms.

Our Advice

Critical Insight

  • You are outsourcing support, not accountability, unless you preface that with your customer.
  • For most of you, you won’t have a choice – you’ll have to outsource high-end security skills to meet future needs.
  • Third-party service providers may be able to more effectively remediate threats because of their large, disparate customer base and wider scope.

Impact and Result

  • Documented obligations and processes. This will allow you to determine which solution (outsourcing vs. insourcing) allows for the best use of resources, and maintains your brand reputation.
  • A list of variables and features to rank potential third-party providers vs. internal delivery to find which solution provides the best fit for your organization.
  • Current limitations of your environment and the limitations of third parties identified for the environments you are looking to mature.
  • Security responsibilities determined that can be outsourced, and which should be outsourced in order to gain resource allocation and effectiveness, and to improve your overall security posture.
  • The limitations or restrictions for third-party usage understood.

Manage Third-Party Service Security Outsourcing Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to understand how to avoid common mistakes when it comes to outsourcing security, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. What to outsource

Identify different responsibilities/functions in your organization and determine which ones can be outsourced. Complete a cost analysis.

  • Manage Third-Party Service Security Outsourcing – Phase 1: What to Outsource
  • Insourcing vs. Outsourcing Costing Tool

2. How to outsource

Identify a list of features for your third-party provider and analyze.

  • Manage Third-Party Service Security Outsourcing – Phase 2: How to Outsource
  • MSSP Selection Tool
  • Checklist for Third-Party Providers

3. Manage your third-party provider

Understand how to align third-party providers to your organization.

  • Manage Third-Party Service Security Outsourcing – Phase 3: Manage Your Third-Party Provider
  • Security Operations Policy for Third-Party Outsourcing
  • Third-Party Security Policy Charter Template
[infographic]

Build a Data Warehouse

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  • Parent Category Name: Big Data
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  • Relational data warehouses, although reliable, centralized repositories for corporate data, were not built to handle the speed and volume of data and analytics today.
  • IT is under immense pressure from business units to provide technology that will yield greater agility and insight.
  • While some organizations are benefitting from modernization technologies, the majority of IT departments are unfamiliar with the technologies and have not yet defined clear use cases.

Our Advice

Critical Insight

  • The vast majority of your corporate data is not being properly leveraged. Modernize the data warehouse to get value from the 80% of unstructured data that goes unused.
  • Avoid rip and replace. Develop a future state that complements your existing data warehouse with emerging technologies.
  • Be flexible in your roadmap. Create an implementation roadmap that’s incremental and adapts to changing business priorities.

Impact and Result

  • Establish both the business and IT perspectives of today’s data warehouse environment.
  • Explore the art-of-the-possible. Don’t get stuck trying to gather technical requirements from business users who don’t know what they don’t know. Use Info-Tech’s interview guide to discuss the pains of the current environment, and more importantly, where stakeholders want to be in the future.
  • Build an internal knowledgebase with respect to emerging technologies. The technology landscape is constantly shifting and often difficult for IT staff to keep track of. Use Info-Tech’s Data Warehouse Modernization Technology Education Deck to ensure that IT is able to appropriately match the right tools to the business’ use cases.
  • Create a compelling business case to secure investment and support.

Build a Data Warehouse Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should be looking to modernize the relational data warehouse, review Info-Tech’s framework for identifying modernization opportunities, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Assess the current data warehouse environment

Review the business’ perception and architecture of the current data warehouse environment.

  • Drive Business Innovation With a Modernized Data Warehouse Environment – Phase 1: Assess the Current Data Warehouse Environment
  • Data Warehouse Maturity Assessment Tool

2. Define modernization drivers

Collaborate with business users to identify the strongest motivations for data warehouse modernization.

  • Drive Business Innovation With a Modernized Data Warehouse Environment – Phase 2: Define Modernization Drivers
  • Data Warehouse Modernization Stakeholder Interview Guide
  • Data Warehouse Modernization Technology Education Deck
  • Data Warehouse Modernization Initiative Building Tool

3. Create the modernization future state

Combine business ideas with modernization initiatives and create a roadmap.

  • Drive Business Innovation With a Modernized Data Warehouse Environment – Phase 3: Create the Modernization Future State
  • Data Warehouse Modernization Technology Architectural Template
  • Data Warehouse Modernization Deployment Plan
[infographic]

Workshop: Build a Data Warehouse

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Assess the Current Data Warehouse Environment

The Purpose

Discuss the general project overview for data warehouse modernization.

Establish the business and IT perspectives of the current state.

Key Benefits Achieved

Holistic understanding of the current data warehouse.

Business user engagement from the start of the project.

Activities

1.1 Review data warehouse project history.

1.2 Evaluate data warehouse maturity.

1.3 Draw architecture diagrams.

1.4 Review supporting data management practices.

Outputs

Data warehouse maturity assessment

Data architecture diagrams

2 Explore Business Opportunities

The Purpose

Conduct a user workshop session to elicit the most pressing needs of business stakeholders.

Key Benefits Achieved

Modernization technology selection is directly informed by business drivers.

In-depth IT understanding of the business pains and opportunities.

Activities

2.1 Review general trends and drivers in your industry.

2.2 Identify primary business frustrations, opportunities, and risks.

2.3 Identify business processes to target for modernization.

2.4 Capture business ideas for the future state.

Outputs

Business ideas for modernization

Defined strategic direction for data warehouse modernization

3 Review the Technology Landscape

The Purpose

Educate IT staff on the most common technologies for data warehouse modernization.

Key Benefits Achieved

Improved ability for IT to match technology with business ideas.

Activities

3.1 Appoint Modernization Advisors.

3.2 Hold an open education and discussion forum for modernization technologies.

Outputs

Modernization Advisors identified

Modernization technology education deck

4 Define Modernization Solutions

The Purpose

Consolidate business ideas into modernization initiatives.

Key Benefits Achieved

Refinement of the strategic direction for data warehouse modernization.

Activities

4.1 Match business ideas to technology solutions.

4.2 Group similar ideas to create modernization initiatives.

4.3 Create future-state architecture diagrams.

Outputs

Identified strategic direction for data warehouse modernization

Defined modernization initiatives

Future-state architecture for data warehouse

5 Establish a Modernization Roadmap

The Purpose

Validate and build out initiatives with business users.

Define benefits and costs to establish ROI.

Identify enablers and barriers to modernization.

Key Benefits Achieved

Completion of materials for a compelling business case and roadmap.

Activities

5.1 Validate use cases with business users.

5.2 Define initiative benefits.

5.3 Identify enablers and barriers to modernization.

5.4 Define preliminary activities for initiatives.

5.5 Evaluate initiative costs.

5.6 Determine overall ROI.

Outputs

Validated modernization initiatives

Data warehouse modernization roadmap

Drive Innovation With an Exponential IT Mindset

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  • Parent Category Name: Innovation
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To drive a rapid shift towards the adoption of emerging technology, CIOs need:

  • Highly specialized knowledge of emerging technology and trends
  • The ability to engage the business in co-creating value via emerging technology
  • The skills to manage complex enterprise risk
  • Strong governance processes which support enterprise change management

Our Advice

Critical Insight

IT must lead the innovation capabilities that will drive the adoption of emerging technology across the enterprise. In an exponential world, IT needs to adopt business value targets and become a value creator rather limit itself to IT service targets and remain a cost center in the organization.

Impact and Result

Assess your innovation capability in five key areas supporting Exponential IT:

  • Organizational Excellence
  • Insights & Intelligence
  • Agile Ideation
  • Team Capabilities
  • Innovation Operations

Drive Innovation With an Exponential IT Mindset Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Drive Innovation With an Exponential IT Mindset – Learn about the new era of exponential innovation and the capabilities needed to succeed.

This research walks you through how to assess your capabilities to lead enterprise innovation and drive Exponential IT.

  • Drive Innovation With an Exponential IT Mindset Storyboard

2. Innovation Readiness Assessment – Assess your readiness to drive innovation and the adoption of emerging technology.

This tool will facilitate your readiness assessment.

  • Innovation Readiness Assessment
[infographic]

Further reading

Drive Innovation With an Exponential IT Mindset

Are you ready to drive the adoption of autonomous business capabilities?

A diagram that shows exponential IT

Analyst Perspective

IT must develop new capabilities to drive emerging tech adoption

Traditionally, CIOs have struggled to gain the trust of the executive leadership team and be recognized as business leaders rather than just technical leaders. In fact, based on a 2023 study by Info-Tech Research Group, only 36% of CIOs report directly to the CEO with most of the remainder reporting through either the CFO or COO.

Exponential IT requires that CIOs gain a seat at the table and build the capabilities necessary to not only lead the transformation of their business but also drive the innovation that will lead to enterprise adoption of emerging technologies. CIOs will be required to gain a detailed understanding of their business and in-depth knowledge of emerging technologies so that they can match business opportunities with technology capabilities, while managing risk and change.

This research will help CIOs identify the capabilities they need to transform the business, and better understand where they must mature their capabilities to drive Exponential IT.

Photo of Kim Osborne Rodriguez
Kim Osborne Rodriguez
Research Director, CIO Advisory
Info-Tech Research Group

Executive Summary

Your Challenge

To drive a rapid shift toward adopting emerging technology, CIOs need:

  • Highly specialized knowledge of emerging technology and trends
  • The ability to engage the business in co-creating value via emerging technology
  • The skills to manage complex enterprise risk
  • Strong governance processes which support enterprise change management

Common Obstacles

Exponential IT is dramatically shifting how IT engages the business. Many CIOs are unprepared.

  • Innovation is increasingly important for competitive advantage and business growth, narrowing the gap between large and small players.
  • Over 80% of CXOs believe their CIOs are currently unable to drive change within the business.[1]
  • 40% of CXOs anticipate that IT must be able to transform the business to maintain relevance.[1]

Info-Tech's Approach

Is your IT team ready to drive the adoption of emerging technology? Assess your innovation capability in five key areas supporting Exponential IT:

  • Organizational Excellence
  • Insights & Intelligence
  • Agile Ideation
  • Team Capabilities
  • Innovation Operations

[1] Info-Tech CXO-CIO diagnostic benchmark data, 2022, n=76

Info-Tech Insight

IT must lead the innovation capabilities that will drive the adoption of emerging technology across the enterprise. In an exponential world, IT needs to adopt business value targets and become a value creator rather than limit itself to IT service targets and remain a cost center in the organization.

Drive innovation with an Exponential IT mindset

Your ability to capture enterprise value from autonomization relies on your innovation capabilities and potential. Is your IT team ready to drive the adoption of AI-driven business processes? Assess your innovation readiness in five key areas supporting Exponential IT.

A diagram that shows 5 key areas of exponential IT

IT must rapidly mature

If IT leaders cannot lead the transformation, then the business will move forward without them.

Only 3% of CXOs report that their IT department can transform the business. Most IT organizations (81%) still struggle to adequately support the business.

A diagram that shows IT maturity and exponential IT

A diagram that shows IT capabilities Based on a Survey of CXOs (n=76)

Common obstacles

Leverage Exponential IT to drive value from the adoption of emerging tech

The most common obstacles to innovation are cultural, including politics, lack of alignment on goals, misaligned culture, and an inability to act on indicators of change.[1]

CIOs struggle to get a seat at the table and influence change. Info-Tech research shows that only 36% of CIOs report directly to the CEO, with over a third reporting to another C-suite leader such as a COO or CFO.[2]

[1] Harvard Business Review, 2018
[2] Info-Tech Research Group CIO Time Study, 2023

Info-Tech Insight

To drive change, CIOs need to gain the trust of their senior leadership team. Getting a seat at the table should be the first step for any CIO looking to transform their business.

Many CIOs struggle to be seen as business leaders

36%

Only 36% of CIOs report directly to the CEO.

Source: Info-Tech Research Group, 2023.

48%

48% of Boards report that they lack frequent or direct lines of communication with their CIOs.

Source: CIO Dive, 2022

Executive Brief: Case Study

Logo of RBC Royal Bank

  • INDUSTRY: Financial Services
  • SOURCE: Borealis AI

Borealis AI drives AI-powered transformation at Royal Bank of Canada

Borealis AI is a research center backed by RBC Royal Bank, tasked with researching, designing, and building AI products and tools which transform the financial services industry. It gathers researchers with backgrounds in artificial intelligence (AI), computer vision, natural language processing (NLP), computer science, computational finance, mathematics, and machine learning (ML) to create solutions in areas including asynchronous temporal models, non-cooperative learning in competing markets, and causal machine learning from observational data.

Results

Borealis AI has created many innovative products for RBC, including:

  • NOMI Forecast: an award-winning personal financial management tool
  • Turing by Borealis AI: a text-to-SQL database interface using NLP
  • Aiden: an AI-powered electronic trading tool using reinforcement learning

In 2023, Borealis AI won the Best Use of AI for Customer Experience award from The Digital Banker, for the NOMI Forecast app, which has been downloaded by nearly a million RBC clients since launching in 2021.


"NOMI Forecast is a cutting-edge AI solution that uses deep learning to offer timely and accurate predictions of our clients' cashflow. Powered by our unique datasets, these AI models have been trained to deliver personalized experiences for RBC clients,"
— Foteini Agrafioti, Chief Science Officer at RBC and Head of Borealis AI

IT needs to connect emerging technology with business opportunities

A diagram that shows exponential innovation, emerging technology, business opportunities.

Emerging tech is driving business change

A diagram that shows exponential innovation and its 5 elements.

Innovation is critical for business success, but succeeding is more difficult than ever

Emerging tech brings new challenges for organizations looking to create a competitive advantage. Access to sophisticated tools with minimal upfront costs have lowered the barriers to entry and democratized innovation, particularly among smaller players. The explosion of data processing & collaboration tools has allowed more focused and data-driven innovation efforts through analysis and insights, increasing the competitive advantage for those who get it right.

This has led to an accelerated pace of change as autonomous business processes start driving their own market shifts. The rise of autonomous business processes creates exponential reward, but also exponential risk for early adopters.

Innovation is increasingly critical for competitive growth

IT innovation leadership explains 75% of the variation in satisfaction with IT (Source: Info-Tech Research Group survey, n=305) and is the fourth-highest priority for IT end users.

A 7-year review by McKinsey (2020) showed that the most innovative companies[1] outperformed the market by upwards of 30%.

A 25-year study by Business Development Canada & Statistics Canada showed that innovation was more important to business success than management, human resources, marketing, or finance.

[1]Top innovators are defined as companies which were listed on Fast Company World's 50 Most Innovative Companies for 2+ years.

Adapt your approach to innovation

Both traditional and exponential (AI-driven) innovation is important for business success

IT as a fast execution engine

Ideal for developing new methods, products, or services which provide value to the organization

Can be led by IT or the business, depending on the scope of innovation (IT generally leads IT/internal innovation while the business leads customer-focused innovation)

Often follows the pace of the business

IT is a fast executor on requests generated by the business

Leverages Agile to develop new ideas and products, and uses DevOps to put into production


Use Info-Tech's research to Build your Enterprise Innovation Program

IT as an exponential innovation leader

Ideal for driving the enterprise adoption of emerging tech and autonomous business capabilities

Led by IT, which brings the understanding of emerging technology and can link opportunities to business problems

Driven by a faster pace of change, which requires more frequent assessment of emerging technology

IT is a fast executor on ideas and uses partnerships to drive execution

Leverages Agile, machine learning operations (MLOps), DataOps and product design to test and implement ideas

Use this research to successfully drive innovation with an Exponential IT mindset

Measure the value of this blueprint

Transformation efforts fail over 75% of the time[1] resulting in millions of dollars of lost revenue[2]

Our research indicates that most organizations would take months to prepare this type of assessment without our resources. That's nearly 70 work hours spent researching and gathering data to support due diligence, for a total cost of thousands of dollars. Improve your success rate by understanding what's needed to successfully drive innovation.

[1] Lombard, 2022
[2] FutureCIO, 2022

A photo of Establish a baseline

A diagram that shows Estimated time commitment without Info-Tech's research (person-hours)

Establish a baseline

Gauge the effectiveness of this research by completing the following table before and after using this blueprint:

A diagram that shows Establish a baseline

How to use this research

Five tips to get the most out of your readiness assessment

  1. Each category consists of five competencies, with a maximum of five points each. The maximum score on this assessment is 100 points.
  2. Effectiveness levels range from basic (Level 1) to advanced (Level 5). Level 1 is generally considered the baseline for most effectively operating organizations. If your organization is struggling with Level 1 competencies, focus on those before pursuing higher maturity areas.
  3. This assessment is qualitative. Complete the assessment to the best of your ability, based on the scoring rubric provided. If you fall between levels, use the lower one in your assessment.
  4. The scoring rubric may not perfectly fit the processes and practices within every organization. Consider the spirit of the description and score accordingly.
  5. Other industry- and region-specific competencies may be required to succeed at exponential innovation. The competencies in this assessment are a starting point, and internal validation and assessments should be conducted to uncover additional competencies and skills.

Assess your innovation readiness:

1. Organizational Excellence

  • Innovation mandate
  • Transformational leadership
  • Culture of innovation
  • Vision & strategy

Organizational excellence sets the stage for innovation.

"Innovation distinguishes between a leader and a follower." – Steve Jobs, Apple Founder

Without strong leadership, innovation efforts are almost certain to fail. Innovation requires buy-in and support, a leader who walks the talk, culture which supports risk taking and allows failure, and a clear and compelling vision. Without these elements in place, transformation efforts are a fifteen times more likely to fail [1] – and waste time and money along the way.

[1] Lombard, 2022.

Focus on innovation to deliver business value

Satisfaction drives IT value, and innovation leadership drives satisfaction with IT

Strong leadership is critical to the success of innovation. A global survey of 600 business leaders pointed to leadership as the best predictor of innovation success[1] and showed a strong correlation between leadership ability and innovation capabilities.

Innovation leadership starts with a mandate from the senior leadership team and requires a clearly articulated vision and strategy to deliver the intended benefits to the organization. A survey of 270 business leaders showed that over a third of them struggled with articulating the right strategy or vision, hindering their efforts to innovate.[2]

45% of business leaders report that cultural issues stifle their innovation efforts, and 55% report unhealthy politics which cause infighting that negatively affects their organization.[2]

[1] McKinsey, 2008
[2] Harvard Business Review, 2018

The importance of leadership

75% of high IT satisfaction scores are associated with a strong ability to lead innovation.
Source: Info-Tech Research Group survey, n=305

Struggling to get a seat at the table?

It can be challenging to drive innovation efforts without trust and buy-in from senior leadership. Start with small initiatives and build your reputation by consistently delivering on your commitments.

Leadership starts with a mandate

Build your innovation leadership with the following capabilities:

Innovation mandate: There is strong support and trust from the senior leadership team, which gives IT leaders the opportunity to lead innovation despite any temporary failure. IT leaders are well-informed about and have input into business decisions.

Transformational leadership: IT leaders are influential change agents, not only within their organization but across their industry or community. They inspire others and actively collaborate with external partners, driving change beyond their organization.

Culture of innovation: Innovative cultures generally demonstrate ten behaviors that are most closely correlated with innovation success: growth mindset, learning-focused, psychological safety, curiosity, trust, willingness to fail, collaboration, diverse perspectives, autonomy, and appropriate risk-taking. These behaviors are embedded in the organization and strongly demonstrated in daily work.

Vision & strategy: The innovation vision and strategy are continuously refined and adapted to changing market and emerging technology trends. Emerging technology innovation is second nature in the organization, and it becomes a leader in driving change across the industry.

Additional resources for Organizational Excellence

Photo of Build your Enterprise Innovation Program

Build your Enterprise Innovation Program

Define your innovation mandate
Articulate your vision and guiding principles
Build a culture of innovation

Photo of Manage Your CXO Relations

Manage Your CXO Relations

Successfully manage CXO relationships to get a seat at the table and build your mandate to drive innovation

Photo of CIO

Become a Transformational CIO

Build the capabilities to drive transformation as an IT leader in your organization

Assess your innovation readiness:

2. Insights & Intelligence

  • Business context
  • Strategic foresight
  • Emerging tech expertise
  • Strategic alignment

The foundation of innovation is data.

"Without data you're just another person with an opinion." – Edwards Deming, Statistician

Having comprehensive and accurate data about the problems you hope to solve is critical to realizing the benefits of innovation. Build your understanding of the business and ability to predict how trends will impact your industry, then stay on top of emerging tech and align solutions with strategic business capabilities.

Act on strategic indicators

Build the ability to go from data to intelligence to insights

Info-Tech data shows that businesses are 93% more likely to be satisfied with IT when their IT teams have a better understanding of the business. Teams need to understand who your organization serves, how it delivers value, and what its goals are.

When seeking to capitalize on emerging technology opportunities, businesses face an execution challenge. 82% of business leaders report being able to identify leading indicators of change, but less than two thirds of them are confident in their ability to act on those indicators.[1]

A report by Leadership IQ noted that only 29% of the 21,008 employees surveyed considered their leader's vision consistently well aligned with the organizational vision.[2] Strategic alignment is not just important from a results perspective. It impacts employee motivation: employees with strong leadership alignment are 24% more likely to give their best at work.[2]

[1] Harvard Business Review, 2018
[2] Leadership IQ, 2020

Strategic Foresight Challenges

82% of business leaders say they can correctly identify leading indicators of change…

…however, only 58% feel confident in their abilities to act on these indicators.

Source: Harvard Business Review, 2018

You must understand the business

Develop key insights and intelligence with the following capabilities:

Business context: IT actively participates in the business as a value creator and innovator, proactively disrupting the business and driving the adoption of emerging tech that drives exponential value.

Strategic foresight: IT not only embraces emerging technologies, but actively drives innovation and disruption through their adoption. IT is adept at using trends to drive exploration and can quickly execute on initiatives.

Emerging tech expertise: There is an expert-level understanding of emerging technologies including their capabilities, limitations, risks, trends, and potential use cases. IT proactively drives the adoption of emerging technology.

Strategic alignment: IT proactively uses the business strategy to drive adoption of emerging technology and identify new opportunities. Each initiative has clear metrics and targets which directly impact business targets.

Additional resources for Intelligence & Insights

Photo of Tech Trends 2023

Tech Trends 2023

Like a chess grandmaster, CIOs must play both sides of the board. Emerging technologies present opportunities to attack, but it's necessary to protect from a volatile board.

Photo of innovation

Establish a Foresight Capability

To be recognized and validated as a forward-thinking CIO, you must establish a structured approach to innovation that considers external trends alongside internal processes.

Photo of Build a Business-Aligned IT Strategy

Build a Business-Aligned IT Strategy

Elicit the business context and identify strategic initiatives that are most important to the organization while building a plan to execute on it.

Assess your innovation readiness:

3. Agile Ideation

  • Data-driven decision making
  • Ability to identify opportunities
  • Business engagement
  • Risk management

IT must use data to drive the ideation process, engaging the business to identify opportunities – all while managing risk.

"Innovation is key. Only those who have the agility to change with the market and innovate quickly will survive."- Robert Kiyosaki, Entrepreneur & Author

Many Agile concepts are used in the process of innovation, regardless of whether the formal Agile methodology is used. Fast iterations ("fail fast"), lessons learned, and risk management are equally important for ideation as they are for execution. This category evaluates IT's ability to drive the ideation process at the enterprise level.

Use data to drive agility

Effectively using data has a threefold impact in the quality of decisions

A diagram that shows data-driven journey

Agility is critical for innovation, particularly when adopting emerging technology. AI and other emerging technologies are accelerating the pace of change and driving a necessary increase in how quickly organizations must adapt.

Data is also critical when building a case for change. A survey of over 1,000 senior business leaders showed that organizations that effectively use data to drive decision making are three times more likely to report significant improvements in the quality of their decisions.[1]

[1] Harvard Business School Online, 2019

Start with the business

The business must be involved in ideation. Develop the skills needed to engage the business and identify challenges and opportunities.

Engage the business to deliver value

Build your proficiency in the following ideation capabilities:

Data-driven decision making: Data is proactively collected from multiple internal and external sources to inform innovation strategies. Continuous monitoring of innovation provides a strong rationale for outcomes and benefits. Data governance, quality, and privacy measures are in place to ensure data quality.

Ability to identify opportunities: IT actively shapes the future of the organization and the industry by proactively identifying business opportunities for emerging technology and leading the way in their adoption. Experiments and pilots are often industry firsts.

Business engagement: IT enables the business by engaging at all levels to identify and refine emerging technology opportunities. They effectively communicate benefits and risks in business terms, while understanding business needs and challenges. IT collaborates with the business to establish innovation centers or communities of practice.

Risk management: There is a proactive and holistic approach to risk management, considering both opportunities and threats associated with emerging technology adoption. IT and the business continually anticipate and monitor emerging risks, evaluate the effectiveness of risk management practices, and adapt them to evolving technology landscapes.

Additional resources for Agile Ideation

Photo of Develop Your Agile Approach for a Successful Transformation

Develop Your Agile Approach for a Successful Transformation

Understand Agile fundamentals, principles, and practices so you can apply them effectively in your organization.

Photo of Build an IT Risk Management Program

Build an IT Risk Management Program

Risk is inevitable. Without a formal management program, you may be unaware of your greatest IT risks.

Reacting to risks after they occur can be costly and devastating, yet this is one of the most common tactics used by IT departments.

Photo of business innovation

Kick-Start IT-Led Business Innovation

Business demand for new technology is intensifying pressure to innovate and executive stakeholders expect more from IT. If IT is not considered a source of innovation, its perceived value decreases, and the threat of shadow IT grows. Don't wait to start finding and capitalizing on opportunities for IT-led innovation.

Assess your innovation readiness:

4. Team Capabilities

  • Resourcing & investment
  • Talent & skills
  • Change management
  • Partnerships & ecosystem

Ensure you have the right resources and skills needed to drive innovation.

"The best way to predict the future is to invent it." – Alan Kay, Computer Scientist

Resourcing and skills are critical building blocks for driving innovation, and without a strong understanding of emerging technology and the processes needed to adopt it, organizations will falter at driving change.

Develop the right resourcing, skills, change management, and partnerships to drive Exponential IT.

Develop key skills

Scaled Agile (SAFe): Scaled Agile is a framework for implementing Agile and lean methodologies at the enterprise level or outside of a single team.

Development operations (DevOps): A methodology for software development which includes practices and tools that support the development lifecycle.

Data operations (DataOps): A set of tools and processes that support data management within an organization. Typically used when training AI on a specialized data set.

Analytics: The systematic analysis of information used to discover, interpret, and communicate insights gleaned from patterns in data. Analytics typically generate insights that support data-driven decision making.

Machine learning operations (MLOps): Tools and processes that support the development of machine learning (ML) models, including AI and large language models (LLM). Can include expertise in computer science, natural language processing (NLP), computer vision, computational algorithms, mathematics, and ML expertise.

Artificial intelligence operations (AIOps): Leveraging AI to develop autonomous business processes at the enterprise level.

Mature your emerging technology capabilities

Agile: Build the methodologies to drive execution
DevOps: Drive the software development lifecycle
DataOps: Effectively manage data
Analytics: Develop insights from data
MLOps: Develop machine learning tools
AIOps: Build autonomous business processes

Manage the building blocks of innovation

Resourcing & investment: IT manages a well-defined and substantial budget dedicated to innovation, which is integrated into the overall strategic planning and decision-making processes. Investments are made in a holistic and forward-looking manner, considering the long-term implications and potential disruption caused by emerging technologies.

Talent & skills: Teams exhibit thought leadership and innovate within emerging technologies, including advanced machine learning engineering, MLOps, DataOps, and analytics. Employees actively contribute to the advancement of these technologies, engage in research and development, and explore new applications and use cases.

Change management: This is a core competency led by change champions and change management professionals. There is a strategic approach to driving and sustaining change, focusing on long-term adoption and continuous improvement. Change management is embedded in the organizational culture, and there is a proactive effort to foster change agility and build change capability at all levels.

Partnerships & ecosystems: IT builds an orchestrated innovation ecosystem for the adoption of emerging technology. They take a proactive role in orchestrating collaboration among ecosystem partners. The organization acts as a catalyst for innovation, bringing together diverse partners to address complex challenges and drive transformative solutions.

Additional resources for Team Capabilities

Photo of Drive Technology Adoption

Drive Technology Adoption

The project isn't over if the new product or system isn't being used. How do you ensure that what you've put in place will not be ignored or only partially adopted? People are more complicated than any new system and managing them through change requires careful planning.

Photo of team discussion

Extend Agile Practices Beyond IT

Further the benefits of Agile by extending a scaled Agile framework to the business.

Not all lessons from scaling Agile to IT are transferable. IT Agile scaling processes are tailored to IT's scope, team, and tools, which may not account for diverse attributes within your organization.

Photo of Managing Exponential Value Relationships

Managing Exponential Value Relationships

Successfully managing outcome-based relationships requires a higher degree of trust than traditional vendor relationships. Building trust comes from sharing risks and rewards between organizations and vendors.

Assess your innovation readiness:

5. Innovation Execution

  • Governance
  • Embedded security
  • Infrastructure
  • Ability to execute

Can you deliver results? Develop the capability to execute on innovative ideas.

"What good is an idea if it remains an idea? Try. Experiment. Fail. Try again. Change the world." – Simon Sinek, Author, Motivational Speaker

The foundational elements of innovation significantly overlap with the activities you must do to excel at core IT operations. Build your ability to execute quickly on innovative ideas and build the trust of the enterprise.

Rapidly execute on innovative ideas

IT must be able to successfully manage the foundational capabilities of innovation

The foundational capabilities of innovation are central to many core IT processes: governance, security, supporting infrastructure, and the ability to execute on ideas are all critical to running an effective IT shop.

IT governance is a critical and embedded practice ensuring information and technology investments, risks, and resources are aligned in the organization's best interests while producing business value. Effective governance ensures that the right technology investments are made at the right time to support and enable your organization's mission, vision, and goals.

A diagram that shows Info-Tech's IT Governance Framework and Security Framework

Build foundational capabilities

The ability to rapidly execute on ideas is fundamental not only to innovation but also running an effective IT organization.

Develop foundational IT capabilities

The ability to execute is based on key foundational capabilities, including:

Governance: Adaptable and automated governance guides effective innovation and supports the adoption of emerging technology. Decision making is flexible and can move quickly to enable the implementation of new technologies. Responsibility and authority are aligned across all levels of the organization.

Embedded security: Security and privacy controls are embedded in the applications and technologies deployed across the enterprise. Security is built into the organizational culture, with a strong focus on promoting security awareness and fostering a security-first mindset.

Infrastructure: IT infrastructure is modern, adaptive, and future-proof. Infrastructure should support a range of emerging technology applications, including the flexibility to adapt to future use cases. There is a focus on agility, scalability, flexibility, and interoperability.

Ability to execute: The IT team drives rapid innovation across the organization and can reliably execute and collaborate with internal and external partners. They are pivotal in driving innovation initiatives that align with the organization's strategic objectives. Agile methodologies and practices are embedded in the culture of the team.

Additional resources for Innovation Execution

Photo of Make Your IT Governance Adaptable

Make Your IT Governance Adaptable

Produce more value from IT by developing a governance framework optimized for your current needs and context, with the ability to adapt as your needs shift.

Create the foundation and ability to delegate and empower governance to enable agile delivery.

Photo of Build an Information Security Strategy

Build an Information Security Strategy

Many security leaders struggle to decide how best to prioritize their scarce information security resources.

The need to move from a reactive security approach toward a strategic planning approach is clear. The path to getting there is less so.

Photo of Exploit Disruptive Infrastructure Technology

Exploit Disruptive Infrastructure Technology

Accurate predicting isn't easy. Most IT leaders fail to realize how quickly technology increases in capability. Even for the tech savvy, it's difficult to predict which specific technologies will become disruptive.

Activity 1: Assess your readiness for exponential innovation

Input: Core competencies; Knowledge of internal processes and capabilities
Output: Readiness assessment
Materials: Exponential Innovation Assessment Tool; Whiteboard/Flip charts
Participants: Executive leadership team, including CIO; Other internal stakeholders of vendor partnerships

1-3 hours

  1. Gather key stakeholders from across your organization to participate in the readiness assessment exercise.
  2. As a group, review the core competencies from the following five sections and determine where your organization's effectiveness lies for each competency. Record your responses in the Exponential Innovation Assessment Tool.

Download the Exponential Innovation Assessment Tool

Interpret your results

Understand your readiness and determine the next steps to operationalize exponential innovation.

Once you have completed the readiness assessment, use Info-Tech's maturity ladder to identify next steps and recommendations.

It is usually very challenging to lead innovation with a total score less than 50. Lower maturity organizations should focus on maturing the foundational aspects of innovation, such as those in the Innovation Execution and Team Capabilities categories, and core IT processes.

For higher maturity organizations (those with total scores 50 or higher), first focus on getting all capabilities to a minimum of Level 3, then work on progressing maturity starting with foundational categories and working upwards:

A diagram that shows innovation readiness

Determine your readiness

A diagram that shows Innovation Maturity ladder

Activity 2: Create an action plan

Input: Readiness assessment
Output: Action plan to improve maturity of capabilities
Materials: Exponential Innovation Assessment Tool; Whiteboard/Flip charts
Participants: Executive leadership team, including CIO; Other internal stakeholders of vendor partnerships

1 hour

  1. Gather the stakeholders who participated in the readiness assessment exercise.
  2. As a group, review the results of the readiness assessment. Were there any surprises? Do the results reflect your understanding of the organization's maturity?
  3. Determine which areas are likely to limit the organization's innovation capability, based on lowest scoring areas and relative importance to the organization.
  4. Break out into groups and have each group identify three actions the organization could take to mature the lowest scoring areas.
  5. Bring the group back together and prioritize the actions. Note who will be accountable for each next step.
  6. Identify additional Info-Tech research that can assist with improving your maturity (see additional resources in this blueprint).

Author

Photo of Kim Osborne Rodriguez
Kim Osborne Rodriguez
Research Director, CIO Advisory
Info-Tech Research Group

Kim is a professional engineer and Registered Communications Distribution Designer (RCDD) with over a decade of experience in management and engineering consulting spanning healthcare, higher education, and commercial sectors. She has worked on some of the largest hospital construction projects in Canada, from early visioning and IT strategy through to design, specifications, and construction administration. She brings a practical and evidence-based approach, with a track record of supporting successful projects.

Kim holds a Bachelor's degree in Honours Mechatronics Engineering and an option in Management Sciences from University of Waterloo.

Research Contributors and Experts

Photo of Jack Hakimian
Jack Hakimian
Senior Vice President
Info-Tech Research Group

Jack has more than 25 years of Technology and Management Consulting experience. He has served multi-billion-dollar organizations in multiple industries including Financial Services and Telecommunications. Jack also served many large public sector institutions.

He is a frequent speaker and panelist at technology and innovation conferences and events and holds a Master's degree in Computer Engineering and an MBA from the ESCP-EAP European School of Management.


Photo of Mark Tauschek
Mark Tauschek
Vice President, Infrastructure & Operations Research
Info-Tech Research Group

Mark has hands-on network design and deployment experience across verticals including healthcare, education, manufacturing, retail, and entertainment. He has extensive knowledge in the areas of technology research, process development, vendor selection, and project management. He holds specific expertise in wireless networking and mobile technologies.

Mark holds an MBA from the Richard Ivey School of Business at the University of Western Ontario and many professional wireless technology certifications.


Photo of Michael Tweedie
Michael Tweedie
Practice Lead, CIO Strategy
Info-Tech Research Group

Mike Tweedie brings over 25 years as a technology executive. He's led several large transformation projects across core infrastructure, application and IT services as the head of Technology at ADP Canada. He was also the Head of Engineering and Service Offerings for a large French IT services firm, focused on cloud adoption and complex ERP deployment and management.

Mike holds a Bachelor's degree in Architecture from Ryerson University.


Photo of Donna Bales
Donna Bales
Principal Research Director
Info-Tech Research Group

Donna Bales is a Principal Research Director in the CIO Practice at Info-Tech Research Group specializing in research and advisory services in IT risk, governance, and compliance. She brings over 25 years of experience in strategic consulting and product development and has a history of success in leading complex, multi-stakeholder industry initiatives.

Donna has a Bachelor's degree in Economics from the University of Western Ontario.


Photo of Isabelle Hertanto
Isabelle Hertanto
Principal Research Director, Security & Privacy
Info-Tech Research Group

Isabelle Hertanto has over 15 years of experience delivering specialized IT services to the security and intelligence community. As a former federal officer for Public Safety Canada, Isabelle trained and led teams on data exploitation and digital surveillance operations in support of Canadian national security investigations. Since transitioning into the private sector, Isabelle has held senior management and consulting roles across a variety of industry sectors, including retail, construction, energy, healthcare, and the broader Canadian public sector.


Photo of Aaron Shum
Aaron Shum
Vice President, Security, Privacy, Risk & Compliance
Info-Tech Research Group

Aaron Shum is a Vice President in the Security & Privacy Research and Advisory Practice at Info-Tech Research Group. With 25+ years of experience across IT, InfoSec, and Data Privacy, he currently specializes in helping organizations implement comprehensive information security and cybersecurity programs and comply with data privacy regulations such as the European Union's General Data Protection Regulation and the California Privacy Rights Act.


Photo of Reiaz Somji
Reiaz Somji
Managing Director, Consulting
Info-Tech Research Group

As a client-focused strategist with strong organizational acumen, Reiaz leverages his 20+ years of management consulting experience to help C-suite executives and managers navigate the integration of changing technology with business goals. He is currently a managing director in Info-Tech's consulting division and leads its Infrastructure practice.


Photo of Hans Eckman
Hans Eckman
Principal Research Director, Applications
Info-Tech Research Group

Hans Eckman is a business transformation leader helping organizations connect business strategy and innovation to operational excellence. He supports Info-Tech members in SDLC optimization, Agile and DevOps implementation, CoE/CoP creation, innovation program development, application delivery, and leadership development. Hans is based out of Atlanta, Georgia.


Photo of Irina Sedenko
Irina Sedenko
Research Director, Data & Analytics
Info-Tech Research Group

Irina brings more than 20 years of information management experience and demonstrated expertise in big data, advanced analytics, machine learning, and AI. Her experience includes designing and implementing enterprise content management systems, defining data and analytics strategy to support business goals and objectives, creating data governance to enable data initiatives, and providing guidance to the client teams. She led teams through data lake implementation to enable advanced analytics capabilities and has hands-on data science and machine learning experience.

Research Contributors

Photo of Bill Macgowan
Bill Macgowan
Director, Smart Building Digitization
Cisco


Photo of Barry Wiech
Barry Wiech
Chief Digital and Information Officer
Sime Darby Industrial


Photo of Tim Dunn
Tim Dunn
Chief Information Officer
Department of Energy & Public Works (Queensland)


Photo of Sudip Ghosh
Sudip Ghosh
Group Manager, Office of the CIO
Star Entertainment Group



Samantha Rose
Contract Manager
Department of Energy & Public Works (Queensland)

Bibliography

Altringer, Beth. "A New Model for Innovation in Big Companies." Harvard Business Review. 19 Nov. 2013. Accessed 15 June 2023. https://hbr.org/2013/11/a-new-model-for-innovation-in-big-companies

Bar Am, Jordan et al. "Innovation in a Crisis: Why it is More Critical Than Ever." McKinsey & Company, 17 June 2020. Accessed 15 June 2023. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/innovation-in-a-crisis-why-it-is-more-critical-than-ever

Barsh, Joanna et al. "Leadership and Innovation." McKinsey Quarterly, 1 Jan 2008. Accessed 7 July 2023. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/leadership-and-innovation

Borealis AI. "RBC Wins Best Use of AI for Customer Experience for NOMI Forecast." Borealis AI Blog, 28 Apr 2023. Accessed 13 June 2023. https://www.borealisai.com/news/rbc-wins-best-use-of-ai-for-customer-experience-for-nomi-forecast/

Boston Consulting Group, "Most Innovative Companies 2022." BGC, 15 Sept. 2022. Accessed 15 June 2023. https://www.bcg.com/en-ca/publications/2022/innovation-in-climate-and-sustainability-will-lead-to-green-growth

BrainyQuote. "Innovation Quotes." Accessed 19 June 2023. https://www.brainyquote.com/topics/innovation-quotes

Christensen, Clayton M. The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press, 2016.

Cleroux, Pierre. The "I" Word. BDC. Accessed 1 Aug 2023. https://www.bdc.ca/en/articles-tools/blog/innovation-no-1-factor-business-success

FutureCIO Editors. "Failed transformation can result in US$6 million in lost revenue." FutureCIO, 29 Apr 2022. Accessed 10 Jul 2023. https://futurecio.tech/failed-transformation-can-result-in-us6-million-in-lost-revenue/

Goodreads. "W. Edwards Deming Quotes." Accessed 19 June 2023. https://www.goodreads.com/quotes/7327935-without-data-you-re-just-another-person-with-an-opinion

Haefner, Naomi et al. "Artificial intelligence and innovation management: A review, framework, and research agenda." Technological Forecasting and Social Change, Volume 162, 2021. Accessed 15 June 2023. https://www.sciencedirect.com/science/article/pii/S004016252031218X

IBM. "The new AI innovation equation." IBM Website. 13 Oct 2016. Accessed 15 June 2023. https://www.ibm.com/watson/advantage-reports/future-of-artificial-intelligence/ai-innovation-equation.html

Isomaki, Atte. "60+ Innovation Quotes and What They Can Teach You." Viima, 19 Mar 2019. Accessed 6 July 2023. https://www.viima.com/blog/innovation-quotes

Kay, Alan. "The best way to predict the future is to invent it." Quote Park, 3 June 2021. Accessed 15 June 2023. https://quotepark.com/quotes/1893243-alan-kay-the-best-way-to-predict-the-future-is-to-invent-it/

Kirsner, Scott. "The Biggest Obstacles to Innovation in Large Companies." Harvard Business Review, 30 July 2018. Accessed 15 June 2023. https://hbr.org/2018/07/the-biggest-obstacles-to-innovation-in-large-companies

Kiyosaki, Robert. "Innovation is key. Only those who have the agility to change with the market and innovate quickly will survive." AZ Quotes, 11 Dec. 2013. Accessed 15 June 2023.

Leadership IQ. "The State Of Leadership Development." Leadership IQ, 2020. Accessed 6 July 2023. https://www.leadershipiq.com/blogs/leadershipiq/leadership-development-state

Lombard, Charl. "Defining Digital: A New Approach to Digital Transformation." Info-Tech LIVE Conference, 2022. https://tymansgrpup.com/videos/defining-digital-a-new-approach-to-digital-transformation

Murphy, Mark. "A Shocking Number Of Leaders Are Not Aligned With Their Companies' Visions." Forbes, 28 Aug 2020. Accessed 6 Jul 2023. https://www.forbes.com/sites/markmurphy/2020/08/28/a-shocking-number-of-leaders-are-not-aligned-with-their-companies-visions

Seymour, Harriet et al. "How to unlock a scientific approach to change management with powerful data insights." IBM, 11 Jan 2023. Accessed 6 July 2023. https://www.ibm.com/blog/how-to-unlock-a-scientific-approach-to-change-management-with-powerful-data-insights/

Sinek, Simon. "What good is an idea if it remains an idea? Try. Experiment. Fail. Try again. Change the world." Praxie, n.d. https://praxie.com/top-innovation-quotes/

Stobierski, Tim. "The Advantages of Data-Driven Decision-Making." Harvard Business School Online, 26 Aug 2019. Accessed 6 July 2023. https://online.hbs.edu/blog/post/data-driven-decision-making

Torres, Roberto. "How tech leaders can earn C-suite trust." CIO Dive, 1 Jul 2022. Accessed 7 Jul 2023. https://www.ciodive.com/news/C-suite-trust-CIO-executives/626476/

Tushman, Michael et al. "Change Management Is Becoming Increasingly Data-Driven. Companies Aren't Ready." Harvard Business Review, 23 Oct 2017. Accessed 6 Jul 2023. https://hbr.org/2017/10/change-management-is-becoming-increasingly-data-driven-companies-arent-ready

Weick, Karl and Kathleen Sutcliffe. Managing the Unexpected: Sustained Performance in a Complex World, Third Edition. John Wiley & Sons, 2015.

Identify and Manage Strategic Risk Impacts on Your Organization

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Moreso than any other time, our world is changing. As a result, organizations – and their vendors – need to be able to adapt their strategic plans to accommodate risk on an unprecedented level.

A new global change will impact your organizational strategy at any given time. So, make sure your plans are flexible enough to manage the inevitable consequences.

Our Advice

Critical Insight

  • Identifying and managing a vendor’s potential strategic impact on your organization requires multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how these changes affect strategic plans.
  • Organizational leadership is often taken unaware during crises, and their plans lack the flexibility needed to adjust to significant market upheavals.

Impact and Result

  • Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.
  • Prioritize and classify your vendors with quantifiable, standardized rankings.
  • Prioritize focus on your high-risk vendors.
  • Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your strategic plan with our Strategic Risk Impact Tool.

Identify and Manage Strategic Risk Impacts on Your Organization Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Identify and Manage Strategic Risk Impacts to Your Organization Deck – Use the research to better understand the negative impacts of vendor actions on your strategic plans.

Use this research to identify and quantify the potential strategic impacts caused by vendors. Use Info-Tech’s approach to look at the strategic impact from various perspectives to better prepare for issues that may arise.

  • Identify and Manage Strategic Risk Impacts on Your Organization Storyboard

2. What If Vendor Strategic Impact Tool – Use this tool to help identify and quantify the strategic impacts of negative vendor actions

By playing the “what if” game and asking probing questions to draw out – or eliminate – possible negative outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

  • Strategic Risk Impact Tool
[infographic]

Further reading

Identify and Manage Strategic Risk Impacts on Your Organization

The world is in a perpetual state of change. Organizations need to build adaptive resiliency into their strategic plans to adjust to ever-changing market dynamics.

Analyst perspective

Organizations need to build flexible resiliency into their strategic plans to be able to adjust to ever-changing market dynamics.

This is a picture of Frank Sewell, Research Director, Vendor Management at Info-Tech Research Group

Like most people, organizations are poor at assessing the likelihood of risk. If the past few years have taught us anything, it is that the probability of a risk occurring is far more flexible in the formula Risk = Likelihood * Impact than we ever thought possible. The impacts of these risks have been catastrophic, and organizations need to be more adaptive in managing them to strengthen their strategic plans.

Frank Sewell,
Research Director, Vendor Management
Info-Tech Research Group

Executive Summary

Your Challenge

Moreso than any other time, our world is changing. As a result, organizations – and their vendors – need to be able to adapt their strategic plans to accommodate risk on an unprecedented level.

A new global change will impact your organizational strategy at any given time. So, make sure your plans are flexible enough to manage the inevitable consequences.

Common Obstacles

Identifying and managing a vendor’s potential strategic impact on your organization requires multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how these changes affect strategic plans.

Organizational leadership is often taken unaware during crises, and their plans lack the flexibility needed to adjust to significant market upheavals.

Info-Tech’s Approach

Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.

Prioritize and classify your vendors with quantifiable, standardized rankings.

Prioritize focus on your high-risk vendors.

Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your strategic plan with our Strategic Impacts Tool.

Info-Tech Insight

Organizations must evolve their strategic risk assessments to be more adaptive to respond to global changes in the market. Ongoing monitoring of the market and the vendors tied to company strategies is imperative to achieving success.

Info-Tech’s multi-blueprint series on vendor risk assessment

There are many individual components of vendor risk beyond cybersecurity.

This image depicts a cube divided into six different coloured sections. The sections are labeled: Financial; Reputational; Operational; Strategic; Security; Regulatory & Compliance.

This series will focus on the individual components of vendor risk and how vendor management practices can facilitate organizations’ understanding of those risks.

Out of Scope:

This series will not tackle risk governance, determining overall risk tolerance and appetite, or quantifying inherent risk.

Strategic risk impacts

Potential losses to the organization due to risks to the strategic plan

  • In this blueprint, we’ll explore strategic risks (risks to the Strategic Plans of the organization) and their impacts.
  • Identify potentially disruptive events to assess the overall impact on organizations and implement adaptive measures to correct strategic plans.
This image depicts a cube divided into six different coloured sections. The section labeled Strategic is highlighted.

The world is constantly changing

The IT market is constantly reacting to global influences. By anticipating changes, leaders can set expectations and work with their vendors to accommodate them.

When the unexpected happens, being able to adapt quickly to new priorities ensures continued long-term business success.

Below are some things no one expected to happen in the last few years:

62%

of IT professionals are more concerned about being a victim of ransomware than they were a year ago.

82%

of Microsoft’s non-essential employees shifted to working from home in 2020, joining the 18% already remote.

89%

of organizations invested in web conferencing technology to facilitate collaboration.

Source: Info-Tech Tech Trends Survey 2022

Strategic risks on a global scale

Odds are at least one of these is currently affecting your strategic plans

  • Vendor Acquisitions
  • Global Pandemic
  • Global Shortages
  • Gas Prices
  • Poor Vendor Performance
  • Travel Bans
  • War
  • Natural Disasters
  • Supply Chain Disruptions
  • Security Incidents

Make sure you have the right people at the table to identify and plan to manage impacts.

Identify & manage strategic risks

Global Pandemic

Very few people could have predicted that a global pandemic would interrupt business on the scale experienced today. Organizations should look at their lessons learned and incorporate adaptable preparations into their strategic planning moving forward.

Vendor Acquisitions

The IT market is an ever-shifting environment. Larger companies often gobble up smaller ones to control their sectors. Incorporating plans to manage those shifts in ownership will be key to many strategic plans that depend on niche vendor solutions for success. Be sure to monitor the potentially affected markets on an ongoing cadence.

Global Shortages

Organizations need to accept that shortages will recur periodically and that preparing for them will significantly increase the success potential of long-term strategic plans. Understand what your business needs to stock for project needs and where those supplies are located, and plan how to rapidly access and distribute them as required if supply chain disruptions occur.

What to look for in vendors

Identify strategic risk impacts

  • A vendor acquires many smaller, seemingly irrelevant IT products. Suddenly their revenue model includes aggressive license compliance audits.
    • Ensure that your installed software meets license compliance requirements with good asset management practices.
    • Monitor the market for such acquisitions or news of audits hitting companies.
  • A vendor changes their primary business model from storage and hardware to becoming a self-proclaimed “professional services guru,” relying almost entirely on their name recognition to build their marketing.
    • Be wary of self-proclaimed experts and review their successes and failures with other organizations before adopting them into your business strategy.
    • Review the backgrounds their “experts” have and make sure they have the industry and technical skill sets to perform the services to the required level.

Not preparing for your growth can delay your goals

Why can’t I get a new laptop?

For example:

  • An IT professional services organization plans to take advantage of the growing work-from-home trend to expand its staff by 30% over the coming year.
  • Logically, this should include a review of the necessary tasks involved, including onboarding.
    • Suppose the company does not order enough equipment in preparation to cover the new staff plus routine replacement. In that case, this will delay the output of the new team members immeasurably as they wait for their company equipment and will delay existing staff whose equipment breaks, preventing them from getting back to work efficiently.

Sometimes an organization has the right mindset to take advantage of the changes in the market but can fail to plan for the particulars.

When your strategic plan changes, you need to revisit all the steps in the processes to ensure a successful outcome.

Strategic risks

Poor or uninformed business decisions can lead to organizational strategic failures

  • Supply chain disruptions and global shortages
    • Geopolitical disruptions and natural disasters have caused unprecedented interruptions to business. Incorporate forecasting of product and ongoing business continuity planning into your strategic plans to adapt as events unfold.
  • Poor vendor performance
    • Consider the impact of a vendor that fails to perform midway through the implementation. Organizations need to be able to manage the impact of replacing that vendor and cutting their losses rather than continuing to throw good money away after bad performance.
  • Vendor acquisitions
    • A lot of acquisition is going on in the market today. Large companies are buying competitors and either imposing new terms on customers or removing the competing products from the market. Prepare options for any strategy tied to a niche product.

It is important to identify potential risks to strategic plans to manage the risk and be agile enough in planning to adapt to the changing environments.

Info-Tech Insight
Few organizations are good at identifying risks to their strategic plan. As a result, almost none realistically plan to monitor, manage, and adapt their strategies to those risks.

Prepare your strategic risk management for success

Due diligence will enable successful outcomes

  1. Obtain top-level buy-in; it is critical to success.
  2. Build enterprise risk management (ERM) through incremental improvement.
  3. Focus initial efforts on the “big wins” to prove the process works.
  4. Use existing resources.
  5. Build on any risk management activities that already exist in the organization.
  6. Socialize ERM throughout the organization to gain additional buy‑in.
  7. Normalize the process long term with ongoing updates and continuing education for the organization.

(Adapted from COSO)

How to assess strategic risk

  1. Review Organizational Strategy
    Understand the organizational strategy to prepare for the “What If” game exercise.
  2. Identify & Understand Potential Strategic Risks
    Play the “What If” game with the right people at the table.
  3. Create a Risk Profile Packet for Leadership
    Pull all the information together in a presentation document.
  4. Validate the Risks
    Work with leadership to ensure that the proposed risks are in line with their thoughts.
  5. Plan to Manage the Risks
    Lower the overall risk potential by putting mitigations in place.
  6. Communicate the Plan
    It is important not only to have a plan but also to socialize it in the organization for awareness.
  7. Enact the Plan
    Once the plan is finalized and socialized, put it in place with continued monitoring for success.

Insight summary

Insight 1

Organizations build portions of their strategies around chosen vendors and should protect those plans against the risks of unforeseen acquisitions in the market.
Is your vendor solvent? Does it have enough staff to accommodate your needs? Has its long-term planning been affected by changes in the market? Is it unique in its space?

Insight 2

Organizations’ strategic plans need to be adaptable to avoid vendors’ negative actions causing an expedited shift in priorities.
For example, Philip's recall of ventilators impacted its products and the availability of its competitor’s products as demand overwhelmed the market.

Insight 3

Organizations need to become better at risk assessment and actively manage the identified risks to their strategic plans.
Few organizations are good at identifying risks to their strategic plan. As a result, almost none realistically plan to monitor, manage, and adapt their strategies to those risks.

Strategic risk impacts are often unanticipated, causing unforeseen downstream effects. Anticipating the potential changes in the global IT market and continuously monitoring vendors’ risk levels can help organizations modify their strategic alignment with the new norms.

Identifying strategic risk

Who should be included in the discussion

  • While it is true that executive-level leadership defines the strategy for an organization, it is vital for those making decisions to make informed decisions.
  • Getting input from operational experts at your organization will enhance the long-term potential for success of your strategies.
  • Involving those who directly manage vendors and understand the market will aid operational experts in determining the forward path for relationships with your current vendors and identifying new emerging potential strategic partners.

Review your strategic plans for new risks and evolving likelihood on a regular basis.

Keep in mind Risk = Likelihood x Impact (R=L*I).

Impact (I) tends to remain the same, while Likelihood (L) is a very flexible variable.

See the blueprint Build an IT Risk Management Program

Managing strategic risk impacts

What can we realistically do about the risks?

  • Review business continuity plans and disaster recovery testing.
  • Institute proper contract lifecycle management.
  • Re-evaluate corporate policies frequently.
  • Develop IT governance and change control.
  • Ensure strategic alignment in contracts.
  • Introduce continual risk assessment to monitor the relevant vendor markets.
    • Regularly review your strategic plans for new risks and evolving likelihood.
    • Risk = Likelihood x Impact (R=L*I)
      • Impact (I) tends to remain the same and be well understood, while Likelihood (L) turns out to be highly variable.
  • Be adaptable and allow for innovations that arise from the current needs.
    • Capture lessons learned from prior incidents to improve over time, and adjust your strategy based on the lessons.

Organizations need to be reviewing their strategic risk plans considering the likelihood of incidents in the global market.

Pandemics, extreme weather, and wars that affect global supply chains are a current reality, not unlikely scenarios.

Ongoing Improvement

Incorporating lessons learned

  • Over time, despite everyone’s best observations and plans, incidents will catch us off guard.
  • When it happens, follow your incident response plans and act accordingly.
  • An essential step is to document what worked and what did not – collectively known as the “lessons learned.”
  • Use the lessons learned document to devise, incorporate, and enact a better risk management process.

Sometimes disasters occur despite our best plans to manage them.

When this happens, it is important to document the lessons learned and improve our plans going forward.

The “what if” game

1-3 hours

Vendor management professionals are in an excellent position to help senior leadership identify and pull together resources across the organization to determine potential risks. By playing the "what if" game and asking probing questions to draw out – or eliminate – possible adverse outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

  1. Break into smaller groups (or if too small, continue as a single group).
  2. Use the Strategic Risk Impact Tool to prompt discussion on potential risks. Keep this discussion flowing organically to explore all potentials but manage the overall process to keep the discussion pertinent and on track.
  3. Collect the outputs and ask the subject matter experts (SMEs) for management options for each one in order to present a comprehensive risk strategy. You will use this to educate senior leadership so that they can make an informed decision to accept or reject the solution.

Download the Strategic Risk Impact Tool

Input Output
  • List of identified potential risk scenarios scored by likelihood and financial impact
  • List of potential management of the scenarios to reduce the risk
  • Comprehensive strategic risk profile on the specific vendor solution
Materials Participants
  • Whiteboard/flip charts
  • Strategic Risk Impact Tool to help drive discussion
  • Vendor Management – Coordinator
  • Organizational Leadership
  • Operations Experts (SMEs)
  • Legal/Compliance/Risk Manager

Case Study

Airline Industry Strategic Adaptation

Industry: Airline

Impact categories: Pandemic, Lockdowns, Travel Bans, Increased Fuel Prices

  • In 2019 the airline industry yielded record profits of $35.5 billion.
  • In 2020 the pandemic devastated the industry with losses around $371 billion.
  • The industry leaders engaged experts to conduct a study on how the pandemic impacted them and propose measures to ensure the survival of their industry in the future after the pandemic.
  • They determined that “[p]recise decision-making based on data analytics is essential and crucial for an effective Covid-19 airline recovery plan.”

Results

The pandemic prompted systemic change to the overall strategic planning of the airline industry.

Summary

Be vigilant and adaptable to change

  • Organizations need to learn how to assess the likelihood of potential risks in the changing global world.
  • Those organizations that incorporate adaptive risk management processes can prepare their strategic plans for greater success.
  • Bring the right people to the table to outline potential risks in the market.
  • Socialize the risk management process throughout the organization to heighten awareness and enable employees to help protect the strategic plan.
  • Incorporate lessons learned from incidents into your risk management process to build better plans for future issues.

Organizations must evolve their strategic risk assessments to be more adaptive to respond to global changes in the market.

Ongoing monitoring of the market and the vendors tied to company strategies is imperative to achieving success.

Related Info-Tech Research

Identify and Manage Financial Risk Impacts on Your Organization

This image contains a screenshot from Info-Tech's Identify and Manage Financial Risk Impacts on Your Organization.
  • Vendor management practices educate organizations on the different potential financial impacts that vendors may incur and suggest systems to help manage them.
  • Prioritize and classify your vendors with quantifiable, standardized rankings.
  • Prioritize focus on your high-risk vendors.
  • Standardize your processes for identifying and monitoring vendor risks to manage financial impacts with our Financial Risk Impact Tool.

Identify and Reduce Agile Contract Risk

This image contains a screenshot from Info-Tech's Identify and Reduce Agile Contract Risk
  • Customer maturity levels with Agile are low, with 67% of organizations using Agile for less than five years.
  • Customer competency levels with Agile are also low, with 84% of organizations stating they are below a high level of competency.
  • Contract disputes are the number one or two types of disputes faced by organizations across all industries.

Build an IT Risk Management Program

This image contains a screenshot from Info-Tech's Build an IT Risk Management Program
  • Transform your ad hoc IT risk management processes into a formalized, ongoing program, and increase risk management success.
  • Take a proactive stance against IT threats and vulnerabilities by identifying and assessing IT’s greatest risks before they occur.
  • Involve key stakeholders including the business senior management team to gain buy-in and to focus on IT risks most critical to the organization.

Bibliography

Olaganathan, Rajee. “Impact of COVID-19 on airline industry and strategic plan for its recovery with special reference to data analytics technology.” Global Journal of Engineering and Technology Advances, vol 7, no 1, 2021, pp. 033-046.

Tonello, Matteo. “Strategic Risk Management: A Primer for Directors.” Harvard Law School Forum on Corporate Governance, 23 Aug. 2012.

Frigo, Mark L., and Richard J. Anderson. “Embracing Enterprise Risk Management: Practical Approaches for Getting Started.” COSO, 2011.

Research Contributors and Experts

  • Frank Sewell
    Research Director, Info-Tech Research Group
  • Steven Jeffery
    Principal Research Director, Info-Tech Research Group
  • Scott Bickley
    Practice Lead, Info-Tech Research Group
  • Donna Glidden
    Research Director, Info-Tech Research Group
  • Phil Bode
    Principal Research Director, Info-Tech Research Group
  • David Espinosa
    Senior Director, Executive Services, Info-Tech Research Group
  • Rick Pittman
    Vice President, Research, Info-Tech Research Group
  • Patrick Philpot
    CISSP
  • Gaylon Stockman
    Vice President, Information Security
  • Jennifer Smith
    Senior Director

Embed Business Relationship Management in IT

  • Buy Link or Shortcode: {j2store}270|cart{/j2store}
  • member rating overall impact: 8.8/10 Overall Impact
  • member rating average dollars saved: $21,960 Average $ Saved
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  • Parent Category Name: Manage Business Relationships
  • Parent Category Link: /manage-business-relationships
  • While organizations realize they need to improve business relationships, they often don’t know how.
  • IT doesn’t know what their business needs and so can’t add as much value as they’d like.
  • They find that their partners often reach out to third parties before they connect with internal IT.

Our Advice

Critical Insight

  • Business relationship management (BRM) is not just about communication, it’s about delivering on business value.
  • Build your BRM program on establishing trust.

Impact and Result

  • Drive business value into the organization via innovative technology solutions.
  • Improve ability to meet and exceed business goals and objectives, resulting in more satisfied stakeholders (C-suite, board of directors).
  • Enhance ability to execute business activities to meet end customer requirements and expectations, resulting in more satisfied customers.

Embed Business Relationship Management in IT Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Embed Business Relationship Management Deck – A step-by-step document that walks you through how to establish a practice with well-embedded business relationships, driving IT success.

This blueprint helps you to establish a relationship with your stakeholders, both within and outside of IT. You’ll learn how to embed relationship management throughout your organization.

  • Embed Business Relationship Management in IT – Phases 1-5

2. BRM Workbook Deck – A workbook for you to capture the results of your thinking on the BRM practice.

Use this tool to capture your findings as you work through the blueprint.

  • Embed Business Relationship Management in IT Workbook

3. BRM Buy-In and Communication Template – A template to help you communicate what BRM is to your organization, that leverages feedback from your business stakeholders and IT.

Customize this tool to obtain buy in from leadership and other stakeholders. As you continue through the blueprint, continue to leverage this template to communicate what your BRM program is about.

  • BRM Buy-In and Communication Template

4. BRM Role Expectations Worksheet – A tool to help you establish how the BRM role and/or other roles will be managing relationships.

This worksheet template is used to outline what the BRM practice will do and associate the expectations and tasks with the roles throughout your organization. Use this to communicate that while your BRM role has a strategic focus and perspective of the relationship, other roles will continue to be important for relationship management.

  • Role Expectations Worksheet

5. BRM Stakeholder Engagement Plan Worksheet – A tool to help you establish your stakeholders and your engagement with them.

This worksheet allows you to list the stakeholders and their priority in order to establish how you want to engage with them.

  • BRM Stakeholder Engagement Plan Worksheet

6. Business Relationship Manager Job Descriptions – These templates can be used as a guide for defining the BRM role.

These job descriptions will provide you with list of competencies and qualifications necessary for a BRM operating at different levels of maturity. Use this template as a guide, whether hiring internally or externally, for the BRM role.

  • Business Relationship Manager – Level 1
  • Business Relationship Manager – Level 2
  • Business Relationship Manager – Level 3
[infographic]

Workshop: Embed Business Relationship Management in IT

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Foundation: Assess and Situate

The Purpose

Set the foundation for your BRM practice – understand your current state and set the vision.

Key Benefits Achieved

An understanding of current pain points and benefits to be addressed through your BRM practice. Establish alignment on what your BRM practice is – use this to start obtaining buy-in from stakeholders.

Activities

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

1.4 Create Vision

1.5 Create the BRM Mission

1.6 Establish Goals

Outputs

BRM definition

Identify areas to be addressed through the BRM practice

Shared vision, mission, and understanding of the goals for the brm practice

2 Plan

The Purpose

Determine where the BRM fits and how they will operate within the organization.

Key Benefits Achieved

Learn how the BRM practice can best act on your goals.

Activities

2.1 Establish Guiding Principles

2.2 Determine Where BRM Fits

2.3 Establish BRM Expectations

2.4 Identify Roles With BRM Responsibilities

2.5 Align Capabilities

Outputs

An understanding of where the BRM sits in the IT organization, how they align to their business partners, and other roles that support business relationships

3 Implement

The Purpose

Determine how to identify and work with key stakeholders.

Key Benefits Achieved

Determine ways to engage with stakeholders in ways that add value.

Activities

3.1 Brainstorm Sources of Business Value

3.2 Identify Key Influencers

3.3 Categorize the Stakeholders

3.4 Create the Prioritization Map

3.5 Create Your Engagement Plan

Outputs

Shared understanding of business value

A plan to engage with stakeholders

4 Reassess and Embed

The Purpose

Determine how to continuously improve the BRM practice.

Key Benefits Achieved

An ongoing plan for the BRM practice.

Activities

4.1 Create Metrics

4.2 Prioritize Your Projects

4.3 Create a Portfolio Investment Map

4.4 Establish Your Annual Plan

4.5 Build Your Transformation Roadmap

4.6 Create Your Communication Plan

Outputs

Measurements of success for the BRM practice

Prioritization of projects

BRM plan

Further reading

Embed Business Relationship Management in IT

Show that IT is worthy of Trusted Partner status.

Executive Brief

Analyst Perspective

Relationships are about trust.

As long as humans are involved in enabling technology, it will always remain important to ensure that business relationships support business needs. At the cornerstone of those relationships is trust and the establishment of business value. Without trust, you won’t be believed, and without value, you won’t be invited to the business table.

Business relationship management can be a role, a capability, or a practice – either way it’s essential to ensure it exists within your organization. Show that IT can be a trusted partner by showing the value that IT offers.

Photo of Allison Straker, Research Director, CIO Practice, Info-Tech Research Group.

Allison Straker
Research Director, CIO Practice
Info-Tech Research Group

Your challenge: Why focus on business relationship management?

Is IT saying this about business partners?

I don’t know what my business needs and so we can’t add as much value as we’d like.

My partners don’t give us the opportunity to provide new ideas to solve business problems

My partners listen to third parties before they listen to IT.

We’re too busy and don’t have the capacity to help my partners.

Three stamps with the words 'Value', 'Innovation', and 'Advocacy'. Are business partners saying this about IT?

IT does not create and deliver valuable services/solutions that resolve my business pain points.

IT does not come to me with innovative solutions to my business problems/challenges/issues.

IT blocks my efforts to drive the business forward using innovative technology solutions.

IT does not advocate for my needs with the decision makers in the organization.

Common obstacles

While organizations realize they need to do better, they often don’t know how to improve.

Organizations want to:
  • Understand and strategically align to business goals
  • Ensure stakeholders are satisfied
  • Show project value/success

… these are all things that a mature business relationship can do to improve your organization.

Key improvement areas identified by business leaders and IT leaders

Bar chart comparing 'CXO' and 'CIO' responses to multiple areas one whether they need significant improvement or only some improvement. Areas in question are 'Understand Business Goals', 'Define and align IT strategy', 'Measure stakeholder satisfaction with IT', and 'Measure IT project success'. Source: CEO/CIO Alignment Diagnostic, N=446 organizations.

Info-Tech’s approach

BRMs who focus on achieving business value can improve organizational results.

Visualization of a piggy bank labelled 'Business Value' with a person on a ladder labelled 'Strategic Tactical Operational' putting coins into the bank which are labelled 'External & internal views', 'Applied knowledge of the business', 'Strategic perspective', 'Trusted relationship', and 'Empathetic engagements “What’s in it for me/them?”'.

Business relationships can take a strategic, tactical, or operational perspective.

While all levels are needed, focus on a strategic perspective for optimal outcomes.

Create business value through:

  • Applying your knowledge of the business so that conversations aren’t about what IT provides. Focus on what the overall business requires.
  • Ensuring your knowledge includes what is going on internally at your organization and also what occurs externally within and outside the industry (e.g. vendors, technologies used in similar industries or with similar customer interactions).
  • Discussing with the perspective of “what’s in it for [insert business partner here]” – don’t just present IT’s views.
  • Building a trusted strategic relationship – don’t just do well at the basics but also focus on the strategy that can move the organization to where it needs to be.

Neither you nor your partners can view IT as separate from your overall business…

…your IT goals need to be aligned with those of the overall business

IT Maturity Pyramid with 'business goals' and 'IT goals' moving upward along its sides. It has five levels, 'unstable - Ad hoc – IT is too busy and the business is unsatisfied (too expensive, too long, not delivering on needs)', 'firefighter - Order taker – IT engaged on as-needed basis. IT unable to forecast demand to manage own resources', 'trusted operator - IT and business are not always sure of each other’s direction/priorities’, ‘business partner - IT understands and delivers on business needs', and 'innovator - Business and IT work together to achieve shared goals'.

IT and other lines of business need to partner together – they are all part of the same overall business.

Four puzzle pieces fitting together representing 'IT' and three other Lines of Business '(LOB)'

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Why it’s important to establish a BRM program

IT Benefits

  • Provides IT with a view of the lines of business they empower
  • Allows IT to be more proactive in providing solutions that help business partner teams
  • Allows IT to better manage their workload, as new requests can be prioritized and understood

Business Benefits

  • Provides business teams with a view of the services that IT can help them with
  • Brings IT to the table with value-driven solutions
  • Creates an overall roadmap aligning both partners
Ladder labelled 'Strategic Tactical Operational'.
  • Drive business value into the organization via innovative technology solutions.
  • Improve ability to meet and exceed business goals and objectives, resulting in more satisfied stakeholders (C-suite, board of directors).
  • Enhance ability to execute business activities to meet end-customer requirements and expectations, resulting in more satisfied customers.

Increase your business benefits by moving up higher – from operational to tactical to strategic.

Piggy bank labelled 'Business Value'.

When IT understands the business, they provide better value

Understanding all parties – including the business needs and context – is critical to effective business relationships.

Establishing a focus on business relationship management is key to improving IT satisfaction.

When business partners are satisfied that IT understands their needs, they have a higher perception of the value of overall IT

Bar chart with axes 'Business satisfaction with IT understanding of needs' and 'Perception of IT value'. There is an upward trend.

The relationship between the perception of IT value and business satisfaction is strong (r=0.89). Can you afford not to increase your understanding of business needs?

(Source: Info-Tech Research Group diagnostic data/Business-Aligned IT Strategy blueprint (N=652 first-year organizations that completed the CIO Business Vision diagnostic))

A tale of two IT partners

Teleconference with an IT partner asking them to 'Tell me everything'.

One IT partner approached their business partner without sufficient background knowledge to provide insights.

The relationship was not strong and did not provide the business with the value they desired.

Research your business and be prepared to apply your knowledge to be a better partner.

Teleconference with an IT partner that approached with knowledge of your business and industry.

The other IT partner approached with knowledge of the business and external parties (vendors, competitors, industry).

The business partners received this positively. They invited the IT partners to meetings as they knew IT would bring value to their sessions.

BRM success is measurable Measuring tape.

1) Survey your stakeholders to measure improvements in customer satisfaction 2) Measure BRM success against the goals for the practice

Business satisfaction survey

  • Audience: Business leaders
  • Frequency: Annual
  • Metrics:
    • Overall Satisfaction score
    • Overall Value score
    • Relationship Satisfaction:
      • Understand needs
      • Meet needs
      • Communication
 Two small tables showing example 'Value' and 'Satisfaction' scores. Dart board with five darts, each representing a goal, 'Demand Shaping', 'Value Realization', 'Servicing', 'Exploring', and 'Other Goal(s)'.
Table with a breakdown of the example 'Satisfaction' score, with individual scores for 'Needs', 'Execution', and 'Communication'.

Maturing your BRM practice is a journey

Info-Tech has developed an approach that can be used by any organization to improve or successfully implement BRM. The same ladder as before with words 'Strategic', 'Tactical', 'Operational', and a person climbing on it. Become a Trusted Partner and Advisor
KNOWLEDGE OF INDUSTRY

STRATEGIC

 Value Creator and Innovator

Strategic view of IT and the business with knowledge of the market and trends; a connector driving value-added services.

KNOWLEDGE OF FUNCTIONS

TACTICAL

 Influencer and Advocate

Two-way voice between IT and business, understanding business processes and activities including IT touchpoints and growing tactical and strategic view of services and value.

TABLE STAKES:
COMMUNICATION
SERVICE DELIVERY
PROJECT DELIVERY

OPERATIONAL

 Deliver

Communication, service, and project delivery and fulfillment, initial engagement with and knowledge of the business.

Foundation: Define and communicate the meaning and vision of BRM

At each level, keep maturing your BRM practice

ITPartnerWhat to do to move to the next level

Strategic Partner

Shared goals for maximizing value and shared risk and reward

5

Strategic view of IT and the business with knowledge of the market and trends; a connector driving value-added services.

Value Creator and Innovator

See partners as integral to business success and growth

Focus on continuous learning and improvement.

Trusted Advisor

Cooperation based on mutual respect and understanding

4

Partners understand, work with, and help improve capabilities.

Influencer and Advocate

Sees IT as helpful and reliable

Strategic: IT needs to demonstrate and apply knowledge of business, industry, and external influences.

Service Provider

Routine – innovation is a challenge

3

Two-way voice between IT and business; understanding business processes and activities including IT touchpoints and growing tactical and strategic view of services and value.

Priorities set but still always falling behind.

Views IT as helpful but they don’t provide guidance

IT needs to excel in portfolio and transition management.

Business needs to engage IT in strategy.

Order Taker

Distrust, reactive

2

Focuses on communication, service, and project delivery and fulfillment, initial engagement with and knowledge of the business.

Delivery Service

Engages with IT on an as-needed basis

Improve Tactical: IT needs to demonstrate knowledge of the business they are in. IT to improve BRM and service management.

Business needs to embrace BRM role and service management.

Ad Hoc

Loudest in, first out

1

Too busy doing the basics; in firefighter mode.

Low satisfaction (cost, duration, quality)

Improve Operational Behavior: IT to show value with “table stakes” – communication, service delivery, project delivery.

IT needs to establish intake/demand management.


Business to embrace a new way of approaching their partnership with IT.

(Adapted from BRM Institute Maturity Model and Info-Tech’s own model)

The Info-Tech path to implement BRM

Use Info-Tech’s ASPIRe method to create a continuously improving BRM practice.

Info-Tech's ASPIRe method visualized as a winding path. It begins with 'Role Definition', goes through many 'Role Refinements' and ends with 'Metrics'. The main steps to which the acronym refers are 'Assess', 'Situate', 'Plan', 'Implement', and 'Reassess & Embed'.

Insight summary

BRM is not just about communication, it’s about delivering on business value.

Business relationship management isn’t just about having a pleasant relationship with stakeholders, nor is it about just delivering things they want. It’s about driving business value in everything that IT does and leveraging relationships with the business and IT, both within and outside your organization.

Understand your current state to determine the best direction forward.

Every organization will apply the BRM practice differently. Understand what’s needed within your organization to create the best fit.

BRM is not just a communication conduit between IT and the business.

When implemented properly, a BRM is a value creator, advocate, innovator, and influencer.

The BRM role must be designed to match the maturity level of the IT organization and the business.

Before you can create incremental business value, you must master the fundamentals of service and project delivery.

Info-Tech Insight

Knowledge of your current situation is only half the battle; knowledge of the business/industry is key.

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

Guided Implementation

Workshop

Consulting
"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks used throughout all four options

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

Key deliverable:

Executive Buy-In and Communication Presentation Template

Explain the need for the BRM practice and obtain buy-in from leadership and staff across the organization.

Sample of Info-Tech's key deliverable, the Executive Buy-In and Communication Presentation Template.

BRM Workbook

Capture the thinking behind your organization’s BRM program.

Sample of Info-Tech's BRM Workbook deliverable.

BRM Stakeholder Engagement Plan Worksheet

Worksheet to capture how the BRM practice will engage with stakeholders across the organization.

Sample of Info-Tech's BRM Stakeholder Engagement Plan Worksheet deliverable.

BRM Role Expectations Worksheet

How business relationship management will be supported throughout the organization at a strategic, tactical, and operational level.

Sample of Info-Tech's BRM Role Expectations Worksheet deliverable.

Guided Implementation

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is between 8 to 12 calls over the course of 4 to 6 months.

What does a typical GI on this topic look like?

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5
Call #1: Discuss goals, current state, and an overview of BRM.

Call #2: Examine business satisfaction and discuss results of SWOT.

Call #3: Establish BRM mission, vision, and goals. Call #4: Develop guiding principles.

Call #5: Establish the BRM operating model and role expectations.

Call #6: Establish business value. Discuss stakeholders and engagement planning. Call #7: Develop metrics. Discuss portfolio management.

Call #8: Develop a communication or rollout plan.

Workshop Overview

Complete the CIO-Business Vision diagnostic prior to the workshop.
Contact your account representative for more information.
workshops@infotech.com1-888-670-8889
Day 1 Day 2 Day 3 Day 4 Post-Workshop
Activities
Set the Foundation
Assess & Situate
Define the Operating Model
Plan
Define Engagement
Implement
Implement BRM
Reassess
Next steps and Wrap-Up (offsite)

1.1 Discuss rationale and importance of business relationship management

1.2 Review CIO BV results

1.3 Conduct SWOT analysis (analyze strengths, weaknesses, opportunities, and threats)

1.4 Establish BRM vision and mission

1.5 Define objectives and goals for maturing the practice

2.1 Create your list of guiding principles (optional)

2.2 Define business value

2.3. Establish the operating model for the BRM practice

2.4 Define capabilities

3.1. Identify key stakeholders

3.2 Map, prioritize, and categorize the stakeholders

3.4 Create an engagement plan

4,1 Define metrics

4.2 Identify remaining enablers/blockers for practice implementation

4.3 Create roadmap

4.4 Create communication plan

5.1 Complete in-progress deliverables from previous four days

5.2 Set up review time for workshop deliverables and to discuss next steps

Deliverables
  1. Summary of CIO Business Vision results
  2. Vision and list of objectives for the BRM program
  3. List of business and IT pain points
  1. BRM role descriptions, capabilities, and ownership definitions
  1. BRM reporting structure
  2. BRM engagement plans
  1. BRM communication plan
  2. BRM metrics tracking plan
  3. Action plan and next step
  1. Workshop Report

ASSESS

Assess

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

Situate

2.1 Create Vision

2.2 Create the BRM Mission

2.3 Establish Goals

Plan

3.1 Establish Guiding Principles

3.2 Determine Where BRM Fits

3.3 Establish BRM Expectations

3.4 Identify Roles With BRM Responsibilities

3.5 Align Capabilities

Implement

4.1 Brainstorm Sources of Business Value

4.2 Identify Key Influencers

4.3 Categorize the Stakeholders

4.4 Create the Prioritization Map

4.5 Create Your Engagement Plan

Reassess & Embed

5.1 Create Metrics

5.2 Prioritize Your Projects

5.3 Create a Portfolio Investment Map

5.4 Establish Your Annual Plan

5.5 Build Your Transformation Roadmap

5.6 Create Your Communication Plan

To assess BRM, clarify what it means to you

Who are BRM relationships with? Octopus holding icons with labels 'Tech Partners', 'Lines of Business', and 'External Partners'. The BRM has multiple arms/legs to ensure they’re aligned with multiple parties – the partners within the lines of business, external partners, and technology partners.
What does a BRM do? Engage the right stakeholders – orchestrate key roles, resources, and capabilities to help stimulate, shape, and harvest business value.

Connect partners (IT and other business) with the resources needed.

Help stakeholders navigate the organization and find the best path to business value.

Three figures performing different actions, labelled 'orchestrate', 'connect', and 'navigate'.
What does a BRM focus on? Circle bisected at many random points to create areas of different colors with four color-coded circles surrounding it. Demand Shaping – Surfacing and shaping business demand
Value Harvesting – Identifying ways to increase business value and providing insights
Exploring – Rationalizing demand and reviewing new business, technology, and industry insights
Servicing – Managing expectations and facilitating business strategy; business capability road mapping

Determine what business relationship management is

Many organizations face business dissatisfaction because they do not understand what the role of a BRM should be.

A BRM Is NOT:
  • Order taker
  • Service desk
  • Project manager
  • Business analyst
  • Service delivery manager
  • Service owner
  • Change manager
 A BRM Is:
  • Value creator
  • Innovator
  • Trusted advisor
  • Strategic partner
  • Influencer
  • Business subject matter expert
  • Advocate for the business
  • Champion for business process improvement
Business relationship management does not mean a go-between for the business and IT. Its focus should be on delivering VALUE and INNOVATIVE SOLUTIONS to the business.

1.1 What is BRM?

1 hour

Input: Your preliminary thoughts and ideas on BRM

Output: Themes summarizing what BRM will be at your organization

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Each team member will take a colored sticky note to capture what BRM is and what it isn’t.
  2. As a group, review and discuss the sticky notes.
  3. Group them into themes summarizing what BRM will be at your organization.
  4. Leverage the workbook to brainstorm the definition of BRM at your organization.
  5. Create a refined summary statement and capture it in the Executive Buy-In and Communication Template.

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

It’s important to understand what the business thinks; ask them the right questions

Leverage the CIO Business Vision Diagnostic to provide clarity on:
  • The organization’s view on satisfaction and importance of core IT services
  • Satisfaction across business priorities
  • IT’s capacity to meet business needs

Contact your Account Representative to get started

Sample of various scorecards from the CIO Business Vision Diagnostic.

1.2 Use their responses to help guide your BRM program

1 hour

Input: CIO-Business Vision Diagnostic, Other business feedback

Output: Summary of your partners’ view of the IT relationship

Materials: Whiteboard/flip charts (physical or electronic)

Participants: CIO, IT management team

  1. Complete the CIO Business Vision diagnostic.
  2. Analyze the findings from the Business Vision diagnostic or other business relationship and satisfaction surveys. Key areas to look at include:
    • Overall IT Satisfaction
    • IT Value
    • Relationship (Understands Needs, Communicates Effectively, Executes Requests, Trains Effectively)
    • Shadow IT
    • Capacity Needs
    • Business Objectives
  3. Capture the following on your analysis:
    • Success stories – what your business partners are satisfied with
    • Challenges – are the responses consistent across departments?
  4. Leverage the workbook to capture your findings the goals. Key highlights should be documented in the Executive Buy-In and Communication Template.

Use the BRM Workbook to capture ideas

Polish the goals in the Executive Buy-In and Communication Template

Perform a SWOT analysis to explore internal and external business factors

A SWOT analysis is a structured planning method organizations use to evaluate the effects of internal strengths and weaknesses and external opportunities and threats on a project or business venture.

Why It Is Important

  • Business SWOT reveals internal and external trends that affect the business. You may uncover relevant information about the business that the other analysis methods did not reveal.
  • The organizational strengths or weaknesses will shed some light on implications that you might not have considered otherwise, such as brand perception or internal staff capability to change.

Key Tips/Information

  • Although this activity is simple in theory, there is much value to be gained when performed effectively.
  • Focus on weaknesses that can cause a competitive disadvantage and strengths that can cause a competitive advantage.
  • Rank your opportunities and threats based on impact and probability.
  • Info-Tech members who have derived the most insights from a business SWOT analysis usually involved business stakeholders in the analysis.

SWOT diagram split into four quadrants representing 'Strengths' at top left, 'Opportunities' at bottom left, 'Weaknesses' at top right, and 'Threats' at bottom right.

Review these questions to help you conduct your SWOT analysis on the business

Strengths (Internal)
  • What competitive advantage does your organization have?
  • What do you do better than anyone else?
  • What makes you unique (human resources, product offering, experience, etc.)?
  • Do you have location, price, cost, or quality advantages?
  • Does your organizational culture offer an advantage (hiring the best people, etc.)?
  • Do you have a high level of customer engagement or satisfaction?
Weaknesses (Internal)
  • What areas of your business require improvement?
  • Are there gaps in capabilities?
  • Do you have financial vulnerabilities?
  • Are there leadership gaps (succession, poor management, etc.)?
  • Are there reputational issues?
  • Are there factors contributing to declining sales?
Opportunities (External)
  • Are there market developments or new markets?
  • Are there industry or lifestyle trends (move to mobile, etc.)?
  • Are there geographical changes in the market?
  • Are there new partnerships or mergers and acquisitions (M&A) opportunities?
  • Are there seasonal factors that can be used to the advantage of the business?
  • Are there demographic changes that can be used to the advantage of the business?
Threats (External)
  • Are there obstacles that the organization must face?
  • Are there issues with respect to sourcing of staff or technologies?
  • Are there changes in market demand?
  • Are your competitors making changes that you are not making?
  • Are there economic issues that could affect your business?

1.3 Analyze internal and external business factors using a SWOT analysis

1 hour

Input: IT and business stakeholder expertise

Output: Analysis of internal and external factors impacting the IT organization

Materials: Whiteboard/flip charts (physical or electronic)

Participants: CIO, IT management team

  1. Break the group into two teams:
    • Assign team A internal strengths and weaknesses.
    • Assign team B external opportunities and threats.
  2. Think about strengths, weaknesses, opportunities, and threats as they pertain to the IT-business relationship. Consider people, process, and technology elements.
  3. Have the teams brainstorm items that fit in their assigned grids. Use the prompt questions on the previous slide as guidance.
  4. Pick someone from each group to fill in the SWOT grid.
  5. Conduct a group discussion about the items on the list; identify implications for the BRM/IT.

Capture in the BRM Workbook

SITUATE

Assess

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

Situate

2.1 Create Vision

2.2 Create the BRM Mission

2.3 Establish Goals

Plan

3.1 Establish Guiding Principles

3.2 Determine Where BRM Fits

3.3 Establish BRM Expectations

3.4 Identify Roles With BRM Responsibilities

3.5 Align Capabilities

Implement

4.1 Brainstorm Sources of Business Value

4.2 Identify Key Influencers

4.3 Categorize the Stakeholders

4.4 Create the Prioritization Map

4.5 Create Your Engagement Plan

Reassess & Embed

5.1 Create Metrics

5.2 Prioritize Your Projects

5.3 Create a Portfolio Investment Map

5.4 Establish Your Annual Plan

5.5 Build Your Transformation Roadmap

5.6 Create Your Communication Plan

Your strategy informs your BRM program

Your strategy is a critical input into your program. Extract critical components of your strategy and convert them into a set of actionable principles that will guide the selection of your operating model.

Sample of Info-Tech's 'Build a Business-Aligned IT Strategy' blueprint.

Vision, Mission & Principles Chevron pointing right.
  • Leverage your vision and mission statements that communicate aspirations and purpose for key information that can be turned into design principles.
Business Goal Implications Chevron pointing right.
  • Implications are derived from your business goals and will provide important context about the way BRM needs to change to meet its overarching objectives.
  • Understand how those implications will change the way that work needs to be done – new capabilities, new roles, new modes of delivery, etc.
Target-State Maturity Chevron pointing right.
  • Determine your target-state relationship maturity for your organization using the BRM goals that have been uncovered.

Outline your mission and vision for your BRM practice

If you don’t know where you’re trying to go, how do you know if you’ve arrived?

Establish the vision of what your BRM practice will achieve.

Your vision will paint a picture for your stakeholders, letting them know where you want to go with your BRM practice.

Stock image of a hand painting on a large canvas.

The vision will also help motivate and inspire your team members so they understand how they contribute to the organization.

Your strategy must align with and support your organization’s strategy.

Good Visions
  • Attainable – Aspirational but still within reach
  • Communicable – Easy to comprehend
  • Memorable – Not easily forgotten
  • Practical – Solid, realistic
  • Shared – Create a culture of shared ownership across the team/company
 When Visions Fail
  • Not Shared: Lack of buy-in, no alignment with stakeholders
  • Impractical: No plan or strategy to deliver on the vision
  • Unattainable: Set too far in the future
  • Forgettable: Not championed, not kept in mind
(Source: UX Magazine, 2011)

Derive the BRM vision statement

Stock image of an easel with a bundle of paint brushes beside it. Begin the process of deriving the business relationship management vision statement by examining your business and user concerns. These are the problems your organization is trying to solve.
Icon of one person asking another a question.
Problem Statements
First, ask what problems your organization hopes to solve. 		Icon of a magnifying glass on a box.
Analysis
Second, ask what success would look like when those problems were solved. 		Icon of two photos in quotes.
Vision Statement
Third, polish the answer into a short but meaningful phrase.

Paint the picture for your team and stakeholders so that they align on what BRM will achieve.

Vision statements demonstrate what your practice “aspires to be”

Your vision statement communicates a desired future state of the BRM organization. The statement is expressed in the present tense. It seeks to articulate the desired role of business relationship management and how it will be perceived.

Sample vision statements:

  • To be a trusted advisor and partner in enabling business innovation and growth through an engaged design practice.
  • The group will strive to become a world-class value center that is a catalyst for innovation.
  • Apple: “We believe that we are on the face of the earth to make great products and that’s not changing.” (Mission Statement Academy, May 2019.)
  • Coca-Cola: “To refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.” (Mission Statement Academy, August 2019.)

2.1 Vision generation

1 hour

Input: IT and business strategies

Output: Vision statement

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review the goals and the sample vision statements provided on the previous slide.
  2. Brainstorm possible vision statements that can apply to your practice. Refer to the guidance provided on the previous page – ensure that it paints a picture for the reader to show the desired target state.
  3. Leverage the workbook to brainstorm the vision. Capture the refined statement in the Executive Buy-In and Communication Template.
Strong vision statements have the following characteristics
  • Describe a desired future
  • Focus on ends, not means
  • Communicate promise
  • Concise, no unnecessary words
  • Compelling
  • Achievable
  • Inspirational
  • Memorable

Use the BRM Workbook to capture ideas

Polish the goals in the Executive Buy-In and Communication Template

Create the mission statement from the problems and the vision statement

Your mission demonstrates your current intent and the purpose driving you to achieve your vision.

It reflects what the organization does for users/customers.

The main word 'Analysis' is sandwiched between 'Goals and Problems' and 'Vision Statement', each with arrow pointing to the middle. Make sure the practice’s mission statement reflects answers to the questions below:

The questions:

  • What does the organization do?
  • How does the organization do it?
  • For whom does the organization do it?
  • What value is the organization bringing?

“A mission statement illustrates the purpose of the organization, what it does, and what it intends on achieving. Its main function is to provide direction to the organization and highlight what it needs to do to achieve its vision.” (Joel Klein, BizTank (in Hull, “Answer 4 questions to get a great mission statement.”))

Sample mission statements

To enhance the lives of our end users through our products so that our brand becomes synonymous with user-centricity.

To enable innovative services that are seamless and enjoyable to our customers so that together we can inspire change.

Apple’s mission statement: “To bring the best user experience to its customers through its innovative hardware, software, and services.” (Mission Statement Academy, May 2019.)

Coca Cola’s mission statement: “To refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.” (Mission Statement Academy, August 2019.)

Tip: Using the “To … so that” format helps to keep your mission focused on the “why.”

2.2 Develop your own mission statement

1 hour

Input: IT and business strategies, Vision

Output: Mission statement

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review the goals and the vision statement generated in the previous activities.
  2. Brainstorm possible mission statements that can apply to your BRM practice. Capture this in your BRM workbook.
  3. Refine your mission statement. Refer to the guidance provided on the previous page – ensure that the mission provides “the why”. Document the refined mission statement in the Executive Buy-In and Communication Template.

“People don't buy what you do; they buy why you do it and what you do simply proves what you believe.” (Sinek, Transcript of “How Great Leaders Inspire Action.”)

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

Areas that BRMs focus on include:

Establish how much of these your practice will focus on.

VALUE HARVESTING
  • Tracks and reviews performance
  • Identifies ways to increase business value
  • Provides insights on the results of business change/initiatives
 Circle bisected at many random points to create areas of different colors with four color-coded circles surrounding it. DEMAND SHAPING
  • Isn’t just demand/intake management
  • Surfaces and shapes business demand
  • Is influenced by knowledge of the overall business and external entities
SERVICING
  • Coordinates resources
  • Manages expectations
  • Facilitates business strategy, business capability road-mapping, and portfolio and program management
 EXPLORING
  • Identifies and rationalizes demand
  • Reviews new business, technology, and industry insights
  • Identifies business value initiatives

Establish what success means for your focus areas

Brainstorm objectives and success areas for your BRM practice.

Circle bisected at many random points to create areas of different colors with four color-coded circles surrounding it. VALUE HARVESTING
Success may mean that you:
  • Understand the drivers and what the business needs to attain
  • Demonstrate focus on value in discussions
  • Ensure value is achieved, tracking it during and beyond deployment
 DEMAND SHAPING
Success may mean that you:
  • Understand the business
  • Are engaged at business meetings (invited to the table)
  • Understand IT; communicate clarity around IT to the business
  • Help IT prioritize needs
SERVICING
Success may mean that you:
  • Understand IT services and service levels that are required
  • Provide clarity around services and communicate costs and risks
 EXPLORING
Success may mean that you:
  • Surface new opportunities based on understanding of pain points and growth needs
  • Research and partner with others to further the business
  • Engage resources with a focus on the value to be delivered

2.3 Establish BRM goals

1 hour

Input: Mission and vision statements

Output: List of goals

Materials: Whiteboard/flip charts (physical or electronic)

Participants: CIO, IT management team, BRM team

  1. Use the previous slides as a starting point – review the focus areas and sample associated objectives.
  2. Determine if all apply to your role.
  3. Brainstorm the objectives for your BRM practice.
  4. Discuss and refine the objectives and goals until the team agrees on your starting set.
  5. Leverage the workbook to establish the goals. Capture refined goals in the Executive Buy-In and Communication Template.

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

PLAN

Assess

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

Situate

2.1 Create Vision

2.2 Create the BRM Mission

2.3 Establish Goals

Plan

3.1 Establish Guiding Principles

3.2 Determine Where BRM Fits

3.3 Establish BRM Expectations

3.4 Identify Roles With BRM Responsibilities

3.5 Align Capabilities

Implement

4.1 Brainstorm Sources of Business Value

4.2 Identify Key Influencers

4.3 Categorize the Stakeholders

4.4 Create the Prioritization Map

4.5 Create Your Engagement Plan

Reassess & Embed

5.1 Create Metrics

5.2 Prioritize Your Projects

5.3 Create a Portfolio Investment Map

5.4 Establish Your Annual Plan

5.5 Build Your Transformation Roadmap

5.6 Create Your Communication Plan

Guiding principles help you focus the development of your practice

Your guiding principles should define a set of loose rules that can be used to design your BRM practice to the specific needs of the organization and work that needs to be done.

These rules will guide you through the establishment of your BRM practice and help you explain to your stakeholders the rationale behind organizing in a specific way.

Sample Guiding Principles

Principle Name

Principle Statement
Customer Focus We will prioritize internal and external customer perspectives
External Trends We will monitor and liaise with external organizations to bring best practices and learnings into our own
Organizational Span We embed relationship management across all levels of leadership in IT
Role If the resource does not have a seat at the table, they are not performing the BRM role

3.1 Establish guiding principles (optional activity)

Input: Mission and vision statements

Output: BRM guiding principles

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Think about strengths, weaknesses, opportunities, and threats as well as the overarching goals, mission, and vision.
  2. Identify a set of principles that the BRM practice should have. Guiding principles are shared, long-lasting beliefs that guide the use of business relationship management in your organization.

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

Establish the BRM partner model and alignment

Having the right model and support is just as important as having the right people.

Gears with different BRM model terms: 'BRM Capabilities', 'BRM & Other Roles', 'Scope (pilot)', 'Operating Unit', 'BRM Expectations Across the organization', and 'Delivery & Support'.

Don’t boil the ocean: Start small

It may be useful to pilot the BRM practice with a small group within the organization – this gives you the opportunity to learn from the pilot and share best practices as you expand your BRM practice.

You can leverage the pilot business unit’s feedback to help obtain buy-in from additional groups.

Evaluate the approaches for your pilot: 		Work With an Engaged Business Unit
Icon of a magnifying glass over a group of people.

This approach can allow you to find a champion group and establish quick wins.

Target Underperforming Area(s)
Icon of an ambulance.

This approach can allow you to establish significant wins, providing new opportunities for value.

Target the Area(s) Driving the Most Business Value
Icon of an arrow in a bullseye.

Provide the largest positive impact on your portfolio’s ability to drive business value; for large strategic or transformative goals.

Work Across a Single Business Process
Icon of a process tree.

This approach addresses a single business process or operation that exists across business units, departments, or locations. This, again, will allow you to limit the number of stakeholders.

Leverage BRM goals to determine where the role fits within the organization

Organization tree with a strategic BRM.

Strategic BRMs are considered IT leaders, often reporting to the CIO.


Organization tree with an operational BRM.

In product-aligned organizations, the product owners will own the strategic business relationship from a product perspective (often across LOB), while BRMs will own the strategic role for the line(s) of businesses (often across products) that they hold a relationship with. The BRM role may be played by a product family leader.


Organization tree with a BRM in a product-aligned organization.

BRMs may take on a more operational function when they are embedded within another group, such as the PMO. This manifests in:

  • Accountability for projects and programs
  • BRM conversations around projects and programs rather than overall needs
  • Often, there is less focus on stimulating need, more about managing demand
  • This structure may be useful for smaller organizations or where organizations are piloting the relationship capability

Use the IT structure and the business structure to determine how to align BRM and business partners. Many organizations ensure that each LOB has a designated BRM, but each BRM may work with multiple LOBs. Ensure your alignment provides an even and manageable distribution of work.

Don’t be intimidated by those who play a significant role in relationship management

Layers representing the BRM, BA, and Product Owner. Business Relationship Manager: Portfolio View
  • Ongoing with broader organization-wide objectives
  • A BRM’s strategic perspective is focused across projects and products
 The BRM will look holistically across a portfolio, rather than on specific projects or products. Their focus is ensuring value is delivered that impacts the overall organization. Multiple BRMs may be responsible for lines of businesses and ensure that products and project enable LOBs effectively.
Business Analyst: Product or Project View
  • Works within a project or product
  • Accomplishes specific objectives within the project/product
 The BA tends to be involved in project work – to that end, they are often brought in a bit before a project begins to better understand the context. They also often remain after the project is complete to ensure project value is delivered. However, their main focus is on delivering the objectives within the project.
Product Owner: Product View
  • Ongoing and strategic view of entire product, with product-specific objectives
 The Product Owner bridges the gap between the business and delivery to ensure their product continuously delivers value. Their focus is on the product.

3.2 Establish the BRM’s place in the organizational structure

Input: BRM goals, IT organizational structure, Business organizational structure

Output: BRM operating model

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review the current organizational structure – both IT and overall business.
  2. Think about the maturity of the IT organization and what you and your partners will be able to support at this stage in the relationship or journey. Establish whether it is necessary to start with a pilot.
  3. Consider the reporting relationship that is required to support the desired maturity of your practice – who will your BRM function report into?
  4. Consider the distribution of work from your business partners. Establish which BRM is responsible for which partners.
  5. Document where the BRM fits in the organization in the Executive Buy-In and Communication Template.

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

Align your titles to your business partners and ensure it demonstrates your strategic goals

Some titles that may reflect alignment with your partners:
  • Business Capability Manager
  • Business Information Officer
  • Business Relationship Manager
  • Director, Technology Partner
  • IT Business Relationship Manager
  • People Relationship Manager
  • Relationship and Strategy Officer
  • Strategic Partnership Director
  • Technology Partner/People Partner/Finance Partner/etc.
  • Value Management Officer

Support BRM team members might have “analyst” or “coordinator” as part of their titles.

Caution when using these titles:
  • Account Manager (do you see your stakeholders as accounts or as partners?)
  • Customer Relationship Manager (do you see your stakeholders as customers or as partners?)
  • People Partner (differentiate your role from HR)

Determine the expectations for your BRM role(s)

Below are standard expectations from BRM job descriptions. Establish whether there are changes required for your organization.

Act as a Relationship Manager
  • Build strong, collaborative relationships with business clients
  • Build strong, collaborative relationships with IT service owners
  • Track client satisfaction with services provided
  • Continuously improve, based on feedback from clients
Communicate With Business Stakeholders
  • Ensure that effective communication occurs related to service delivery and project delivery (e.g. planned downtime, changes, open tickets)
  • Manage expectations of multiple business stakeholders
  • Provide a clear point of contact within IT for each business stakeholder
  • Act as a bridge between IT and the business
 Service Delivery

Service delivery breaks out into three activities: service status, changes, and service desk tickets

  • Understand at a high level the services and technologies in use
  • Work with clients to plan and make sure they understand the relevance and impact of IT changes to their operations
  • Define, agree to, and report on key service metrics
  • Act as an escalation point for major issues with any aspect of service delivery
  • Work with service owners to develop and monitor service improvement plans
Project/Product Delivery
  • Ensure that the project teams provide regular reports regarding project status, issues, and changes
  • Work with project managers and clients to ensure project requirements are well understood and documented and approved by all stakeholders
  • Ensure that the project teams provide key project metrics on a regular basis to all relevant stakeholders

Determine role expectations (slide 2 of 3)

Knowledge of the Business

Understand the main business activities for each department:

  • Understand which IT services are required to complete each business activity
  • Understand business processes and associated business activities for each user group within a department
Advocate for Your Business Clients
  • Act as an advocate for the client – be invested in client success
  • Understand the strategies and plans of the clients and help develop an IT strategic plan/roadmap that maps to business strategies
  • Help the business understand project governance processes
  • Help clients to develop proposals and advance them through the project intake and assessment process
 Influence Business and IT Stakeholders
  • Influence business and IT stakeholders at multiple levels of the organization to help clients achieve their business objectives
  • Leverage existing relationships to convince decision makers to move forward with business and IT initiatives that will benefit the department and the organization as a whole
  • Understand and solve issues and challenges such as differing agendas, political considerations, and resistance to change
Knowledge of the Market
  • Understand the industry – trends, competition, future direction
  • Leverage what others are doing to bring innovative ideas to the organization
  • Understand what end customers expect with regards to IT services and bring this intelligence to business leaders and decision makers

Determine role expectations (slide 3 of 3)

Value Creator
  • Understand how services currently offered by IT can be put to best use and create value for the business
  • Work collaboratively with clients to define and prioritize technology initiatives (new or enhanced services) that will bring the most business benefit
  • Lead initiatives that help the business achieve or exceed business goals and objectives
  • Lead initiatives that create business value (increased revenue, lower costs, increased efficiency) for the organization
Innovator
  • Lead initiatives that result in new and better ways of doing business
  • Identify opportunities for using IT in new and innovative ways to bring value to the business and drive the business forward
  • Leverage knowledge of the business, knowledge of the industry, and knowledge of leading-edge technological solutions to transform the way the business operates and provides services to its customers

3.3 Establish BRM expectations

Input: BRM goals

Output: BRM expectations

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review the BRM expectations on the previous slides.
  2. Customize them – are they the appropriate set of expectations needed for your organization? What needs to be edited in or out?
  3. Add relevant expectations – what are the things that need to be done in the BRM practice at your organization?
  4. Leverage the workbook to brainstorm BRM expectations. Make sure you update them in the BRM Role Expectation Spreadsheet.

Download the BRM Workbook

Download the Executive Buy-In and Communication Template

Various roles and levels within your organization may have a part of the BRM pie

Where the BRM sits will impact what they are able to get done.

The BRM role is a strategic one, but other roles in the organization have a part to play in impacting IT-partner relationship.

Some roles may have a more strategic focus, while others may have a more tactical or operational focus.

3.4 Identify roles with BRM responsibilities

Input: BRM goals

Output: BRM-aligned roles

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Various roles can play a part in the BRM practice, managing business relationships. Which ones make sense in your organization, given the BRM goals?
  2. Identify the roles and capture in the BRM Role Expectation Spreadsheet. Use the Role Expectation Alignment tab, row 1.


Download the Role Expectations Worksheet

Determine the focus for each role that may manage business relationships

Icon of a telescope. STRATEGIC Sets Direction: Focus of the activities is at the holistic, enterprise business level “relating to the identification of long-term or overall aims and interests and the means of achieving them” e.g. builds overarching relationships to enable and support the organization’s strategy; has strategic conversations
Icon of a house in a location marker. TACTICAL Figures Out the How: Focuses on the tactics required to achieve the strategic focus “skillful in devising means to ends” e.g. builds relationships specific to tactics (projects, products, etc.)
Icon of a gear cog with a checkmark. OPERATIONAL Executes on the Direction: Day-to-day operations; how things get done “relating to the routine functioning and activities of a business or organization” e.g. builds and leverages relationships to accomplish specific goals (within a project or product)

3.5 Align BRM capabilities to roles

Input: Current-state model, Business value matrix, Objectives and goals

Output: BRM-aligned roles

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review each group of role expectations – Act as a Relationship Manager, Communicate with Business Stakeholders, etc. For each group, determine the focus each role can apply to it – strategic, tactical, or operational. Refer to the previous slide for examples.
  2. Capture on the spreadsheet:
    • S – This role is required to have a strategic view of the capabilities. They are accountable and set direction for this aspect of relationship management.
    • T – Indicate if the role is required to have a tactical view of the capabilities. This would include whether the role is required to figure out how the capabilities will be done; for example, is the role responsible for carrying out service management or are they just involved to ensure that that set of expectations are being performed?
    • O – Indicate if the role will have an operational view – are they the ones responsible for doing the work?
    • Note: In some organizations, a role may have more than one of these.
  3. The spreadsheet will highlight the cells in green if the role plays more of the strategic role, yellow for tactical, and brown for operational. This provides an overall visual of each role’s part in relationship management.
  4. (Optional) Review each detailed expectation within the group. Evaluate whether specific roles will have a different focus on the unique role expectations.

Leverage the Role Expectations Worksheet

Sample role expectation alignment

Sample of a role expectation alignment table with expectation names and descriptions on the left and a matrix of which roles should have a Strategic (S), Tactical (T), or Operational (O) view of the capabilities.

IMPLEMENT

Assess

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

Situate

2.1 Create Vision

2.2 Create the BRM Mission

2.3 Establish Goals

Plan

3.1 Establish Guiding Principles

3.2 Determine Where BRM Fits

3.3 Establish BRM Expectations

3.4 Identify Roles With BRM Responsibilities

3.5 Align Capabilities

Implement

4.1 Brainstorm Sources of Business Value

4.2 Identify Key Influencers

4.3 Categorize the Stakeholders

4.4 Create the Prioritization Map

4.5 Create Your Engagement Plan

Reassess & Embed

5.1 Create Metrics

5.2 Prioritize Your Projects

5.3 Create a Portfolio Investment Map

5.4 Establish Your Annual Plan

5.5 Build Your Transformation Roadmap

5.6 Create Your Communication Plan

Speak the same language as your partners: Business Value

Business value represents the desired outcome from achieving business priorities.

Value is not only about revenue or reduced expenses. Use this internal-external and capability-financial business value matrix to more holistically consider what is valuable to stakeholders.

Improved Capabilities
Enhance Services
Products and services that enable business capabilities and improve an organization’s ability to perform its internal operations.
Increase Customer Satisfaction
Products and services that enable and improve the interaction with customers or produce practical market information and insights.
Inward Outward
Save Money
Products and services that reduce overhead. They typically are less related to broad strategic vision or goals and more simply limit expenses that would occur had the product or service not put in place.
Make money
(Return on Investment)
Products and services that are specifically related to the impact on an organization’s ability to create a return on investment.
Financial Benefits

Business Value Matrix Axes:

Financial Benefits vs. Improved Capabilities
  • Improved capabilities refers to the enhancement of business capabilities and skill sets.
  • Financial Benefits refers to the degree in which the value source can be measured through monetary metrics and is often highly tangible.
Inward vs. Outward Orientation
  • Inward refers to value sources that have an internal impact an organization’s effectiveness and efficiency in performing its operations.
  • Outward refers to value sources that come from interactions with external factors, such as the market or your customers.

4.1 Activity: Brainstorm sources of business value

Input: Product and service knowledge, Business process knowledge

Output: Understanding of different sources of business value

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Identify your key stakeholders. These individuals are the critical business strategic partners in the organization’s governing bodies.
  2. Brainstorm the different types of business value that the BRM practice can produce.
  3. Is the item more focused on improving capabilities or generating financial benefits?
  4. Is the item focused on the customers you serve or the IT team?
  5. Enter your value item into a cell on the Business Value Matrix based on where it falls on these axes.
  6. Start to think about metrics you can use to measure how effective the product or service is at generating the value source.
Simplified version of the Business Value Matrix on the previous slide.

Use the BRM Workbook to capture sources of business value

Brainstorm the different sources of business value (continued)

See appendix for more information on value drivers:
 Example:
Enhance Services
  • Dashboards/IT Situational Awareness
  • Improve measurement of services for data-driven analytics that can improve services
  • Collaborate to support Enterprise Architecture
  • Approval for and support of new applications per customer demand
  • Provide consultation for IT issues
 Axis arrow with 'Improved Capabilities'.
Axis arrow with 'Financial Benefits'. 		Reach Customers
  • Provide technology roadmaps for IT services and devices
  • Improved "PR" presence: websites, service catalog, etc.
  • Enhance customer experience
  • Faster Time-to-market delivering innovative technologies and current services
Axis arrow with 'Inward'.Axis arrow with 'Outward'.
Reduce Costs
  • Achieve better pricing through enterprise agreements for IT services that are duplicated across several orgs
  • Prioritization/ development of roadmap
  • Portfolio management / reduce duplication of services
  • Evolve resourcing strategies to integrate teams (e.g. do more with less)
 Return on Investment
  • Customer -focused dashboards
  • Encourage use of centralized services through external collaboration capabilities that fit multiple use cases
  • Devise strategies for measured/supported migration from older IT systems/software

Implications of ineffective stakeholder management

A stakeholder is any group or individual who is impacted by (or impacts) your objectives.

Challenges with stakeholder management can result from a self-focused point of view. Avoid these challenges by taking on the other’s perspectives – what’s in it for them.

The key objectives of stakeholder management are to improve outcomes, increase confidence, and enhance trust in IT.

  • Obtain commitment of executive management for IT-related objectives.
  • Enhance alignment between IT and the business.
  • Improve understanding of business requirements.
  • Improve implementation of technology to support business processes.
  • Enhance transparency of IT costs, risks, and benefits.

Challenges

  • Stakeholders are missed or new stakeholders are identified too late.
  • IT has a tendency to only look for direct stakeholders. Indirect and hidden stakeholders are not considered.
  • Stakeholders may have conflicting priorities, different visions, and different needs. Keeping every stakeholder happy is impossible.
  • IT has a lack of business understanding and uses jargon and technical language that is not understood by stakeholders.

Implications

  • Unanticipated stakeholders and negative changes in stakeholder sentiment can derail initiatives.
  • Direct stakeholders are identified, but unidentified indirect or hidden stakeholders cause a major impact to the initiative.
  • The CIO attempts to trade off competing agendas and ends up caught in the middle and pleasing no one.
  • There is a failure in understanding and communications, leading stakeholders to become disenchanted with IT.

Cheat Sheet: Identify stakeholders

Ask stakeholders “who else should I be talking to?” to discover additional stakeholders and ensure you don’t miss anyone.

List the people who are identified through the following questions: Take a 360-degree view of potential internal and external stakeholders who might be impacted by the initiative.
  • Who will be adversely affected by potential environmental and social impacts in areas of influence that are affected by what you are doing?
  • At which stage will stakeholders be most affected (e.g. procurement, implementation, operations, decommissioning)?
  • Will other stakeholders emerge as the phases are started and completed?
  • Who is sponsoring the initiative?
  • Who benefits from the initiative?
  • Who loses from the initiative?
  • Who can make approvals?
  • Who controls resources?
  • Who has specialist skills?
  • Who implements the changes?
  • Who are the owners, governors, customers, and suppliers to impacted capabilities or functions?

Executives

Peers

Direct reports

Partners

Customers

Stock image of a world.

Subcontractors

Suppliers

Contractors

Lobby groups

Regulatory agencies

Establish your stakeholder network “map”

Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

Your stakeholder map defines the influence landscape your BRM team operates in. It is every bit as important as the teams who enhance, support, and operate your products directly.

Notes on the network map

  • Pay special attention to influencers who have many arrows; they are called “connectors,” and due to their diverse reach of influence, should themselves be treated as significant stakeholders.
  • Don’t forget to consider the through-lines from one influencer through intermediate stakeholders or influencers to the final stakeholder – a single influencer may have additional influence via multiple, possibly indirect paths to a single stakeholder.

Legend for the example stakeholder network map below. 'Black arrows indicate the direction of professional influence'. 'Dashed green arrows indicate bidirectional, informal influence relationships'

Example stakeholder network map visualizing relationships between different stakeholders.

4.2 Visualize interrelationships among stakeholders to identify key influencers

Input: List of stakeholders

Output: Relationships among stakeholders and influencers

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. List direct stakeholders for your area. Ensure it includes stakeholders across the organization (both IT and business units).
  2. Determine the stakeholders of your stakeholders. Consider adding each of them to the stakeholder list: assess who has either formal or informal influence over your stakeholders; add these influencers to your stakeholder list.
  3. Create a stakeholder network map to visualize relationships.
    • (Optional) Use black arrows to indicate the direction of professional influence.
    • (Optional) Use dashed green arrows to indicate bidirectional, informal influence relationships.
  4. Capture the list or diagram of your stakeholders in your workbook.

Use the BRM Workbook to capture stakeholders

Categorize your stakeholders with a stakeholder prioritization map

A stakeholder prioritization map help teams categorize their stakeholders by their level or influence and ownership.

There are four areas in the map and the stakeholders within each area should be treated differently.

  • Players – players have a high interest in the initiative and the influence to effect change over the initiative. Their support is critical and a lack of support can cause significant impediment to the objectives.
  • Mediators – mediators have a low interest but significant influence over the initiative. They can help to provide balance and objective opinions to issues that arise.
  • Noisemakers – noisemakers have low influence but high interest. They tend to be very vocal and engaged, either positively or negatively, but have little ability to enact their wishes.
  • Spectators – generally, spectators are apathetic and have little influence over or interest in the initiative.

Stakeholder prioritization map with axes 'Influence' and 'Ownership/Interest' splitting the map into four quadrants: 'Spectators Low/Low', 'Noisemakers Low/High', 'Mediators High/Low', and 'Players High/High'.

4.3 Group your stakeholders into categories

Input: Stakeholder Map

Output: Categorization of stakeholders and influencers

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Identify your stakeholder’s interest in and influence on your BRM program.
  2. Map your results to the quadrant in your workbook to determine each stakeholder’s category.

Stakeholder prioritization map with example 'Stakeholders' placed in or across the four quadrants.

Level of Influence

  • Power: Ability of a stakeholder to effect change.
  • Urgency: Degree of immediacy demanded.
  • Legitimacy: Perceived validity of stakeholder’s claim.
  • Volume: How loud their “voice” is or could become.
  • Contribution: What they have that is of value to you.

Level of Interest

How much are the stakeholder’s individual performance and goals directly tied to the success or failure of the product?

Use the BRM Workbook to map your stakeholders

Define strategies for engaging stakeholders by type

Each group of stakeholders draws attention and resources away from critical tasks.

By properly identifying your stakeholder groups, you can develop corresponding actions to manage stakeholders in each group. This can dramatically reduce wasted effort trying to satisfy Spectators and Noisemakers while ensuring the needs of the Mediators and Players are met.

Type Quadrant Actions
Players High influence; high interest Actively Engage
Keep them engaged through continuous involvement. Maintain their interest by demonstrating their value to its success.
Mediators High influence; low interest Keep Satisfied
They can be the game changers in groups of stakeholders. Turn them into supporters by gaining their confidence and trust, and include them in important decision-making steps. In turn, they can help you influence other stakeholders.
Noisemakers Low influence; high interest Keep Informed
Try to increase their influence (or decrease it if they are detractors) by providing them with key information, supporting them in meetings, and using Mediators to help them.
Spectators Low influence; low interest Monitor
They are followers. Keep them in the loop by providing clarity on objectives and status updates.

Prioritize your stakeholders

There may be too many stakeholders to be able to manage them all. Focus your attention on the stakeholders that matter most.

Apply a third dimension for stakeholder prioritization: support.

Support, in addition to interest and influence, is used to prioritize which stakeholders are should receive the focus of your attention. This table indicates how stakeholders are ranked:

Table with 'Stakeholder Categories' and their 'Level of Support' for prioritizing. Support levels are 'Supporter', 'Evangelist', 'Neutral', and 'Blocker'.

Support can be determined by rating the following question: how likely is it that your stakeholder would recommend IT at your organization/your group? Our four categories of support:

  • Blocker – beware of the blocker. These stakeholders do not support your cause and have the necessary drive to impede the achievement of your objectives.
  • Semi-Supporter – while these stakeholders are committed to your objectives, they are somewhat apathetic to advocate on your behalf. They will support you so long as it does not require much effort from them to do so.
  • Neutral – neutrals do not have much commitment to your objectives and are not willing to expend much energy to either support or detract from them.
  • Supporter – these stakeholders are committed to your initiative and are willing to whole-heartedly provide you with support.

4.4 Update your stakeholder quadrant to include the three dimensions

Input: Stakeholder Map

Output: Categorization of stakeholders and influencers

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Identify the level of support of each stakeholder by answering the following question: how likely is it that your stakeholder would support your initiative/endeavor?
  2. Map your results to the model in your workbook to determine each stakeholder’s category.
Stakeholder prioritization map with example 'Persons' placed in or across the four quadrants. with The third dimension, 'Level of Support', is color-coded.

Use the BRM Workbook to map your stakeholders

Leverage your map to think about how to engage with your stakeholders

Not all stakeholders are equal, nor can they all be treated the same. Your stakeholder quadrant highlights areas where you may need to engage differently.

Blockers

Pay attention to your “blockers,” especially those that appear in the high influence and high interest part of the quadrant. Consider how your engagement with them varies from supporters in this quadrant. Consider what is valuable to these stakeholders and focus your conversations on “what’s in this for them.”

Neutral & Evangelists

Stakeholders that are neutral or evangelists do not require as much attention as blockers and supporters, but they still can’t be ignored – especially those who are players (high influence and engagement). Focus on what’s in it for them to move them to become supporters.

Supporters

Do not neglect supporters – continue to engage with them to ensure that they remain supporters. Focus on the supporters that are influential and impacted, rather than the “spectators.”

4.5 Create your engagement plan

Input: Stakeholder Map/list of stakeholders

Output: Categorization of stakeholders and influencers

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Leverage the BRM Stakeholder Engagement Plan spreadsheet. List your key stakeholders.
  2. Consider: how do you show value at your current maturity level so that you can gain trust and your relationship can mature? Establish where your relationship lacks maturity, and consider whether you need to engage with them on a more strategic, tactical, or even operational manner.
    • At lower levels of maturity (Table Stakes), focus on service delivery, project delivery, and communication.
    • At mid-level maturity (Influencer/Advocate), focus on business pain points and a deeper knowledge of the business.
    • At higher maturity levels (Value Creator/Innovator), focus on creating value by leading innovative initiatives that drive the business forward.
  3. Review the stakeholder quadrant. Update the frequency of your communication accordingly.
  4. Capture the agenda for your engagements with them.

Download and use the BRM Stakeholder Engagement Plan

Your agenda should vary with the maturity of your relationship

Agenda
Stakeholder Information Type Meeting Frequency Lower Maturity Mid-Level Maturity Higher Maturity
VP Strategic Quarterly
  • Summary of current and upcoming projects and initiatives
  • Business pain points for the department
  • Proposed solutions to address business pain points
  • Innovative solutions to improve business processes and drive value for the department and the organization
Director Strategic, Tactical Monthly
  • Summary of recent and upcoming changes
  • Summary of current and upcoming projects and initiatives
  • Business pain points for the department
  • Proposed business process improvements
  • Current and upcoming project proposals to address business pain points
  • Innovative solutions to help the department achieve its business goals and objectives
Manager Tactical Monthly
  • Summary of service desk tickets
  • Summary of recent and upcoming changes
  • Summary of current and upcoming projects and initiatives
  • Business pain points for the team
  • Proposed business activity improvements
  • Current and upcoming projects to address business pain points
  • Innovative solutions to help business users perform their daily business activities more effectively and efficiently

Lower Maturity – Focus on service delivery, project delivery, and communication

Mid-Level Maturity – Focus on business pain points and a deeper knowledge of the business

Higher Maturity – Focus on creating value by leading innovative initiatives that drive the business forward

Stakeholder – Include both IT and business stakeholders at appropriate levels

Agenda – Manage stakeholders expectations, and clarify how your agenda will progress as the partnership matures

REASSESS & EMBED

Assess

1.1 Define BRM

1.2 Analyze Satisfaction

1.3 Assess SWOT

Situate

2.1 Create Vision

2.2 Create the BRM Mission

2.3 Establish Goals

Plan

3.1 Establish Guiding Principles

3.2 Determine Where BRM Fits

3.3 Establish BRM Expectations

3.4 Identify Roles With BRM Responsibilities

3.5 Align Capabilities

Implement

4.1 Brainstorm Sources of Business Value

4.2 Identify Key Influencers

4.3 Categorize the Stakeholders

4.4 Create the Prioritization Map

4.5 Create Your Engagement Plan

Reassess & Embed

5.1 Create Metrics

5.2 Prioritize Your Projects

5.3 Create a Portfolio Investment Map

5.4 Establish Your Annual Plan

5.5 Build Your Transformation Roadmap

5.6 Create Your Communication Plan

Measure your BRM practice success

  • Metrics are powerful because they drive behavior.
  • Metrics are also dangerous because they often lead to unintended negative outcomes.
  • Metrics should be chosen carefully to avoid getting “what you asked for” instead of “what you intended.”

Stock image of multiple business people running off the end of a pointed finger like lemmings.

Questions to ask Are your metrics achievable?
  1. What are the leading indicators of BRM effectively supporting the business’ strategic direction?
  2. How are success metrics aligned with the objectives of other functional groups?

S pecific

M easurable

A chievable

R ealistic

T ime-bound

Embedding the BRM practice within your organization must be grounded in achievable outcomes.

Ensure that the metrics your practice is measured against reflect realistic and tangible business expectations. Overpromising the impact the practice will have can lead to long-term implementation challenges.

Determine whether your business is satisfied with IT

Measuring tape.

1

Survey your stakeholders to measure improvements in customer satisfaction.

Leverage the CIO Business Vision on a regular interval – most find that annual assessments drive success.

Evaluate whether the addition or increased maturity of your BRM practice has improved satisfaction with IT.

Business satisfaction survey

  • Audience: Business leaders
  • Frequency: Annual
  • Metrics:
    • Overall Satisfaction score
    • Overall Value score
    • Relationship Satisfaction:
      • Understand needs
      • Meet needs
      • Communication
Two small tables showing example 'Value' and 'Satisfaction' scores.
Table with a breakdown of the example 'Satisfaction' score, with individual scores for 'Needs', 'Execution', and 'Communication'.

Check if you’ve met the BRM goals you set out to achieve

Measuring tape.

2

 Measure BRM success against the goals for the practice.

Evaluate whether the BRM practice has helped IT to meet the goals that you’ve established.

For each of your goals, create metrics to establish how you will know if you’ve been successful. This might be how many or what type of interactions you have with your stakeholders, and/or it could be new connections with internal or external partners.

Ensure you have established metrics to measure success at your goals.

Dart board with five darts, each representing a goal, 'Demand Shaping', 'Value Realization', 'Servicing', 'Exploring', and 'Other Goal(s)'.

5.1 Create metrics

Input: Goals, The attributes which can align to goal success

Output: Measurements of success

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Start with a consideration of your goals and objectives.
  2. Identify key aspects that can support confirming if the goal was successful.
  3. For each aspect, develop a method to measure success with a specific measurement.
  4. When creating the KPI consider:
    • How you know if you are achieving your objective (performance)?
    • How frequently will you be measuring this?
    • Are you looking for an increase, decrease, or maintenance of the metric?
Table with columns 'BRM Goals', 'Measurement', 'KPI', and 'Frequency'.

Use the BRM Workbook

Don’t wait all year to find out if you’re on track

Leverage the below questions to quickly poll your business partners on a more frequent basis.

Partner instructions:

Please indicate how much you agree with each of the following statements. Use a scale of 1-5, where 1 is low agreement and 5 indicates strong agreement:

Demand Shaping: My BRM is at the table and seeks to understand my business. They help me understand IT and helps IT prioritize my needs.

Exploring: My BRM surfaces new opportunities based on their understanding of my pain points and growth needs. They engage resources with a focus on the value to be delivered.

Servicing: The BRM obtains an understanding of the services and service levels that are required, clarifies them, and communicates costs and risks.

Value Harvesting: Focus on value is evident in discussions – the BRM supports IT in ensuring value realization is achieved and tracks value during and beyond deployment.

Embedding the BRM practice also includes acknowledging the BRM’s part in balancing the IT portfolio

IT needs to juggle “keeping the lights on” initiatives with those required to add value to the organization.

Partner with the appropriate resources (Project Management Office, Product Owners, System Owners, and/or others as appropriate within your organization) to ensure that all initiatives focus on value.

Info-Tech Insight

Not every organization will balance their portfolio in the same way. Some organizations have higher risk tolerance and so their higher priority goals may require that they accept more risk to potentially reap more returns.

Stock image of a man juggling business symbols.

80% of organizations feel their portfolios are dominated by low-value initiatives that do not deliver value to the business. (Source: Stage-Gate International and Product Development Institute, March/April 2009)

All new requests are not the same; establish a process for intake and manage expectations and IT’s capacity to deliver value.

Ensure you communicate your process to support new ideas with your stakeholders. They’ll be clear on the steps to bring new initiatives into IT and will understand and be engaged in the process to demonstrate value.

Flowchart for an example intake process.

For support creating your intake process, go to Optimize Project Intake, Approval and Prioritization Sample of Info-Tech's Optimize Project Intake, Approval and Prioritization.

Use value as your criteria to evaluate initiatives

Work with project managers to ensure that all projects are executed in a way that meets business expectations.

Sample of Info-Tech’s Project Value Scorecard Development Tool.

Download Info-Tech’s Project Value Scorecard Development Tool.

Enter risk/compliance criteria under operational alignment: projects must be aligned with the operational goals of the business and IT.

Business value matrix.

Enter these criteria under strategic alignment: projects must be aligned with the strategic goals of the business, customer, and IT.
Enter financial criteria under financial: projects must realize monetary benefits, in increased revenue or decreased costs, while posing as little risk of cost overrun as possible.
And don’t forget about feasibility: practical considerations for projects must be taken into account in selecting projects.

5.2 Prioritize your investments/ projects (optional activity)

Input: Value criteria

Output: Prioritized project listing

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Review and edit (if necessary) the criteria on tab 2 the Project Value Scorecard Development Tool.
    Screenshot from tab 2 of Info-Tech’s Project Value Scorecard Development Tool.
  2. Score initiatives and investments on tab 3 using your criteria.
    Screenshot from tab 3 of Info-Tech’s Project Value Scorecard Development Tool.
Download Info-Tech’s Project Value Scorecard Development Tool.

Visualize where investments add value through an initiative portfolio map

An initiative portfolio map is a graphic visualization of strategic initiatives overlaid on a business capability map.

Leverage the initiative portfolio map to communicate the value of what IT is working on to your stakeholders.

Info-Tech Insight

Projects will often impact one or more capabilities. As such, your portfolio map will help you identify cross-dependencies when scaling up or scaling down initiatives.

Example initiative portfolio map


Example initiative portfolio map with initiatives in categories like 'Marketing Strategy' and 'Brand Mgmt.'. Certain groups of initiatives have labels detailing when they achieve collectively.

5.3 Create a portfolio investment map (optional activity)

Input: Business capability map

Output: Portfolio investment map

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Build a capability map, outlining the value streams that support your organization’s goals and the high-level capabilities (level 1) that support the value stream (and goals).
    For more support in establishing the capability map, see Document Your Business Architecture.
    Example table for outlining 'Value Streams' and 'Level 1 Capabilities' through 'Goals'.
  2. Identify high-value capabilities for the organization.
  3. What are the projects and initiatives that will address the critical capabilities? Add these under the high-value capabilities.
  4. This process will help you demonstrate how projects align to business goals. Enter your capabilities and projects in Info-Tech’s Initiative Portfolio Map Template.
Download Info-Tech’s Initiative Portfolio Map Template.

Establish your annual BRM plan

To support the BRM capability at your organization, you’ll want to communicate your plan. This will include:
  • Business Feedback and Engagement
    • Engaging with your partners includes meeting with them on a regular basis. Establish this frequency and capture it in your plan. This engagement must include an understanding of their goals and challenges.
    • As Bill Gates said, “We all need people who will give us feedback. That’s how we improve” (Inc.com, 2013). There are various points in the year which will provide you with the opportunity to understand your business partners’ views of IT or the BRM role. List the opportunities to reflect on this feedback in your plan.
  • Business-IT Alignment
    • Bring together the views and perspectives of IT and the business.
    • List the activities that will be required to reflect business goals in IT. These include IT goals, budget, and planning.
  • BRM Improvement
    • The practices put in place to support the BRM practice need to continuously evolve to support a maturing organization. The feedback from stakeholders throughout the organization will provide input into this. Ensure there are activities and time put aside to evaluate the improvements required.
 Stock image of someone discovering a calendar in a jungle with a magnifying glass.

5.4 Establish your year-in-the-life plan

Input: Engagement plan, BRM goals

Output: Annual BRM plan

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Start with your business planning activities – what will you as a BRM be doing as your business establishes their plans and strategies? These could include:
    • Listening and feedback sessions
    • Third-party explorations
  2. Then look at your activities required to integrate within IT – what activities are required to align business directives within your IT groups? Examples can include:
    • Business strategy review
    • Capability map creation
    • Input into the Business-aligned IT strategy
    • IT budget input
  3. What activities are required to continuously improve the BRM role? This may consist of:
    • Feedback discussions with business partners
    • Roadshow with colleagues to communicate and refine the practice
  4. Map these on your annual calendar that can be shared with your colleagues.
Capture in the BRM Workbook

Communicate using the Executive Buy-In and Communication Template

Sample of a slide titled 'BRM Annual Cycle'.

Sample BRM annual cycle

Sample BRM annual cycle with row headers 'Business Feedback and Engagement', 'Business-IT Alignment', and 'BRM Improvement' mapped across a Q1 to Q4 timeline with individual tasks in each category.

5.5 Build your transformation roadmap

Input: SWOT analysis

Output: Transformation roadmap

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. Brainstorm and discuss the key enablers that are needed to help promote and ease your BRM program.
  2. Brainstorm and discuss the key blockers (or risks) that may interrupt or derail your BRM program.
  3. Brainstorm mitigation activities for each blocker.
  4. Enablers and mitigation activities can be listed on your transformation roadmap.

Example:

Enablers

  • High business engagement and buy-in
  • Supportive BRM leadership
  • Organizational acceptance for change
  • Development process awareness by development teams
  • Collaborative culture
  • Existing tools can be customized for BRM

Blockers

  • Pockets of management resistance
  • Significant time is required to implement BRM and train resources
  • Geographically distributed resources
  • Difficulty injecting customers in demos

Mitigation

  • BRM workshop training with all teams and stakeholders to level set expectations
  • Limit the scope for pilot project to allow time to learn
  • Temporarily collocate all resources and acquire virtual communication technology

Capture in the BRM Workbook

5.5 Build your transformation roadmap (cont’d)

  1. Roadmap Elements:
    • List the artifacts, changes, or actions needed to implement the new BRM program.
    • For each item, identify how long it will take to implement or change by moving it into the appropriate swim lane. Use timing that makes sense for your organization: Quick Wins, Short Term, and Long Term; Now, Next, and Later; or Q1, Q2, Q3, and Q4.

Example transformation roadmap with BRM programs arranged in columns 'Now', 'Next (3-6 months)', 'Later (6+ months)', and 'Deferred'.

Communicate the BRM changes to set your practice up for success

Leaders of successful change spend considerable time developing a powerful change message, i.e. a compelling narrative that articulates the desired end state, and that makes the change concrete and meaningful to staff.

The change message should:

  • Explain why the change is needed.
  • Summarize what will stay the same.
  • Highlight what will be left behind.
  • Emphasize what is being changed.
  • Explain how change will be implemented.
  • Address how change will affect various roles in the organization.
  • Discuss the staff’s role in making the change successful.
 Five elements of communicating change
Diagram titled 'COMMUNICATING THE CHANGE' surrounded by useful questions: 'What is the change?', 'What will the role be for each department and individual?', 'Why are we doing it?', 'How long will it take us to do it?', and 'How are we going to go about it?'.
(Source: The Qualities of Leadership: Leading Change)

Apply the following communication principles to make your BRM changes relevant to stakeholders

“We tend to use a lot of jargon in our discussions, and that is a sure fire way to turn people away. We realized the message wasn’t getting out because the audience wasn’t speaking the same language. You have to take it down to the next level and help them understand where the needs are.” (Jeremy Clement, Director of Finance, College of Charleston, Info-Tech Interview, 2018)

Be Relevant

  • Talk about what matters to the stakeholder. Think: “what’s in it for them?”
  • Tailor the details of the message to each stakeholder’s specific concerns.
  • Often we think in processes but stakeholders only care about results: talk in terms of results.

Be Clear

  • Don’t use jargon.
  • Choice of language is important: “Do you think this is a good idea? I think we could really benefit from your insights and experience here.” Or do you mean: “I think we should do this. I need you to do this to make it happen.”

Be Concise

  • Keep communication short and to the point so key messages are not lost in the noise.
  • There is a risk of diluting your key message if you include too many other details.

Be Consistent

  • The core message must be consistent regardless of audience, channel, or medium. A lack of consistency can be interpreted as an attempt at deception. This can hurt credibility and trust.
  • Test your communication with your team or colleagues to obtain feedback before delivering to a broader audience.

5.6 Create a communications plan tailored to each of your stakeholders

Input: Prioritized list of stakeholders

Output: Communication Plan

Materials: Whiteboard/flip charts (physical or electronic)

Participants: Team

  1. List stakeholders in order of importance in the first column.
  2. Identify the frequency with which you will communicate to each group.
  3. Determine the scope of the communication:
    • What key information needs to be included in the message to ensure they are informed and on board?
    • Which medium(s) will you use to communicate to that specific group?
  4. Develop a concrete timeline that will be followed to ensure that support is maintained from the key stakeholders.

Audience

All BRM Staff

Purpose

  • Introduce and explain operating model
  • Communicate structural changes

Communication Type

  • Team Meeting

Communicator

CIO

Timing

  • Sept 1 – Introduce new structure
  • Sept 15 – TBD
  • Sept 29 – TBD

Related Blueprints

Business Value
Service Catalog
Intake Management
 Sample of Info-Tech's 'Document Your Business Architecture' blueprint.
Sample of Info-Tech's 'Design and Build a User-Facing Service Catalog' blueprint. 		Sample of Info-Tech's 'Manage Stakeholder Relations' blueprint.
Sample of Info-Tech's 'Document Business Goals and Capabilities for Your IT Strategy' blueprint.
Sample of Info-Tech's 'Fix Your IT Culture' blueprint.

Selected Bibliography

“Apple Mission and Vision Analysis.” Mission Statement Academy, 23 May 2019. Accessed 5 November 2020.

Barnes, Aaron. “Business Relationship Manager and Plan Build Run.” BRM Institute, 8 April 2014.

Barnes, Aaron. “Starting a BRM Team - Business Relationship Management Institute.” BRM Institute, 5 June 2013. Web.

BRM Institute. “Business Partner Maturity Model.” Member Templates and Examples, Online Campus, n.d. Accessed 3 December 2021.

BRM Institute. “BRM Assessment Templates and Examples.” Member Templates and Examples, Online Campus, n.d. Accessed 24 November 2021.

Brusnahan, Jim, et al. “A Perfect Union: BRM and Agile Development and Delivery.” BRM Institute, 8 December 2020. Web.

Business Relationship Management: The BRMP Guide to the BRM Body of Knowledge. Second printing ed., BRM Institute, 2014.

Chapman, Chuck. “Building a Culture of Trust - Remote Leadership Institute.” Remote Leadership Institute, 10 August 2021. Accessed 27 January 2022.

“Coca Cola Mission and Vision Analysis.” Mission Statement Academy, 4 August 2019. Accessed 5 November 2020.

Colville, Alan. “Shared Vision.” UX Magazine, 31 October 2011. Web.

Cooper, Robert, G. “Effective Gating: Make product innovation more productive by using gates with teeth.” Stage-Gate International and Product Development Institute, March/April 2009. Web.

Heller, Martha. “How CIOs Can Make Business Relationship Management (BRM) Work.” CIO, 1 November 2016. Accessed 27 January 2022.

“How Many Business Relationship Managers Should You Have.” BRM Institute, 20 March 2013. Web.

Hull, Patrick. “Answer 4 Questions to Get a Great Mission Statement.” Forbes, 10 January 2013. Web.

Kasperkevic, Jana. “Bill Gates: Good Feedback Is the Key to Improvement.” Inc.com, 17 May 2013. Web.

Merlyn, Vaughan. “Relationships That Matter to the BRM.” BRM Institute, 19 October 2016. Web.

“Modernizing IT’s Business Relationship Manager Role.” The Hackett Group, 22 November 2019. Web.

Monroe, Aaron. “BRMs in a SAFe World...That Is, a Scaled Agile Framework Model.” BRM Institute, 5 January 2021. Web.

Selected Bibliography

“Operational, adj." OED Online, Oxford University Press, December 2021. Accessed 29 January 2022.

Sinek, Simon. “Transcript of ‘How Great Leaders Inspire Action.’” TEDxPuget Sound, September 2009. Accessed 7 November 2020.

“Strategic, Adj. and n.” OED Online, Oxford University Press, December 2016. Accessed 27 January 2022.

“Tactical, Adj.” OED Online, Oxford University Press, September 2018. Accessed 27 January 2022.

“The Qualities of Leadership: Leading Change.” Cornelius & Associates, 23 September 2013. Web.

“Twice the Business Value in Half the Time: When Agile Methods Meet the Business Relationship Management Role.” BRM Institute, 10 April 2015. Web.

“Value Streams.” Scaled Agile Framework, 30 June 2020. Web.

Ward, John. “Delivering Value from Information Systems and Technology Investments: Learning from Success.” Information Systems Research Centre, August 2006. Web.

Appendix

  • Business Value Drivers
  • Service Blueprint
  • Stakeholder Communications
  • Job Descriptions

Understand business value drivers for ROI and cost

Make Money

This value driver is specifically related to the impact a product or service has on your organization’s ability to show value for the investments. This is usually linked to the value for money for an organization.

Return on Investment can be derived from:

  • Sustaining or increasing funding.
  • Enabling data monetization.
  • Improving the revenue generation of an existing service.
  • Preventing the loss of a funding stream.

Be aware of the difference among your products and services that enable a revenue source and those which facilitate the flow of funding.

Save Money

This value driver relates to the impact of a product or service on cost and budgetary constraints.

Reduce costs value can be derived from:

  • Reducing the cost to provide an existing product or service.
  • Replacing a costly product or service with a less costly alternative.
  • Bundling and reusing products or services to reduce overhead.
  • Expanding the use of shared services to generate more value for the cost of existing investment.
  • Reducing costs through improved effectiveness and reduction of waste.

Budgetary pressures tied to critical strategic priorities may defer or delay implementation of initiatives and revision of existing products and services.

Understand Business Value Drivers that Enhance Your Services

Operations

Some products and services are in place to facilitate and support the structure of the organization. These vary depending on what is important to your organization, but should be assessed in relation to the organizational culture and structure you have identified.

  • Adds or improves effectiveness for a particular service or the process and technology enabling its success.

Risk and Compliance

A product or service may be required in order to meet a regulatory requirement. In these cases, you need to be aware of the organizational risk of NOT implementing or maintaining a service in relation to those risks.

In this case, the product or service is required in order to:

  • Prevent fines.
  • Allow the organization to operate within a specific jurisdiction.
  • Remediate audit gaps.
  • Provide information required to validate compliance.

Internal Information

Understanding internal operations is also critical for many organizations. Data captured through your operations provides critical insights that support efficiency, productivity, and many other strategic goals.

Internal information value can be derived by:

  • Identifying areas of improvement in the development of core offerings.
  • Monitoring and tracking employee behavior and productivity.
  • Monitoring resource levels.
  • Monitoring inventory levels.

Collaboration and Knowledge Transfer

Communication is integral and products and services can be the link that ties your organization together.

In this case, the value generated from products and services can be to:

  • Align different departments and multiple locations.
  • Enable collaboration.
  • Capture trade secrets and facilitate organizational learning.

Understand Business Value Drivers that Connect the Business to Your Customers

Policy

Products and services can also be assessed in relation to whether they enable and support the required policies of the organization. Policies identify and reinforce required processes, organizational culture, and core values.

Policy value can be derived from:

  • The service or initiative will produce outcomes in line with our core organizational values.
  • It will enable or improve adherence and/or compliance to policies within the organization.

Customer Relations

Products and services are often designed to facilitate goals of customer relations; specifically, improve satisfaction, retention, loyalty, etc. This value type is most closely linked to brand management and how a product or service can help execute brand strategy. Customers, in this sense, can also include any stakeholders who consume core offerings.

Customer satisfaction value can be derived from:

  • Improving the customer experience.
  • Resolving a customer issue or identified pain point.
  • Providing a competitive advantage for your customers.
  • Helping to retain customers or prevent them from leaving.

Market Information

Understanding demand and market trends is a core driver for all organizations. Data provided through understanding the ways, times, and reasons that consumers use your services is a key driver for growth and stability.

Market information value can be achieved when an app:

  • Addresses strategic opportunities or threats identified through analyzing trends.
  • Prevents failures due to lack of capacity to meet demand.
  • Connects resources to external sources to enable learning and growth within the organization.

Market Share

Market share represents the percentage of a market or market segment that your business controls. In essence, market share can be viewed as the potential for more or new revenue sources.

Assess the impact on market share. Does the product or service:

  • Increase your market share?
  • Open access to a new market?
  • Help you maintain your market share?

Service Blueprint

Service design involves an examination of the people, process and technology involved in delivering a service to your customers.

Service blueprinting provides a visual of how these are connected together. It enables you to identify and collaborate on improvements to an existing service.

The main components of a service blueprint are:

Customer actions – this anchors the service in the experiences of the customer

Front-stage – this shows the parts of the service that are visible to the customer

Back-stage – this is the behind-the-scenes actions necessary to deliver the experience to the customer

Support processes – this is what’s necessary to deliver the back-stage (and front-stage/customer experience), but is not aligned from a timing perspective (e.g. it doesn’t matter if the fridge is stocked when the order is put in, as long as the supplies are available for the chef to use)

Example service blueprint with the main components listed above as row headers.

Physical Evidence and Time are blueprint components can be added in to provide additional context & support

Example service blueprint with the main components plus added components 'Physical Evidence' and 'Time'.

Stakeholder Communications

Personalize
  • “What’s in it for me” & Persona development – understanding what the concerns are from the community that you will want to communicate about
  • Get to know the cultures of each persona to identify how they communicate. For the faculty, Teams might not be the answer, but faculty meetings might be, or sending messages via email. Each persona group may have unique/different needs
  • Meet them “where they are”: Be prepared to provide 5-minute updates (with “what’s in it for me” and personas in mind) at department meetings in cases where other communications (Teams etc.) aren’t reaching the community
  • Review the business vision diagnostic report to understand what’s important to each community group and what their concerns are with IT. Definitely review the comments that users have written.
 Show Proof
  • Share success stories tailored to users needs – e.g. if they have a concern with security, and IT implemented a new secure system to better meet their needs, then telling them about the success is helpful – shows that you’re listening and have responded to meet their concerns. Demonstrates how interacting with IT has led to positive results. People can more easily relate to stories

Reference
  • Consider establishing a repository (private/unlisted YouTube channel, Teams, etc.) so that the community can search to view the tip/trick they need
  • Short videos are great to provide a snippet of the information you want to share
Responses
  • Engage in 2-way communications – it’s about the messages IT wants to convey AND the messages you want them to convey to you. This helps to ensure that your messages aren’t just heard but are understood/resonate.
  • Let people know how they should communicate with IT – whether it’s engaging through Teams, via email to a particular address, or through in person sessions
 Test & Learn
  • Be prepared to experiment with the content and mediums, and use analytics to assess the results. For example if videos are posted on a site like SharePoint that already has analytics functionality, you can capture the number of views to determine how much they are viewed
Multiple Mediums
  • Use a combination of one-on-one interviews/meetings and focus groups to obtain feedback. You may want to start with some of the respondents who provided comments on surveys/diagnostics

BRM Job Descriptions

Download the Job Descriptions:

Lay the Strategic Foundations of Your Applications Team

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  • Parent Category Name: Architecture & Strategy
  • Parent Category Link: /architecture-and-strategy
  • As an application leader, you are expected to quickly familiarize yourself with the current state of your applications environment.
  • You need to continuously demonstrate effective leadership to your applications team while defining and delivering a strategy for your applications department that will be accepted by stakeholders.

Our Advice

Critical Insight

  • The applications department can be viewed as the face of IT. The business often portrays the value of IT through the applications and services they provide and support. IT success can be dominantly driven by the application team’s performance.
  • Conflicting perceptions lead to missed opportunities. Being transparent on how well applications are supporting stakeholders from both business and technical perspectives is critical. This attribute helps validate that technical initiatives are addressing the right business problems or exploiting new value opportunities.

Impact and Result

  • Get to know what needs to be changed quickly. Use Info-Tech’s advice and tools to perform an assessment of your department’s accountabilities and harvest stakeholder input to ensure that your applications operating model and portfolio meets or exceeds expectations and establishes the right solutions to the right problems.
  • Solidify the applications long-term strategy. Adopt best practices to ensure that you are striving towards the right goals and objectives. Not only do you need to clarify both team and stakeholder expectations, but you will ultimately need buy-in from them as you improve the operating model, applications portfolio, governance, and tactical plans. These items will be needed to develop your strategic model and long-term success.
  • Develop an action plan to show movement for improvements. Hit the ground running with an action plan to achieve realistic goals and milestones within an acceptable timeframe. An expectations-driven roadmap will help establish the critical structures that will continue to feed and grow your applications department.

Lay the Strategic Foundations of Your Applications Team Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should develop an applications strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Get to know your team

Understand your applications team.

  • Lay the Strategic Foundations of Your Applications Team – Phase 1: Get to Know Your Team
  • Applications Strategy Template
  • Applications Diagnostic Tool

2. Get to know your stakeholders

Understand your stakeholders.

  • Lay the Strategic Foundations of Your Applications Team – Phase 2: Get to Know Your Stakeholders

3. Develop your applications strategy

Design and plan your applications strategy.

  • Lay the Strategic Foundations of Your Applications Team – Phase 3: Develop Your Applications Strategy
[infographic]

Workshop: Lay the Strategic Foundations of Your Applications Team

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Get to Know Your Team

The Purpose

Understand the expectations, structure, and dynamics of your applications team.

Review your team’s current capacity.

Gauge the team’s effectiveness to execute their operating model.

Key Benefits Achieved

Clear understanding of the current responsibilities and accountabilities of your teams.

Identification of improvement opportunities based on your team’s performance.

Activities

1.1 Define your team’s role and responsibilities.

1.2 Understand your team’s application and project portfolios.

1.3 Understand your team’s values and expectations.

1.4 Gauge your team’s ability to execute your operating model.

Outputs

Current team structure, RACI chart, and operating model

Application portfolios currently managed by applications team and projects currently committed to

List of current guiding principles and team expectations

Team effectiveness of current operating model

2 Get to Know Your Stakeholders

The Purpose

Understand the expectations of stakeholders.

Review the services stakeholders consume to support their applications.

Gauge stakeholder satisfaction of the services and applications your team provides and supports.

Key Benefits Achieved

Grounded understanding of the drivers and motivators of stakeholders that teams should accommodate.

Identification of improvement opportunities that will increase the value your team delivers to stakeholders.

Activities

2.1 Understand your stakeholders and applications services.

2.2 Define stakeholder expectations.

2.3 Gauge stakeholder satisfaction of applications services and portfolio.

Outputs

Expectations stakeholders have on the applications team and the applications services they use

List of applications expectations

Stakeholder satisfaction of current operating model

3 Develop Your Applications Strategy

The Purpose

Align and consolidate a single set of applications expectations.

Develop key initiatives to alleviate current pain points and exploit existing opportunities to deliver new value.

Create an achievable roadmap that is aligned to organizational priorities and accommodate existing constraints.

Key Benefits Achieved

Applications team and stakeholders are aligned on the core focus of the applications department.

Initiatives to address the high priority issues and opportunities.

Activities

3.1 Define your applications expectations.

3.2 Investigate your diagnostic results.

3.3 Envision your future state.

3.4 Create a tactical plan to achieve your future state.

3.5 Finalize your applications strategy.

Outputs

List of applications expectations that accommodates the team and stakeholder needs

Root causes to issues and opportunities revealed in team and stakeholder assessments

Future-state applications portfolio, operating model, supporting people, process, and technologies, and applications strategic model

Roadmap that lays out initiatives to achieve the future state

Completed applications strategy

Master the Public Cloud IaaS Acquisition Models

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  • Parent Category Name: Vendor Management
  • Parent Category Link: /vendor-management

Understanding the differences in IaaS platform agreements, purchasing options, associated value, and risks. What are your options for:

  • Upfront or monthly payments
  • Commitment discounts
  • Support options
  • Migration planning and support

Our Advice

Critical Insight

IaaS platforms offer similar technical features, but they vary widely on their procurement model. By fully understanding the procurement differences and options, you will be able to purchase wisely, save money both long and short term, and mitigate investment risk.

Most vendors have similar processes and options to buy. Finding a transparent explanation and summary of each platform in a side-by-side review is difficult.

  • Are vendor reps being straight forward?
  • What are the licensing requirements?
  • What discounts or incentives can I negotiate?
  • How much do I have to commit to and for how long?

Impact and Result

This project will provide several benefits for both IT and the business. It includes:

  • Best IaaS platform to support current and future procurement requirements.
  • Right-sized cloud commitment tailored to the organization’s budget.
  • Predictable and controllable spend model.
  • Flexible and reliable IT infrastructure that supports the lines of business.
  • Reduced financial and legal risk.

Master the Public Cloud IaaS Acquisition Models Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to learn how the public cloud IaaS procurement models compare. Review Info-Tech’s methodology and understand the top three platforms, features, and benefits to support and inform the IaaS vendor choice.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Educate

Learn the IaaS basics, terminologies, purchasing options, licensing requirements, hybrid options, support, and organization requirements through a checklist process.

  • Master the Public Cloud IaaS Acquisition Models – Phase 1: Educate
  • Public Cloud Procurement Checklist
  • Microsoft Public Cloud Licensing Guide

2. Evaluate

Review and understand the features, downsides, and differences between the big three players.

  • Master the Public Cloud IaaS Acquisition Models – Phase 2: Evaluate
  • Public Cloud Procurement Comparison Summary

3. Execute

Decide on a primary vendor that meets requirements, engage with a reseller, negotiate pricing incentives, migration costs, review, and execute the agreement.

  • Master the Public Cloud IaaS Acquisition Models – Phase 3: Execute
  • Public Cloud Acquisition Executive Summary Template

Infographic

Monitor IT Employee Experience

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  • Parent Category Name: Engage
  • Parent Category Link: /engage
  • In IT, high turnover and sub-optimized productivity can have huge impacts on IT’s ability to execute SLAs, complete projects on time, and maintain operations effectively.
  • With record low unemployment rates in IT, retaining top employees and keeping them motivated in their jobs has never been more critical.

Our Advice

Critical Insight

  • One bad experience can cost you your top employee. Engagement is the sum total of the day-to-day experiences your employees have with your company.
  • Engagement, not pay, drives results. Engagement is key to your team's productivity and ability to retain top talent. Approach it systematically to learn what really drives your team.
  • It’s time for leadership to step up. As the CIO, it’s up to you to take ownership of your team’s engagement.

Impact and Result

  • Info-Tech tools and guidance will help you initiate an effective conversation with your team around engagement, and avoid common pitfalls in implementing engagement initiatives.
  • Monitoring employee experience continuously using the Employee Experience Monitor enables you to take a data-driven approach to evaluating the success of your engagement initiatives.

Monitor IT Employee Experience Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should focus on employee experience to improve engagement in IT, review Info-Tech’s methodology, and understand how our tools will help you construct an effective employee engagement program.

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Start monitoring employee experience

Plan out your employee engagement program and launch the Employee Experience Monitor survey for your team.

  • Drive IT Performance by Monitoring Employee Experience – Phase 1: Start Monitoring Employee Experience
  • None
  • None
  • EXM Setup Guide
  • EXM Training Guide for Managers
  • None
  • EXM Communication Template

2. Analyze results and ideate solutions

Interpret your Employee Experience Monitor results, understand what they mean in the context of your team, and involve your staff in brainstorming engagement initiatives.

  • Drive IT Performance by Monitoring Employee Experience – Phase 2: Analyze Results and Ideate Solutions
  • EXM Focus Group Facilitation Guide
  • Focus Group Facilitation Guide Driver Definitions

3. Select and implement engagement initiatives

Select engagement initiatives for maximal impact, create an action plan, and establish open and ongoing communication about engagement with your team.

  • Drive IT Performance by Monitoring Employee Experience – Phase 3: Measure and Communicate Results
  • Engagement Progress One-Pager
[infographic]

Workshop: Monitor IT Employee Experience

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

1 Launch the EXM

The Purpose

Set up the EXM and collect a few months of data to build on during the workshop.

Key Benefits Achieved

Arm yourself with an index of employee experience and candid feedback from your team to use as a starting point for your engagement program.

Activities

1.1 Identify EXM use case.

1.2 Identify engagement program goals and obstacles.

1.3 Launch EXM.

Outputs

Defined engagement goals.

EXM online dashboard with three months of results.

2 Explore Engagement

The Purpose

To understand the current state of engagement and prepare to discuss the drivers behind it with your staff.

Key Benefits Achieved

Empower your leadership team to take charge of their own team's engagement.

Activities

2.1 Review EXM results to understand employee experience.

2.2 Finalize focus group agendas.

2.3 Train managers.

Outputs

Customized focus group agendas.

3 Hold Employee Focus Groups

The Purpose

Establish an open dialogue with your staff to understand what drives their engagement.

Key Benefits Achieved

Understand where in your team’s experience you can make the most impact as an IT leader.

Activities

3.1 Identify priority drivers.

3.2 Identify engagement KPIs.

3.3 Brainstorm engagement initiatives.

3.4 Vote on initiatives within teams.

Outputs

Summary of focus groups results

Identified engagement initiatives.

4 Select and Plan Initiatives

The Purpose

Learn the characteristics of successful engagement initiatives and build execution plans for each.

Key Benefits Achieved

Choose initiatives with the greatest impact on your team’s engagement, and ensure you have the necessary resources for success.

Activities

4.1 Select engagement initiatives with IT leadership.

4.2 Discuss and decide on the top five engagement initiatives.

4.3 Create initiative project plans.

4.4 Build detailed project plans.

4.5 Present project plans.

Outputs

Engagement project plans.

Build an ERP Strategy and Roadmap

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  • Parent Category Name: Enterprise Resource Planning
  • Parent Category Link: /enterprise-resource-planning
  • Organizations often do not know where to start with an ERP project.
  • They focus on tactically selecting and implementing the technology.
  • ERP projects are routinely reported as going over budget, over schedule, and they fail to realize any benefits.

Our Advice

Critical Insight

  • An ERP strategy is an ongoing communication tool for the business.
  • Accountability for ERP success is shared between IT and the business.
  • An actionable roadmap provides a clear path to benefits realization.

Impact and Result

  • Align the ERP strategy and roadmap with business priorities, securing buy-in from the business for the program.
  • Identification of gaps, needs, and opportunities in relation to business processes; ensuring the most critical areas are addressed.
  • Assess alternatives for the critical path(s) most relevant to your organization’s direction.

Build an ERP Strategy and Roadmap Research & Tools

Besides the small introduction, subscribers and consulting clients within this management domain have access to:

1. Build an ERP Strategy and Roadmap – A comprehensive guide to align business and IT on what the organization needs from their ERP.

A business-led, top-management-supported initiative partnered with IT has the greatest chance of success.

  • Aligning and prioritizing key business and technology drivers.
  • Clearly defining what is in and out of scope for the project.
  • Getting a clear picture of how the business process and underlying applications support the business strategic priorities.
  • Pulling it all together into an actionable roadmap.

    • Build an ERP Strategy and Roadmap – Phases 1-4
    • ERP Strategy Report Template
    [infographic]

    Workshop: Build an ERP Strategy and Roadmap

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Introduction to ERP

    The Purpose

    To build understanding and alignment between business and IT on what an ERP is and the goals for the project

    Key Benefits Achieved

    Clear understanding of how the ERP supports the organizational goals

    What business processes the ERP will be supporting

    An initial understanding of the effort involved

    Activities

    1.1 Introduction to ERP

    1.2 Background

    1.3 Expectations and goals

    1.4 Align business strategy

    1.5 ERP vision and guiding principles

    1.6 ERP strategy model

    1.7 ERP operating model

    Outputs

    ERP strategy model

    ERP Operating model

    2 Build the ERP operation model

    The Purpose

    Generate an understanding of the business processes, challenges, and application portfolio currently supporting the organization.

    Key Benefits Achieved

    An understanding of the application portfolio supporting the business

    Detailed understanding of the business operating processes and pain points

    Activities

    2.1 Build application portfolio

    2.2 Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators

    2.3 Discuss process and technology maturity for each level 1 process

    Outputs

    Application portfolio

    Mega-processes with level 1 process lists

    3 Project set up

    The Purpose

    A project of this size has multiple stakeholders and may have competing priorities. This section maps those stakeholders and identifies their possible conflicting priorities.

    Key Benefits Achieved

    A prioritized list of ERP mega-processes based on process rigor and strategic importance

    An understanding of stakeholders and competing priorities

    Initial compilation of the risks the organization will face with the project to begin early mitigation

    Activities

    3.1 ERP process prioritization

    3.2 Stakeholder mapping

    3.3 Competing priorities review

    3.4 Initial risk register compilation

    Outputs

    Prioritized ERP operating model

    Stakeholder map.

    Competing priorities list.

    Initial risk register.

    4 Roadmap and presentation review

    The Purpose

    Select a future state and build the initial roadmap to set expectations and accountabilities.

    Key Benefits Achieved

    Identification of the future state

    Initial roadmap with expectations on accountability and timelines

    Activities

    4.1 Discuss future state options

    4.2 Build initial roadmap

    4.3 Review of final deliverable

    Outputs

    Future state options

    Initiative roadmap

    Draft final deliverable

    Further reading

    Build an ERP Strategy and Roadmap

    Align business and IT to successfully deliver on your ERP initiative

    Table of Contents

    Analyst Perspective

    Phase 3: Plan Your Project

    Executive Summary

    Step 3.1: Stakeholders, risk, and value

    Phase 1: Build Alignment and Scope

    Step 3.2: Project set up

    Step 1.1: Aligning Business and IT

    Phase 4: Next Steps

    Step 1.2: Scope and Priorities

    Step 4.1: Build your roadmap

    Phase 2: Define Your ERP

    Step 4.2: Wrap up and present

    Step 2.1: ERP business model

    Summary of Accomplishment

    Step 2.2: ERP processes and supporting applications

    Research Contributors

    Step 2.3: Process pains, opportunities, and maturity

    Related Info-Tech Research

    Bibliography

    Build an ERP Strategy and Roadmap

    Align business and IT to successfully deliver on your ERP initiative

    EXECUTIVE BRIEF

    Analyst Perspective

    A foundational ERP strategy is critical to decision making.

    Photo of Robert Fayle, Research Director, Enterprise Applications, Info-Tech Research Group.

    Enterprise resource planning (ERP) is a core tool that the business leverages to accomplish its goals. An ERP that is doing its job well is invisible to the business. The challenges come when the tool is no longer invisible. It has become a source of friction in the functioning of the business

    ERP systems are expensive, their benefits are difficult to quantify, and they often suffer from poor user satisfaction. Post-implementation, technology evolves, organizational goals change, and the health of the system is not monitored. This is complicated in today’s digital landscape with multiple integration points, siloed data, and competing priorities.

    Too often organizations jump into selecting replacement systems without understanding the needs of the organization. Alignment between business and IT is just one part of the overall strategy. Identifying key pain points and opportunities, assessed in the light of organizational strategy, will provide a strong foundation to the transformation of the ERP system.

    Robert Fayle
    Research Director, Enterprise Applications
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Organizations often do not know where to start with an ERP project. They focus on tactically selecting and implementing the technology but ignore the strategic foundation that sets the ERP system up for success. ERP projects are routinely reported as going over budget, over schedule, and they fail to realize any benefits.

    Common Obstacles

    ERP projects impact the entire organization – they are not limited to just financial and operating metrics. The disruption is felt during both implementation and in the production environment.

    Missteps early on can cost time, financial resources, and careers. Roughly 55% of ERP projects reported being over budget, and two-thirds of organizations implementing ERP realized less than half of their anticipated benefits.

    Info-Tech’s Approach

    Obtain organizational buy-in and secure top management support. Set clear expectations, guiding principles, and critical success factors.

    Build an ERP operating model/business model that identifies process boundaries, scope, and prioritizes requirements. Assess stakeholder involvement, change impact, risks, and opportunities.

    Understand the alternatives your organization can choose for the future state of ERP. Develop an actionable roadmap and meaningful KPIs that directly align with your strategic goals.

    Info-Tech Insight

    Accountability for ERP success is shared between IT and the business. There is no single owner of an ERP. A unified approach to building your strategy promotes an integrated roadmap so all stakeholders have clear direction on the future state.

    Insight summary

    Enterprise resource planning (ERP) systems facilitate the flow of information across business units. It allows for the seamless integration of systems and creates a holistic view of the enterprise to support decision making.

    In many organizations, the ERP system is considered the lifeblood of the enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive and grow.

    A measured and strategic approach to change will help mitigate many of the risks associated with ERP projects, which will avoid the chances of these changes becoming the dreaded “career killers.”

    A business led, top management supported initiative partnered with IT has the greatest chance of success.

    • A properly scoped ERP project reduces churn and provides all parts of the business with clarity.
    • This blueprint provides the business and IT the methodology to get the right level of detail for the business processes that the ERP supports so you can avoid getting lost in the details.
    • Build a successful ERP Strategy and roadmap by:
      • Aligning and prioritizing key business and technology drivers.
      • Clearly defining what is in and out of scope for the project.
      • Providing a clear picture of how the business process and underlying applications support the business strategic priorities.
      • Pulling it all together into an actionable roadmap.

    Enterprise Resource Planning (ERP)

    What is ERP?

    Enterprise resource planning (ERP) systems facilitate the flow of information across business units. They allow for the seamless integration of systems and create a holistic view of the enterprise to support decision making.

    In many organizations, the ERP system is considered the lifeblood of the enterprise. Problems with this key operational system will have a dramatic impact on the ability of the enterprise to survive and grow.

    An ERP system:

    • Automates processes, reducing the amount of manual, routine work.
    • Integrates with core modules, eliminating the fragmentation of systems.
    • Centralizes information for reporting from multiple parts of the value chain to a single point.

    A diagram visualizing the many aspects of ERP and the categories they fall under. Highlighted as 'Supply Chain Management' are 'Supply Chain: Procure to Pay' and 'Distribution: Forecast to Delivery'. Highlighted as 'Customer Relationship Management' are 'Sales: Quote to Cash', 'CRM: Market to Order', and 'Customer Service: Issue to Resolution'.

    ERP use cases:

    • Product-Centric
      Suitable for organizations that manufacture, assemble, distribute, or manage material goods.
    • Service-Centric
      Suitable for organizations that provide and manage field services and/or professional services.

    ERP by the numbers

    50-70%
    Statistical analysis of ERP projects indicates rates of failure vary from 50 to 70%. Taking the low end of those analyst reports, one in two ERP projects is considered a failure. (Source: Saxena and Mcdonagh)

    85%
    Companies that apply the principles of behavioral economics outperform their peers by 85% in sales growth and more than 25% in gross margin. (Source: Gallup)

    40%
    Nearly 40% of companies said functionality was the key driver for the adoption of a new ERP. (Source: Gheorghiu)

    ERP dissatisfaction

    Drivers of Dissatisfaction
    Business
    • Misaligned objectives
    • Product fit
    • Changing priorities
    • Lack of metrics
    Data
    • Access to data
    • Data hygiene
    • Data literacy
    • One view of the customer
    People and teams
    • User adoption
    • Lack of IT support
    • Training (use of data and system)
    • Vendor relations
    Technology
    • Systems integration
    • Multi-channel complexity
    • Capability shortfall
    • Lack of product support

    Finance, IT, Sales, and other users of the ERP system can only optimize ERP with the full support of each other. The cooperation of the departments is crucial when trying to improve ERP technology capabilities and customer interaction.

    Info-Tech Insight

    While technology is the key enabler of building strong customer experiences, there are many other drivers of dissatisfaction. IT must stand shoulder-to-shoulder with the business to develop a technology framework for ERP.

    Info-Tech’s methodology for developing a foundational ERP strategy and roadmap

    1. Build alignment and scope 2. Define your ERP 3. Plan your project 4. Next Steps
    Phase Steps
    1. Aligning business and IT
    2. Scope and priorities
    1. ERP Business Model
    2. ERP processes and supporting applications
    3. Process pains, opportunities & maturity
    1. Stakeholders, risk & value
    2. Project set up
    1. Build your roadmap
    2. Wrap up and present
    Phase Outcomes Discuss organizational goals and how to advance those using the ERP system. Establish the scope of the project and ensure that business and IT are aligned on project priorities. Build the ERP business model then move on to the top level (mega) processes and an initial list of the sub-processes. Generate a list of applications that support the identified processes. Conclude with a complete view of the mega-processes and their sub-processes. Map out your stakeholders to evaluate their impact on the project, build an initial risk register and discuss group alignment. Conclude the phase by setting the initial core project team and their accountabilities to the project. Review the different options to solve the identified pain points then build out a roadmap of how to get to that solution. Build a communication plan as part of organizational change management, which includes the stakeholder presentation.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Sample of the Key Deliverable 'ERP Strategy Report'.

    ERP Strategy Report

    Complete an assessment of processes, prioritization, and pain points, and create an initiative roadmap.

    Samples of blueprint deliverables related to 'ERP Strategy Report'.

    ERP Business Model
    Align your business and technology goals and objectives in the current environment.     		Sample of the 'ERP Business Model' blueprint deliverable.
    ERP Operating Model
    Identify and prioritize your ERP top-level processes.     		Sample of the 'ERP Operating Model' blueprint deliverable.
    ERP Process Prioritization
    Assess ERP processes against the axes of rigor and strategic importance.     		Sample of the 'ERP Process Prioritization' blueprint deliverable.
    ERP Strategy Roadmap
    A data-driven roadmap of how to address the ERP pain points and opportunities.     		Sample of the 'ERP Strategy Roadmap' blueprint deliverable.

    Executive Brief Case Study

    INDUSTRY: Aerospace
    SOURCE: Panorama, 2021

    Aerospace organization assesses ERP future state from opportunities, needs, and pain points

    Challenge

    Several issues plagued the aerospace and defense organization. Many of the processes were ad hoc and did not use the system in place, often relying on Excel. The organization had a very large pain point stemming from its lack of business process standardization and oversight. The biggest gap, however, was from the under-utilization of the ERP software.

    Solution

    By assessing the usage of the system by employees and identifying key workarounds, the gaps quickly became apparent. After assessing the organization’s current state and generating recommendations from the gaps, it realized the steps needed to achieve its desired future state. The analysis of the pain points generated various needs and opportunities that allowed the organization to present and discuss its key findings with executive leadership to set milestones for the project.

    Results

    The overall assessment led the organization to the conclusion that in order to achieve its desired future state and maximize ROI from its ERP, the organization must address the internal issues prior to implementing the upgraded software.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between eight to twelve calls over the course of four to six months.

    Phase 1

    • Call #1: Scoping call to understand the current situation.
    • Call #2: Establish business & IT alignment and project scope.

    Phase 2

    • Call #3: Discuss the ERP Strategy business model and mega-processes.
    • Call #4: Begin the drill down on the level 1 processes.

    Phase 3

    • Call #5: Establish the stakeholder map and project risks.
    • Call #6: Discuss project setup including stakeholder commitment and accountability.

    Phase 4

    • Call #7: Discuss resolution paths and build initial roadmap.
    • Call #8: Summarize results and plan next steps.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Day 1 Day 2 Day 3 Day 4 Day 5
    Activities
    Introduction to ERP

    1.1 Introduction to ERP

    1.2 Background

    1.3 Expectations and goals

    1.4 Align business strategy

    1.5 ERP vision and guiding principles

    1.6 ERP strategy model

    1.7 ERP operating model

    Build the ERP operating model

    2.1 Build application portfolio

    2.2 Map the level 1 ERP processes including identifying stakeholders, pain points, and key success indicators

    2.3 Discuss process and technology maturity for each level 1 process

    Project set up

    3.1 ERP process prioritization

    3.2 Stakeholder mapping

    3.3 Competing priorities review

    3.4 Initial risk register compilation

    3.5 Workshop retrospective

    Roadmap and presentation review

    4.1 Discuss future state options

    4.2 Build initial roadmap

    4.3 Review of final deliverable

    Next Steps and wrap-up (offsite)

    5.1 Complete in-progress deliverables from previous four days

    5.2 Set up review time for workshop deliverables and to discuss next steps

    Deliverables
    1. ERP strategy model
    2. ERP operating model
    1. Application portfolio
    2. Mega-processes with level 1 process lists
    1. Prioritized ERP operating model
    2. Stakeholder map
    3. Competing priorities list
    4. Initial risk register
    1. Future state options
    2. Initiative roadmap
    3. Draft final deliverable
    1. Completed ERP strategy template
    2. ERP strategy roadmap

    Build an ERP Strategy and Roadmap

    Phase 1

    Build alignment and scope

    Phase 1

    • 1.1 Aligning business and IT
    • 1.2 Scope and priorities
      •

    Phase 2

    • 2.1 ERP Business Model
    • 2.2 ERP processes and supporting applications
    • 2.3 Process pains, opportunities & maturity

    Phase 3

    • 3.1 Stakeholders, risk & value
    • 3.2 Project set up

    Phase 4

    • 4.1 Build your roadmap
    • 4.2 Wrap up and present

    This phase will walk you through the following activities:

    Build a common language to ensure clear understanding of the organizational needs. Define a vision and guiding principles to aid in decision making and enumerate how the ERP supports achievement of the organizational goals. Define the initial scope of the ERP project. This includes the discussion of what is not in scope.

    This phase involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Create a compelling case that addresses strategic business objectives

    When someone at the organization asks you WHY, you need to deliver a compelling case. The ERP project will receive pushback, doubt, and resistance; if you can’t answer the question WHY, you will be left back-peddling.

    When faced with a challenge, prepare for the WHY.

    • Why do we need this?
    • Why are we spending all this money?
    • Why are we bothering?
    • Why is this important?
    • Why did we do it this way?
    • Why did we choose this vendor?

    Most organizations can answer “What?”
    Some organizations can answer “How?”
    Very few organizations have an answer for “Why?”

    Each stage of the project will be difficult and present its own unique challenges and failure points. Re-evaluate if you lose sight of WHY at any stage in the project.

    Step 1.1

    Aligning business and IT

    Activities
    • 1.1.1 Build a glossary
    • 1.1.2 ERP Vision and guiding principles
    • 1.1.3 Corporate goals and ERP benefits

    This step will walk you through the following activities:

    • Building a common language to ensure a clear understanding of the organization’s needs.
    • Creating a definition of your vision and identifying the guiding principles to aid in decision making.
    • Defining how the ERP supports achievement of the organizational goals.

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    Business and IT have a shared understanding of how the ERP supports the organizational goals.

    Are we all talking about the same thing?

    Every group has their own understanding of the ERP system, and they may use the same words to describe different things. For example, is there a difference between procurement of office supplies and procurement of parts to assemble an item for sale? And if they are different, do your terms differ (e.g., procurement versus purchasing)?

    Term(s) Definition
    HRMS, HRIS, HCM Human Resource Management System, Human Resource Information System, Human Capital Management. These represent four capabilities of HR: core HR, talent management, workforce management, and strategic HR.
    Finance Finance includes the core functionalities of GL, AR, and AP. It also covers such items as treasury, financial planning and analysis (FP&A), tax management, expenses, and asset management.
    Supply Chain The processes and networks required to produce and distribute a product or service. This encompasses both the organization and the suppliers.
    Procurement Procurement is about getting the right products from the right suppliers in a timely fashion. Related to procurement is vendor contract management.
    Distribution The process of getting the things we create to our customers.
    CRM Customer Relationship Management, the software used to maintain records of our sales and non-sales contact with our customers.
    Sales The process of identifying customers, providing quotes, and converting those quotes to sales orders to be invoiced.
    Customer Service This is the process of supporting customers with challenges and non-sales questions related to the delivery of our products/services.
    Field Service The group that provides maintenance services to our customers.

    Activity 1.1.1 Build a glossary

    1 hour
    1. As a group, discuss the organization’s functional areas, business capabilities, value streams, and business processes.
    2. Ask each of the participants if there are terms or “jargon” that they hear used that they may be unclear on or know that others may not be aware of. Record these items in the table along with a description.
      • Acronyms are particularly important to document. These are often bandied about without explanation. For example, people outside of finance may not understand that FP&A is short for Financial Planning and Analysis.

    Record this information in the ERP Strategy Report Template.

    Sample of the 'ERP Strategy Report Template: Glossary'.

    Download the ERP Strategy Report Template

    Activity 1.1.1 Working slide

    Example/working slide for your glossary. Consider this a living document and keep it up to date.

    Term(s) Definition
    HRMS, HRIS, HCM Human Resource Management System, Human Resource Information System, Human Capital Management. These represent four capabilities of HR: core HR, talent management, workforce management, and strategic HR.
    Finance Finance includes the core functionalities of GL, AR, and AP. It also covers such items as treasury, financial planning and analysis (FP&A), tax management, expenses, and asset management.
    Supply Chain The processes and networks required to produce and distribute a product or service. This encompasses both the organization and the suppliers.
    Procurement Procurement is about getting the right products from the right suppliers in a timely fashion. Related to procurement is vendor contract management.
    Distribution The process of getting the things we create to our customers.
    CRM Customer Relationship Management, the software used to maintain records of our sales and non-sales contact with our customers.
    Sales The process of identifying customers, providing quotes, and converting those quotes to sales orders to be invoiced.
    Customer Service This is the process of supporting customers with challenges and non-sales questions related to the delivery of our products/services.
    Field Service The group that provides maintenance services to our customers.

    Vision and Guiding Principles

    GUIDING PRINCIPLES

    Guiding principles are high-level rules of engagement that help to align stakeholders from the outset. Determine guiding principles to shape the scope and ensure stakeholders have the same vision.

    Creating Guiding Principles

    Guiding principles should be constructed as full sentences. These statements should be able to guide decisions.

    EXAMPLES

    • [Organization] is implementing an ERP system to streamline processes and reduce redundancies, saving time and money.
    • [Organization] is implementing an ERP to integrate disparate systems and rationalize the application portfolio.
    • [Organization] is aiming at taking advantage of best industry practices and strives to minimize the level of customization required in solution.

    Questions to Ask

    1. What is a strong statement that will help guide decision making throughout the life of the ERP project?
    2. What are your overarching requirements for business processes?
    3. What do you ultimately want to achieve?
    4. What is a statement that will ensure all stakeholders are on the same page for the project?

    Activity 1.1.2 – ERP Vision and Project Guiding Principles

    1 hour

    1. As a group, discuss whether you want to create a separate ERP vision statement or re-state your corporate vision and/or goals.
      • An ERP vision statement will provide project-guiding principles, encompass the ERP objectives, and give a rationale for the project.
      • Using the corporate vision/goals will remind the business and IT that the project is to find an ERP solution that supports and enhances the organizational objectives.
    2. Review each of the sample guiding principles provided and ask the following questions:
      1. Do we agree with the statement?
      2. Is this statement framed in the language we used internally? Does everyone agree on the meaning of the statement?
      3. Will this statement help guide our decision-making process?

    Record this information in the ERP Strategy Report Template.

    Sample of the 'ERP Strategy Report Template: Guiding Principles.

    Download the ERP Strategy Report Template

    Activity 1.1.2 – ERP Vision and Project Guiding Principles

    We, [Organization], will select and implement an integrated software suite that enhances the growth and profitability of the organization through streamlined global business processes, real time data-driven decisions, increased employee productivity, and IT investment protection.

    • Support Business Agility: A flexible and adaptable integrated business system providing a seamless user experience.
    • Utilize ERP best practices: Do not recreate or replicate what we have today, focus on modernization. Exercise customization governance by focusing on those customizations that are strategically differentiating.
    • Automate: Take manual work out where we can, empowering staff and improving productivity through automation and process efficiencies.
    • Stay focused: Focus on scope around core business capabilities. Maintain scope control. Prioritize demand in line with the strategy.
    • Strive for “One Source of Truth”: Unify data model and integrate processes where possible. Assess integration needs carefully.

    Align the ERP strategy with the corporate strategy

    Corporate Strategy Unified Strategy ERP Strategy
    • Conveys the current state of the organization and the path it wants to take.
    • Identifies future goals and business aspirations.
    • Communicates the initiatives that are critical for getting the organization from its current state to the future state.
    • ERP optimization can be and should be linked, with metrics, to the corporate strategy and ultimate business objectives.
    • Communicates the organization’s budget and spending on ERP.
    • Identifies IT initiatives that will support the business and key ERP objectives.
    • Outlines staffing and resourcing for ERP initiatives.

    Info-Tech Insight

    ERP projects are more successful when the management team understands the strategic importance and the criticality of alignment. Time needs to be spent upfront aligning business strategies with ERP capabilities. Effective alignment between IT and the business should happen daily. Alignment doesn’t just to occur at the executive level alone, but at each level of the organization.

    1.1.3 – Corporate goals and ERP benefits

    1-2 hours

    1. Discuss the business objectives. Identify two or three objectives that are a priority for this year.
    2. Produce several ways a new ERP system will meet each objective.
    3. Think about the modules and ERP functions that will help you realize these benefits.

    Cost Reduction

    • Decrease Total Cost: Reduce total costs by five percent by January 2022.
    • Decrease Specific Costs: Reduce costs of “x” business unit by ten percent by Jan. next year.

    ERP Benefits

    • Reduce headcount
    • Reallocate workers
    • Reduce overtime
    • Increased compliance
    • Streamlined audit process
    • Less rework due to decrease in errors

    Download the ERP Strategy Report Template

    Activity 1.1.3 – Corporate goals and ERP benefits

    Corporate Strategy ERP Benefits
    End customer visibility (consumer experience)
    • Help OEM’s target customers
    • Keep customer information up-to-date, including contact choices
    • [Product A] process support improvements
    • Ability to survey and track responses
    • Track and improve renewals
    • Service support – improve cycle times for claims, payment processing, and submission quality
    Social responsibility
    • Reduce paper internally and externally
    • Facilitating tracking and reporting of EFT
    • One location for all documents
    New business development
    • Track all contacts
    • Measure where in process the contact is
    • Measure impact of promotions
    Employee experience
    • Improve integration of systems reducing manual processes through automation
    • Better tracking of sales for employee comp
    • Ability to survey employees

    Step 1.2

    Scope and priorities

    Activities
    • 1.2.1 Project scope
    • 1.2.2 Competing priorities

    This step will walk you through the following activities:

    • Define the initial scope of the ERP project. This includes the discussion of what is not in scope. For example, a stand-alone warehouse management system may be out of scope while an existing HRMS could be in scope.

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    A project scope statement and a prioritized list of projects that may compete for organizational resources.

    Understand the importance of setting expectations with a scope statement

    Be sure to understand what is in scope for an ERP strategy project. Prevent too wide of a scope to avoid scope creep – for example, we aren’t tackling MMS or BI under ERP.

    A diamond shape with three layers. Inside is 'In Scope', middle is 'Scope Creep', and outside is 'Out of Scope'.

    Establishing the parameters of the project in a scope statement helps define expectations and provides a baseline for resource allocation and planning. Future decisions about the strategic direction of ERP will be based on the scope statement.

    Well-executed requirements gathering will help you avoid expanding project parameters, drawing on your resources, and contributing to cost overruns and project delays. Avoid scope creep by gathering high-level requirements that lead to the selection of category-level application solutions (e.g. HRIS, CRM, PLM etc.) rather than granular requirements that would lead to vendor application selection (e.g. SAP, Microsoft, Oracle, etc.).

    Out-of-scope items should also be defined to alleviate ambiguity, reduce assumptions, and further clarify expectations for stakeholders. Out-of-scope items can be placed in a backlog for later consideration.

    In Scope Out of Scope
    Strategy High-level ERP requirements, strategic direction
    Software selection Vendor application selection, Granular system requirements

    Activity 1.2.1 – Define scope

    1 hour

    1. Formulate a scope statement. Decide which people, processes, and functions the ERP strategy will address. Generally, the aim of this project is to develop strategic requirements for the ERP application portfolio – not to select individual vendors.
    2. To assist in forming your scope statement, answer the following questions:
      • What are the major coverage points?
      • Who will be using the systems?
      • How will different users interact with the systems?
      • What are the objectives that need to be addressed?
      • Where do we start?
      • Where do we draw the line?

    Record this information in the ERP Strategy Report Template.

    Sample of the 'ERP Strategy Report Template: Scope Statements'.

    Download the ERP Strategy Report Template

    Activity 1.2.1 – Define scope

    Scope statements

    The following systems are considered in scope for this project:

    • Finance
    • HRMS
    • CRM
    • Supply chain

    The following systems are out of scope for this project:

    • PLM – product lifecycle management
    • Project management
    • Contract management

    The following systems are in scope, in that they must integrate into the new system. They will not change.

    • Payroll processing
    • Bank accounts
    • EDI software

    Know your competing priorities

    Organizations typically have multiple projects on the table or in flight. Each of those projects requires resources and attention from business and/or the IT organization.

    Don’t let poor prioritization hurt your ERP implementation.
    BNP Paribas Fortis had multiple projects that were poorly prioritized resulting in the time to bring products to market to double over a three-year period. (Source: Neito-Rodriguez, 2016)

    Project Timeline Priority notes Implications
    Warehouse management system upgrade project Early 2022 implementation High Taking IT staff and warehouse team, testing by finance
    Microsoft 365 October 2021-March 2022 High IT Staff, org impacted by change management
    Electronic Records Management April 2022 – Feb 2023 High Legislative requirement, org impact due to record keeping
    Web site upgrade Early fiscal 2023

    Activity 1.2.2 – Competing priorities

    1 hour

    1. As a group, discuss the projects that are currently in flight as well as any known projects including such things as territory expansion or new regulation compliance.
    2. For each project discuss and record the following items:
      • The project timeline. When does it start and how long is it expected to run?
      • How important is this project to the organization? A lot of high priority projects are going to require more attention from the staff involved.
      • What are the implications of this project?
        • What staff will be impacted? What business users will be impacted, and what is the IT involvement?
        • To what extent will the overall organization be impacted? Is it localized to a location or is it organization wide?
        • Can the project be deferred?

    Record this information in the ERP Strategy Report Template.

    Sample of the 'ERP Strategy Report Template: Priorities'.

    Download the ERP Strategy Report Template

    Activity 1.2.2 – Competing priorities

    List all your known projects both current and proposed. Discuss the prioritization of those projects, whether they are more or less important than your ERP project.

    Project Timeline Priority notes Implications
    Warehouse management system upgrade project Early 2022 implementation High Taking IT staff and warehouse team, testing by finance
    Microsoft 365 October 2021-March 2022 High IT Staff, org impacted by change management
    Electronic Records Management April 2022 – Feb 2023 High Legislative requirement, org impact due to record keeping
    Web site upgrade Early fiscal 2023 Medium
    Point of Sale replacement Oct 2021– Mar 2022 Medium
    ERP utilization and training on unused systems Friday, Sept 17 Medium Could impact multiple staff
    Managed Security Service RFP This calendar year Medium
    Mental Health Dashboard In research phase Low

    Build an ERP Strategy and Roadmap

    Phase 2

    Define your ERP

    Phase 1

    • 1.1 Aligning business and IT
    • 1.2 Scope and priorities

    Phase 2

    • 2.1 ERP Business Model
    • 2.2 ERP processes and supporting applications
    • 2.3 Process pains, opportunities & maturity

    Phase 3

    • 3.1 Stakeholders, risk & value
    • 3.2 Project set up

    Phase 4

    • 4.1 Build your roadmap
    • 4.2 Wrap up and present

    This phase will walk you through the following activities:

    • Build the ERP business model then move on to the top level (mega) processes and an initial list of the sub-processes
    • Generate a list of applications that support the identified processes
    • Assign stakeholders, discuss pain points, opportunities, and key success indicators
    • Assign process and technology maturity to each stakeholder

    This phase involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP applications support team

    Step 2.1

    ERP business model

    Activities
    • 2.1.1 Environmental factors, technology drivers, and business needs
    • 2.1.2 Challenges, pain points, enablers, and organizational goals

    This step will walk you through the following activities:

    • Identify ERP drivers and objectives
    • Explore ERP challenges and pain points
    • Discuss the ERP benefits and opportunities

    This step involves the following participants:

    • ERP implementation team
    • Business stakeholders

    Outcomes of this step

    • ERP business model

    Explore environmental factors and technology drivers

    1. Identify business drivers that are contributing to the organization’s need for ERP.
    2. Understand how the company is running today and what the organization’s future will look like. Try to identify the purpose for becoming an integrated organization.
    3. Consider external considerations, organizational drivers, technology drivers, and key functional requirements
    The ERP Business Model with 'Business Needs', 'Environmental Factors', and 'Technology Drivers' highlighted. At the center is 'ERP Strategy' with 'Barriers' above and 'Enablers' below. Surrounding and feeding into the center group are 'Business Needs', 'Environmental Factors', 'Technology Drivers', and 'Organizational Goals'.
    External Considerations
    • Regulations
    • Elections
    • Availability of resources
    • Staff licensing and certifications
    Organizational Drivers
    • Compliance
    • Scalability
    • Operational efficiency
    • Union agreements
    • Self service
    • Role appropriate dashboards and reports
    • Real time data access
      • Use of data in the system (no exports)
    Technology Considerations
    • Data accuracy
    • Data quality
    • Better reporting
    Functional Requirements
    • Information availability
    • Integration between systems
    • Secure data

    Activity 2.1.1 – Explore environmental factors and technology drivers

    1 hour

    1. Identify business drivers that are contributing to the organization’s need for ERP.
    2. Understand how the company is running today and what the organization’s future will look like. Try to identify the purpose for becoming an integrated organization. Use a whiteboard or flip charts and markers to capture key findings.
    3. Consider External Considerations, Organizational Drivers, Technology Drivers, and Key Functional Requirements.

    Record this information in the ERP Strategy Report Template.

    Sample of the next slide, 'ERP Business Model', with an iconized ERP Business Model and a table highlighting 'Environmental Factors', 'Technology Drivers', and 'Business Needs'.

    Download the ERP Strategy Report Template

    ERP Business Model A iconized version of the ERP Business Model.

    Environmental FactorsTechnology DriversBusiness Needs
    • Regulations
    • Elections
    • Availability of resources
    • Staff licensing and certifications
    • Document storage
    • Cloud security standards
    • Functionality based on deployment
    • Cloud-first based on above
    • Integration with external data suppliers
    • Integration with internal systems (Elite?)
    • Compliance
    • Scalability
    • Operational efficiency
    • Union agreements
    • Self service
    • Role appropriate dashboards and reports
    • Real time data access
    • Use of data in the system (no exports)
    • CapEx vs. OpEx

    Discuss challenges, pain points, enablers and organizational goals

    1. Identify challenges with current systems and processes.
    2. Brainstorm potential barriers to successful ERP selection and implementation. Use a whiteboard and marker to capture key findings.
    3. Consider organizational goals along with barriers and enablers to ERP success.
    The ERP Business Model with 'Organizational Goals', 'Enablers', and 'Barriers' highlighted. At the center is 'ERP Strategy' with 'Barriers' above and 'Enablers' below. Surrounding and feeding into the center group are 'Business Needs', 'Environmental Factors', 'Technology Drivers', and 'Organizational Goals'.
    Functional Gaps
    • No online purchase order requisition
    Technical Gaps
    • Inconsistent reporting – data quality concerns
    Process Gaps
    • Duplication of data
    • Lack of system integration
    Barriers to Success
    • Cultural mindset
    • Resistance to change
    Business Benefits
    • Business-IT alignment
    IT Benefits
    • Compliance
    • Scalability
    Organizational Benefits
    • Data accuracy
    • Data quality
    Enablers of Success
    • Change management
    • Alignment to strategic objectives

    Activity 2.1.2 – Discuss challenges, pain points, enablers, and organizational goals

    1 hour

    1. Identify challenges with the current systems and processes.
    2. Brainstorm potential barriers to successful ERP selection and implementation. Use a whiteboard or flip chart and markers to capture key findings.
    3. Consider functional gaps, technical gaps, process gaps, and barriers to ERP success.
    4. Identify the opportunities and benefits from an integrated system.
    5. Brainstorm potential enablers for successful ERP selection and implementation. Use a whiteboard and markers to capture key findings.
    6. Consider business benefits, IT benefits, organizational benefits, and enablers of success.

    Record this information in the ERP Strategy Report Template.

    Sample of the next slide, 'ERP Business Model', with an iconized ERP Business Model and a table highlighting 'Organizational Goals', 'Enablers', and 'Barriers'.

    Download the ERP Strategy Report Template

    ERP Business Model A iconized version of the ERP Business Model.

    Organizational Goals Enablers Barriers
    • Efficiency
    • Effectiveness
    • Integrity
    • One source of truth for data
    • One team
    • Customer service, external and internal
    • Cross-trained employees
    • Desire to focus on value-add activities
    • Collaborative
    • Top level executive support
    • Effective change management process
    • Organizational silos
    • Lack of formal process documentation
    • Funding availability
    • What goes first? Organizational priorities

    Step 2.2

    ERP processes and supporting applications

    Activities
    • 2.2.1 ERP process inventory
    • 2.2.2 Application portfolio

    This step will walk you through the following activities:

    • Identify the top-level (mega) processes and create an initial list of the sub-processes
    • Generate a list of applications that support the identified processes

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP applications support team

    Outcomes of this step

    • A list of in scope business processes
    • A list of current applications and services supporting the business processes

    Process Inventory

    In business architecture, the primary view of an organization is known as a business capability map.

    A business capability defines what a business does to enable value creation rather than how.

    Business capabilities:

    • Represent stable business functions
    • Are unique and independent of each other
    • Will typically have a defined business outcome

    A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.

    A process map titled 'Business capability map (Level 0)' with many processes sectioned off into sections and subsections. The top-left section is 'Products and Services Development' with subsections 'Design'(6 processes) and 'Manufacturing'(3 processes). The top-middle section is 'Revenue Generation'(3 processes) and below that is 'Sourcing'(2 processes). The top-right section is 'Demand Fulfillment'(9 processes). Along the bottom is the section 'Enterprise Management and Planning' with subsections 'Human Resources'(4 processes), 'Business Direction'(4 processes), and 'Finance'(4 processes).

    If you do not have a documented process model, you can use the APQC Framework to help define your inventory of business processes.

    APQC’s Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.

    APQC’s Process Classification Framework

    Activity 2.2.1 – Process inventory

    2-4 hours

    1. As a group, discuss the business capabilities, value streams, and business processes.
    2. For each capability determine the following:
      • Is this capability applicable to our organization?
      • What application, if any, supports this capability?
    3. Are there any missing capabilities to add?

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Process Inventory' table on the next slide.

    Download the ERP Strategy Report Template

    Activity 2.2.1 – Process inventory

    Core Finance Core HR Workforce Management Talent Management Warehouse Management Enterprise Asset Management
    Process Technology Process Technology Process Technology Process Technology Process Technology Process Technology
    • General ledger
    • Accounts payable
    • Accounts receivable
    • GL consolidation
    • Cash management
    • Billing and invoicing
    • Expenses
    • Payroll accounting
    • Tax management
    • Reporting
    • Payroll administration
    • Benefits administration
    • Position management
    • Organizational structure
    • Core HR records
    • Time and attendance
    • Leave management
    • Scheduling
    • Performance management
    • Talent acquisition
    • Offboarding & onboarding
    • Plan layout
    • Manage inventory
    • Manage loading docks
    • Pick, pack, ship
    • Plan and manage workforce
    • Manage returns
    • Transfer product cross-dock
    • Asset lifecycle management
    • Supply chain management
    • Maintenance planning & scheduling
    Planning & Budgeting Strategic HR Procurement Customer Relationship Management Facilities Management Project Management
    Process Technology Process Technology Process Technology Process Technology Process Technology Process Technology
    • Budget reporting
    • Variance analysis
    • Multi-year operating plan
    • Monthly forecasting
    • Annual operating plan
    • Compensation planning
    • Workforce planning
    • Succession planning
    • Supplier management
    • Purchase order management
    • Workflow approvals
    • Contract / tender management
    • Contact management
    • Activity management
    • Analytics
    • Plan and acquire
    • Asset maintenance
    • Disposal
    • Project management
    • Project costing
    • Budget control
    • Document management

    Complete an inventory collection of your application portfolio

    MANAGED vs. UNMANAGED APPLICATION ENVIRONMENTS

    • Managed environments make way for easier inventory collection since there is significant control as to what applications can be installed on a company asset. Organizations will most likely have a comprehensive list of supported and approved applications.
    • Unmanaged environments are challenging to control because users are free to install any applications on company assets, which may or may not be supported by IT.
    • Most organizations fall somewhere in between – there is usually a central repository of applications and several applications that are exceptions to the company policies. Ensure that all applications are accounted for.

    Determine your inventory collection method:

    MANUAL INVENTORY COLLECTION
    • In its simplest form, a spreadsheet is used to document your application inventory.
    • For large organizations, reps interview all business domains to create a list of installed applications.
    • Conducting an end-user survey within your business domains is one way to gather your application inventory and assess quality.
    • This manual approach is most appropriate for smaller organizations with small application portfolios across domains.
    AUTOMATED INVENTORY COLLECTION
    • Using inventory collection compatibility tools, discover all of the supported applications within your organization.
    • This approach may not capture all applications, depending on the parameters of your automated tool.
    • This approach works well in a managed environment.

    Activity 2.2.2 – Understand the current application portfolio

    1-2 hours

    1. Brainstorm a list of the applications that support the ERP business processes inventoried in Activity 2.2.1. If an application has multiple instances, list each instance as a separate line item.
    2. Indicate the following for each application:
      1. User satisfaction. This may be more than one entry as different groups – e.g., IT vs. business – may differ.
      2. Processes supported. Refer to processes defined in Activity 2.2.1. Update 2.2.1 if additional processes are identified during this exercise.
      3. Define a future disposition: Keep, Update, Replace. It is possible to have more than one disposition, e.g., Update or Replace is a valid disposition.
    3. [Optional] Collect the following information about each application. This information can be used to calculate the cost per application and total cost per user:
      1. Number of users or user groups
      2. Estimated maintenance costs
      3. Estimated capital costs
      4. Estimated licensing costs
      5. Estimated support costs

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Application Portfolio' table on the next slide.

    Download the ERP Strategy Report Template

    2.2.2 - Application portfolio

    Inventory your applications and assess usage, satisfaction, and disposition

    Application Name Satisfaction Processes Supported Future Disposition
    PeopleSoft Financials Medium and declining ERP – shares one support person with HR Update or Replace
    Time Entry (custom) Low Time and Attendance Replace
    PeopleSoft HR Medium Core HR Update or Replace
    ServiceNow High ITSM
    CSM: Med-Low     		ITSM and CSM
    CSM – complexity and process changes     		Update
    Data Warehouse High IT
    Business: Med-Low     		BI portal – Tibco SaaS datamart Keep
    Regulatory Compliance Medium Regulatory software – users need training Keep
    ACL Analytics Low Audit Replace
    Elite Medium Supply chain for wholesale Update (in progress)
    Visual Importer Med-High Customs and taxes Keep
    Custom Reporting application Med-High Reporting solution for wholesale (custom for old system, patched for Elite) Replace

    2.3.1 – Visual application portfolio [optional]

    A diagram of applications and how they connect to each other. There are 'External Systems' and 'Internal Systems' split into three divisions, 'Retail Division', 'Wholesale Division', and 'Corporate Services'. Example external systems are 'Moneris', 'Freight Carriers', and 'Banks'. Example internal systems are 'Retail ERP/POS', 'Elite', and 'Excel'.

    Step 2.3

    Process pains, opportunities, and maturity

    Activities
    • 2.3.1 Level one process inventory with stakeholders
    • 2.3.2 Process pain points and opportunities
    • 2.3.3 Process key success indicators
    • 2.3.4 Process and technology maturity
    • 2.3.5 Mega-process prioritization

    This step will walk you through the following activities:

    • Assign stakeholders, discuss pain points, opportunities, and key success indicators for the mega-processes identified in Step 2.1
    • Assign process and technology maturity to each prioritizing the mega-processes

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP applications support team

    Outcomes of this step

    For each mega-process:

    • Level 1 processes with process and technology maturity assigned
    • Stakeholders identified
    • Process pain points, opportunities, and key success indicators identified
    • Prioritize the mega-processes

    Building out the mega-processes

    Congratulations, you have made it to the “big lift” portion of the blueprint. For each of the processes that were identified in exercise 2.2.1, you will fill out the following six details:

    1. Primary stakeholder(s)
    2. A description of the process
    3. hat level 1 processes/capabilities the mega-process is composed of
    4. Problems the new system must solve
    5. What success will look like when the new system is implemented
    6. The process and technological maturity of each level 1 process.

    Sample of the 'Core Finance' slide in the ERP Strategy Report, as shown on the next slide, with numbers corresponding to the ordered list above. 1 is on a list of 'Stakeholders', 2 is by the 'Description' box, 3 is on the 'Capability' table column, 4 is on the 'Current Pain Points' box, 5 is on the 'Key Success Factors' box, and 6 is on the 'Maturity' ratings column.

    It will take one to three hours per mega-process to complete the six different sections.

    Note:
    For each mega-process identified you will create a separate slide in the ERP Strategy Report. Default slides have been provided. Add or delete as necessary.

    Sample of the 'Core Finance' slide in the ERP Strategy Report. Note on the list of stakeholders reads 'Primary Stakeholders'. Note on the title, Core Finance, reads 'Mega-process name'. Note on the description box reads 'Description of the process'. Note on the 'Key Success Factors' box reads 'What success looks like'. Note on the 'Current Pain Points' box reads 'Problems the new system must solve'. Below is a capability table with columns 'Capability', 'Maturity', and a blank on for notes. Note on the 'Capability' table column reads 'Level 1 process'. Note on the 'Maturity' ratings column reads 'Level 1 process maturity of process and technology'. Note on the notes column reads 'Level 1 process notes'.

    An ERP project is most effective when you follow a structured approach to define, select, implement, and optimize

    Top-down approach

    ERP Strategy
    • Operating Model – Define process strategy, objectives, and operational implications.
    • Level 1 Processes –Define process boundaries, scope at the organization level; the highest level of mega-process.

    • Level 2 Processes – Define processes by function/group which represent the next level of process interaction in the organization.
    • Level 3 Processes – Decompose process by activity and role and identify suppliers, inputs, outputs, customers, metrics, and controls.
    • Functional Specifications; Blueprint and Technical Framework – Refine how the system will support and enable processes; includes functional and technical elements.
    • Org Structure and Change Management – Align org structure and develop change mgmt. strategy to support your target operating model.
    • Implementation and Transition to Operations – Execute new methods, systems, processes, procedures, and organizational structure.
    • ERP Optimization and Continuous Improvement – Establish a program to monitor, govern, and improve ERP systems and processes.

    *A “stage gate” approach should be used: the next level begins after consensus is achieved for the previous level.

    Activity 2.3.1 – Level 1 process inventory with stakeholders

    1 hour per mega-process

    1. Identify the primary stakeholder for the mega-process. The primary stakeholder is usually the process owner. For example, for core finance the CFO is the process owner/primary stakeholder. Name a maximum of three stakeholders.
    2. In the lower section, detail all the capabilities/processes associated with the mega-process. Be careful to remain at the level 1 process level as it is easy to start identifying the “How” of a process. The “How” is too deep.

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Core Finance' slide in the ERP Strategy Report with the 'Stakeholders' list and 'Capability' table column highlighted.

    Download the ERP Strategy Report Template

    Activity 2.3.2 – Process pain points and opportunities

    30+ minutes per mega-process

    1. As a group, write a clear description of the mega-process. This helps establish alignment on the scope of the mega-process.
    2. Start with the discussion of current pain points with the various capabilities. These pain points will be items that the new solution will have to resolve.

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Core Finance' slide in the ERP Strategy Report with the 'Description', 'Key Success Factors', and 'Current Pain Points' boxes highlighted.

    Download the ERP Strategy Report Template

    Activity 2.3.3 – Key success indicators

    30 minutes per mega-process

    1. Document key success factors that should be base-lined in the existing system to show the overall improvement once the new system is implemented. For example, if month-end close takes 12 days in the current system, target three days for month-end close in the new system.

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Core Finance' slide in the ERP Strategy Report with the 'Description', 'Key Success Factors', and 'Current Pain Points' boxes highlighted.

    Download the ERP Strategy Report Template

    Activity 2.3.4 – Process and technology maturity

    1 hour

    1. For each capability/level 1 process identified determine you level of process maturity:
      • Weak – Ad hoc processes without documentation
      • Moderate – Documented processes that are often executed consistently
      • Strong – Documented processes that include exception handling that are rigorously followed
        • Payroll is an example of a strong process, even if every step is manual. The process is executed the same every time to ensure staff are paid properly and on time.
    2. For each capability/level 1 process identified determine you level of technology maturity:
      • Weak – manual execution and often paper-based
      • Moderate – Some technology support with little automation
      • Strong – The process executed entirely within the technology stack with no manual processes

    Record this information in the ERP Strategy Report Template.

    Sample of the 'Core Finance' slide in the ERP Strategy Report with the 'Maturity' and notes columns highlighted.

    Download the ERP Strategy Report Template

    Activity 2.3.5 – Mega-process prioritization

    1 hour

    1. For the mega-processes identified, map each process’s current state in terms of process rigor versus organizational importance.
      • For process rigor, refer to your process maturity in the previous exercises.
    2. Now, as a group discuss how you want to “move the needle” on each of the processes. Remember that you have a limited capacity so focus on the processes that are, or will be, of strategic importance to the organization. The processes that are placed in the top right quadrant are the ones that are likely the strategic differentiators.

    Record this information in the ERP Strategy Report Template.

    A smaller version of the process prioritization map on the next slide.

    Download the ERP Strategy Report Template.

    ERP Process Prioritization

    Establishing an order of importance can impact vendor selection and implementation roadmap; high priority areas are critical for ERP success.

    A prioritization map placing processes by 'Rigor' and 'Organizational Importance' They are numbered 1-9, 0, A, and B and are split into two colour-coded sets for 'Future (green)' and 'Current(red)'. On the x-axis 'Organizational Importance' ranges from 'Operational' to 'Strategic' and on the y-axis 'Process Rigor' ranges from 'Get the Job Done' to 'Best Practice'. Comparing 'Current' to 'Future', they have all moved up from 'Get the Job Done' into 'Best Practice' territory and a few have migrated over from 'Operational' to 'Strategic'. Processes are 1. Core Finance, 2. Core HR, 3. Workforce Management, 4.Talent Management, 5. Employee Health and Safety, 6. Enterprise Asset Management, 7.Planning & Budgeting, 8. Strategic HR, 9. Procurement Mgmt., 0. CRM, A. Facilities, and B. Project Management.

    Build an ERP Strategy and Roadmap

    Phase 3

    Plan your project

    Phase 1

    • 1.1 Aligning business and IT
    • 1.2 Scope and priorities

    Phase 2

    • 2.1 ERP Business Model
    • 2.2 ERP processes and supporting applications
    • 2.3 Process pains, opportunities & maturity

    Phase 3

    • 3.1 Stakeholders, risk & value
    • 3.2 Project set up

    Phase 4

    • 4.1 Build your roadmap
    • 4.2 Wrap up and present

    This phase will walk you through the following activities:

    • Map out your stakeholders to evaluate their impact on the project
    • Build an initial risk register and ensure the group is aligned
    • Set the initial core project team and their accountabilities and get them started on the project

    This phase involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Step 3.1

    Stakeholders, risk, and value

    Activities
    • 3.1.1 Stakeholder analysis
    • 3.1.2 Potential pitfalls and mitigation strategies
    • 3.1.3 Project value [optional]

    This step will walk you through the following activities:

    • Map out your stakeholders to evaluate their impact on the project
    • Build an initial risk register and ensure the group is aligned

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    • An understanding of the stakeholders and their project influence
    • An initial risk register
    • A consensus on readiness to proceed

    Understand how to navigate the complex web of stakeholders in ERP

    Identify which stakeholders to include and what their level of involvement should be during requirements elicitation based on relevant topic expertise.

    Sponsor End User IT Business
    Description An internal stakeholder who has final sign-off on the ERP project. Front-line users of the ERP technology. Back-end support staff who are tasked with project planning, execution, and eventual system maintenance. Additional stakeholders that will be impacted by any ERP technology changes.
    Examples
    • CEO
    • CIO/CTO
    • COO
    • CFO
    • Warehouse personnel
    • Sales teams
    • HR admins
    • Applications manager
    • Vendor relationship manager(s)
    • Director, Procurement
    • VP, Marketing
    • Manager, HR
    Value Executive buy-in and support is essential to the success of the project. Often, the sponsor controls funding and resource allocation. End users determine the success of the system through user adoption. If the end user does not adopt the system, the system is deemed useless and benefits realization is poor. IT is likely to be responsible for more in-depth requirements gathering. IT possesses critical knowledge around system compatibility, integration, and data. Involving business stakeholders in the requirements gathering will ensure alignment between HR and organizational objectives.

    Large-scale ERP projects require the involvement of many stakeholders from all corners and levels of the organization, including project sponsors, IT, end users, and business stakeholders. Consider the influence and interest of stakeholders in contributing to the requirements elicitation process and involve them accordingly.

    An example stakeholder map, categorizing stakeholders by amount of influence and interest.

    Activity 3.1.1 – Map your stakeholders

    1 hour

    1. As a group, identify all the ERP stakeholders. A stakeholder may be an individual such as the CEO or CFO, or it may be a group such as front-line employees.
    2. Map each stakeholder on the quadrant based on their expected Influence and Involvement in the project
    3. [Optional] Color code the users using the scale below to quickly identify the group that the stakeholder belongs to.
      • Sponsor – An internal stakeholder who has final sign-off on the ERP project.
      • End User – Front-line users of the ERP technology.
      • IT – Back-end support staff who are tasked with project planning, execution, and eventual system maintenance.
      • Business – Additional stakeholders that will be impacted by any ERP technology changes.

    Record this information in the ERP Strategy Report Template.

    Preview of the next slide.

    Download the ERP Strategy Report Template

    Slide titled 'Map the organization's stakeholders with a more in-depth example of a stakeholder map and long 'List of Stakeholders'. The quadrants that stakeholders are sorted into by influence and involvement are labelled 'Keep Satisfied (1)', 'Involve Closely (2)', 'Monitor (3)', and 'Keep Informed (4)'.

    Prepare contingency plans to minimize time spent handling unexpected risks

    Understanding the technical and strategic risks of a project can help you establish contingencies to reduce the likelihood of risk occurrence and devise mitigation strategies to help offset their impact if contingencies are insufficient.

    Risk Impact Likelihood Mitigation Effort
    Inadequate budget for additional staffing resources. 2 1 Use internal transfers and role-sharing rather than external hiring.
    Push-back on an ERP solution. 2 2 Use formal communication plans, an ERP steering committee, and change management to overcome organizational readiness.
    Overworked resources. 1 1 Create a detailed project plan that outlines resources and timelines in advance.
    Rating Scale:
    Impact: 1- High Risk 2- Moderate Risk 3- Minimal Risk
    Likelihood: 1- High/Needs Focus 2- Can Be Mitigated 3- Remote Likelihood

    Remember

    The biggest sources of risk in an ERP strategy are lack of planning, poorly defined requirements, and lack of governance.

    Apply the following mitigation tips to avoid pitfalls and delays.

    Risk Mitigation Tips

    • Upfront planning
    • Realistic timelines
    • Resource support
    • Managing change
    • Executive sponsorship
    • Sufficient funding
    • Setting the right expectations

    Activity 3.1.2 – Identify potential project pitfalls and mitigation strategies

    1-2 hours

    1. Discuss what “Impact” and “Likelihood” mean to your organization. For example, define Impact by what is important to your organization – financial loss, reputational impact, employee loss, and process impairment are all possible factors.
    2. Identify potential risks that may impede the successful completion of each work initiative. Risks may include predictable factors such as low resource capability, or unpredictable factors such as a change in priorities leading to withdrawn buy-in.
    3. For each risk, identify mitigation tactics. In some cases, mitigation tactics might take the form of standalone work initiative. For example, if a risk is lack of end-user buy-in, a work initiative to mitigate that risk might be to build an end-user communication plan.

    Record this information in the ERP Strategy Report Template.

    Preview of the next slide.

    Download the ERP Strategy Report Template

    Risks

    Risk Impact Likelihood Mitigation Effort
    Inadequate budget for additional staffing resources. 2 1 Use internal transfers and role-sharing rather than external hiring.
    Push-back on an ERP solution. 2 2 Use formal communication plans, an ERP steering committee, and change management to overcome organizational readiness.
    Overworked resources. 1 1 Create a detailed project plan that outlines resources and timelines in advance.
    Project approval 1 1 Build a strong business case for project approval and allow adequate time for the approval process
    Software does not work as advertised resulting in custom functionality with associated costs to create/ maintain 1 2 Work with staff to change processes to match the software instead of customizing the system thorough needs analysis prior to RFP creation
    Under estimation of staffing levels required, i.e. staff utilized at 25% for project when they are still 100% on their day job 1 2 Build a proper business case around staffing (be somewhat pessimistic)
    EHS system does not integrate with new HRMS/ERP system 2 2
    Selection of an ERP/HRMS that does not integrate with existing systems 2 3 Be very clear in RFP on existing systems that MUST be integrated to
    Rating Scale:
    Impact: 1- High Risk 2- Moderate Risk 3- Minimal Risk
    Likelihood: 1- High/Needs Focus 2- Can Be Mitigated 3- Remote Likelihood

    Is the organization committed to the ERP project?

    A recent study of critical success factors to an ERP implementation identified top management support and interdepartmental communication and cooperation as the top two success factors.

    By answering the seven questions the key stakeholders are indicating their commitment. While this doesn’t guarantee that the top two critical success factors have been met, it does create the conversation to guide the organization into alignment on whether to proceed.

    A table of example stakeholder questions with options 1-5 for how strongly they agree or disagree. 'Strongly disagree - 1', 'Somewhat disagree - 2', 'Neither agree or disagree - 3', 'Somewhat agree - 4', 'Strongly agree - 5'.

    Activity 3.1.3 – Project value (optional)

    30 minutes

    1. As a group, discuss the seven questions in the table. Ensure everyone agrees on what the questions are asking. If necessary, modify the language so that the meaning is clear to everyone.
    2. Have each stakeholder answer the seven questions on their own. Have someone compile the answers looking for:
      1. Any disagrees, strongly, somewhat, or neither as this indicates a lack of clarity. Endeavour to discover what additional information is required.
      2. [Optional] Have the most positive and most negative respondents present their points of view for the group to discuss. Is someone being overly optimistic, or pessimistic? Did the group miss something?

    There are no wrong answers. It should be okay to disagree with any of these statements. The goal of the exercise is to generate conversation that leads to support of the project and collaboration on the part of the participants.

    Record this information in the ERP Strategy Report Template.

    A preview of the next slide.

    Download the ERP Strategy Report Template

    Ask the right questions now to determine the value of the project to the organization

    Please indicate how much you agree or disagree with each of the following statements.

    Question # Question Strongly disagree Somewhat disagree Neither agree nor disagree Somewhat agree Strongly agree
    1. I have everything I need to succeed. 1 2 3 4 5
    2. The right people are involved in the project. 1 2 3 4 5
    3. I understand the process of ERP selection. 1 2 3 4 5
    4. My role in the project is clear to me. 1 2 3 4 5
    5. I am clear about the vision for this project. 1 2 3 4 5
    6. I am nervous about this project. 1 2 3 4 5
    7. There is leadership support for the project. 1 2 3 4 5

    Step 3.2

    Project set up

    Activities
    • 3.2.1 Create the project team
    • 3.2.2 Set the project RACI

    This step will walk you through the following activities:

    • Set the initial core project team and their accountabilities to the project.

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    • Identify the core team members and their time commitments.
    • Assign responsibility, accountability or communication needs.

    Identify the right stakeholders for your project team

    Consider the core team functions when composing the project team. It is essential to ensure that all relevant perspectives (business, IT, etc.) are evaluated to create a well-aligned and holistic ERP strategy.

    PROJECT TEAM ROLES

    • Project champion
    • Project advisor
    • Steering committee
    • Project manager
    • Project team
    • Subject matter experts
    • Change management specialist

    PROJECT TEAM FUNCTIONS

    • Collecting all relevant inputs from the business.
    • Gathering high-level requirements.
    • Creating a roadmap.

    Info-Tech Insight

    There may be an inclination towards a large project team when trying to include all relevant stakeholders. Carefully limiting the size of the project team will enable effective decision making while still including functional business units like HR and Finance, as well as IT.

    Activity 3.2.1 – Project team

    1 hour

    1. Considering your ERP project scope, discuss the resources and capabilities necessary, and generate a complete list of key stakeholders considering each of the roles indicated on the chart to the right.
    2. Using the list previously generated, identify a candidate(s) for each role and determine their responsibility in the ERP strategy and their expected time commitment.

    Record this information in the ERP Strategy Report Template.

    Preview of the table on the next slide.

    Download the ERP Strategy Report Template

    Project team

    Of particular importance for this table is the commitment column. It is important that the organization understands the level of involvement for all roles. Failure to properly account for the necessary involvement is a major risk factor.

    Role Candidate Responsibility Commitment
    Project champion John Smith
    • Provide executive sponsorship.
    		 20 hours/week
    Steering committee
    • Establish goals and priorities.
    • Define scope and approve changes.
    • Provide adequate resources and resolve conflict.
    • Monitor project milestones.
    		 10 hours/week
    Project manager
    • Prepare and manage project plan.
    • Monitor project team progress.
    • Conduct project team meetings.
    		 40 hours/week
    Project team
    • Drive day-to-day project activities.
    • Coordinate department communication.
    • Make process and design decisions.
    		 40 hours/week
    Subject matter experts by area
    • Attend meetings as needed.
    • Respond to questions and inquiries.
    		 5 hours/week

    Define project roles and responsibilities to improve progress tracking

    Build a list of the core ERP strategy team members and then structure a RACI chart with the relevant categories and roles for the overall project.

    • Responsible – Conducts work to achieve the task
    • Accountable – Answerable for completeness of task
    • Consulted – Provides input for the task
    • Informed – Receives updates on the task

    Benefits of assigning RACI early:

    • Improve project quality by assigning the right people to the right tasks.
    • Improve chances of project task completion by assigning clear accountabilities.
    • Improve project buy-in by ensuring stakeholders are kept informed of project progress, risks, and successes.

    Activity 3.2.2 – Project RACI

    1 hour

    1. The ERP strategy will require a cross-functional team within IT and business units. Make sure the responsibilities are clearly communicated to the selected project sponsor.
    2. Modify the left-hand column to match the activities expected in your project.

    Record this information in the ERP Strategy Report Template.

    Preview of the RACI chart on the next slide.

    Download the ERP Strategy Report Template

    3.2.2 – Project RACI

    Project champion Project advisor Project steering committee Project manager Project team Subject matter experts
    Determine project scope & vision I C A R C C
    Document business goals I I A R I C
    Inventory ERP processes I I A C R R
    Map current state I I A R I R
    Assess gaps and opportunities I C A R I I
    Explore alternatives R R A I I R
    Build a roadmap R A R I I R
    Create a communication plan R A R I I R
    Present findings R A R I I R

    Build an ERP Strategy and Roadmap

    Phase 4

    Next steps

    Phase 1

    • 1.1 Aligning business and IT
    • 1.2 Scope and priorities

    Phase 2

    • 2.1 ERP Business Model
    • 2.2 ERP processes and supporting applications
    • 2.3 Process pains, opportunities & maturity

    Phase 3

    • 3.1 Stakeholders, risk & value
    • 3.2 Project set up

    Phase 4

    • 4.1 Build your roadmap
    • 4.2 Wrap up and present

    This phase will walk you through the following activities:

    • Review the different options to solve the identified pain points
    • Build out a roadmap showing how you will get to those solutions
    • Build a communication plan that includes the stakeholder presentation

    This phase involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Step 4.1

    Build your roadmap

    Activities
    • 4.1.1 Pick your path
    • 4.1.2 Build your roadmap
    • 4.1.3 Visualize your roadmap (optional)

    This step will walk you through the following activities:

    • Review the different options to solve the identified pain points then build out a roadmap of how to get to that solution.

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    • A strategic direction is set
    • An initial roadmap is laid out

    Choose the right path for your organization

    There are several different paths you can take to achieve your ideal future state. Make sure to pick the one that suits your needs as defined by your current state.

    A diagram of strategies. At the top is 'Current State', at the bottom is 'Future State', and listed strategies are 'Maintain Current System', 'Augment Current System', 'Optimize', and 'Transform'.

    Explore the options for achieving your ideal future state

    CURRENT STATE STRATEGY
    Your existing application satisfies both functionality and integration requirements. The processes surrounding it likely need attention, but the system should be considered for retention. MAINTAIN CURRENT SYSTEM
    Your existing application is, for the most part, functionally rich, but may need some tweaking. Spend time and effort building and enhancing additional functionalities or consolidating and integrating interfaces. AUGMENT CURRENT SYSTEM
    Your ERP application portfolio consists of multiple apps serving the same functions. Consolidating applications with duplicate functionality is more cost efficient and makes integration and data sharing simpler. OPTIMIZE: CONSOLIDATE AND INTEGRATE SYSTEMS
    Your existing system offers poor functionality and poor integration. It would likely be more cost and time efficient to replace the application and its surrounding processes altogether. TRANSFORM: REPLACE CURRENT SYSTEM

    Option: Maintain your current system

    Resolve your existing process and people pain points

    MAINTAIN CURRENT SYSTEM

    Keep the system, change the process.

    Your existing application satisfies both functionality and integration requirements. The processes surrounding it likely need attention, but the system should be considered for retention.

    Maintaining your current system entails adjusting current processes and/or adding new ones, and involves minimal cost, time, and effort.

    INDICATORS POTENTIAL SOLUTIONS
    People Pain Points
    • Lack of training
    • Low user adoption
    • Lack of change management
    • Contact vendor to inquire about employee training opportunities
    • Build a change management strategy
    Process Pain Points
    • Legacy processes
    • Workarounds and shortcuts
    • Highly specialized processes
    • Inconsistent processes
    • Explore process reengineering and process improvement opportunities
    • Evaluate and standardize processes

    Option: Augment your current system

    Use augmentation to resolve your existing technology and data pain points

    AUGMENT CURRENT SYSTEM

    Add to the system.

    Your existing application is for the most part functionally rich but may need some tweaking. Spend time and effort enhancing your current system.

    You will be able to add functions by leveraging existing system features. Augmentation requires limited investment and less time and effort than a full system replacement.

    INDICATORS POTENTIAL SOLUTIONS
    Technology Pain Points
    • Lack of reporting functions.
    • Lacking functional depth in key process areas.
    • Add point solutions or enable modules to address missing functionality.
    Data Pain Points
    • Poor data quality
    • Lack of data for processing and reporting
    • Single-source data entry
    • Add modules or augment processes to capture data

    Option: Consolidate and integrate

    Consolidate and integrate your current systems to address your technology and data pain points

    CONSOLIDATE AND INTEGRATE SYSTEMS

    Get rid of one system, combine two, or connect many.

    Your ERP application portfolio consists of multiple apps serving the same functions.

    Consolidating your systems eliminates the need to manage multiple pieces of software that provide duplicate functionality. Reducing the number of ERP applications makes integration and data sharing simpler.

    INDICATORS POTENTIAL SOLUTIONS
    Technology Pain Points
    • Disparate and disjointed systems
    • Multiple systems supporting the same function
    • Unused software licenses
    • System consolidation
    • System and module integration
    • Assess usage and consolidate licensing
    Data Pain Points
    • Multiple versions of same data
    • Duplication of data entry in different modules or systems
    • Poor data quality
    • Centralize core records
    • Assign data ownership
    • Single-source data entry

    Option: Replace your current system

    Replace your system to address gaps in your existing processes and various pain points

    REPLACE CURRENT SYSTEM

    Start from scratch.

    You’re transitioning from an end-of-life legacy system. Your existing system offers poor functionality and poor integration. It would likely be more cost and time efficient to replace the application and its surrounding processes all together.

    INDICATORS POTENTIAL SOLUTIONS
    Technology Pain Points
    • Lack of functionality and poor integration.
    • Obsolete technology.
    • Not aligned with technology direction or enterprise architecture plans.
    • Evaluate the ERP technology landscape.
    • Determine if you need to replace the current system with a point solution or an all-in-one solution.
    • Align ERP technologies with enterprise architecture.
    Data Pain Points
    • Limited capability to store and retrieve data.
    • Understand your data requirements.
    Process Pains
    • Insufficient tools to manage workflow.
    • Review end-to-end processes.
    • Assess user satisfaction.

    Activity 4.1.1 – Path to future state

    1+ hour
    1. Discuss the four options and the implications for your organization.
    2. Come to an agreement on your chosen path.

    The same diagram of strategies. At the top is 'Current State', at the bottom is 'Future State', and listed strategies are 'Maintain Current System', 'Augment Current System', 'Optimize', and 'Transform'.

    Activity 4.1.2 – Build a roadmap

    1-2 hours

    1. Start your roadmap with the stakeholder presentation. This is your mark in the sand to launch the project.
    2. For each item on your roadmap assign an owner who will be accountable to the completion of the roadmap item.
    3. Wherever possible, assign a start date, month, or quarter. The more specific you can be the better.
    4. Identify completion dates to create a sense of urgency. If you are struggling with start dates, it can help to start with a finish date and “back in” to a start date based on estimated efforts.

    Record this information in the ERP Strategy Report Template.

    Note:
    Your roadmap should be treated as a living document that is updated and shared with the stakeholders on a regular schedule.

    Preview of the strategy roadmap table on the next slide.

    Download the ERP Strategy Report Template

    ERP Strategy roadmap

    Initiative Owner Start Date Completion Date
    Create final workshop deliverable Info-Tech 16 September, 2021
    Review final deliverable Workshop sponsor
    Present to executive team Oct 2021
    Build business case CFO, CIO, Directors 3 weeks to build
    3-4 weeks process time
    Build an RFI for initial costings 1-2 weeks
    Stage 1 approval for requirements gathering Executive committee Milestone
    Determine and acquire BA support for next step 1 week
    Requirements gathering – level 2 processes Project team 5-6 weeks effort
    Build RFP (based on informal approval) CFO, CIO, Directors 4th calendar quarter 2022 Possible completion January 2023
    2-4 weeks

    Activity 4.1.3 – Build a visual roadmap [optional]

    1 hour

    1. For some, a visual representation of a roadmap is easier to comprehend. Consider taking the roadmap built in 4.1.2 and creating a visual.

    Record this information in the ERP Strategy Report Template.

    Preview of the visual strategy roadmap chart on the next slide.

    Download the ERP Strategy Report Template

    ERP Strategy Roadmap

    A table set up similarly to the previous one, but instead of 'Start Date' and 'Completion Date' columns there are multiple small columns broken up by fiscal quarters (i.e.. FY2022: Q1, Q2, Q3, Q4). There is a key with a light blue diamond shape representing a 'Milestone' and a blue arrow representing a 'Work in progress'; they are placed the Quarters columns according to when each row item reached a milestone or began its progress.

    Step 4.2

    Wrap up and present

    Activities
    • 4.2.1 Communication plan
    • 4.2.2 Stakeholder presentation

    This step will walk you through the following activities:

    • Build a communication plan as part of organizational change management, which includes the stakeholder presentation

    This step involves the following participants:

    • Primary stakeholders in each value stream supported by the ERP
    • ERP Applications support team

    Outcomes of this step

    • An initial communication plan for organizational change management
    • A stakeholder presentation

    Effectively communicate the changes an ERP foundation strategy will impose

    A communication plan is necessary because not everyone will react positively to change. Therefore, you must be prepared to explain the rationale behind any initiatives that are being rolled out.

    Steps:

    1. Start by building a sound communication plan.
    2. The communication plan should address all stakeholders that will be subject to change, including executives and end users.
    3. Communicate how a specific initiative will impact the way employees work and the work they do.
    4. Clearly convey the benefits of the strategy to avoid resistance.

    “The most important thing in project management is communication, communication, communication. You have to be able to put a message into business terms rather than technical terms.” (Lance Foust, I.S. Manager, Plymouth Tube Company)

    Project Goals Communication Goals Required Resources Communication Channels
    Why is your organization embarking on an ERP project? What do you want employees to know about the project? What resources are going to be utilized throughout the ERP strategy? How will your project team communicate project updates to the employees?
    Streamline processes and achieve operational efficiency. We will focus on mapping and gathering requirements for (X) mega-processes. We will be hiring process owners for each mega-process. You will be kept up to date about the project progress via email and intranet. Please feel free to contact the project owner if you have any questions.

    Activity 4.2.1 – Communication plan

    1 hour

    1. List the types of communication events and documents you will need to produce and distribute.
    2. Indicate the purpose of the event or document, who the audience is, and who is responsible for the communication.
    3. Identify who will be responsible for the development and delivery of the communication plan.

    Record this information in the ERP Strategy Report Template.

    Preview of the Communication Plan table on the next slide.

    Download the ERP Strategy Report Template

    Communication plan

    Use the communication planning template to track communication methods needed to convey information regarding ERP initiatives.

    This is designed to help your organization make ERP initiatives visible and create stakeholder awareness.

    Audience Purpose Delivery/ Format Communicator Delivery Date Status/Notes
    Front-line employees Highlight successes Bi-weekly email CEO Mondays
    Entire organization Highlight successes
    Plans for next iteration     		Monthly townhall Senior leadership Last Thursday of every month Recognize top contributors from different parts of the business. Consider giving out prizes such as coffee mugs
    Iteration demos Show completed functionality to key stakeholders Iteration completion web conference Delivery lead Every other Wednesday Record and share the demonstrations to all employees

    Conduct a presentation of the final deliverable for stakeholders

    After completing the activities and exercises within this blueprint, the final step of the process is to present the deliverable to senior management and stakeholders.

    Know Your Audience

    • Decide what needs to be presented and to whom. The purpose and format for communicating initiatives varies based on the audience. Identify the audience first to ensure initiatives are communicated appropriately.
    • IT and the business speak different languages. The business may not have the patience to try to understand IT, so it is up to IT to learn and use the language of business. Failing to put messages into language that resonates with the business will create disengagement and resistance.
    • Effective communication takes preparation to get the right content and tone to convey your real message.

    Learn From Other Organizations

    “When delivering the strategy and next steps, break the project down into consumable pieces. Make sure you deliver quick wins to retain enthusiasm and engagement.

    By making it look like a different project you keep momentum and avoid making it seem unattainable.” (Scott Clark, Innovation Credit Union)

    “To successfully sell the value of ERP, determine what the high-level business problem is and explain how ERP can be the resolution. Explicitly state which business areas ERP is going to touch. The business often has a very narrow view of ERP and perceives it as just a financial system. The key part of the strategy is that the organization sees the broader view of ERP.” (Scott Clark, Innovation Credit Union)

    Activity 4.2.2 – Stakeholder presentation

    1 hour

    1. The following sections of the ERP Strategy Report Template are designed to function as the stakeholder presentation:
      1. Workshop Overview
      2. ERP Models
      3. Roadmap
    2. You can use the Template as your presentation deck or extract the above sections to create a stand-alone stakeholder presentation.
    3. Remember to take your audience into account and anticipate the questions they may have.

    Samples of the ERP Strategy Report Template.

    Download the ERP Strategy Report Template

    Summary of Accomplishment

    Get the Most Out of Your ERP

    ERP technology is critical to facilitating an organization’s flow of information across business units. It allows for seamless integration of systems and creates a holistic view of the enterprise to support decision making. ERP implementation should not be a one-and-done exercise. There needs to be an ongoing optimization to enable business processes and optimal organizational results.

    Build an ERP Strategy and Roadmap allows organizations to proactively implement continuous assessment and optimization of their enterprise resource planning system, including:

    • Alignment and prioritization of key business and technology drivers.
    • Identification of ERP processes, including classification and gap analysis.
    • Measurement of user satisfaction across key departments.
    • Improved vendor relations.
    • Data quality initiatives.

    This formal ERP optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process improvement.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Research Contributors

    Name Title Organization
    Anonymous Anonymous Software industry
    Anonymous Anonymous Pharmaceutical industry
    Boris Znebel VP of Sales Second Foundation
    Brian Kudeba Director, Administrative Systems Fidelis Care
    David Lawrence Director, ERP Allegheny Technologies Inc.
    Ken Zima CIO Aquarion Water Company
    Lance Foust I.S. Manager Plymouth Tube Company
    Pooja Bagga Head of ERP Strategy & Change Transport for London
    Rob Schneider Project Director, ERP Strathcona County
    Scott Clark Innovation Credit Union
    Tarek Raafat Manager, Application Solutions IDRC
    Tom Walker VP, Information Technology StarTech.com

    Related Info-Tech Research

    Bibliography

    Gheorghiu, Gabriel. "The ERP Buyer’s Profile for Growing Companies." Selecthub. 2018. Accessed 21 Feb. 2021.

    "Maximizing the Emotional Economy: Behavioral Economics." Gallup. n.d. Accessed 21 Feb. 2021.

    Neito-Rodriguez, Antonio. Project Management | How to Prioritize Your Company's Projects. 13 Dec. 2016. Accessed 29 Nov 2021. Web.

    "A&D organization resolves organizational.“ Case Study. Panorama Consulting Group. 2021. PDF. 09 Nov. 2021. Web.

    "Process Frameworks." APQC. n.d. Accessed 21 Feb. 2021.

    Saxena, Deepak and Joe Mcdonagh. "Evaluating ERP Implementations: The Case for a Lifecycle-based Interpretive Approach." The Electronic Journal of Information Systems Evaluation, 29-37. 22 Feb. 2019. Accessed 21 Feb. 2021.

    Govern Shared Services

    • Buy Link or Shortcode: {j2store}459|cart{/j2store}
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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • IT managers have come under increasing pressure to cut costs, and implementing shared services has become a popular demand from the business.
    • Business unit resistance to a shared services implementation can derail the project.
    • Shared services rearranges responsibilities within existing IT departments, potentially leaving no one accountable for project success and causing cost overruns and service performance failures.

    Our Advice

    Critical Insight

    • Over one-third of shared services implementations increase IT costs, due to implementation failures. Ineffective governance plays a major role in the breakdown of shared services, particularly when it does not overcome stakeholder resistance or define clear areas of responsibility.
    • Effective governance of a shared services implementation requires the IT leader to find the optimal combination of independence and centralization for the shared service provider.
    • Three primary models exist for governing shared services: entrepreneurial, mandated, and market-based. Each one occupies a different location in the trade-off of independence and centralization. The optimal model for a specific situation depends on the size of the organization, the number of participants, the existing trend towards centralization, and other factors.

    Impact and Result

    • Find the optimal governance model for your organization by weighing the different likely benefits and costs of each path.
    • Assign appropriate individual responsibilities to participants, so you can effectively scope your service offering and fund your implementation.
    • Support the governance effort effectively using published Info-Tech tools and templates.

    Govern Shared Services Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand each of the governance models and what each entails

    Build a plan for governing an implementation.

    • Storyboard: Govern Shared Services
    • None

    2. Choose the optimal approach to shared services governance

    Maximize the net benefit conferred by governance.

    • Shared Services Governance Strategy Roadmap Tool
    [infographic]

    Explore the Secrets of IBM Software Contracts to Optimize Spend and Reduce Compliance Risk

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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • IBM customers want to make effective use of their paid-up licenses to avoid overspending and stay compliant with agreements.
    • Each IBM software product is subject to different rules.
    • Clients control and have responsibility for aligning usage and payments. Over time, the usage of the software may be out of sync with what the client has paid for, resulting in either overspending or violation of the licensing agreement.
    • IBM audits software usage in order to generate revenue from non-compliant customers.

    Our Advice

    Critical Insight

    • You have a lot of work to do if you haven’t been paying attention to your IBM software.
    • Focus on needs first. Conduct and document a thorough requirements assessment. Well-documented needs will be your core asset in negotiation.
    • Know what’s in IBM’s terms and conditions. Failure to understand these can lead to major penalties after an audit.
    • Review your agreements and entitlements quarterly. IBM may have changed the rules, and you have almost certainly changed your usage.

    Impact and Result

    • Establish clear licensing requirements.
    • Maintain an effective process for managing your IBM license usage and compliance.
    • Identify any cost-reduction opportunities.
    • Prepare for penalty-free IBM audits.

    Explore the Secrets of IBM Software Contracts to Optimize Spend and Reduce Compliance Risk Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand why you need to invest effort in managing usage and licensing of your IBM software.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Review terms and conditions for your IT contract

    Use Info-Tech’s licensing best practices to avoid the common mistakes of overspending on IBM licensing or failing an IBM audit.

    • IBM Passport Advantage Software RFQ Template
    • IBM 3-Year Bundled Price Analysis Tool
    [infographic]

    Master the Secrets of VMware Licensing to Maximize Your Investment

    • Buy Link or Shortcode: {j2store}138|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • A lack of understanding around VMware’s licensing models, bundles, and negotiation tactics makes it difficult to negotiate from a position of strength.
    • Unfriendly commercial practices combined with hyperlink-ridden agreements have left organizations vulnerable to audits and large shortfall payments.
    • Enterprise license agreements (ELAs) come in several purchasing models and do not contain the EULA or various VMware product guide documentation that governs license usage rules and can change monthly.
    • Without a detailed understanding of VMware’s various purchasing models, shelfware often occurs.

    Our Advice

    Critical Insight

    • Contracts are typically overweighted with a discount at the expense of contractual T&Cs that can restrict license usage and expose you to unpleasant financial surprises and compliance risk.
    • VMware customers almost always have incomplete price information from which to effectively negotiate a “best in class” ELA.
    • VMware has a large lead in being first to market and it realizes that running dual virtualization stacks is complex, unwieldy, and expensive. To further complicate the issues, most skill sets in the industry are skewed towards VMware.

    Impact and Result

    • Negotiate desired terms and conditions at the start of the agreement, and prioritize which use rights may be more important than an additional discount percentage.
    • Gather data points and speak with licensing partners to determine if the deal being offered is in fact as great as VMware says it is.
    • Beware of out-year pricing and ELA optimization reviews that may provide undesirable surprises and more spend than was planned.

    Master the Secrets of VMware Licensing to Maximize Your Investment Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Manage Your VMware Agreements – Use the Info-Tech tools capture your existing licenses and prepare for your renewal bids.

    Use Info-Tech’s licensing best practices to avoid shelfware with VMware licensing and remain compliant in case of an audit.

    • Master the Secrets of VMware Licensing to Maximize Your Investment Storyboard

    2. Manage your VMware agreements

    Use Info-Tech’s licensing best practices to avoid shelfware with VMware licensing and remain compliant in case of an audit.

    • VMware Business as Usual – Install Base SnS Renewal Only Tool
    • VMware ELA RFQ Template

    3. Transition to the VMWare Cloud – Use these tools to evaluate your ELA and vShpere requirements and make an informed choice.

    Manage your renewals and transition to the cloud subscription model.

    • VPP Transactional Purchase Tool
    • VMware ELA Analysis Tool
    • vSphere Edition 7 Features List

    Infographic

    Further reading

    Master the Secrets of VMware Licensing to Maximize Your Investment

    Learn the essential steps to avoid overspending and to maximize negotiation leverage with VMware.

    EXECUTIVE BRIEF

    Analyst Perspective

    Master the Secrets of VMware Licensing to Maximize Your Investment.

    The image contains a picture of Scott Bickley.

    The mechanics of negotiating a deal with VMware may seem simple at first as the vendor is willing to provide a heavy discount on an enterprise license agreement (ELA). However, come renewal time, when a reduction in spend or shelfware is needed, or to exit the ELA altogether, the process can be exceedingly frustrating as VMware holds the balance of power in the negotiation.

    Negotiating a complete agreement with VMware from the start can save you from an immense headache and unforeseen expenditures. Many VMware customers do not realize that the terms and conditions in the Volume Purchasing Program (VPP) and Enterprise Purchasing Program (EPP) agreements limit how and where they are able to use their licenses.

    Furthermore, after the renewal is complete, organizations must still worry about the management of various license types, accurate discovery of what has been deployed, visibility into license key assignments, and over and under use of licenses.

    Preventive and proactive measures enclosed within this blueprint will help VMware clients mitigate this minefield of challenges.

    Scott Bickley
    Practice Lead, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    VMware's dominant position in the virtualization space can create uncertainty to your options in the long term as well as the need to understand:

    • The hybrid cloud model.
    • Hybrid VM security and management.
    • New subscription license model and how it affects renewals.

    Make an informed decision with your VMware investments to allow for continued ROI.

    There are several hurdles that are presented when considering a VMware ELA:

    • Evolving licensing and purchasing models
    • Understanding potential ROI in the cloud landscape
    • Evolving door of corporate ownership

    Overcoming these and other obstacles are key to long-term satisfaction with your VMware infrastructure.

    Info-Tech has a two-phase approach:

    • Manage your VMware agreements.
    • Plan a transition to the cloud.

    A tactical roadmap approach to VMware ELA and the cloud will ensure long-term success and savings.

    Info-Tech Insight

    VMware customers almost always have incomplete price information from which to effectively negotiate a “best in class” ELA.

    Your challenge

    VMware's dominant position in the virtualization space can create uncertainty to your options in the long term driven by:

    • VMware’s dominant market position and ownership of the virtualization market, which is forcing customers to focus on managing capacity demand to ensure a positive ROI on every license.
    • The trend toward a hybrid cloud for many organizations, especially those considering using VMware in public clouds, resulting in confusion regarding licensing and compliance scenarios.

    ELAs and EPPs are generally the only way to get a deep discount from VMware.

    The image contains a pie chart to demonstrate that 85% have answered yes to being audited by VMware for software license compliance.

    Common obstacles

    There are several hurdles that are presented when considering a VMware ELA.

    • A lack of understanding around VMware’s licensing models, bundles, and negotiation tactics makes it difficult to negotiate from a position of strength.
    • Unfriendly commercial practices combined with hyperlink-ridden agreements have left organizations vulnerable to audits and large shortfall payments.
    • ELAs come in several purchasing models and do not contain the EULA or various VMware product guide documentation that govern license usage rules and can change monthly.

    Competition is a key driver of price

    The image contains a screenshot of a bar graph to demonstrate virtualization market share % 2022.

    Source: Datanyze

    Master the Secrets of VMware Licensing to Maximize your Investment

    The image contains a screenshot of the Thought model on Master the secrets of VMware Licensing to Maximize your Investment.

    Info-Tech’s methodology for Master the Secrets of VMware Licensing to Maximize Your Investment

    1. Manage Your VMware Agreements

    2. Transition to the VMware Cloud

    Phase Steps

    1.1 Establish licensing requirements

    1.2 Evaluate licensing options

    1.3 Evaluate agreement options

    1.4 Purchase and manage licenses

    1.5 Understand SnS renewal management

    2.1 Understand the VMware subscription model

    2.2 Migrate workloads and licenses

    2.3 Manage SnS and cloud subscriptions

    Phase Outcomes

    Understanding of your licensing requirements and what agreement option best fits your needs for now and the future.

    Knowledge of VMware’s sales model and how to negotiate the best deal.

    Knowledge of the evolving cloud subscription model and how to plan your cloud migration and transition to the new licensing.

    Insight summary

    Overarching insight

    With the introduction of the subscription licensing model, VMware licensing and renewals are becoming more complex and require a deeper understanding of the license program options to best manage renewals and cloud deployments as well as to maximize legacy ROI.

    Phase 1 insight

    Contracts are typically overweighted with a discount at the expense of contractual T&Cs that can restrict license usage and expose you to unpleasant financial surprises and compliance risk.

    Phase 1 insight

    VMware has a large lead in being first to market and it realizes running dual virtualization stacks is complex, unwieldy, and expensive. To further complicate the issues, most skill sets in the industry are skewed toward VMware.

    Phase 2 insight

    VMware has purposefully reduced a focus on the actual license terms and conditions; most customers focus on the transactional purchase or the ELA document, but the rules governing usage are on a website and can be changed by VMware regularly.

    Tactical insight

    Beware of out-year pricing and ELA optimization reviews that may provide undesirable surprises and more spend than was planned.

    Tactical insight

    Negotiate desired terms and conditions at the start of the agreement, and prioritize which use rights may be more important than an additional discount percentage.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    VMware ELA Analysis Tool

    VMware ELA RFQ Template Tool

    VPP Transaction Purchase Tool

    VMware ELA Analysis Tool

    Use this tool as a template for an RFQ with VMware ELA contracts.

    Use this tool to analyze cost breakdown and discount based on your volume purchasing program (VPP) level.

    The image contains screenshots of the VMware ELA Analysis Tool. The image contains a screenshot of the VMware ELA RFQ template tool. The image contains a screenshot of the VPP Transaction Purchase Tool.

    Key deliverable:

    VMware Business as Usual SnS Renewal Only Tool

    Use this tool to analyze discounts from a multi-year agreement vs. prepay. See how you can get the best discount.

    The image contains screenshots of the VMware Business as Usual SnS Renewal Only Tool.

    Blueprint Objectives

    The aim of this blueprint is to provide a foundational understanding of VMware’s licensing agreement and best practices to manage them.

    Why VMware

    What to Know

    The Future

    VMware is the leader in OS virtualization, however, this is a saturated market, which is being pressured by public and hybrid cloud as a competitive force taking market share.

    There are few viable alternatives to VMware for virtualization due to vendor lock-in of existing IT infrastructure footprint. It is too difficult and cost prohibitive to make a shift away from VMware even when alternative solutions are available.

    ELAs are the preferred method of contracting as it sets the stage for a land-and-expand product strategy; once locked into the ELA model, customers must examine VMware alternatives with preference or risk having Support and Subscription Services (SnS) re-priced at retail.

    VMware does not provide a great deal of publicly available information regarding its enterprise license agreement (ELA) options, leaving a knowledge gap that allows the sales team to steer the customer.

    VMware is taking countermeasures against increasing competition.

    Recent contract terms changed to eliminate perpetual caps on SnS renewals; they are now tied to a single year of discounted SnS, then they go to list price.

    Migration of list pricing to a website versus contract, where pricing can now be changed, reducing discount percentage effectiveness.

    Increased audits of customers, especially those electing to not renew an ELA.


    Examining VMware’s vendor profile

    Turbonomics conducted a vendor profile on major vendors, focusing on licensing and compliance. It illustrated the following results:

    The image contains a pie graph to demonstrate that the majority of companies say yes to using license enterprise software from VMware.

    The image contains a bar graph to demonstrate what license products organizations use of VMware products.

    Source: Turbonomics
    N-sample size

    Case Study

    The image contains a logo for ADP.

    INDUSTRY: Finance

    SOURCE: VMware.com

    “We’ll have network engineers, storage engineers, computer engineers, database engineers, and systems engineers all working together as one intact team developing and delivering goals on specific outcomes.” – Vipul Nagrath, CIO, ADP

    Improving developer capital management

    Constant innovation helped ADP keep ahead of customer needs in the human resources space, but it also brought constant changes to the IT environment. Internally, the company found it was spending too long working on delivering the required infrastructure and system updates. IT staff wanted to improve velocity for refreshes to better match the needs of ADP developers and encourage continued development innovation.

    Business needs

    • Improve turnaround time on infrastructure refreshes to better meet developer roadmaps.
    • Establish an IT culture that works at the global scale of ADP and empowers individual team members.
    • Streamline approach toward infrastructure resource delivery to reduce need for manual management.

    Impact

    • Infrastructure resource delivery reduced from 100+ days to minutes, improving ADP developer efficiency.
    • VMware Cloud™ on AWS establishes seamless private and public cloud workflows, fostering agility and innovation.
    • Automating IT management redirects resources to R&D, boosting time to market for new services.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2 Phase 3

    Call #1: Discuss scope requirements, objectives, and your specific challenges.

    Call #2: Assess the current state.

    Determine licensing position.

    Call #3: Complete a deployment count, needs analysis, and internal audit.

    Call #4: Review findings with analyst:

    • Review licensing options.
    • Review licensing rules.
    • Review contract option types.

    Call #5: Select licensing option. Document forecasted costs and benefits.

    Call #6: Review final contract:

    • Discuss negotiation points.
    • Plan a roadmap for SAM.

    Call #7: Negotiate final contract. Evaluate and develop a roadmap for SAM.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 2 to 6 calls over the course of 1 to 2 months.

    Phase # 1

    Manage Your VMware Agreements

    Phase 1

    Phase 2

    1.1 Establish licensing requirements

    1.2 Evaluate licensing options

    1.3 Evaluate agreement options

    1.4 Purchase and manage licenses

    2.1 Understand the VMware subscription model

    2.2 Migrate workloads and licenses

    2.3 Discuss the VMware sales approach

    2.4 Manage SnS and cloud subscriptions

    This phase will walk you through the following activities:

    • Understanding the VMware licensing model
    • Understanding the license agreement options
    • Understanding the VMware sales approach

    This phase will take you thorough:

    • The new VMware subscription movement to the cloud
    • How to prepare and migrate
    • Manage your subscriptions efficiently

    1.1 Establish licensing requirements

    VMware has greatly improved the features of vSphere over time.

    vSphere Main Editions Overview

    • vSphere Standard – Provides the basic features for server consolidation. A support and subscription contract (SnS) is mandatory when purchasing the vSphere Standard.
    • vSphere Enterprise Plus – Provides the full range of vSphere features. A support and subscription contract (SnS) is mandatory when purchasing the Enterprise Plus editions.
    • vSphere Essentials kit – The Essentials kit is an all-in-one solution for small environments with up to three hosts (2 CPUs on each host). Support is optional when purchasing the Essentials kit and is available on a per-incident basis.
    • vSphere Essentials Plus kit – This is similar to the Essentials kit and provides additional features such as vSphere vMotion, vSphere HA, and vSphere replication. A support and subscription contract (SnS) is sold separately, and a minimum of one year of SnS is required.

    Review vSphere Edition Features

    The image contains a screenshot to review the vSphere Edition Features.

    Download the vSphere Edition 7 Features List

    1.2 Evaluate licensing options

    VMware agreement types

    Review purchase options to align with your requirements.

    Transactional VPP EPP ELA

    Transactional

    Entry-level volume license purchasing program

    Mid-level purchasing program

    Highest-level purchasing program

    • Purchasing in this model is not recommended for business purposes unless very infrequent and low quantities.
    • 250 points minimum
    • Four tiers of discounts
    • Rolling eight-quarter points accumulation period
    • Discounts on license only

    Deal size of initial purchase typically is:

    • US$250K MSRP License + SnS (2,500 tokens)
    • Exceptions do exist with purchase volume

    Minimum deal size of top-up purchase:

    • US$50K MSRP License + SnS (500 tokens)
    • Initial purchase determines token level
    • Three-year term

    Minimum deal size of initial purchase:

    • US$150K-$250K
    • Discounted licenses and SnS through term of contract
    • Single volume license key
    • No final true-up
    • Global deployment rights and consolidation of multiple agreements

    1.2.1 The Volume Purchasing Program (VPP)

    This is the entry-level purchasing program aimed at small/mid-sized organizations.

    How the program works

    • The threshold to be able to purchase from the VPP program is 250 points minimum, equivalent to $25,000.
    • Discounts attained can only be applied to license purchases. They do not apply to service and support/renewals. Discounts range from 4% to 12%.
    • For the large majority of products 1 VPP point = ~$100.
      • Point values will be the same globally.
      • Point ratios may vary over time as SKUs are changed.
      • Points are valid for two years.

    Benefits

    • Budget predictability for two years.
    • Simple license purchase process.
    • Receive points on qualifying purchases that accumulate over a rolling eight-quarter period.
    • Online portal for tracking purchases and eligible discounts.
    • Global program where affiliates can purchase from existing contract.

    VPP Point & Discount Table

    Level

    Point Range

    Discount

    1

    250-599

    4%

    2

    600-999

    6%

    3

    1,000-1,749

    9%

    4

    1,750+

    12%

    Source: VMware Volume Purchasing Program

    1.2.2 Activity VPP Transactional Purchase Tool

    1-3 hours

    Instructions:

    1. Use the tool to analyze the cost breakdown and discount based on your Volume Purchasing Program level.
    2. On tab 1, Enter SnS install base renewal units and or new license details.
    3. Review tab 2 for Purchase summary.

    The image contains a screenshot of the VPP Transactional Purchase Tool.

    Input Output
    • SnS renewal details
    • New license requirements and pricing
    • Transaction purchase summary
    • Estimated VPP purchase level
    Materials Participants
    • Current VMware purchase orders
    • Any SnS renewal requirements
    • Transaction Purchase Tool
    • Procurement
    • Vendor Management
    • Licensing Admin

    Download the VPP Transactional Purchase Tool

    1.3 Evaluate agreement options

    Introduction to EPP and ELA

    What to know when using a token/credit-based agreement.

    Token/credit-based agreements carry high risk as customers are purchasing a set number of tokens/credits to be redeemed during the ELA term for licenses.

    • Tokens/credits that are not used during the ELA term expire and become worthless.
    • By default in most agreements (negotiation dependent), tokens/credits are tied to pricing maintained by VMware on its website that is subject to change (increase usually), resulting in a reduced value for the tokens/credits.
      • Therefore, it is necessary to negotiate to have current list prices for all products/versions included in the ELA to prevent price increases while in the current ELA term.
    • Token-based agreements may come with a lower overall discount level as VMware is granting more flexibility in terms of the wider product selection offered, vendor cost of overhead to manage the redemption program, currency exchange risks, and more complex revenue recognition headaches.

    1.3.1 The Enterprise Purchasing Program (EPP)

    This is aimed at mid-tier customers looking for flexibility with deeper discounting.

    How the program works

    • Token-based program in which tokens are redeemed for licenses and/or SnS.
      • Tokens can be added at any time to active fund.
      • Token usage is automatically tracked and reported.
    • Minimum order of 2,500 tokens, equivalent to $250,000 (1 token=$100).
      • Exceptions have been made, allowing for lower minimum spends.
    • Restricted to specific regions, not a global agreement.
    • Self-service portal for access to license keys and support entitlements.
    • Deeper discounting than the VMware Volume Purchase Program.
    • EPP initial purchase gets VPP L4 for four years.

    Benefits

    • Able to mix and match VMware products, manage licenses, and adjust deployment strategy.
    • Prices are protected for term of the EPP agreement.
    • Number of tokens needed to obtain a product or SnS are negotiated at the start of the contract and fixed for the term.
    • SnS is co-termed to the EPP term.
    • Ability to purchase new products that become available at a future date and are listed on the EPP Eligibility Matrix.

    EPP Level & Point Table

    Level

    Point Range

    7

    2,500-3,499

    8

    3,500-4,499

    9

    4,500-5,999

    10

    6,000+

    Source: VMware Volume Purchasing Program

    1.3.2 The ELA is aimed at large global organizations, offering the deepest discounts with operational benefits and flexibility

    What is an ELA?

    • The ELA agreement provides the best vehicle for global enterprises to obtain maximum discounts and price-hold protection for a set period of time. Discounts and price holds are removed once an ELA has expired.
    • The ELA minimum spend previously was $500,000. Purchase volume now generally starts at $250K total spend with exceptions and, depending on VMware, it may be possible to attain for $150K in net-new license spend.

    Key things to know

    • Customers pay up front for license and SnS rights, but depending on the deployment plans, the value of the licenses is not realized and/or recognized for up to two years after point of purchase.
    • License and SnS is paid up front for a three-year period in most ELAs, although a one- or two-year term can be negotiated.
    • Licenses not deployed in year one should be discounted in value and drive a re-evaluation of the ELA ROI, as even heavily discounted licenses that are not used until year three may not be such a great deal in retrospect.
      • Use a time value of money calculation to arrive at a realistic ROI.
      • Partner with Finance and Accounting to ensure the ROI also clears any Internal Hurdle Rate (IHR).
      • Share and strategically position your IHR with VMware and resellers to ensure they understand the minimum value an ELA deal must bring to the table.
    • Organizational changes, such as merger, acquisition, and divestiture (MAD) activities, may result in the customer paying for license rights that can no longer be used and/or require a renegotiated ELA.

    Info-Tech Insight

    If a legacy ELA exists that has “deploy or lose” language, engage VMware to recapture any lost license rights as VMware has changed this language effective with 2016 agreements and there is an “appeals” process for affected customers.

    1.3.3 Select the best ELA variant to match your specific demand profile and financial needs

    The advantages of an ELA are:

    • Maximum discount level + price protection
    • SnS discounted at % of net license fee
    • Sole option for global use territory rights

    General disadvantages are:

    • Term lock-in with SnS for three years
    • Pay up front and if defer usage, ROI drops
    • Territory rights priced at a premium versus domestic use rights

    Type of ELAs

    ELA Type

    Description

    Pros and Cons

    Capped (max quantities)

    Used to purchase a specific quantity and type of license.

    Pro – Clarity on what will be purchased

    Pro – Lower risk of over licensing

    Con – Requires accurate forecasting

    All you can eat or unlimited

    Used to purchase access to specified products that can be deployed in unlimited quantities during the ELA term.

    Pro – Acquire large quantity of licenses

    Pro – Accurate forecasting not critical

    Con – Deployment can easily exceed forecast, leading to high renewal costs

    Burn-down

    A form of capped ELA purchase that uses prepaid tokens that can be used more flexibly to acquire a variety of licenses or services. This can include the hybrid purchasing program (HPP) credits. However, the percentage redeemable for VMware subscription services may be limited to 10% of the MSRP value of the HPP credit.

    Pro – Accurate demand forecast not critical

    Pro – Can be used for products and services

    Con – Unused tokens or credits are forfeited

    True-up

    Allows for additional purchases during the ELA term on a determined schedule based on the established ELA pricing.

    Pro – Consumption payments matched after initial purchase

    Pro – Accurate demand forecast not critical

    Con – Potentially requires transaction throughout term

    1.4 Purchase and manage licenses

    Negotiating ELA terms and conditions

    Editable copies of VMware’s license and governance documentation are a requirement to initiate the dialogue and negotiation process over T&Cs.

    VMware’s licensing is complex and although documentation is publicly available, it is often hidden on VMware’s website.

    Many VMware customers often overlook reviewing the license T&Cs, leaving them open to compliance risks.

    It is imperative for customers to understand:

    • Product definition for licensing of each acquired product
    • Products included by bundle
    • Use restrictions:
      • The VMware Product Guide, which includes information about:
        • ELA Order Forms, Amendments, Exhibits, EULA, Support T&Cs, and other policies that add dozens of pages to a contractual agreement.
        • All of these documents are web based and can change monthly; URL links in the contract do not take the user to the actual document but a landing page from which customers must find the applicable documents.
      • Obtain copies of ALL current documents at the time of your order and keep as a reference in the CLM and SAM systems.

    Build in time to obtain, review, and negotiate these documents (easily weeks to months).

    1.4.1 Negotiating ELA terms and conditions specifics

    License and Deployment

    • Review perpetual use rights for all licenses purchased under the ELA (exception being subscription services).
    • Carefully scrutinize contract language for clearly defined deployment rights.
      • Some agreements contain language that terminates the use rights for licenses not deployed by the end of the ELA term.
    • While older contracts would frequently contain clearly defined token values and product prices for the ELA term, VMware has moved away from this process and now refers to URL links for current MSRP pricing.

    Use Rights

    • The customer’s legal entities and territories listed in the contract are hard limits on the license usage via the VMware Product Guide definitions. Global use rights are not a standard license grant with VMware license agreement by default. Global rights are usually tied to an ELA.
    • VMware audits most aggressively against violations of territory use rights and will use the non-compliance events to resolve the issue via a commercial transaction.
      • Negotiate for assignment rights with no strings attached in terms of fees or multi-party consent by future affiliates or successors to a surviving entity.
    • Extraordinary Corporate Transaction clause: VMware’s standard language prevents customers from using licenses within the ELA for any third party that becomes part of customer’s business by way of acquisition, merger, consolidation, change of control, reorganization, or other similar transaction.
      • Request VMware to drop this language.
    • Include any required language pertaining to MAD events as default language will not allow for transfer or assignment of license rights.

    Checklist of necessary information to negotiate the best deal

    Product details that go beyond the sales pitch

    • Product family
    • Unique product SKU for license renewal
    • Part description
    • Current regional or global price list
    • One and three-year proposal for SnS renewals including new license and SnS detail
    • SnS term dates
    • Discount or offered prices for all line items (global pricing is generally ~20% higher than US pricing)

    Different support levels (e.g. basic, enterprise, per incident)

    • Standard pricing:
      • Basic Support = 21% of current list price (12x5)
      • Production Support = 25% of current list price (24x7 for severity 1 issues) – defined in VMware Support and Subscription Services T&Cs; non-severity 1 issues are 12x5

    Details to ensure the product being purchased matches the business needs

    • Realizing after the fact the product is insufficient with respect to functional requirements or that extra spend is required can be frustrating and extend expected timelines

    SnS renewals pricing is based on the (1) year SnS list price

    • This can be bundled for a multi-year discounted SnS rate (can result in 12%+ under VPP)

    Governing agreements, VPP program details

    • Have a printed copy of documents that are URL links, which VMware can change, allowing for surprises or unexpected changes in rules

    1.4.2 Activity VMware ELA Analysis Tool

    2-4 hours

    Instructions:

    1. As a group, review the various RFQ responses. Identify top three proposals and start to enter proposal details into the VPP Prepay or ELA tabs of the analysis tool.
    2. Review savings in the ELA Offer Analysis tab.

    The image contains screenshots of the VMware ELA Analysis Tool.

    Input Output
    • RFQ requirements data
    • RFQ response data
    • Analysis of ELA proposals
    • ELA savings analysis
    Materials Participants
    • RFQ response documents
    • ELA Analysis Tool
    • IT Leadership
    • Procurement
    • Vendor Management

    Download the VMware ELA Analysis Tool

    1.4.3 Negotiating ELA terms and conditions specifics: pricing, renewal, and exit

    VMware does not offer price protection on future license consumption by default.

    Securing “out years” pricing for SnS or the cost of SnS is critical or it will default to a set percentage (25%) of MSRP, removing the ELA discount.

    ↓

    Typically, the out year is one year; maximum is two years.

    ↓

    Negotiate the “go forward” SnS pricing post-ELA term as part of the ELA negotiations when you have some leverage.

    Default after (1) out year is to rise to 25% of current MSRP versus as low as 20% of net license price within the ELA.

    ↓

    Carefully incorporate the desired installed-base licenses that were acquired pre-ELA into the agreement, but ensure unwanted licenses are removed.

    ↓

    Ancillary but binding support policies, online terms and conditions, and other hyperlinked documentation should be negotiated and incorporated as part of the agreement whenever possible.

    1.4.4 Find the best reseller partner

    Seek out a qualified VMware partner that will work with you and with your interest as a priority:

    1. Resellers, at minimum, should have achieved an enterprise-level rating, as these partners can offer the deepest discounts and have more clout with VMware.
    2. Select your reseller prior to engaging in any RFX acquisition steps. Verify they are enterprise level or higher AND secure their written commitment to maximum pass-through of the discounting provided to them by VMware.
    3. Document and prioritize key T&Cs for your ELA and submit to your sales team along with a requirement and timeline for their formal response. Essentially, this escalates outside of the VMware process and disrupts the status quo. Ideally this will occur in advance of being presented a contract by VMware and be pre-emptive in nature.
    4. If applicable and of benefit or a high priority, seek out a reseller that is willing to finance the VMware upfront payment cost at a low or no interest rate.
    5. It will be important to have ELA-level deals escalated to higher levels of authority to obtain “best in class” discount levels, above and beyond those prescribed in the VMware sales playbook.
    6. VMware’s standard process is to “route” customers through a pre-defined channel and “deal desk” process. Preferred pricing of up to an additional 10% discount is reserved for the first reseller that registers the deal with VMware, with larger discounts reserved for the Enterprise and Premium partners. Additional discounts can be earned if the deal closes within specified time periods (First Deal Registration).

    1.4.5 Activity VMware ELA RFQ Template

    1-3 hours

    Use this tool for as a template for an RFQ with VMware ELA contracts.

    1. For SnS renewals that contain no new licenses, state that the requirement for award consideration is the provisioning of all details for each itemized SnS renewal product code corresponding to all the licenses of your installed base. The details for the renewals are to be placed in Section 1 of the template.
    2. SnS Renewal Options: Info-Tech recommends that you ask for one- and three-year SnS renewal proposals, assuming these terms are realistic for your business requirements. Then compare your SnS BAU costs for these two options against ELA offers to determine the best choice for your renewal.

    The image contains a screenshot of the VMware ELA RFQ Template.

    Input Output
    • Renewing SnS data
    • Agreement type options
    • Detailed list of required licenses
    • Summary list of SnS requirements
    Materials Participants
    • RFQ Template
    • SnS renewal summary
    • New license/subscription details
    • IT Leadership
    • Vendor Management
    • Procurement

    Download the VMware ELA RFQ Template

    1.4.6 Consider your path forward

    Consider your route forward as contract commitments, license compliance, and terms and conditions differ in structure to perpetual models previously used.

    • Are you able to accurately discover VMware licensing within your environment?
    • Is licensing managed for compliance? Are internal audits conducted so you have accurate results?
    • Have the product use rights been examined for terms and conditions such as geographic rights? Some T&Cs may change over time due to hyperlinked references within commercial documents.
    • How are Oracle and SQL being used within your VMware environment? This may affect license compliance with Oracle and Microsoft in virtualized environments.
    • Prepare for the Subscription model; it’s here now and will be the lead discussion with all VMware reps going forward.

    Shift to Subscription

    1. With the $64bn takeover by Broadcom, there will be a significant shift and pressure to the subscription model.
    2. Broadcom has significant growth targets for its VMware acquisition that can only be achieved through a strong press to a SaaS model.

    Info-Tech Insight

    VMware has a license cost calculator and additional licensing documents that can be used to help determine what spend should be.

    Phase # 2

    Transition to the VMware Cloud

    Phase 1

    Phase 2

    1.1 Establish licensing requirements

    1.2 Evaluate licensing options

    1.3 Evaluate agreement options

    1.4 Purchase and manage licenses

    2.1 Understand the VMware subscription model

    2.2 Migrate workloads and licenses

    2.3 Discuss the VMware sales approach

    2.4 Manage SnS and cloud subscriptions

    This phase will walk you through the following activities:

    • Understand the VMware licensing model
    • Understand the license agreement options
    • Understand the VMware sales approach

    This phase will take you thorough:

    • The new VMware subscription movement to the cloud
    • How to prepare and migrate
    • Manage your subscriptions efficiently

    2.1 Understand the VMware subscription model

    VMware Cloud Universal

    • VMware Cloud Universal unifies compute, network, and storage capabilities across infrastructures, management, and applications.
    • Take advantage of financial and cloud management flexibility by combining on-premises and SaaS capabilities for automation, operations, log analytics, and network visibility across your infrastructure.
    • Capitalize on VMware knowledge by integrating proven migration methods and plans across your transformation journey such as consumption strategies, business outcome workshops, and more.
    • Determine your eligibility to earn a one-time discount with this exclusive benefit designed to offset the value of your current unamortized VMware on-premises license investments and then reallocate toward your multi-cloud initiatives.

    2.2 Migrate workloads and licenses to the cloud

    There are several cloud migration options and solutions to consider.

    • VMware Cloud offers solutions that can provide a low-cost path to the cloud that will help accelerate modernization.
    • There are also many third-party solution providers who can be engaged to migrate workloads and other infrastructure to VMware Cloud and into other public cloud providers.
    • VMware Cloud can be deployed on many IaaS providers such as AWS, Azure, Google, Dell, and IBM.

    VMware Cloud Assist

    1. Leverage all available transition funding opportunities and any IaaS migration incentives from VMware.
    2. Learn and understand the value and capabilities of VMware vRealize Cloud Universal to help you transition and manage hybrid infrastructure.

    2.2.1 Manage your VMware cloud subscriptions

    Use VMware vRealize to manage private, public, and local environments.

    Combine SaaS and on-premises capabilities for automation, operations, log analytics, network visibility, security, and compliance into one license.

    The image contains a screenshot of a diagram to demonstrate VMware cloud subscriptions.

    2.3 The VMware sales approach

    Understand the pitch before entering the discussion

    1. VMware will present a PowerPoint presentation proposal comparing a Business-as-Usual (BAU) scenario versus the ELA model.
    2. Critical factors to consider if considering the proposed ELA are growth rate projections, deployment schedule, cost of non-ELA products/options, shelf-ware, and non-ELA discounts (e.g. VPP, multi-year, or pre-paid).
    3. Involving VMware’s direct account team along with your reseller in the negotiations can be beneficial. Keep in mind that VMware ultimately decides on the final price in terms of the discount that is passed through. Ensure you have a clear line of sight into how pricing is determined.
    4. Explore reseller incentives and promotional programs that may provide for deeper than normal discount opportunities.

    INFO-TECH TIP: Create your own assumptions as inputs into the BAU model and then evaluate the ELA value proposition instead of depending on VMware’s model.

    2.4 Manage SnS and cloud subscriptions

    The new subscription model is making SnS renewal more complex.

    • Start renewal planning four to six months prior to anniversary.
    • Work closely with your reseller on your SnS renewal options.
    • Request “as is” versus subscription renewal proposal from reseller or VMware with a “savings” component.
    • Consider and review multi-year versus annual renewal; savings will differ.
    • For the Subscription transition renewal model, ensure that credits for legacy licensing is provided.
    • Negotiate cloud transition investments and incentives from VMware.

    What information to collect and how to analyze it

    • Negotiating toward preferred terms on SnS is critical, more so than when new license purchases are made, as approximately 75-80% of server virtualization are at x86 workloads, where maintenance revenue is a larger source of revenue for VMware than new license sales.
    • All relevant license and SnS details must be obtained from VMware to include Product Family, Part Description, Product Code (SKU), Regional/Global List Price, SnS Term Dates, and Discount Price for all new licenses.
    • VMware has all costs tied to the US dollar; you must calculate currency conversion into ROI models as VMware does not adjust token values of products across geographies or currency of purchase. The token to dollar value by product SKU is locked for the three-year term. This translates into a variable cost model depending on how local currency fluctuates against the US dollar; time the initial purchase to take this into consideration, if applicable.
    • Products purchased based on MSRP price with each token contains a value of US$100. Under the Hybrid Purchasing Program (HPP) credit values and associated buying power will fluctuate over the term as VMware reserves the right to adjust current list prices. Consider locking in a set product list and pricing versus HPP.
    • Take a structured approach to discover true discounts via the use of a tailored RFQ template and options model to compare and contrast VMware ELA proposals.

    Use Info-Tech Research Group’s customized RFQ template to discover true discount levels and model various purchase options for VMware ELA proposals.

    The image contains a screenshot of the VMware RFQ Template Tool.

    Summary of accomplishment

    Knowledge Gained

    • The key pieces of licensing information that should be gathered about the current state of your own organization.
    • An in-depth understanding of the required licenses across all of your products.
    • Clear methodology for selecting the most effective contract type.
    • Development of measurable, relevant metrics to help track future project success and identify areas of strength and weakness within your licensing program.

    Processes Optimized

    • Senior leaders in IT now have a clear understanding of the importance of licensing in relation to business objectives.
    • Understanding of the various licensing considerations that need to be made.
    • Contract negotiation.

    Related Info-Tech Research

    Prepare for Negotiations More Effectively

    • IT budgets are increasing, but many CIOs feel their budgets are inadequate to accomplish what is being asked of them.
    • Eighty percent of organizations don’t have a mature, repeatable, scalable negotiation process.
    • Training dollars on negotiations are often wasted or ineffective.

    Price Benchmarking & Negotiation

    You need to achieve an objective assessment of vendor pricing in your IT contracts, but you have limited knowledge about:

    • Current price benchmarking on the vendor.
    • Pricing and negotiation intelligence.
    • How to secure a market-competitive price.
    • Vendor pricing tiers, models, and negotiation tactics.

    VMware vRealize Cloud Management

    VMware vCloud Suite is an integrated offering that brings together VMware’s industry-leading vSphere hypervisor and VMware vRealize Suite multi-vendor hybrid cloud management platform. VMware’s new portable licensing units allow vCloud Suite to build and manage both vSphere-based private clouds and multi-vendor hybrid clouds.

    Bibliography

    Barrett, Alex. “vSphere and vCenter licensing and pricing explained -- a VMware license guide.” TechTarget, July 2010. Accessed 7 May 2018.
    Bateman, Kayleigh. “VMware licensing, pricing and features mini guide.” Computer Weekly, May 2011. Accessed 7 May 2018.
    Blaisdell, Rick. “What Are The Common Business Challenges The VMware Sector Faces At This Point In Time?” CIO Review, n.d. Accessed 7 May 2018.
    COMPAREX. “VMware Licensing Program.” COMPAREX, n.d. Accessed 7 May 2018.
    Couesbot, Erwann. “Using VMware? Oracle customers hate this licensing pitfall.” UpperEdge, 17 October 2016. Accessed 7 May 2018.
    Crayon. “VMware Licensing Programs.” Crayon, n.d. Accessed 7 May 2018.
    Datanyze." Virtualization Software Market Share.” Datanyze, n.d. Web.
    Demers, Tom. “Top 18 Tips & Quotes on the Challenges & Future of VMware Licensing.” ProfitBricks, 1 September 2015. Accessed 7 May 2018.
    Fenech, J. “A quick look at VMware vSphere Editions and Licensing.” VMware Hub by Altaro, 17 May 2017. Accessed 7 May 2018.
    Flexera. “Challenges of VMware Licensing.” Flexera, n.d. Accessed 5 February 2018.
    Fraser, Paris. “A Guide for VMware Licensing.” Sovereign, 11 October 2016. Accessed 7 May 2018.
    Haag, Michael. “IDC Data Shows vSAN is the Largest Share of Total HCI Spending.” VMware Blogs, 1 December 2017. Accessed 7 May 2018.
    Kealy, Victoria. “VMware Licensing Quick Guide 2015.” The ITAM Review, 17 December 2015. Accessed 7 May 2018.
    Kirsch, Brian. “A VMware licensing guide to expanding your environment.” TechTarget, August 2017. Accessed 7 May 2018.
    Kirupananthan, Arun. “5 reasons to get VMware licensing right.” Softchoice, 16 April 2018. Accessed 7 May 2018.
    Knorr, Eric. “VMware on AWS: A one-way ticket to the cloud.” InfoWorld, 17 October 2016. Accessed 7 May 2018
    Leipzig. “Help, an audit! License audits by VMware. Are you ready?” COMPAREX Group, 2 May 2016. Accessed 7 May 2018.
    Mackie, Kurt. “VMware Rips Microsoft for Azure “Bare Metal” Migration Solution.” Redmond Magazine, 27 November 2017. Accessed 7 May 2018.
    Micromail. “VMware vSphere Software Licensing.” Micromail, n.d. Accessed 7 May 2018.
    Microsoft Corportation. “Migrating VMware to Microsoft Azure” Microsoft Azure, November 2017. Accessed 7 May 2018.
    Peter. “Server Virtualization and OS Trends.” Spiceworks, 30 August 2016. Accessed 7 May 2018.
    Rich. “VMware running on Azure.” The ITAM Review, 28 November 2017. Accessed 7 May 2018.
    Robb, Drew. “Everything you need to know about VMware’s licensing shake up.” Softchoice, 4 March 2016. Accessed 7 May 2018.
    Rose, Brendan. “How to determine which VMware licensing option is best.” Softchoice, 28 July 2015. Accessed 7 May 2018.
    Scholten, Eric. “New VMware licensing explained.” VMGuru, 12 July 2011. Accessed 7 May 2018.
    Sharwood, Simon. “Microsoft to run VMware on Azure, on bare metal. Repeat. Microsoft to run VMware on Azure.” The Register, 22 November 2017. Accessed 7 May 2018.
    Siebert, Eric. “Top 7 VMware Management Challenges.” Veeam, n.d. Web.
    Smith, Greg. “Will The Real HCI Market Leader Please Stand Up?” Nutanix, 29 September 2017. Accessed 7 May 2018.
    Spithoven, Richard. “Licensing Oracle software in VMware vCenter 6.0.” LinkedIn, 2 May 2016. Accessed 7 May 2018.
    VMTurbo, Inc. “Licensing, Compliance & Audits in the Cloud Era.” Turbonomics, November 2015. Web.
    VMware. “Aug 1st – Dec 31st 2016 Solution Provider Program Requirements & Incentives & Rewards.” VMware, n.d. Web.
    VMware. “Global Support and Subscription Services “SnS” Renewals Policy.” VMware, n.d. Web.
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    VMware. “VMware Cloud on AWS” VMware Cloud, n.d. Accessed 7 May 2018.
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    VMware. “VMware Volume Purchasing Program.” VMware, April 2019. Web.
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    Wiens, Rob. “VMware Enterprise Licensing – What You Need To Know. House of Brick, 14 April 2017. Accessed 7 May 2018

    Infrastructure & Operations Priorities 2022

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    • Parent Category Name: Disruptive & Emerging Technologies
    • Parent Category Link: /disruptive-emerging-technologies
    • The expectation amongst IT professionals for permanent transformational change has gone up 30% year over year. Further, 47% expect a lot of permanent change in 2022.
    • We are experiencing a great rate of change concurrent with a low degree of predictability.
    • How do you translate a general trend into a specific priority you can work on?

    Our Advice

    Critical Insight

    • Trends don’t matter but pressure does: Trends can be analyzed based on the pressure they exert (or not) on your I&O practice. Organizing trends into categories based on source makes for a more successful and contextual analysis.
    • Different prioritization is being demanded in 2022. For the foreseeable future prioritization is about drawing a line, below which you can ignore items with a clean conscience.
    • The priorities you choose to advocate for will be how your leadership is evaluated in the upcoming year.

    Impact and Result

    • By reading through this publication, you will begin to address the age-old problem “You don’t know what you don’t know.”
    • More importantly you will have a framework to dive deeper into the trends most relevant to you and your organization.
    • Info-Tech can help you turn your strong opinion into a compelling case for your stakeholders.

    Infrastructure & Operations Priorities 2022 Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Infrastructure & Operations Priorities 2022 – A framework to dive deeper into the trends most relevant to you and your organization

    Discover Info-Tech's four trends for Infrastructure & Operations leaders.

    • Infrastructure & Operations Priorities Report for 2022

    Infographic

    Design and Build an Effective Contract Lifecycle Management Process

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    • member rating average dollars saved: $5,039 Average $ Saved
    • member rating average days saved: 20 Average Days Saved
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Your vendor contracts are unorganized and held in various cabinets and network shares. There is no consolidated list or view of all the agreements, and some are misplaced or lost as coworkers leave.
    • The contract process takes a long time to complete. Coworkers are unsure who should be reviewing and approving them.
    • You are concerned that you are not getting favorable terms with your vendors and not complying with your agreement commitments.
    • You are unsure what risks your organization could be exposed to in your IT vendor contacts. These could be financial, legal, or security risks and/or compliance requirements.

    Our Advice

    Critical Insight

    • Focus on what’s best for you. There are two phases to CLM. All stages within those phases are important, but choose to improve the phase that can be most beneficial to your organization in the short term. However, be sure to include reviewing risk and monitoring compliance.
    • Educate yourself. Understand the stages of CLM and how each step can rely on the previous one, like a stepping-stone model to success.
    • Consider the overall picture. Contract lifecycle management is the sum of many processes designed to manage contracts end to end while reducing corporate risk, improving financial savings, and managing agreement obligations. It can take time to get CLM organized and working efficiently, but then it will show its ROI and continuously improve.

    Impact and Result

    • Understand how to identify and mitigate risk to save the organization time and money.
    • Gain the knowledge required to implement a CLM that will be beneficial to all business units.
    • Achieve measurable savings in contract time processing, financial risk avoidance, and dollar savings.
    • Effectively review, store, manage, comply with, and renew agreements with a collaborative process

    Design and Build an Effective Contract Lifecycle Management Process Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how a contract management system will save money and time and mitigate contract risk, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Master the operational framework of contract lifecycle management.

    Understand how the basic operational framework of CLM will ensure cost savings, improved collaboration, and constant CLM improvement.

    • Design and Build an Effective Contract Lifecycle Management Process – Phase 1: Master the Operational Framework of CLM
    • Existing CLM Process Worksheet
    • Contract Manager

    2. Understand the ten stages of contract lifecycle management.

    Understand the two phases of CLM and the ten stages that make up the entire process.

    • Design and Build an Effective Contract Lifecycle Management Process – Phase 2: Understand the Ten Stages of CLM
    • CLM Maturity Assessment Tool
    • CLM RASCI Diagram
    [infographic]

    Workshop: Design and Build an Effective Contract Lifecycle Management Process

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Review Your CLM Process and Learn the Basics

    The Purpose

    Identify current CLM processes.

    Learn the CLM operational framework.

    Key Benefits Achieved

    Documented overview of current processes and stakeholders.

    Activities

    1.1 Review and capture your current process.

    1.2 Identify current stakeholders.

    1.3 Learn the operational framework of CLM.

    1.4 Identify current process gaps.

    Outputs

    Existing CLM Process Worksheet

    2 Learn More and Plan

    The Purpose

    Dive into the two phases of CLM and the ten stages of a robust system.

    Key Benefits Achieved

    A deep understanding of the required components/stages of a CLM system.

    Activities

    2.1 Understand the two phases of CLM.

    2.2 Learn the ten stages of CLM.

    2.3 Assess your CLM maturity state.

    2.4 Identify and assign stakeholders.

    Outputs

    CLM Maturity Assessment

    CLM RASCI Diagram

    Further reading

    Design and Build an Effective Contract Lifecycle Management Process

    Mitigate risk and drive value through robust best practices for contract lifecycle management.

    Our understanding of the problem

    This Research Is Designed For:

    • The CIO who depends on numerous key vendors for services
    • The CIO or Project Manager who wants to maximize the value delivered by vendors
    • The Director or Manager of an existing IT procurement or vendor management team
    • The Contracts Manager or Legal Counsel whose IT department holds responsibility for contracts, negotiation, and administration

    This Research Will Help You:

    • Implement and streamline the contract management process, policies, and procedures
    • Baseline and benchmark existing contract processes
    • Understand the importance and value of contract lifecycle management (CLM)
    • Minimize risk, save time, and maximize savings with vendor contracts

    This Research Will Also Assist

    • IT Service Managers
    • IT Procurement
    • Contract teams
    • Finance and Legal departments
    • Senior IT leadership

    This Research Will Help Them

    • Understand the required components of a CLM
    • Establish the current CLM maturity level
    • Implement a new CLM process
    • Improve on an existing or disparate process

    ANALYST PERSPECTIVE

    "Contract lifecycle management (CLM) is a vital process for small and enterprise organizations alike. Research shows that all organizations can benefit from a contract management process, whether they have as few as 25 contracts or especially if they have contracts numbering in the hundreds.

    A CLM system will:

    • Save valuable time in the entire cycle of contract/agreement processes.
    • Save the organization money, both hard and soft dollars.
    • Mitigate risk to the organization.
    • Avoid loss of revenue.

    If you’re not managing your contracts, you aren’t capitalizing on your investment with your vendors and are potentially exposing your organization to contract and monetary risk."

    - Ted Walker
    Principal Research Advisor, Vendor Management Practice
    Info-Tech Research Group

    Executive Summary

    Situation

    • Most organizations have vendor overload and even worse, no defined process to manage the associated contracts and agreements. To manage contracts, some vendor management offices (VMOs) use a shared network drive to store the contracts and a spreadsheet to catalog and manage them. Yet other less-mature VMOs may just rely on a file cabinet in Procurement and a reminder in someone’s calendar about renewals. These disparate processes likely cost your organization time spent finding, managing, and renewing contracts, not to mention potential increases in vendor costs and risk and the inability to track contract obligations.

    Complication

    • Contract lifecycle management (CLM) is not an IT buzzword, and it’s rarely on the top-ten list of CIO concerns in most annual surveys. Until a VMO gets to a level of maturity that can fully develop a CLM and afford the time and costs of doing so, there can be several challenges to developing even the basic processes required to store, manage, and renew IT vendor contracts. As is always an issue in IT, budget is one of the biggest obstacles in implementing a standard CLM process. Until senior leadership realizes that a CLM process can save time, money, and risk, getting mindshare and funding commitment will remain a challenge.

    Resolution

    • Understand the immediate benefits of a CLM process – even a basic CLM implementation can provide significant cost savings to the organization; reduce time spent on creating, negotiating, and renewing contracts; and help identify and mitigate risks within your vendor contracts.
    • Budgets don’t always need to be a barrier to a standard CLM process. However, a robust CLM system can provide significant savings to the organization.

    Info-Tech Insight

    • If you aren’t managing your contracts, you aren’t capitalizing on your investments.
    • Even a basic CLM process with efficient procedures will provide savings and benefits.
    • Not having a CLM process may be costing your organization money, time, and exposure to unmitigated risk.

    What you can gain from this blueprint

    Why Create a CLM

    • Improved contract organization
    • Centralized and manageable storage/archives
    • Improved vendor compliance
    • Risk mitigation
    • Reduced potential loss of revenue

    Knowledge Gained

    • Understanding of the value and importance of a CLM
    • How CLM can impact many departments within the organization
    • Who should be involved in the CLM steps and processes
    • Why a CLM is important to your organization
    • How to save time and money by maximizing IT vendor contracts
    • How basic CLM policies and procedures can be implemented without costly software expenditure

    The Outcome

    • A foundation for a CLM with best-practice processes
    • Reduced exposure to potential risks within vendor contracts
    • Maximized savings with primary vendors
    • Vendor compliance and corporate governance
    • Collaboration, transparency, and integration with business units

    Contract management: A case study

    CASE STUDY
    Industry Finance and Banking
    Source Apttus

    FIS Global

    The Challenge

    FIS’ business groups were isolated across the organization and used different agreements, making contract creation a long, difficult, and manual process.

    • Customers frustrated by slow and complicated contracting process
    • Manual contract creation and approval processes
    • Sensitive contract data that lacked secure storage
    • Multiple agreements managed across divisions
    • Lack of central repository for past contracts
    • Inconsistent and inaccessible

    The Solution: Automating and Streamlining the Contract Management Process

    A robust CLM system solved FIS’ various contract management needs while also providing a solution that could expand into full quote-to cash in the future.

    • Contract lifecycle management (CLM)
    • Intelligent workflow approvals (IWA)
    • X-Author for Excel

    Customer Results

    • 75% cycle time reduction
    • $1M saved in admin costs per year
    • 49% increase in sales proposal volume
    • Automation on one standard platform and solution
    • 55% stronger compliance management
    • Easy maintenance for various templates
    • Ability to quickly absorb new contracts and processes via FIS’s ongoing acquisitions

    Track the impact of CLM with these metrics

    Dollars Saved

    Upfront dollars saved

    • Potential dollars saved from avoiding unfavorable terms and conditions
    • Incentives that encourage the vendor to act in the customer’s best interest
    • Secured commitments to provide specified products and services at firm prices
    • Cost savings related to audits, penalties, and back support
    • Savings from discounts found

    Time Saved

    Time saved, which can be done in several areas

    • Defined and automated approval flow process
    • Preapproved contract templates with corporate terms
    • Reduced negotiation times
    • Locate contracts in minutes

    Pitfalls Avoided

    Number of pitfalls found and avoided, such as

    • Auto-renewal
    • Inconsistencies between sections and documents
    • Security and data not being deleted upon termination
    • Improper licensing

    The numbers are compelling

    71%

    of companies can’t locate up to 10% of their contracts.

    Source: TechnologyAdvice, 2019

    9.2%

    of companies’ annual revenue is lost because of poor contract management practices.

    Source: IACCM, 2019

    60%

    still track contracts in shared drives or email folders.

    Source: “State of Contract Management,” SpringCM, 2018

    CLM blueprint objectives

    • To provide a best-practice process for managing IT vendor contract lifecycles through a framework that organizes from the core, analyzes each step in the cycle, has collaboration and governance attached to each step, and integrates with established vendor management practices within your organization.
    • CLM doesn’t have to be an expensive managed database system in the cloud with fancy dashboards. As long as you have a defined process that has the framework steps and is followed by the organization, this will provide basic CLM and save the organization time and money over a short period of time.
    • This blueprint will not delve into the many vendors or providers of CLM solutions and their methodologies. However, we will discuss briefly how to use our framework and contract stages in evaluating a potential solution that you may be considering.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Design and Build an Effective CLM Process – project overview

    1. Master the Operational Framework

    2. Understand the Ten Stages of CLM
    Best-Practice Toolkit

    1.1 Understand the operational framework components.

    1.2 Review your current framework.

    1.3 Create a plan to implement or enhance existing processes.

    2.1 Understand the ten stages of CLM.

    2.2 Review and document your current processes.

    2.3 Review RASCI chart and assign internal ownership.

    2.4 Create an improvement plan.

    2.5 Track changes for measurable ROI.
    Guided Implementations
    • Review existing processes.
    • Understand what CLM is and why the framework is essential.
    • Create an implementation or improvement plan.
    • Review the ten stages of CLM.
    • Complete CLM Maturity Assessment.
    • Create a plan to target improvement.
    • Track progress to measure savings.
    Onsite Workshop

    Module 1: Review and Learn the Basics

    • Review and capture your current processes.
    • Learn the basic operational framework of contract management.

    Module 2 Results:

    • Understand the ten stages of effective CLM.
    • Create an improvement or implementation plan.
    Phase 1 Outcome:
    • A full understanding of what makes a comprehensive contract management system.
    		Phase 2 Outcome:
    • A full understanding of your current CLM processes and where to focus your efforts for improvement or implementation.

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2
    Activities

    Task – Review and Learn the Basics

    Task – Learn More and Plan

    1.1 Review and capture your current process.

    1.2 Identify current stakeholders.

    1.3 Learn the operational framework of contract lifecycle management.

    1.4 Identify current process gaps.

    2.1 Understand the two phases of CLM.

    2.2 Learn the ten stages of CLM.

    2.3 Assess your CLM maturity.

    2.4 Identify and assign stakeholders.

    2.5 Discuss ROI.

    2.6 Summarize and next steps.
    Deliverables
    1. Internal interviews with business units
    2. Existing CLM Process Worksheet
    1. CLM Maturity Assessment
    2. RASCI Diagram
    3. Improvement Action Plan

    PHASE 1

    Master the Operational Framework of Contract Lifecycle Management

    Design and Build an Effective CLM Process

    Phase 1: Master the Operational Framework of Contract Lifecycle Management

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
    2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Master the Operational Framework of Contract Lifecycle Management
    Proposed Time to Completion: 1-4 weeks

    Step 1.1: Document your Current CLM Process

    Step 1.2: Read and Understand the Operational Framework

    Step 1.3: Review Solution Options

    Start with an analyst kick-off call:

    • Understand what your current process(es) is for each stage
    • Do a probative review of any current processes
    • Interview stakeholders for input

    Review findings with analyst:

    • Discuss the importance of the framework as the core of your plan
    • Review the gaps in your existing process
    • Understand how to prioritize next steps towards a CLM

    Finalize phase deliverable:

    • Establish ownership of the framework
    • Prioritize improvement areas or map out how your new CLM will look

    Then complete these activities…

    • Document the details of your process for each stage of CLM

    With these tools & templates:

    • Existing CLM Process Worksheet

    Phase 1 Results:

    • A full understanding of what makes a comprehensive contract management system.

    What Is Contract Lifecycle Management?

    • Every contract has a lifecycle, from creation to time and usage to expiration. Organizations using a legacy or manual contract management process usually ask, “What is contract lifecycle management and how will it benefit my business?”
    • Contract lifecycle management (CLM) creates a process that manages each contract or agreement. CLM eases the challenges of managing hundreds or even thousands of important business and IT contracts that affect the day-to-day business and could expose the organization to vendor risk.
    • Managing a few contracts is quite easy, but as the number of contracts grows, managing each step for each contract becomes increasingly difficult. Ultimately, it will get to a point where managing contracts properly becomes very difficult or seemingly impossible.

    That’s where contract lifecycle management (CLM) comes in.

    CLM can save money and improve revenue by:

    • Improving accuracy and decreasing errors through standardized contract templates and approved terms and conditions that will reduce repetitive tasks.
    • Securing contracts and processes through centralized software storage, minimizing risk of lost or misplaced contracts due to changes in physical assets like hard drives, network shares, and file cabinets.
    • Using policies and procedures that standardize, organize, track, and optimize IT contracts, eliminating time spent on creation, approvals, errors, and vendor compliance.
    • Reducing the organization’s exposure to risks and liability.
    • Having contracts renewed on time without penalties and with the most favorable terms for the business.

    The Operational Framework of Contract Lifecycle Management

    Four Components of the Operational Framework

    1. Organization
    2. Analysis
    3. Collaboration and Governance
    4. Integration/Vendor Management
    • By organizing at the core of the process and then analyzing each stage, you will maximize each step of the CLM process and ensure long-term contract management for the organization.
    • Collaboration and governance as overarching policies for the system will provide accountability to stakeholders and business units.
    • Integration and vendor management are encompassing features in a well-developed CLM that add visibility, additional value, and savings to the entire organization.

    Info-Tech Best Practice

    Putting a contract manager in place to manage the CLM project will accelerate the improvements and provide faster returns to the organizations. Reference Info-Tech’s Contract Manager Job Description template as needed.

    The operational framework is key to the success, return on investment (ROI), cost savings, and customer satisfaction of a CLM process.

    This image depicts Info-Tech's Operational Framework. It consists of a series of five concentric circles, with each circle a different colour. On the outer circle, is the word Integration. The next outermost circle has the words Collaboration and Governance. The next circle has no words, the next circle has the word Analysis, and the very centre circle has the word Organization.

    1. Organization

    • Every enterprise needs to organize its contract documents and data in a central repository so that everyone knows where to find the golden source of contractual truth.
    • This includes:
      • A repository for storing and organizing contract documents.
      • A data dictionary for describing the terms and conditions in a consistent, normalized way.
      • A database for persistent data storage.
      • An object model that tracks changes to the contract and its prevailing terms over time.

    Info-Tech Insight

    Paper is still alive and doing very well at slowing down the many stages of the contract process.

    2. Analysis

    Most organizations analyze their contracts in two ways:

    • First, they use reporting, search, and analytics to reveal risky and toxic terms so that appropriate operational strategies can be implemented to eliminate, mitigate, or transfer the risk.
    • Second, they use process analytics to reveal bottlenecks and points of friction as contracts are created, approved, and negotiated.

    3. Collaboration

    • Throughout the contract lifecycle, teams must collaborate on tasks both pre-execution and post-execution.
    • This includes document collaboration among several different departments across an enterprise.
    • The challenge is to make the collaboration smooth and transparent to avoid costly mistakes.
    • For some contracting tasks, especially in regulated industries, a high degree of control is required.
    • In these scenarios, the organization must implement controlled systems that restrict access to certain types of data and processes backed up with robust audit trails.

    4. Integration

    • For complete visibility into operational responsibilities, relationships, and risk, an organization must integrate its golden contract data with other systems of record.
    • An enterprise contracts platform must therefore provide a rich set of APIs and connectors so that information can be pushed into or pulled from systems for enterprise resource planning (ERP), customer relationship management (CRM), supplier relationship management (SRM), document management, etc.

    This is the ultimate goal of a robust contract management system!

    Member Activity: Document Current CLM Processes

    1.1 Completion Time: 1-5 days

    Goal: Document your existing CLM processes (if any) and who owns them, who manages them, etc.

    Instructions

    Interview internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and/or Procurement to understand what’s currently in place.

    1. Use the Existing CLM Process Worksheet to capture and document current CLM processes.
    2. Establish what processes, procedures, policies, and workflows, if any, are in place for pre-execution (Phase 1) contract stages.
    3. Do the same for post-execution (Phase 2) stages.
    4. Use this worksheet as reference for assessments and as a benchmark for improvement review six to 12 months later.
    This image contains a screenshot of Info-Tech's Existing CLM Process Discovery Worksheet

    INPUT

    • Internal information from all CLM stakeholders

    OUTPUT

    • A summary of processes and owners currently in place

    Materials

    • Existing CLM processes from interviews

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    PHASE 2

    Understand the Ten Stages of Contract Lifecycle Management

    Design and Build an Effective CLM Process

    Phase 1: Master the Operational Framework of Contract Lifecycle Management

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of
    2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Understand the Ten Stages of Contract Lifecycle Management

    Proposed Time to Completion: 1-10 weeks

    Step 2.1: Assess CLM Maturity

    Step 2.2: Complete a RASCI Diagram

    Start with an analyst kick-off call:

    • Review the importance of assessing the maturity of your current CLM processes
    • Discuss interview process for internal stakeholders
    • Use data from the Existing CLM Process Worksheet

    Review findings with analyst:

    • Review your maturity results
    • Identify stages that require immediate improvement
    • Prioritize improvement or implementation of process

    Then complete these activities…

    • Work through the maturity assessment process
    • Answer the questions in the assessment tool
    • Review the summary tab to learn where to focus improvement efforts

    Then complete these activities…

    • Using maturity assessment and existing process data, establish ownership for each process stage
    • Fill in the RASCI Chart based on internal review or existing processes

    With these tools & templates:

    • CLM Maturity Assessment Tool

    With these tools & templates:

    • CLM RASCI Diagram

    Phase 2 Results & Insights:

    • A full understanding of your current CLM process and where improvement is required
    • A mapping of stakeholders for each stage of the CLM process

    The Ten Stages of Contract Lifecycle Management

    There are ten key stages of contract lifecycle management.

    The steps are divided into two phases, pre-execution and post-execution.

      Pre-Execution (Phase 1)

    1. Request
    2. Create
    3. Review Risk
    4. Approve
    5. Negotiate
    6. Sign

      7. Post-Execution (Phase 2)

    7. Capture
    8. Manage
    9. Monitor Compliance
    10. Optimize

    Ten Process Stages Within the CLM Framework

    This image contains the CLM framework from earlier in the presentation, with the addition of the following ten steps: 1. Request; 2. Create Contract; 3. Review Risk; 4. Approve; 5. Negotiate; 6. Sign; 7. Capture; 8. Manage; 9. Monitor Compliance; 10. Optimize.

    Stage 1: Request or Initiate

    Contract lifecycle management begins with the contract requesting process, where one party requests for or initiates the contracting process and subsequently uses that information for drafting or authoring the contract document. This is usually the first step in CLM.

    Requests for contracts can come from various sources:

    • Business units within the organization
    • Vendors presenting their contract, including renewal agreements
    • System- or process-generated requests for renewal or extension

    At this stage, you need to validate if a non-disclosure agreement (NDA) is currently in place with the other party or is required before moving forward. At times, adequate NDA components could be included within the contract or agreement to satisfy corporate confidentiality requirements.

    Stage 1: Request or Initiate

    Stage Input

    • Information about what the contract needs to contain, such as critical dates, term length, coverage, milestones, etc.
    • Some organizations require that justification and budget approval be provided at this stage.
    • Request could come from a vendor as a pre-created contract.
    • Best practices recommend that a contract request form or template is used to standardize all required information.

    Stage Output

    • Completed request form, stored or posted with all details required to move forward to risk review and contract creation.
    • Possible audit trails.

    Stage 2: Create Contract

    • At the creation or drafting stage, the document is created, generated, or provided by the vendor. The document will contain all clauses, scope, terms and conditions, and pricing as required.
    • In some cases, a vendor-presented contract that is already prepared will go through an internal review or redlining process by the business unit and/or Legal.
    • Both internal and external review and redlining are included in this stage.
    • Also at this stage, the approvers and signing authorities are identified and added to the contract. In addition, some audit trail features may be added.

    Info-Tech Best Practice

    For a comprehensive list of terms and conditions, see our Software Terms & Conditions Evaluation Tool within Master Contract Review and Negotiation for Software Agreements.

    Stage 2: Create Contract

    Stage Input

    • Contract request form, risk review/assessment.
    • Vendor- or contractor-provided contract/agreement, either soft copy, electronic form, or more frequently, “clickwrap” web-posted document.
    • Could also include a renewal notification from a vendor or from the CLM system or admin.

    Stage Output

    • Completed draft contract or agreement, typically in a Microsoft Word or Adobe PDF format with audit trail or comment tracking.
    • Redlined document for additional revision and or acceptance.
    • Amendment or addendum to existing contract.

    Stage 3: Review Risk 1 of 2

    The importance of risk review can not be understated. The contract or agreement must be reviewed by several stakeholders who can identify risks to the organization within the contract.

    Three important definitions:

    1. Risk is the potential for a negative outcome. A risk is crossing the street while wearing headphones and selecting the next track to play on your smartphone. A negative outcome is getting hit by an oncoming person who, unremarkably, was doing something similar at the same time.
    2. Risk mitigation is about taking the steps necessary to minimize both the likelihood of a risk occurring – look around both before and while crossing the street – and its impact if it does occur – fall if you must, but save the smartphone!
    3. Contract risk is about any number of situations that can cause a contract to fail, from trivially – the supplier delivers needed goods late – to catastrophically – the supplier goes out of business without having delivered your long-delayed orders.

    Stage 3: Review Risk 2 of 2

    • Contracts must be reviewed for business terms and conditions, potential risk situations from a financial or legal perspective, business commitments or obligations, and any operational concerns.
    • Mitigating contract risk requires a good understanding of what contracts are in place, how important they are to the success of the organization, and what data they contain.

    Collectively, this is known as contract visibility.

    • Risk avoidance and mitigation are also a key component in the ROI of a CLM system and should be tracked for analysis.
    • Risk-identifying forms or templates can be used to maintain consistency with corporate standards.

    Stage 3: Review Risk

    Stage Input

    • All details of the proposed contract so that a proper risk analysis can be done as well as appropriate review with stakeholders, including:
      • Finance
      • Legal
      • Procurement
      • Security
      • Line-of-business owner
      • IT stakeholders

    Stage Output

    • A list of identified concerns that could expose the business unit or organization.
    • Recommendations to minimize or eliminate identified risks.

    Stage 4: Approve

    The approval stage can be a short process if policies and procedures are already in place. Most organizations will have defined delegation of authority or approval authority depending on risk, value of the contract, and other corporate considerations.

    • Defined approval levels should be known within the organization and can be applied to the approval workflow, expediting the approval of drafted terms, conditions, changes, and cost/spend within the contract internally.
    • Tracking and flexibility needs to considered in the approval process.
    • Gates need to be in place to ensure that a required approver has approved the contract before it moves to the next approver.
    • Flexibility is needed in some situations for ad hoc approval tasks and should include audit trail as required.
    • Approvers can include business units, Finance, Legal, Security, and C-level leaders

    Stage 4: Approve

    Stage Input

    • Complete draft contract with all terms and conditions (T&Cs) and approval trail.
    • Amendment or addendum to existing contract.

    Stage Output

    • Approved draft contract ready to move to the next step of negotiating with the vendor.
    • Approved amendment or addendum to existing or renewal agreement.

    Stage 5: Negotiate

    • At this stage, there should be an approved draft of the contract that can be presented to the other party or vendor for review.
    • Typically organizations will negotiate their larger deals for terms and conditions with the goal of balancing the contractual allocation of risk with the importance of the vendor or agreement and its value to the business.
    • Several people on either side are typically involved and will discuss legal and commercial terms of the contract. Throughout the process, negotiators may leverage a variety of tools, including playbooks with preferred and fallback positions, clause libraries, document redlines and comparisons, and issue lists.
    • Audit trails or tracking of changes and acceptances is an important part of this stage. Tracking will avoid duplication and lost or missed changes and will speed up the entire process.
    • A final, clean document is created at this point and readied for execution.

    Stage 5: Negotiate

    Stage Input

    • Approved draft contract ready to move to the next step of negotiating with the vendor.
    • Approved amendment or addendum to existing or renewal agreement.

    Stage Output

    • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

    Info-Tech Insight

    Saving the different versions of a contract during negotiations will save time, provide reassurance of agreed terms as you move through the process, and provide reference for future negotiations with the vendor.

    Stage 6: Sign or Execute

    • At this stage in the process, all the heavy lifting in a contract’s creation is complete. Now it’s signature time.
    • To finalize the agreement, both parties need to the sign the final document. This can be done by an in-person wet ink signature or by what is becoming more prevalent, digital signature through an e-signature process.
    • Once complete, the final executed documents are exchanged or received electronically and then retained by each party.

    Stage 6: Sign or Execute

    Stage Input

    • A finalized and approved contract or amendment with agreed-upon terms and conditions ready for signatures.

    Stage Output

    • An executed contract or amendment ready to move to the next stage of CLM, capturing in the repository.

    Info-Tech Best Practice

    Process flow provisions should made for potential rejection of the contract by signatories, looping the contract back to the appropriate stage for rework or revision.

    Stage 7: Capture in Database/Repository 1 of 2

    • This is one of the most important stages of a CLM process. Executed agreements need to be stored in a single manageable, searchable, reportable, and centralized repository.
    • All documents should to be captured electronically, reviewed for accuracy, and then posted to the CLM repository.
    • The repository can be in various formats depending on the maturity, robustness, and budget of the CLM program.

    Most repositories are some type of database:

    • An off-the-shelf product
    • A PaaS cloud-based solution
    • A homegrown, internally developed database
    • An add-on module to your ERP system

    Stage 7: Capture in Database/Repository 2 of 2

    Several important features of an electronic repository should be considered:

    • Consistent metadata tagging of clauses, terms, conditions, dates, etc.
    • Centralized summary view of all contracts
    • Controlled access for those who need to review and manage the contracts

    Establishing an effective repository will be key to providing measurable value to the organization and saving large amounts of time for the business unit.

    Info-Tech Insight

    Planning for future needs by investing a little more money into a better, more robust repository could pay bigger dividends to the VMO and organization while providing a higher ROI over time as advanced functionality is deployed.

    Stage 8: Manage

    • Once an agreement is captured in the repository, it needs to be managed from both an operational and a commitment perspective.
    • Through a summary view or master list, contracts need to be operationally managed for end dates and renewals, vendor performance, discounts, and rebates.
    • Managing contracts for commitment and compliance will ensure all contract requirements, rights, service-level agreements (SLAs), and terms are fulfilled. This will eliminate the high costs of missed SLAs, potential breaches, or missed renewals.
    • Managing contracts can be improved by adding metadata to the records that allow for easier search and retrieval of contracts or even proactive notification.
    • The repository management features can and should be available to business stakeholders, or reporting from a CLM admin can also alert stakeholders to renewals, pricing, SLAs, etc.
    • Also important to this stage is reporting. This can be done by an admin or via a self-serve feature for stakeholders, or it could even be automated.

    Stage 9: Monitor Compliance 1 of 2

    • At this stage, the contracts or agreements need to be monitored for the polices within them and the purpose for which they were signed.
    • This is referred to as obligation management and is a key step to providing savings to the organization and mitigating risk.
    • Many contracts contain commitments by each party. These can include but are not limited to SLAs, service uptime targets, user counts, pricing threshold discounts and rebates, renewal notices to vendors, and training requirements.
    • All of these obligations within the contracts should be summarized and monitored to ensure that all commitments are delivered on. Managing obligations will mitigate risks, maximize savings and rebates to the organization, and minimize the potential for a breach within the contract.

    Stage 9: Monitor Compliance 2 of 2

    • Monitoring and measuring vendor commitments and performance will also be a key factor in maximizing the benefits of the contract through vendor accountability.
    • Also included in this stage is renewal and/or disposition of the contract. If renewal is due, it should go back to the business unit for submission to the Stage 1: Request process. If the business unit is not going to renew the contract, the contract must be tagged and archived for future reference.

    Stage 10: Optimize

    • The goal of this stage is to improve the other stages of the process as well as evaluate how each stage is integrating with the core operational framework processes.
    • With more data and improved insight into contractual terms and performance, a business can optimize its portfolio for better value, greater savings, and lower-risk outcomes.
    • For high-performance contract teams, the goal is a continuous feedback loop between the contract portfolio and business performance. If, for example, the data shows that certain negotiation issues consume a large chunk of time but yield no measurable difference in risk or performance, you may tweak the playbook to remedy those issues quickly.

    Additional optimization tactics:

    • Streamlining contract renewals with auto-renew
    • Predefined risk review process or template, continuous review/improvement of negotiation playbook
    • Better automation or flow of approval process
    • Better signature delegation process if required
    • Improving repository search with metadata tagging
    • Automating renewal tracking or notice process
    • Tracking the time a contract spends in each stage

    Establish Your Current CLM Maturity Position

    • Sometimes organizations have a well-defined pre-execution process but have a poor post-signature process.
    • Identifying your current processes or lack thereof will provide you with a starting point in developing a plan for your CLM. It’s possible that most of the stages are there and just need some improvements, or maybe some are missing and need to be implemented.
    • It’s not unusual for organizations to have a manual pre-execution process and an automated backend repository with compliance and renewal notices features.

    Info-Tech Best Practice

    Use the CLM Maturity Assessment Tool to outline where your organization is at each stage of the process.

    Member Activity: Assess Current CLM Maturity

    2.1 Completion Time 1-2 days

    Goal: Identify and measure your existing CLM processes, if any, and provide a maturity value to each stage. The resulting scores will provide a maturity assessment of your CLM.

    Instructions

    1. Use the Existing CLM Process Worksheet to document current CLM processes.
    2. Using the CLM worksheet info, answer the questions in the CLM Maturity Assessment Tool.
    3. Review the results and scores on Tab 3 to see where you need to focus your initial improvements.
    4. Save the initial assessment for future reference and reassess in six to 12 months to measure progress.

    This image contains a screenshot from Info-Tech's CLM Maturity Assessment Tool.

    INPUT

    • Internal information from all CLM stakeholders

    OUTPUT

    • A summary of processes and owners currently in place in the organization

    Materials

    • Existing CLM processes from interviews

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    Member Activity: Complete RASCI Chart

    2.2 Completion Time 2-6 hours

    Goal: Identify who in your organization is primarily accountable and involved in each stage of the CLM process.

    Instructions

    Engage internal business unit decision makers, stakeholders, Finance, Legal, CIO, VMO, Sales, and Procurement as required to validate who should be involved in each stage.

    1. Using the information collected from internal reviews, assign a level in the CLM RASCI Diagram to each team member.
    2. Use the resulting RASCI diagram to guide you through developing or improving your CLM stages.

    This image contains a screenshot from Info-Tech's CLM RASCI Diagram.

    INPUT

    • Internal interview information

    OUTPUT

    • Understanding of who is involved in each CLM stage

    Materials

    • Interview data
    • RASCI Diagram

    Participants

    • Finance, Legal, CIO, VMO, Sales, Procurement

    Applying CLM Framework and Stages to Your Organization

    • Understand what CLM process you currently do or do not have in place.
    • Review implementation options: automated, semi-automated, and manual solutions.
    • If you are improving an existing process, focus on one phase at a time, perfect it, and then move to the other phase. This can also be driven by budget and time.
    • Create a plan to start with and then move to automating or semi-automating the stages.
    • Building onto or enhancing an existing system or processes can be a cost-effective method to produce near-term measurable savings
    • Focus on one phase at a time, then move on to the other phase.
    • While reviewing implementation of or improvements to CLM stages, be sure to track or calculate the potential time and cost savings and risk mitigation. This will help in any required business case for a CLM.

    CLM: An ROI Discussion 1 of 2

    • ROI can be easier to quantify and measure in larger organizations with larger CLM, but ROI metrics can be obtained regardless of the company or CLM size.
    • Organizations recognize their ROI through gains in efficiency across the entire business as well as within individual departments involved in the contracting process. They also do so by reducing the risk associated with decentralized and insecure storage of and access to their contracts, failure to comply with terms of their contracts, and missing deadlines associated with contracts.

    Just a few of the factors to consider within your own organization include:

    • The number of people inside and outside your company that touch your contracts.
    • The number of hours spent weekly, monthly, and annually managing contracts.
    • Potential efficiencies gained in better managing those contracts.
    • The total number of contracts that exist at any given time.
    • The average value and total value of those contract types.
    • The potential risk of being in breach of any of those contracts.
    • The number of places contracts are stored.
    • The level of security that exists to prevent unauthorized access.
    • The potential impact of unauthorized access to your sensitive contract data.

    CLM: An ROI Discussion 2 of 2

    Decision-Maker Apprehensions

    Decision-maker concerns arise from a common misunderstanding – that is, a fundamental failure to appreciate the true source of contract management value. This misunderstanding goes back many years to the time when analysts first started to take an interest in contract management and its automation. Their limited experience (primarily in retail and manufacturing sectors) led them to think of contract management as essentially an administrative function, primarily focused on procurement of goods. In such environments, the purpose of automation is focused on internal efficiency, augmented by the possibility of savings from reduced errors (e.g. failing to spot a renewal or expiry date) or compliance (ensuring use of standard terms).

    Today’s CLM systems and processes can provide ROI in several areas in the business.

    Info-Tech Insight

    Research on ROI of CLM software shows significant hard cost savings to an organization. For example, a $10 million company with 300 contracts valued at $3 million could realize savings of $83,400 and avoid up to $460,000 in lost revenues. (Derived from: ACCDocket, 2018)

    Additional Considerations 1 of 2

    Who should own and/or manage the CLM process within an organization? Legal, VMO, business unit, Sales?

    This is an often-discussed question. Research suggests that there is no definitive answer, as there are several variables.

    Organizations needs to review what makes the best business sense for them based on several considerations and then decide where CLM belongs.

    • Business unit budgets and time management
    • Available Administration personnel and time
    • IT resources
    • Security and access concerns
    • Best fit based on organizational structure

    35% of law professionals feel contract management is a legal responsibility, while 45% feel it’s a business responsibility and a final 20% are unsure where it belongs. (Source: “10 Eye-Popping Contract Management Statistics,” Apttus, 2018)

    Additional Considerations 2 of 2

    What type of CLM software or platform should we use?

    This too is a difficult question to answer definitively. Again, there are several variables to consider. As well, several solutions are available, and this is not a one-size-fits-all scenario.

    As with who should own the CLM process, organizations must review the various CLM software solutions available that will meet their current and future needs and then ask, “What do we need the system to do?”

    • Do you build a “homegrown” solution?
    • Should it be an add-on module to the current ERP or CRM system?
    • Is on-premises more suitable?
    • Is an adequate off-the-shelf (OTS) solution available?
    • What about the many cloud offerings?
    • Is there a basic system to start with that can expand as you grow?

    Info-Tech Insight

    When considering what type of solution to choose, prioritize what needs to been done or improved. Sometimes solutions can be deployed in phases as an “add-on” type modules.

    Summary of Accomplishment

    Knowledge Gained

    • Documented current CLM process
    • Core operational framework to build a CLM process on
    • Understanding of best practices required for a sustainable CLM

    Processes Optimized

    • Internal RASCI process identified
    • Existing internal stage improvements
    • Internal review process for risk mitigation

    Deliverables Completed

    • Existing CLM Processes Worksheet
    • CLM Maturity Assessment
    • CLM RASCI Chart
    • CLM improvement plan

    Project Step Summary

    Client Project: CLM Assessment and Improvement Plan

    1. Set your goals – what do you want to achieve in your CLM project?
    2. Assess your organization’s current CLM position in relation to CLM best practices and stages.
    3. Map your organization’s RASCI structure for CLM.
    4. Identify opportunities for stage improvements or target all low stage assessments.
    5. Prioritize improvement processes.
    6. Track ROI metrics.
    7. Develop a CLM implementation or improvement plan.

    Info-Tech Insight

    This project can fit your organization’s schedule:

    • Do-it-yourself with your team.
    • Remote delivery (Info-Tech Guided Implementation).

    CLM Blueprint Summary and Conclusion

    • Contract management is a vital component of a responsible VMO that will benefit all business units in an organization, save time and money, and reduce risk exposure.
    • A basic well-deployed and well-managed CLM will provide ROI in the short term.
    • Setting an improvement plan with concise improvements and potential cost savings based on process improvements will help your business case for CLM get approval and leadership buy-in.
    • Educating and aligning all business units and stakeholders to any changes to CLM processes will ensure that cost savings and ROI are achieved.
    • When evaluating a CLM software solution, use the operational framework and the ten process stages in this blueprint as a reference guide for CLM vendor functionality and selection.

    Related Info-Tech Research

    Master Contract Review and Negotiation

    Optimize spend with significant cost savings and negotiate from a position of strength.

    Manage Your Vendors Before They Manage You

    Maximize the value of vendor relationships.

    Bibliography

    Burla, Daniel. “The Must Know Of Transition to Dynamics 365 on Premise.” Sherweb, 14 April 2017. Web.

    Anand, Vishal, “Strategic Considerations in Implementing an End-to-End Contract Lifecycle Management Solution.” DWF Mindcrest, 20 Aug. 2016. Web.

    Alspaugh, Zach. “10 Eye-Popping Contract Management Statistics from the General Counsel’s Technology Report.” Apttus, 23 Nov. 2018. Web.

    Bishop, Randy. “Contract Management is not just a cost center.” ContractSafe, 9 Sept. 2019. Web.

    Bryce, Ian. “Contract Management KPIs - Measuring What Matters.” Gatekeeper, 2 May 2019. Web.

    Busch, Jason. “Contract Lifecycle Management 101.” Determine. 4 Jan. 2018. Web.

    “Contract Management Software Buyer's Guide.” TechnologyAdvice, 5 Aug. 2019. Web.

    Dunne, Michael. “Analysts Predict that 2019 will be a Big Year for Contract Lifecycle Management.” Apttus, 19 Nov. 2018. Web.

    “FIS Case Study.” Apttus, n.d. Web.

    Gutwein, Katie. “3 Takeaways from the 2018 State of Contract Management Report.” SpringCM, 2018. Web.

    “IACCM 2019 Benchmark Report.” IAACM, 4 Sept. 2019. Web.

    Linsley, Rod. “How Proverbial Wisdom Can Help Improve Contract Risk Mitigation.” Gatekeeper, 2 Aug. 2019. Web.

    Mars, Scott. “Contract Management Data Extraction.” Exari, 20 June 2017. Web.

    Rodriquez, Elizabeth. “Global Contract Life-Cycle Management Market Statistics and Trends 2019.” Business Tech Hub, 17 June 2017. Web.

    “State of Contract Management Report.” SpringCM, 2018. Web.

    Teninbaum, Gabriel, and Arthur Raguette. “Realizing ROI from Contract Management Technology.” ACCDocket.com, 29 Jan. 2018. Web.

    Wagner, Thomas. “Strategic Report on Contract Life cycle Management Software Market with Top Key Players- IBM Emptoris, Icertis, SAP, Apttus, CLM Matrix, Oracle, Infor, Newgen Software, Zycus, Symfact, Contract Logix, Coupa Software.” Market Research, 21 June 2019. Web.

    “What is Your Contract Lifecycle Management (CLM) Persona?” Spend Matters, 19 Oct. 2017. Web.

    Assess Your IT Financial Management Maturity Effectively

    • Buy Link or Shortcode: {j2store}315|cart{/j2store}
    • member rating overall impact: N/A
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    • Parent Category Name: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management

    Organizations wishing to mature their IT financial management (ITFM) maturity often face the following obstacles:

    • Unfamiliarity: Lack of knowledge and understanding related to ITFM maturity.
    • Shortsightedness: Randomly reacting to changing circumstances.
    • Exchange: Inability to consistently drive dialogues.
    • Perception: IT is perceived as a cost center instead of a trustworthy strategic partner.

    Our Advice

    Critical Insight

    No matter where you currently stand in your ITFM practice, there is always room for improvement. Hence, a maturity assessment should be viewed as a self-improvement tool that is only valuable if you are willing to act on it.

    Impact and Result

    A mature ITFM practice leads to many benefits.

    • Foundation: Improved governance, skill sets, processes, and tools.
    • Data: An appropriate taxonomy/data model alongside accurate data for high-quality reporting and insights.
    • Language: A common vocabulary across the organization.
    • Organization Culture: Improved communication and collaboration between IT and business partners.

    Assess Your IT Financial Management Maturity Effectively Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess Your IT Financial Management Maturity Effectively Storyboard – A framework and step-by-step methodology to assess your ITFM maturity.

    This research seeks to support IT leaders and ITFM practitioners in evaluating and improving their current maturity. It will help document both current and target states as well as prioritize focus areas for improvement.

    • Assess Your IT Financial Management Maturity Effectively Storyboard

    2. IT Financial Management Maturity Assessment Tool – A structured tool to help you assess your ITFM maturity.

    This Excel workbook guides IT finance practitioners to effectively assess their IT financial management practice. Incorporate the visual outputs into your final executive presentation document. Key activities include context setting, completing the assessment, and prioritizing focus areas based on results.

    • IT Financial Management Maturity Assessment Tool

    3. IT Financial Management Maturity Assessment Report Template – A report summarizing your ITFM maturity assessment results to help you communicate with stakeholders.

    Use this template to document your final ITFM maturity outputs, including the current and target states and your identified priorities.

    • IT Financial Management Maturity Assessment Report Template
    [infographic]

    Further reading

    Assess Your IT Financial Management Maturity Effectively

    Influence your organization’s strategic direction.

    Analyst Perspective

    Make better informed data-driven business decisions.

    Technology has been evolving throughout the years, increasing complexity and investments, while putting more stress on operations and people involved. As an IT leader, you are now entrusted to run your outfit as a business, sit at the executive table as a true partner, and be involved in making decisions that best suit your organization. Therefore, you have an obligation to fulfill the needs of your end customers and live up to their expectations, which is not an easy task.

    IT financial management (ITFM) helps you generate value to your organization’s clientele by bringing necessary trade-offs to light, while driving effective dialogues with your business partners and leadership team.

    This research will focus on Info-Tech’s approach to ITFM maturity, aiming for a state of continuous improvement, where an organization can learn and grow as it adapts to change. As the ITFM practice matures, IT and business leaders will be able to better understand one another and together make better business decisions, driven by data.

    This client advisory presentation and accompanying tool seek to support IT leaders and ITFM practitioners in evaluating and improving their current maturity. It will help document both current and target states as well as prioritize focus areas for improvement.

    Photo of Bilal Alberto Saab, Research Director, IT Financial Management, Info-Tech Research Group. Bilal Alberto Saab
    Research Director, IT Financial Management
    Info-Tech Research Group

    Executive Summary

    The value of ITFM is undermined

    ITFM is often discarded and not given enough importance and relevance due to the operational nature of IT, and the specialized skillset of its people, leading to several problems and challenges, such as:

    • Unfamiliarity: Lack of knowledge and understanding related to ITFM maturity.
    • Shortsightedness: Randomly reacting to changing circumstances.
    • Exchange: Inability to consistently drive dialogues.
    • Perception: IT is perceived as a cost center instead of a trustworthy strategic partner.

    Constructive dialogues with business partners are not the norm

    Business-driven conversations around financials (spending, cost, revenue) are a rarity in IT due to several factors, including:

    • Foundation: Weak governance, inadequate skillset, and less than perfect processes and tools.
    • Data: Lack of adequate taxonomy/data model, alongside inaccurate data leading to poor reporting and insights.
    • Language: Lack of a common vocabulary across the organization.
    • Organization culture: No alignment, alongside minimal communication and collaboration between IT and business partners.

    Follow Info-Tech’s approach to move up the ITFM maturity ladder

    Mature your ITFM practice by activating the means to make informed business decisions.

    Info-Tech’s methodology helps you move the dial by focusing on three maturity focus areas:

    • Build an ITFM Foundation
    • Manage and Monitor IT Spending
    • Bridge the Language Barrier

    Info-Tech Insight

    Influence your organization’s strategic direction by maturing your ITFM practice.

    What is ITFM?

    ITFM is not just about finance.

    • ITFM has evolved from traditional budgeting, accounting, and cost optimization; however, it is much more than those activities alone.
    • It starts with understanding the financial implications of technology by adopting different perspectives to become adept in communicating with various stakeholders, including finance, business partners, IT managers, and your CEO.
    • Armed with this knowledge, ITFM helps you address a variety of questions, such as:
      • How are technology funds being spent?
      • Which projects is IT prioritizing and why?
      • What are the resources needed to speed IT delivery?
      • What’s the value of IT within the organization?
    • ITFM’s main objective is thus to improve decision-making capabilities by facilitating communication between IT leaders and stakeholders, while enabling a customer focus attitude throughout the organization.

    “ITFM embeds technology in financial management practices. Through cost, demand, and value, ITFM brings technology and business together, forging the necessary relationships and starting the right conversations to enable the best decisions for the organization.”
    – Monica Braun, Research Director, Info-Tech Research Group

    Your challenge

    IT leaders struggle to articulate and communicate business value.

    • IT spending is often questioned by different stakeholders, such as business partners and various IT business units. These questions, usually resulting from shifts in business needs, may revolve around investments, expenditures, services, and speed to market, among others. While IT may have an idea about its spending habits, aligning it to the business strategy may prove difficult.
    • IT staff often does not have access to, or knowledge of, the business model and its intricacies. In an operational environment, the focus tends to be on technical issues rather than overall value.
    • People tend to fear what they do not know. Some business managers may not be comfortable with technology. They do not recognize the implications and ramifications of certain implementations or understand the related terminology, which puts a strain on any conversation.

    “Value is not the numbers you visualize on a chart, it’s the dialogue this data generates with your business partners and leadership team.”
    – Dave Kish, Practice Lead, Info-Tech Research Group

    Technology is constantly evolving

    Increasing IT spending and decision-making complexity.

    Timeline of IT technology evolution, starting with 'Timesharing' in the 1980s to 'All Things Digital' in the 2020s. 'IT Spend Growth' grows from start to finish.

    Common obstacles

    IT leaders are not able to have constructive dialogues with their stakeholders.

    • The way IT funds are spent has changed significantly, moving from the purchase of discrete hardware and software tools to implementing data lakes, cloud solutions, the metaverse and blockchain. This implies larger investments and more critical decisions. Conversations around interoperability, integration, and service-based solutions that focus more on big-picture architecture than day-to-day operations have become the norm.
    • Speed to market is now a survival criterion for most organizations, requiring IT to shift rapidly based on changing priorities and customer expectations. This leads to the need for greater financial oversight, with the CFO as the gatekeeper. Today’s IT leaders need to possess both business and financial management savvy to justify their spending with various stakeholders.
    • Any IT budget increase is tied to expectations of greater value. Hence, the compelling demands for IT to prove its worth to the business. Promoting value comes in two ways: 1) objectively, based on data, KPIs, and return on investment; and 2) subjectively, based on stakeholder satisfaction, alongside relationships. Building trust, credibility, and confidence can go a long way.

    In a technology-driven world, advances come at a price. With greater spending required, more complex and difficult conversations arise.

    Constructive dialogues are key

    You don’t know what you don’t know.

    • IT, being historically focused on operations, has become a hub for technically savvy personnel. On the downside, technology departments are often alien to business, causing problems such as:
      • IT staff have no knowledge of the business model and lack customer focus.
      • Business is not comfortable with technology and related jargon.
    • The lack of two-way communication and business alignment is hence an important ramification. If the business does not understand technology, and IT does not speak in business terms, where does that lead us?
    • Poor data quality and governance practices, alongside overly manual processes can only exasperate the situation.

    IT Spending Survey

    79% of respondents believe that decisions taking too long to make is either a significant or somewhat of a challenge (Flexera 2022 Tech Spend Pulse; N=501).

    81% of respondents believe that ensuring spend efficiency (avoiding waste) is either a challenge or somewhat of a challenge (Flexera 2022 Tech Spend Pulse; N=501).

    ITFM is trailing behind

    IT leaders must learn to speak business.

    In today’s world, where organizations are driving customer experience through technology investments, having a seat at the table means IT leaders must be well versed in business language and practice, including solid financial management skills.

    However, IT staff across all industries aren’t very confident in how well IT is doing in managing its finances. This becomes evident after looking at three core processes:

    • Demonstrating IT’s value to the business.
    • Accounting of costs and budgets.
    • Optimizing costs to gain the best return on investment.

    Recent data from 4,137 respondents to Info-Tech’s IT Management & Governance Diagnostic shows that while most IT staff feel that these three financial management processes are important, notably fewer feel that IT management is effective at executing on them.

    IT leadership’s capabilities around fundamental cost data capture appear to be lagging, not to mention the essential value-added capabilities around optimizing costs and demonstrating IT’s contribution to business value.

    Bar charts comparing percentages of people who 'Agree process is important' and 'Agree process is effective' for three processes: Business Value, Cost & Budget Management, and Cost Optimization. In all instances, the importance outweighed the perceived effectiveness.
    Source: Info-Tech Research Group, IT Management & Governance Diagnostic, 2023.

    Info-Tech’s approach

    We take a holistic approach to ITFM and support you throughout your maturity journey.

    Visualization of the IT maturity levels with three goals at the bottom, 'Build am ITFM Foundation', 'Manage & Monitor IT Spending', and 'Bridge the Language Barrier'. The 5 levels, from bottom to top, are 'Nascent - Level 1, Inability to consistently deliver financial planning services', 'Cost Operator - Level 2, Rudimentary financial planning capabilities', 'Trusted Coordinator - Level 3, Enablement of business through cost-effective supply of technology', 'Value Optimizer - Level 4, Effective impact on business performance', and 'Strategic Partner - Level 5, Influence on the organization's strategic direction'.

    The Info-Tech difference:

    • Info-Tech has a methodology and set of tools that will help assess your ITFM maturity and take the first step in developing an improvement plan. We have identified three maturity focus areas:
      • Build an ITFM Foundation
      • Manage and Monitor IT Spending
      • Bridge the Language Barrier
        •
    • No matter where you currently stand in your ITFM practice, there is always room for improvement. Hence, a maturity assessment should be viewed as a self-improvement tool, which is only valuable if you are willing to act on it.

    Note: See Appendix A for maturity level definitions and descriptions.

    Climb the maturity ladder

    By growing along three maturity focus areas.

    A diagram with '3 Maturity Focus Areas' and '9 Maturity Levers' within them. The first area is 'Build an ITFM Foundation' with levers 'Establish your Team', 'Set up your Governance Structure', and 'Adopt ITFM Processes & Tools'. The second area is 'Manage & Monitor IT Spending', with levers 'Standardize your Taxonomy & Data Model', 'Identify, Gather & Prepare your Data', and 'Analyze your Findings and Develop your Reports'. The third area is 'Bridge the Language Barrier' with levers 'Communicate your IT Spending', 'Educate the Masses', and 'Influence your Organization's Culture'.

    Info-Tech identified three maturity focus areas, each containing three levers.

    Identify where you stand across the nine maturity levers, detect the gaps, and determine your priorities as a first step to develop an improvement plan.

    Note: See Appendix B for maturity level definitions and descriptions per lever.

    Key project deliverables

    Each step of this activity is accompanied by supporting deliverables to help you accomplish your goals.

    IT Financial Management Maturity Assessment Report Template

    A template of an ITFM maturity assessment report that can be customized based on your own results.

    IT Financial Management Maturity Assessment Tool

    A workbook including an ITFM maturity survey, generating a summary of your current state, target state, and priorities.

    Measure the value of this activity

    Reach your 12-month maturity target.

    • Determine your 12-month maturity target, identify your gaps, and set your priorities.
    • Use the ITFM maturity assessment to kickstart your improvement plan by developing actionable initiatives.
    • Implement your initiatives and monitor your progress to reach your 12-month target.

    Sample of a result page from the ITFM maturity assessment.

    Build your improvement plan and implement your initiatives to move the dial and climb the maturity ladder.

    Sample of a result page from the ITFM maturity assessment with a graph.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Step 1

    Prepare for the ITFM maturity assessment

    Content Overview

    1. Identify your stakeholders
    2. Set the context
    3. Determine the methodology
    4. Identify assessment takers

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    1. Prepare to take the ITFM maturity assessment

    3 hours

    Input: Understanding your context, objectives, and methodology

    Output: ITFM maturity assessment stakeholders and their objectives, ITFM maturity assessment methodology, ITFM maturity assessment takers

    Materials: 1a. Prepare for Assessment tab in the ITFM Maturity Assessment Tool

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Identify your stakeholders and document it in the ITFM Maturity Assessment Tool (see next slides). We recommend having representatives from different business units across the organization, most notably IT, IT finance, finance, and IT audit.
    2. Set the context with your stakeholders and document it in the ITFM Maturity Assessment Tool. Discuss the reason behind taking the ITFM maturity assessment among the various stakeholders. Why do each of your stakeholders want to take the assessment? What are their main objectives? What would they like to achieve?
    3. Determine the methodology and document it in the ITFM Maturity Assessment Tool. Discuss how you want to go about taking the assessment with your stakeholders. Do you want to have representatives from each business unit take the assessment individually, then share and discuss their findings? Do you prefer forming a working group with representatives from each business unit and go through the assessment together? Or does any of your stakeholders have a different suggestion? You will have to consider the effort, skillset, and knowledge required.
    4. Identify the assessment takers and document it in the ITFM Maturity Assessment Tool. Determine who will be taking the assessment (specific names of stakeholders). Consider their availability, knowledge, and skills.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Document your stakeholders, objectives, and methodology

    Excel Workbook: ITFM Maturity Assessment Tool – Prepare for Assessment worksheet

    Refer to the example and guidelines below on how to document stakeholders, objectives, and methodology (table range: columns B to G and rows 8 to 15).

    Example table from the ITFM Maturity Assessment Tool re: 'Maturity Assessment Stakeholders'.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Text Enter the full name of each stakeholder on a separate row.
    D Text Enter the job title related to each stakeholder.
    E Text Enter the objective(s) related to each stakeholder.
    F Text Enter the agreed upon methodology.
    G Text Enter any notes or comments per stakeholder (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the 1a. Prepare for Assessment tab.
    2. Enter the full names and job titles of the ITFM maturity assessment stakeholders.
    3. Document the maturity assessment objective of each of your stakeholders.
    4. Document the agreed-upon methodology.
      5.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Document your assessment takers

    Excel Workbook: ITFM Maturity Assessment Tool – Prepare for Assessment worksheet

    Refer to the example and guidelines below on how to document assessment takers (table range: columns B to E and rows 18 to 25).

    Example table from the ITFM Maturity Assessment Tool re: 'Maturity Assessment Takers'.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Text Enter the full name of each assessment taker on a separate row.
    D Text Enter the job title related to each stakeholder to identify which party is being represented per assessment taker.
    E Text Enter any notes or comments per stakeholder (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the 1a. Prepare for Assessment tab.
    2. Enter the full name of each assessment taker, along with the job title of the stakeholder they are representing.
      3.

    Download the IT Financial Management Maturity Assessment Tool

    Step 2

    Take the ITFM maturity assessment

    Content Overview

    1. Complete the survey
    2. Review your assessment results
    3. Determine your priorities

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    2. Take the ITFM maturity assessment

    3 hours

    Input: Understanding of your ITFM current state and 12-month target state, ITFM maturity assessment results

    Output: ITFM current- and target-state maturity levels, average scores, and variance, ITFM current- and target-state average scores, variance, and priority by maturity focus area and maturity lever

    Materials: 1b. Glossary, 2a. Assess ITFM Foundation, 2b. Assess Mngt. & Monitoring, 2c. Assess Language, and 3. Assessment Summary tabs in the ITFM Maturity Assessment Tool

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Complete the survey: select the current and target state of each statement – refer to the glossary as needed for definitions of key terms – in the ITFM Maturity Assessment Tool (see next slides). There are three tabs (one per maturity focus area) with three tables each (nine maturity levers). Review and discuss statements with all assessment takers: consider variations, differing opinions, and reach an agreement on each statement inputs.
    2. Review assessment results: navigate to the Assessment Summary tab in the ITFM maturity assessment tool (see next slides) to view your results. Review and discuss with all assessment takers: consider any shocking output and adjust survey input if necessary.
    3. Determine your priorities: decide on the priority (Low/Medium/High) by maturity focus area and/or maturity lever. Rank your maturity focus area priorities from 1 to 3 and your maturity lever priorities from 1 to 9. Consider the feasibility in terms of timeframe, effort, and skillset required, positive and negative impacts on business and technology, likelihood of failure, and necessary approvals. Document your priorities in the ITFM maturity assessment tool (see next slides).
      Review and discuss priorities with all assessment takers: consider variations, differing opinions, and reach an agreement on each priority.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Complete the survey

    Excel workbook: ITFM Maturity Assessment Tool – Survey worksheets

    Refer to the example and guidelines below on how to complete the survey.

    Example table from the ITFM Maturity Assessment Tool re: Survey worksheets.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Formula Automatic calculation, no entry required: ITFM maturity statement to assess.
    D, E Dropdown Select the maturity levels of your current and target states. One of five maturity levels for each statement, from “1. Nonexistent” (lowest maturity) to “5. Advanced” (highest maturity).
    F, G, H Formula Automatic calculation, no entry required: scores associated with your current and target state selection, along with related variance (column G – column F).
    I Text Enter any notes or comments per ITFM maturity statement (optional).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to the survey tabs: 2a. Assess ITFM Foundation, 2b. Assess Management and Monitoring, and 2c. Assess Language.
    2. Select the appropriate current and target maturity levels.
    3. Add any notes or comments per ITFM maturity statement where necessary or helpful.
      4.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Review your overall result

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example and guidelines below on how to review your results.

    Example table from the ITFM Maturity Assessment Tool re: Assessment Summary worksheet.

    Column ID Input Type Guidelines
    K Formula Automatic calculation, no entry required.
    L Formula Automatic calculation, no entry required: Current State, Target State, and Variance entries. Please ignore the current state benchmark, it’s a placeholder for future reference.
    M Formula Automatic calculation, no entry required: average overall maturity score for your Current State and Target State entries, along with related Variance.
    N, O Formula Automatic calculation, no entry required: maturity level and related name based on the overall average score (column M), where level 1 corresponds to an average score less than or equal to 1.49, level 2 corresponds to an average score between 1.5 and 2.49 (inclusive), level 3 corresponds to an average score between 2.5 and 3.49 (inclusive), level 4 corresponds to an average score between 3.5 and 4.49 (inclusive), and level 5 corresponds to an average score between 4.5 and 5 (inclusive).
    P, Q Formula Automatic calculation, no entry required: maturity definition and related description based on the maturity level (column N).

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to tab 3. Assessment Summary.
    2. Review your overall current state and target state result along with the corresponding variance.
      3.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Set your priorities

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example and guidelines below on how to review your results per maturity focus area and maturity lever, then prioritize accordingly.

    Example table from the ITFM Maturity Assessment Tool re: Assessment Summary worksheet.

    Column ID Input Type Guidelines
    B Formula Automatic calculation, no entry required.
    C Formula Automatic calculation, no entry required: ITFM maturity focus area or lever, depending on the table.
    D Placeholder Ignore this column because it’s a placeholder for future reference.
    E, F, G Formula Automatic calculation, no entry required: average score related to the current state and target state, along with the corresponding variance per maturity focus area or lever (depending on the table).
    H Formula Automatic calculation, no entry required: preliminary priority based on the average variance (column G), where Low corresponds to an average variance between 0 and 0.5 (inclusive), Medium corresponds to an average variance between 0.51 and 0.99 (inclusive), and High corresponds to an average variance greater than or equal to 1.
    J Dropdown Select your final priority (Low, Medium, or High) per ITFM maturity focus area or lever, depending on the table.
    K Whole Number Enter the appropriate rank based on your priorities; do not use the same number more than once. A whole number between 1 and 3 to rank ITFM maturity focus areas, and between 1 and 9 to rank ITFM maturity levers, depending on the table.

    Review the following in the Excel workbook as per guidelines:

    1. Navigate to tab 3. Assessment Summary.
    2. Review your current-state and target-state result along with the corresponding variance per maturity focus area and maturity lever.
    3. Select the appropriate priority for each maturity focus area and maturity lever.
    4. Enter a unique rank for each maturity focus area (1 to 3).
    5. Enter a unique rank for each maturity lever (1 to 9).
      6.

    Download the IT Financial Management Maturity Assessment Tool

    Step 3

    Communicate your ITFM maturity results

    Content Overview

    1. Review your assessment charts
    2. Customize the assessment report
    3. Communicate your results

    This step involves the following participants:

    • CIO/IT director
    • CFO/finance director
    • IT finance lead
    • IT audit lead
    • Other IT management

    3. Communicate your ITFM maturity results

    3 hours

    Input: ITFM maturity assessment results

    Output: Customized ITFM maturity assessment report

    Materials: 3. Assessment Summary tab in the ITFM Maturity Assessment Tool, ITFM Maturity Assessment Report Template

    Participants: CIO/IT director, CFO/finance director, IT finance lead, IT audit lead, Other IT management

    1. Review assessment charts: navigate to the Assessment Summary tab in the ITFM Maturity Assessment Tool (see next slides) to view your results and related charts.
    2. Edit the report template: complete the template based on your results and priorities to develop your customized ITFM maturity assessment report (see next slide).
    3. Communicate results: communicate and deliberate the assessment results with assessment takers at a first stage, and with your stakeholders at a second stage. The objective is to agree on next steps, including developing an improvement plan.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Review assessment charts

    Excel Workbook: ITFM Maturity Assessment Tool – Assessment Summary worksheet

    Refer to the example below on charts depicting different views of the maturity assessment results across the three focus areas and nine levers.

    Samples of different tabs from the ITFM Maturity Assessment Tool: 'Assessment Summary tab: From cell B49 to cell M100' and 'Assessment Summary tab: From cell K13 to cell Q34'.

    From the Excel workbook, after completing your potential initiatives and filling all related entries in the Outline Initiatives tab:

    1. Navigate to tab 3. Assessment Summary.
    2. Review each of the charts.
    3. Navigate back to the survey tabs to examine, drill down, and amend individual entries as you deem necessary.
      4.

    Download the IT Financial Management Maturity Assessment Tool

    TEMPLATE & EXAMPLE

    Customize your report

    PowerPoint presentation: ITFM Maturity Assessment Report Template

    Refer to the example below on slides depicting different views of the maturity assessment results across the three maturity focus areas and nine maturity levers.

    Samples of different slides from the ITFM Maturity Assessment Report Template, detailed below.

    Slide 6: Edit levels based on your assessment results. Copy and paste the appropriate maturity level definition and description from slide 4.

    Slide 7: Copy related charts from the assessment summary tab in the Excel workbook and remove the chart title. You can use the “Outer Offset: Bottom” shadow under shape effects on the chart.

    Slide 8: Copy related charts from the assessment summary tab in the Excel workbook and remove the chart title and legend. You can use the “Outer Offset: Center” shadow under shape effects on the chart.

    From the ITFM Maturity Assessment Report Template:

    1. Edit the report based on your results found in the assessment summary tab of the Excel workbook (see previous slide).
    2. Review slides 6 to 8 and bring necessary adjustments.
      3.

    Download the IT Financial Management Maturity Assessment Report Template

    Make informed business decisions

    Take a holistic approach to ITFM.

    • A thorough understanding of your technology spending in relation to business needs and drivers is essential to make informed decisions. As a trusted partner, you cannot have effective conversations around budgets and cost optimization without a solid foundation.
    • It is important to realize that ITFM is not a one-time exercise, but a continuous, sustainable process to educate (teach, mentor, and train), increase transparency, and assign responsibility.
    • Move up the ITFM maturity ladder by improving across three maturity focus areas:
      • Build an ITFM Foundation
      • Manage and Monitor IT Spending
      • Bridge the Language Barrier

    What’s Next?

    Communicate your maturity results with stakeholders and develop an actionable ITFM improvement plan.

    And remember, having informed discussions with your business partners and stakeholders, where technology helps propel your organization forward, is priceless!

    IT Financial Management Team

    Photo of Dave Kish, Practice Lead, ITFM Practice, Info-Tech Research Group. Dave Kish
    Practice Lead, ITFM Practice
    Info-Tech Research Group
    Photo of Jennifer Perrier, Principal Research Director, ITFM Practice, Info-Tech Research Group. Jennifer Perrier
    Principal Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Angie Reynolds, Principal Research Director, ITFM Practice, Info-Tech Research Group. Angie Reynolds
    Principal Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Monica Braun, Research Director, ITFM Practice, Info-Tech Research Group. Monica Braun
    Research Director, ITFM Practice
    Info-Tech Research Group
    Photo of Rex Ding, Research Specialist, ITFM Practice, Info-Tech Research Group. Rex Ding
    Research Specialist, ITFM Practice
    Info-Tech Research Group
    Photo of Aman Kumari, Research Specialist, ITFM Practice, Info-Tech Research Group. Aman Kumari
    Research Specialist, ITFM Practice
    Info-Tech Research Group

    Research Contributors and Experts

    Photo of Amy Byalick, Vice President, IT Finance, Info-Tech Research Group. Amy Byalick
    Vice President, IT Finance
    Info-Tech Research Group     		Amy Byalick is an IT Finance practitioner with 15 years of experience supporting CIOs and IT leaders elevating the IT financial storytelling and unlocking insights. Amy is currently working at Johnson Controls as the VP, IT Finance, previously working at PepsiCo, AmerisourceBergen, and Jacobs.
    Photo of Carol Carr, Technical Counselor, Executive Services, Info-Tech Research Group. Carol Carr
    Technical Counselor, Executive Services
    Info-Tech Research Group
    Photo of Scott Fairholm, Executive Counselor, Executive Services, Info-Tech Research Group. Scott Fairholm
    Executive Counselor, Executive Services
    Info-Tech Research Group
    Photo of Gokul Rajan, Executive Counselor, Executive Services, Info-Tech Research Group. Gokul Rajan
    Executive Counselor, Executive Services
    Info-Tech Research Group
    Photo of Allison Kinnaird, Practice Lead, Infrastructure & Operations, Info-Tech Research Group. Allison Kinnaird
    Practice Lead, Infrastructure & Operations
    Info-Tech Research Group
    Photo of Isabelle Hertanto, Practice Lead, Security & Privacy, Info-Tech Research Group. Isabelle Hertanto
    Practice Lead, Security & Privacy
    Info-Tech Research Group

    Related Info-Tech Research

    Sample of the IT spending transparency research. Achieve IT Spending Transparency

    Mature your ITFM practice by activating the means to make informed business decisions.

    Sample of the IT cost optimization roadmap research. Build Your IT Cost Optimization Roadmap

    Develop an IT cost optimization strategy based on your specific circumstances and timeline.

    Bibliography

    Eby, Kate. “The Complete Guide to Organizational Maturity: Models, Levels, and Assessments.” Smartsheet, 8 June 2022. Web.

    “Financial Management Maturity Model.” National Audit Office, n.d. Accessed 28 Apr. 2023.

    “ITFM/TBM Program Maturity Guide.” Nicus Software, n.d. Accessed 28 Apr. 2023.

    Jouravlev, Roman. "Service Financial Management: ITIL 4 Practice Guide." Axelos, 2020.

    McCarthy, Seamus. “Financial Management Maturity Model: A Good Practice Guide.” Office of the Comptroller & Auditor General, 26 June 2018. Web.

    “Principles for Effective Risk Data Aggregation and Risk Reporting.“ Bank for International Settlements, Jan. 2013. Web.

    “Role & Influence of the Technology Decision-Maker 2022.” Foundry, 2022. Web.

    Stackpole, Beth. “State of the CIO, 2022: Focus turns to IT fundamentals.” CIO, 21 March 2022. Web.

    “Tech Spend Pulse.” Flexera, 2022. Web.

    Appendix A

    Definition and Description
    Per Maturity Level

    ITFM maturity levels and definitions

    Maturity Level

    Definition

    Description
    Nascent
    Level 1     		Inability to consistently deliver financial planning services ITFM practices are almost inexistent. Only the most basic financial tasks and activities are being performed on an ad hoc basis to fulfill the Finance department’s requests.
    Cost Operator
    Level 2     		Rudimentary financial planning capabilities. ITFM activities revolve around minimizing the IT budget as much as possible. ITFM practices are not well defined, and IT’s financial view is limited to day-to-day technical operations.
    IT is only involved in low complexity decision making, where financial conversations center on general ledger items and IT spending.
    Trusted Coordinator
    Level 3     		Enablement of business through cost-effective supply of technology. ITFM activities revolve around becoming a proficient and cost-effective technology supplier to business partners.
    ITFM practices are in place, with moderate coordination and adherence to execution. Various IT business units coordinate to produce a consolidated financial view focused on business services.
    IT is involved in moderate complexity decision making, as a technology subject matter expert, where financial conversations center on IT spending in relation to technology services or solutions provided to business partners.
    Value Optimizer
    Level 4     		Effective impact on business performance. ITFM activities revolve around optimizing existing technology investments to improve both IT and business performance.
    ITFM practices are well managed, established, documented, repeatable, and integrated as necessary across the organization. IT’s financial view tie technology investments to lines of business, business products, and business capabilities.
    Business partners are well informed on the technology mix and drive related discussion. IT is trusted to contribute to complex decision making around existing investments to cost-effectively plan initiatives, as well as enhance business performance.
    Strategic Partner
    Level 5     		Influence on the organization’s strategic direction. ITFM activities revolve around predicting the outcome of new or potential technology investments to continuously optimize business performance.
    ITFM practices are fully optimized, reviewed, and improved in a continuous and sustainable manner, and related execution is tracked by gathering qualitative and quantitative feedback. IT’s financial view is holistic and fully integrated with the business, with an outlook on innovation, growth, and strategic transformation.
    Business and IT leaders know the financial ramifications of every business and technology investment decision. IT is trusted to contribute to strategic decision making around potential and future investments to grow and transform the business.

    Appendix B

    Maturity Level Definitions and Descriptions
    Per Lever

    Establish your ITFM team

    Maturity focus area: Build an ITFM foundation.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide any type of financial insight.ITFM tasks, activities, and functions are not being met in any way, shape, or form.
    Cost Operator
    Level 2    		Ability to provide basic financial insights.There is no dedicated ITFM team.


    Basic ITFM tasks, activities, and functions are being performed on an ad hoc basis, such as high-level budget reporting.

    Trusted Coordinator
    Level 3    		Ability to provide basic business insights.A dedicated team is fulfilling essential ITFM tasks, activities, and functions.


    ITFM team can combine and analyze financial and technology data to produce necessary reports.

    Value Optimizer
    Level 4    		Ability to provide valuable business driven insights.A dedicated ITFM team with well-defined roles and responsibilities can provide effective advice to IT leaders, in a timely fashion, and positively influence IT decisions.
    Strategic Partner
    Level 5    		Ability to influence both technology and business decisions.A dedicated and highly specialized ITFM team is trusted and valued by both IT and Business leaders.


    Insights provided by the ITFM team can influence and shape the organization’s strategy.

    Set up your governance structure

    Maturity focus area: Build an ITFM foundation

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to ensure any adherence to rules and regulations.ITFM frameworks, guidelines, policies, and procedures are not developed nor documented.
    Cost Operator
    Level 2    		Ability to ensure basic adherence to rules and regulations.Basic ITFM frameworks, guidelines, policies, and procedures are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation.
    Trusted Coordinator
    Level 3    		Ability to ensure compliance to rules and regulations, as well as accountability across ITFM processes.Essential ITFM frameworks, guidelines, policies, and procedures are in place, coherent, and documented, aiming to (a) comply with rules and regulations, and (b) provide clear accountability.
    Value Optimizer
    Level 4    		Ability to ensure compliance to rules and regulations, as well as structure, transparency, and business alignment across ITFM processes.ITFM frameworks, guidelines, policies, and procedures are well defined, coherent, documented, and regularly reviewed, aiming to (a) comply with rules and regulations, (b) provide clear accountability, and (c) maintain business alignment.
    Strategic Partner
    Level 5    		Ability to:
    • Ensure compliance to rules and regulations, as well as ITFM processes are transparent, structured, focused on business objectives, and support decision making.
    • Reinforce and shape the organization culture.
    		ITFM frameworks, guidelines, policies, and procedures are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) comply with rules and regulations, (b) provide clear accountability, (c) maintain business alignment, and (d) facilitate the decision-making process.


    Enforcement of the ITFM governance structure can influence the organization culture.

    Adopt ITFM processes and tools

    Maturity focus area: Build an ITFM foundation.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to deliver IT financial planning and performance output.ITFM processes and tools are not developed nor documented.
    Cost Operator
    Level 2    		Ability to deliver basic IT financial planning output.Basic ITFM processes and tools are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation.
    Trusted Coordinator
    Level 3    		Ability to deliver accurate IT financial output and basic IT performance output in a consistent cadence.Essential ITFM processes and tools are in place, coherent, and documented, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; and (c) provide clear accountability. ITFM tools and processes are adopted by the ITFM team and some IT business units but are not fully integrated.
    Value Optimizer
    Level 4    		Ability to deliver accurate IT financial planning and performance output at the needed level of detail to stakeholders in a consistent cadence.ITFM processes and tools are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; (c) provide clear accountability; and (d) facilitate decision-making. ITFM tools and processes are adopted by IT and business partners but are not fully integrated.
    Strategic Partner
    Level 5    		Ability to:
    • Deliver accurate IT financial planning and performance output at the needed level of detail to stakeholders.
    • Leverage IT financial planning and performance output in real time and when needed by stakeholders.
    		ITFM processes and tools are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to (a) maintain integrity across activities, tasks, methodologies, data, and reports; (b) deliver IT financial planning and performance output needed by stakeholders; (c) provide clear accountability; and (d) facilitate decision making.


    ITFM processes and tools are automated to the full extent needed by the organization, utilized to their full potential, and integrated into a single enterprise platform, providing a holistic view of IT spending and IT performance.

    Standardize your taxonomy and data model

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide transparency across technology spending.ITFM taxonomy and data model are not developed nor documented.
    Cost Operator
    Level 2    		Ability to provide transparency and support IT financial planning data, analysis, and reporting needs of finance stakeholders.ITFM taxonomy and data model are in place, developed on an ad hoc basis, with no apparent coherence or complete documentation, to comply with, and meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT and finance stakeholders.ITFM taxonomy and data model are in place, coherent, and documented to meet the needs of IT and finance stakeholders.
    Value Optimizer
    Level 4    		Ability to provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT, finance, business, and executive stakeholders.ITFM taxonomy and data model are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to provide (a) a holistic view of IT spending and IT performance, (b) visibility and transparency, (c) flexibility, and (d) valuable insights to facilitate data driven decision making.


    ITFM taxonomy and data model are standardized to meet the needs of IT, finance, business, and executive stakeholders, but not flexible enough to be adjusted in a timely fashion as needed.

    Strategic Partner
    Level 5    		Ability to:
    • Provide transparency and support IT financial planning and performance data, analysis, and reporting needs of IT, finance, business, and executive stakeholders.
    • Change to meet evolving needs.
    		ITFM taxonomy and data model are complete, well defined, coherent, documented, continuously reviewed, and improved, aiming to provide (a) a holistic view of IT spending and IT performance, (b) visibility and transparency, (c) flexibility, and (d) valuable insights to facilitate data driven decision making.


    ITFM taxonomy and data model are standardized and meet the changing needs of IT, finance, business, and executive stakeholders.

    Identify, gather, and prepare your data

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide accurate and complete across technology spending.ITFM data needs and requirements are not understood.
    Cost Operator
    Level 2    		Ability to provide accurate, but incomplete IT financial planning data to meet the needs of finance stakeholders.Technology spending data is extracted, transformed, and loaded on an ad hoc basis to meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide accurate and complete IT financial planning data to meet the needs of IT and finance stakeholders, but IT performance data remain incomplete.IT financial planning data is extracted, transformed, and loaded in a regular cadence to meet the needs of IT and finance stakeholders.


    IT financial planning data is (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, and (c) sourced from the organization’s system of record.

    Value Optimizer
    Level 4    		Ability to provide accurate and complete IT financial planning and performance data to meet the needs of IT, finance, business, and executive stakeholders.ITFM data needs and requirements are understood.


    ITFM data is extracted, transformed, and loaded in a regular cadence to meet the needs of IT, finance, business, and executive stakeholders.


    IT financial planning and performance data are (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, and (c) sourced from the organization’s system of record.

    Strategic Partner
    Level 5    		Ability to provide accurate and complete IT financial planning and performance data real time and when needed by IT, finance, business, and executive stakeholders.ITFM data needs and requirements are understood.


    IT financial planning and performance data are (a) complete and accurate, as defined in related control documents (guideline, policies, procedures, etc.), (b) regularly validated for inconsistencies, (c) available and refreshed as needed, and (d) sourced from the organization’s system of record.

    Analyze your findings and develop your reports

    Maturity focus area: Manage and monitor IT spending.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide any type of financial insight.ITFM analysis and reports are not developed nor documented.
    Cost Operator
    Level 2    		Ability to provide basic financial insights.IT financial planning analysis is conducted on an ad hoc basis to meet the needs of finance stakeholders.
    Trusted Coordinator
    Level 3    		Ability to provide basic financial planning and performance insights to meet the needs of IT and finance stakeholders.IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.).


    IT financial planning and performance reports are accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.).

    Value Optimizer
    Level 4    		Ability to provide practical insights and useful recommendations as needed by IT, finance, business, and executive stakeholders to facilitate business decision making around technology investments.ITFM analysis and reports support business decision making around technology investments.


    IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.).


    IT financial planning and performance reports are (a) accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.), (b) fit for purpose, and (c) regularly validated for inconsistencies.

    Strategic Partner
    Level 5    		Ability to provide practical insights and useful recommendations as needed by IT, finance, business, and executive stakeholders to facilitate strategic decision making.ITFM analysis and reports support strategic decision making.


    IT financial planning and performance analysis are methodical and rigorous, as defined in related control documents (guideline, policies, procedures, etc.), and consider multiple point of views (hypotheses, interpretations, opinions, etc.).


    IT financial planning and performance reports are (a) accurate, precise, and methodical, as defined in related control documents (guideline, policies, procedures, etc.), (b) fit for purpose, (c) comprehensive, and (d) regularly validated for inconsistencies.

    Communicate your IT spending

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability of organization stakeholders to communicate and understand each other.The organization stakeholders including IT, finance, business, and executives do not understand one another, and cannot speak the same language.
    Cost Operator
    Level 2    		Ability to understand business and finance requirements.IT understands and meets business and financial planning requirements but does not communicate in a similar language.


    IT cannot influence finance or business decision making.

    Trusted Coordinator
    Level 3    		Ability to understand the needs of different stakeholders including IT, finance, business, and executives and take part in decision making around technology spending.The organization stakeholders including IT, finance, business, and executives understand each other’s needs, but do not communicate in a common language.


    IT leaders provide insights as technology subject matter experts, where conversations center on IT spending in relation to technology services or solutions provided to business partners.


    IT can influence technology decisions around its own budget.

    Value Optimizer
    Level 4    		Ability to communicate in a common vocabulary across the organization and take part in business decision making around technology investments.The organization stakeholders including IT, finance, business, and executives communicate in a common vocabulary and understand one another.


    IT and business leaders, along with their respective teams, collaborate frequently across various initiatives.


    IT leaders provide valuable insight to support and influence business decision making around existing technology investments.

    Strategic Partner
    Level 5    		Ability to communicate in a common vocabulary across the organization and take part in strategic decision making.The organization stakeholders including IT, finance, business, and executives communicate in a common vocabulary and understand one another.


    IT and business leaders, along with their respective teams, collaborate frequently across various initiatives.


    IT leaders provide valuable insight to facilitate decision making around potential and future investments to grow and transform the business, thus influencing the organization’s overall strategic direction.

    Educate the masses

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability of organization stakeholders to acquire knowledge.Educational resources are inexistent.
    Cost Operator
    Level 2    		Ability to acquire financial knowledge and understand financial concepts.IT leaders have access to educational resources to gain the financial knowledge necessary to perform their duties.
    Trusted Coordinator
    Level 3    		Ability to acquire financial and business knowledge and understand related concepts.IT leaders and their respective teams have access to educational resources to gain the financial and business knowledge necessary to perform their duties.


    ITFM team has access to the necessary educational resources to keep up with changing financial regulations and technology developments.

    Value Optimizer
    Level 4    		Ability to acquire knowledge, across technology, business, and finance as needed by different organization stakeholders, and the leadership understand concepts across these various domains.Stakeholders including IT, finance, business, and executives have access to various educational resources to gain knowledge in different domains as needed.


    IT leaders have a good understanding of business and financial concepts.


    Business leaders have a good understanding of technology concepts.

    Strategic Partner
    Level 5    		Ability to acquire knowledge, and understand concepts across technology, business, and finance as needed by different organization stakeholders.The organization promotes continuous learning through well designed programs including training, mentorship, and academic courses. Thus, stakeholders including IT, finance, business, and executives have access to various educational resources to gain knowledge in different domains as needed.


    IT leaders and their respective teams have a good understanding of business and financial concepts.


    Business leaders and their respective teams have a good understanding of technology concepts.

    Influence your organization’s culture

    Maturity focus area: Bridge the language barrier.

    Maturity Level

    Definition

    Description

    Nascent
    Level 1    		Inability to provide and foster an environment of collaboration and continuous improvement.Stakeholders including IT, finance, business, and executives operate in silos, and collaboration between different teams is inexistent.
    Cost Operator
    Level 2    		Ability to provide an environment of cooperation to meet the needs of IT, finance, and business leaders.IT, finance, and business leaders cooperate to meet financial planning requirements as necessary to perform their duties.
    Trusted Coordinator
    Level 3    		Ability to provide and foster an environment of collaboration across the organization.IT, finance, and business collaborate on various initiatives.

    ITFM employees are trusted and supported by their stakeholders (IT, finance, and business).

    Value Optimizer
    Level 4    		Ability to provide and foster an environment of collaboration and continuous improvement, where employees across the organization feel trusted, supported, empowered, and valued.Stakeholders including IT, finance, business, and executives support and promote continuous improvement, transparency practices, and collaboration across the organization.


    Employees are trusted, supported, empowered, and valued.

    Strategic Partner
    Level 5    		Ability to provide and foster an environment of collaboration and continuous improvement, where leaders are willing to change, and employees across the organization feel trusted, supported, empowered, and valued.Stakeholders including IT, finance, business, and executives support and promote continuous improvement, transparency practices, and collaboration across the organization.


    The organization’s leadership is adaptable and open to change.


    Employees are trusted, supported, empowered, and valued.

    Develop a Master Data Management Practice and Platform

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • The volume of enterprise data is growing rapidly and comes from a wide variety of internal and external data sources (e.g. ERP, CRM). When data is located in different systems and applications, coupled with degradation and proliferation, this can lead to inaccurate, inconsistent, and redundant data being shared across departments within an organization.
    • Data kept in separate soiled sources can result in poor stakeholder decision making and inefficient business processes. Some common master data problems include:
      • The lack of a clean customer list results in poor customer service.
      • Hindering good analytics and business predictions, such as incorrect supply chain decisions when having duplicate product and vendor data between plants.
      • Creating cross-group consolidated reports from inconsistent local data that require too much manual effort and resources.

    Our Advice

    Critical Insight

    • Everybody has master data (e.g. customer, product) but not master data problems (e.g. duplicate customers and products). MDM is complex in practice and requires investments in data governance, data architecture, and data strategy. Identifying business outcomes based on quality master data is essential before you pull the trigger on an MDM solution.

    Impact and Result

    This blueprint can help you:

    • Build a list of business-aligned data initiatives and capabilities that address master data problem and realize business strategic objectives.
    • Design a master data management practice based on the required business and data process.
    • Design a master data management platform based on MDM implementation style and prioritized technical capabilities.

    Develop a Master Data Management Practice and Platform Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Develop a Master Data Management Practice and Platform Deck – A clear blueprint that provides a step-by-step approach to aid in the development of your MDM practice and platform.

    This blueprint will help you achieve a single view of your most important data assets by following our two-phase methodology:

  • Build a vision for MDM
  • Build an MDM practice and platform

    • Develop a Master Data Management Practice and Platform – Phases 1-2

    2. Master Data Management Readiness Assessment Tool – A tool to help you make the decision to stop the MDM project now or to continue the path to MDM.

    This tool will help you determine if your organization has a master data problem and if an MDM project should be undertaken.

    • Master Data Management Readiness Assessment Tool

    3. Master Data Management Business Needs Assessment Tool – A tool to help you identify and document the various data sources in the organization and determine which data should be classified as master data.

    The tool will help you identify the sources of data within the business unit and use the typical properties of master data to determine which data should be classified as master data.

    • Master Data Management Business Needs Assessment Tool

    4. Master Data Management Business Case Presentation Template – A template to communicate MDM basics, benefits, and approaches to obtain business buy-in for the MDM project.

    The template will help you communicate your organization's specific pains surrounding poor management of master data and identify and communicate the benefits of effective MDM. Communicate Info-Tech's approach for creating an effective MDM practice and platform.

    • Master Data Management Business Case Presentation Template

    5. Master Data Management Project Charter Template – A template to centralize the critical information regarding to objectives, staffing, timeline, and expected outcome of the project.

    The project charter will help you document the project sponsor of the project. Identify purpose, goals, and objectives. Identify the project risks. Build a cross-functional project team and assign responsibilities. Define project team expectations and meeting frequency. Develop a timeline for the project with key milestones. Identify metrics for tracking success. Receive approval for the project.

    • Master Data Management Project Charter Template

    6. Master Data Management Architecture Design Template – An architecture design template to effectively document the movement of data aligned with the business process across the organization.

    This template will assist you:

  • Document the current state and achieve a common understanding of the business process and movement of data across the company.
  • Identify the source of master data and what other systems will contribute to the MDM system.
  • Document the target architectural state of the organization.

    • Master Data Management Architecture Design Template

    7. Master Data Management Practice Pattern Template – Pre-built practice patterns to effectively define the key services and outputs that must be delivered by establishing core capabilities, accountabilities, roles, and governance for the practice.

    The master data management practice pattern describes the core capabilities, accountabilities, processes, essential roles, and the elements that provide oversight or governance of the practice, all of which are required to deliver on high value services and deliverables or output for the organization.

    • Master Data Management Practice Pattern Template

    8. Master Data Management Platform Template – A pre-built platform template to illustrate the organization’s data environment with MDM and the value MDM brings to the organization.

    This template will assist you:

  • Establish an understanding of where MDM fits in an organization’s overall data environment.
  • Determine the technical capabilities that is required based on organization’s data needs for your MDM implementation.

    • Master Data Management Platform Template

    Infographic

    Workshop: Develop a Master Data Management Practice and Platform

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Develop a Vision for the MDM Project

    The Purpose

    Identification of MDM and why it is important.

    Differentiate between reference data and master data.

    Discuss and understand the key challenges and pains felt by the business and IT with respect to master data, and identify the opportunities MDM can provide to the business.

    Key Benefits Achieved

    Identification of what is and is not master data.

    Understand the value of MDM and how it can help the organization better monetize its data.

    Knowledge of how master data can benefit both IT and the business.

    Activities

    1.1 Establish business context for master data management.

    1.2 Assess the value, benefits, challenges, and opportunities associated with MDM.

    1.3 Develop the vision, purpose, and scope of master data management for the business.

    1.4 Identify MDM enablers.

    1.5 Interview business stakeholders.

    Outputs

    High-level data requirements

    Identification of business priorities

    Project vision and scope

    2 Document the Current State

    The Purpose

    Recognize business drivers for MDM.

    Determine where master data lives and how this data moves within the organization.

    Key Benefits Achieved

    Streamline business process, map the movement of data, and achieve a common understanding across the company.

    Identify the source of master data and what other systems will contribute to the MDM system.

    Activities

    2.1 Evaluate the risks and value of critical data.

    2.2 Map and understand the flow of data within the business.

    2.3 Identify master data sources and users.

    2.4 Document the current architectural state of the organization.

    Outputs

    Data flow diagram with identified master data sources and users

    Business data glossary

    Documented current data state.

    3 Document the Target State

    The Purpose

    Document the target data state of the organization surrounding MDM.

    Identify key initiatives and metrics.

    Key Benefits Achieved

    Recognition of four MDM implementation styles.

    Identification of key initiatives and success metrics.

    Activities

    3.1 Document the target architectural state of the organization.

    3.2 Develop alignment of initiatives to strategies.

    3.3 Consolidate master data management initiatives and strategies.

    3.4 Develop a project timeline and define key success measures.

    Outputs

    Documented target state surrounding MDM.

    Data and master data management alignment and strategies

    4 Develop an MDM Practice and Platform

    The Purpose

    Get a clear picture of what the organization wants to get out of MDM.

    Identify master data management capabilities, accountabilities, process, roles, and governance.

    Key Benefits Achieved

    Prioritized master data management capabilities, accountabilities, process, roles, and governance.

    Activities

    4.1 Identify master data management capabilities, roles, process, and governance.

    4.2 Build a master data management practice and platform.

    Outputs

    Master Data Management Practice and Platform

    Further reading

    Develop a Master Data Management Practice and Platform

    Are you sure you have a master data problem?

    Analyst Perspective

    The most crucial and shared data assets inside the firm must serve as the foundation for the data maturing process. This is commonly linked to your master data (such as customers, products, employees, and locations). Every organization has master data, but not every organization has a master data problem.

    Don't waste time or resources before determining the source of your master data problem. Master data issues are rooted in the business practices of your organization (such as mergers and acquisitions and federated multi-geographic operations). To address this issue, you will require a master data management (MDM) solution and the necessary architecture, governance, and support from very senior champions to ensure the long-term success of your MDM initiative. Approaching MDM with a clear blueprint that provides a step-by-step approach will aid in the development of your MDM practice and platform.

    Ruyi Sun

    Ruyi Sun
    Research Specialist
    Data & Analytics Practice
    Info-Tech Research Group

    Rajesh Parab

    Rajesh Parab
    Research Director
    Data & Analytics Practice
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    Your organization is experiencing data challenges, including:

    • Too much data volume, variety, and velocity, from more and more sources.
    • Duplicate and disorganized data across multiple systems and applications.
    • Master data is pervasive throughout the business and is often created and captured in highly disparate sources that often are not easily shared across business units and applications.

    MDM is useful in situations such as a business undergoing a merger or acquisition, where a unique set of master data needs to be created to act as a single source of truth. However, having a unified view of the definitions and systems of record for the most critical data in your organization can be difficult to achieve. An organization might experience some pain points:

    • Failure to identify master data problem and organization’s data needs.
    • Conflicting viewpoints and definitions of data assets across business units.
    • Recognize common business operating models or strategies with master data problems.
    • Identify the organization’s problem and needs out of its master data and align to strategic business needs.
    • Define the architecture, governance, and support.
    • Create a practice and platform for the organization’s MDM program.

    Info-Tech Insight

    Everybody has master data (e.g. customer, product) but not a master data problem (e.g. duplicate customers and products). MDM is complex in practice and requires investments in data governance, data architecture, and data strategy. Identifying business outcomes based on quality master data is essential before you pull the trigger on an MDM solution.

    What is master data and master data management?

    • Master data domains include the most important data assets of an organization. For this data to be used across an enterprise in consistent and value-added ways, the data must be properly managed. Some common master data entities include customer, product, and employees.
    • Master data management (MDM) is the control over master data values to enable consistent, shared, contextual use across systems, of the most accurate, timely, and relevant version of truth about essential business entities (DAMA DMBOK).
    • The fundamental objective of MDM is to enable the business to see one view of critical data elements across the organization.
    • MDM systems will detect and declare relationships between data, resolve duplicate records, and make data available to the people, processes, and applications that need it. The end goal of an MDM implementation is to make sure your investment in MDM technology delivers the promised business results. By supplementing the technology with rules, guidelines, and standards around enterprise data you will ensure data continues to be synchronized across data sources on an ongoing basis.

    The image contains a screenshot of Info-Tech's Data Management Framework.

    Info-Tech’s Data Management Framework Adapted from DAMA-DMBOK and Advanced Knowledge Innovations Global Solutions. See Create a Data Management Roadmap blueprint for more information.

    Why manage master data?

    Master data drives practical insights that arise from key aspects of the business.

    Customer Intimacy

    Innovation Leadership

    Risk Management

    Operational Excellence

    Improve marketing and the customer experience by using the right data from the system of record to analyze complete customer views of transactions, sentiments, and interactions.

    Gain insights on your products, services, usage trends, industry directions, and competitor results, and use these data artifacts to support decisions on innovations, new products, services, and pricing.

    Maintain more transparent and accurate records and ensure that appropriate rules are followed to support audit, compliance, regulatory, and legal requirements. Monitor data usage to avoid fraud.

    Make sure the right solution is delivered rapidly and consistently to the right parties for the right price and cost structure. Automate processes by using the right data to drive process improvements.

    85% of customers expect consistent interactions across departments (Salesforce, 2022).

    Top-decile economic performers are 20% more likely to have a common source of data that serves as the single source of truth across the organization compared to their peers (McKinsey & Company, 2021).

    Only 6% of board members believe they are effective in managing risk (McKinsey & Company, 2018).

    32% of sales and marketing teams consider data inconsistency across platforms as their biggest challenge (Dun & Bradstreet, 2022).

    Your Challenge

    Modern organizations have unprecedented data challenges.

    • The volume of enterprise data is growing rapidly and comes from a wide variety of internal and external data sources (e.g. ERP, CRM). When data is located in different systems and applications, coupled with degradation and proliferation, this can lead to inaccurate, inconsistent, and redundant data being shared across departments within an organization.
    • For example, customer information may not be identical in the customer service system, shipping system, and marketing management platform because of manual errors or different name usage (e.g. GE or General Electric) when input by different business units.
    • Data kept in separate soiled sources can also result in poor stakeholder decision making and inefficient business processes. Some issues include:
      • The lack of clean customer list results in poor customer service.
      • Hindering good analytics and business predictions, such as incorrect supply chain decision when having duplicate product and vendor data between plants.
      • Creating cross-group consolidated reports from duplicate and inconsistent local data requires too much manual effort and resources.

    On average, 25 different data sources are used for generating customer insights and engagement.

    On average, 16 different technology applications are used to leverage customer data.

    Source: Deloitte Digital, 2020

    Common Obstacles

    Finding a single source of truth throughout the organization can be difficult.

    Changes in business process often come with challenges for CIOs and IT leaders. From an IT perspective, there are several common business operating models that can result in multiple sets of master data being created and held in various locations. Some examples could be:

    • Integrate systems following corporate mergers and acquisitions
    • Enterprise with multi-product line
    • Multinational company or multi-geographic operations with various ERP systems
    • Digital transformation projects such as omnichannel

    In such situations, implementing an MDM solution helps achieve harmonization and synchronization of master data and provide a single, reliable, and precise view of the organization. However, MDM is a complex system that requires more than just a technical solution. An organization might experience the following pain points:

    • Failure to identify master data problem and organization’s data needs.
    • Conflicting viewpoints and definitions of data assets that should reside in MDM across business units.

    Building a successful MDM initiative can be a large undertaking that takes some preparation before starting. Understanding the fundamental roles that data governance, data architecture, and data strategy play in MDM is essential before the implementation.

    “Only 3 in 10 of respondents are completely confident in their company's ability to deliver a consistent omnichannel experience.”

    Source: Dun & Bradstreet, 2022

    The image contains an Info-Tech Thought Model of the Develop a Master Data Management Practice & Platform.

    Insight summary

    Overarching insight

    Everybody has master data (e.g. customer, product) but not a master data problem (e.g. duplicate customers and products). MDM is complex in practice and requires investments in data governance, data architecture, and data strategy. Figuring out what the organization needs out of its master data is essential before you pull the trigger on an MDM solution.

    Phase 1 insight

    A master data management solution will assist you in solving master data challenges if your organization is large or complex, such as a multinational corporation or a company with multiple product lines, with frequent mergers and acquisitions, or adopting a digital transformation strategy such as omnichannel.

    Organizations often have trouble getting started because of the difficulty of agreeing on the definition of master data within the enterprise. Reference data is an easy place to find that common ground.

    While the organization may have data that fits into more than one master data domain, it does not necessarily need to be mastered. Determine what master data entities your organization needs.

    Although it is easy to get distracted by the technical aspects of the MDM project – such as extraction and consolidation rules – the true goal of MDM is to make sure that the consumers of master data (such as business units, sales) have access to consistent, relevant, and trusted shared data.

    Phase 2 insight

    An organization with activities such as mergers and acquisitions or multi-ERP systems poses a significant master data challenge. Prioritize your master data practice based on your organization’s ability to locate and maintain a single source of master data.

    Leverage modern capabilities such as artificial intelligence or machine learning to support large and complex MDM deployments.

    Blueprint Overview

    1. Build a Vision for MDM

    2. Build an MDM Practice and Platform

    Phase Steps

    1. Assess Your Master Data Problem
    2. Identify Your Master Data Domains
    3. Create a Strategic Vision
    1. Document Your Organization’s Current Data State
    2. Document Your Organization’s Target Data State
    3. Formulate an Actionable MDM Practice and Platform

    Phase Participants

    CIO, CDO, or IT Executive

    Head of the Information Management Practice

    Business Domain Representatives

    Enterprise Architecture Domain Architects

    Information Management MDM Experts

    Data Stewards or Data Owners

    Phase Outcomes

    This step identifies the essential concepts around MDM, including its definitions, your readiness, and prioritized master data domains. This will ensure the MDM initiatives are aligned to business goals and objectives.

    To begin addressing the MDM project, you must understand your current and target data state in terms of data architecture and data governance surrounding your MDM strategy. With all these considerations in mind, design your organizational MDM practice and platform.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    1. MDM Readiness Assessment ToolThe image contains a screenshot of the MDM Readiness Assessment Tool. 2. Business Needs Assessment Tool The image contains a screenshot of the Business Needs Assessment Tool.
    3. Business Case Presentation Template The image contains a screenshot of the Business Case Presentation Template. 4. Project Charter Template The image contains a screenshot of the Project Charter Template.
    5. Architecture Design Template The image contains a screenshot of the Architecture Design Template.

    Key deliverable:

    6. MDM Practice Pattern Template

    7. MDM Platform Template

    Define the intentional relationships between the business and the master data through a well-thought-out master data platform and practice.

    The image contains a screenshot to demonstrate the intentional relationships between the business and the master data.

    Measure the value of this blueprint

    Refine the metrics for the overall Master Data Management Practice and Platform.

    In phase 1 of this blueprint, we will help you establish the business context and master data needs.

    In phase 2, we will help you document the current and target state of your organization and develop a practice and platform so that master data is well managed to deliver on those defined metrics.

    Sample Metrics

    Method of Calculation

    Master Data Sharing Availability and Utilization

    # of Business Lines That Use Master Data

    Master Data Sharing Volume

    # of Master Entities

    # of Key Elements, e.g. # of Customers With Many Addresses

    Master Data Quality and Compliance

    # of Duplicate Master Data Records

    Identified Sources That Contribute to Master Data Quality Issues

    # of Master Data Quality Issues Discovered or Resolved

    # of Non-Compliance Issues

    Master Data Standardization/Governance

    # of Definitions for Each Master Entity

    # of Roles (e.g. Data Stewards) Defined and Created

    Trust and Satisfaction

    Trust Indicator, e.g. Confidence Indicator of Golden Record

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2

    Call #1: Identify master data problem and assess your organizational readiness for MDM.

    Call #2: Define master data domains and priorities.

    Call #3: Determine business requirements for MDM.

    Call #4: Develop a strategic vision for the MDM project.

    Call #5: Map and understand the flow of data within the business.

    Call #6: Document current architectural state.

    Call #7: Discover the MDM implementation styles of MDM and document target architectural state.

    Call #8: Create MDM data practice and platform.

    Call #9: Summarize results and plan next steps.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is 8 to 12 calls over the course of 4 to 6 months.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4 Day 5

    Develop a Vision for the MDM Project

    Document the
    Current State

    Document the
    Target State

    Develop a MDM Practice and Platform

    Next Steps and
    Wrap-Up (offsite)

    Activities

    • Establish business context for master data management.
    • Assess the readiness, value, benefits, challenges, and opportunities associated with MDM.
    • Develop the vision, purpose, and scope of master data management for the business.
    • Identify master data management enablers.
    • Interview business stakeholders.
    • Evaluate the risks and value of critical data.
    • Map and understand the flow of data within the business.
    • Identify master data sources and users.
    • Document the current architectural state of the organization
    • Document the target data state of the organization.
    • Develop alignment of initiatives to strategies.
    • Consolidate master data management initiatives and strategies.
    • Develop a project timeline and define key success measures.
    • Identify master data management capabilities, roles, process, and governance.
    • Build a master data management practice and platform.
    • Complete in-progress deliverables from previous four days.
    • Set up review time for workshop deliverables and to discuss next steps.

    Deliverables

    1. High-level data requirements
    2. Identification of business priorities
    3. Project vision and scope
    1. Data flow diagram with identified master data sources and users
    2. Business data glossary
    3. Documented current data state
    1. Documented target state surrounding MDM
    2. Data and master data management alignment and strategies
    1. Master Data Management Practice and Platform
    1. Master Data Management Strategy for continued success

    Phase 1: Build a Vision for MDM

    Develop a Master Data Management Practice and Platform

    Step 1.1

    Assess Your Master Data Problem

    Objectives

    1. Build a solid foundation of knowledge surrounding MDM.

    2. Recognize MDM problems that the organization faces in the areas of mergers and acquisitions, omnichannel, multi-product line, and multi-ERP setups.

    This step involves the following participants:

    CIO, CDO, or IT Executive

    Head of Information Management

    Outcomes of this step

    An understanding of master data, MDM, and the prerequisites necessary to create an MDM program.

    Determine if there is a need for MDM in the organization.

    Understand your data – it’s not all transactional

    Info-Tech analyzes the value of data through the lenses of its four distinct classes: Master, Transactional, Operational, and Reference.

    Master

    Transactional

    Operational

    Reference

    • Addresses critical business entities that fall into four broad groupings: party (customers, suppliers); product (products, policies); location (physical spaces and segmentations); and financial (contracts, transactions).
    • This data is typically critical to the organization, less volatile, and more complex in nature; it contains many data elements and is used across systems.
    • Transactional data refers to data generated when dealing with external parties, such as clients and suppliers.
    • Transactional data may be needed on a per-use basis or through several activities.
    • The data can also be accessed in real-time if needed.
    • Operational data refers to data that is used to support internal business activities, processes, or workflows.
    • This data is generated during a one-time activity or multiple times through a data hub or orchestration layer.
    • Depending on the need for speed, there can be a real-time aspect to the situation.
    • Examples: scheduling service data or performance data.
    • Reference data refers to simple lists of data that are typically static and help categorize other data using code tables.
    • Examples: list of countries or states, postal codes, general ledger chart of accounts, currencies, or product code.

    Recognize the fundamental prerequisites for MDM before diving into more specific readiness requirements

    Organizational buy-in

    • Ensure there is someone actively invested and involved in the progress of the project. Having senior management support, especially in the form of an executive sponsor or champion, is necessary to approve MDM budgets and resourcing.
    • MDM changes business processes and practices that affect many departments, groups, and people – this type of change may be disruptive so sponsorship from the top ensures your project will keep moving forward even during difficulties.
    • Consider developing a cross-functional master data team involving stakeholders from management, IT, and the business units. This group can ensure that the MDM initiative is aligned with and supports larger organizational needs and everyone understands their role.

    Understanding the existing data environment

    • Knowing the state of an organization’s data architecture, and which data sources are linked to critical business processes, is essential before starting an MDM project.
    • Identify the areas of data pain within your organization and establish the root cause. Determine what impact this is having on the business.

    Before starting to look at technology solutions, make sure you have organizational buy-in and an understanding of the existing data environment. These two prerequisites are the foundation for MDM success.

    Master data management provides opportunities to use data for analytical and operational purposes with greater accuracy

    MDM can be approached in two ways: analytical and operational.

    Think of it in the context of your own organization:

    • How will MDM improve the ability for accurate data to be shared across business processes (Operational MDM)?
    • How will MDM improve the quality of reports for management reporting and executive decision making (Analytical MDM)?

    An investment in MDM will improve the opportunities for using the organization’s most valuable data assets, including opportunities like:

    • Data is more easily shared across the organization’s environment with greater accuracy and trust.
    • Multiple instances of the same data are consistent.
    • MDM enables the ability to find the right data more quickly.

    9.5% of revenue was at risk when bad experiences were offered to customers.

    Source: Qualtrics XM Institute, 2022

    Master data management drives better customer experience

    85% In a survey of nearly 17,000 consumers and business buyers, 85% of customers expect consistent interactions across departments.

    Source: Salesforce, 2022

    Yet, 60% of customer say it generally feels like sales, service, and marketing teams do not share information.

    Source: Salesforce, 2022

    What is a business without the customer? Positive customer service experience drives customer retention, satisfaction, and revenue growth, and ultimately, determines the success of the organization. Effective MDM can improve customer experiences by providing consistent interactions and the ability to meet customer expectations.

    61% of customers say they would switch to a competitor after just one bad customer service experience.

    Source: Zendesk, 2022

    Common business operating models or strategies with master data problems

    Mergers and acquisitions (M&A)

    M&A involves activities related to the consolidation of two companies. From IT’s perspective, whether the organization maintains different IT systems and applications in parallel or undergoes data integration process, it is common to have multiple instances of the same customer or product entity across different systems between companies, leading to incomplete, duplicate, and conflicting data sets. The organization may face challenges in both operational and analytical aspects. For many, the objective is to create a list of master data to have a single view of the organization.

    Multiple-instance ERP or multinational organizations

    Multiple-instance ERP solutions are commonly used by businesses that operate globally to accommodate each country’s needs or financial systems (Brightwork Research). With MDM, having a single source of truth could be a great advantage in certain business units to collaborate globally, such as sharing inventory coding systems to allow common identity and productive resource allocation and shared customer information for analytical purposes.

    Common business operating models or strategies with master data problems (cont.)

    Multiple product lines of business

    An example for firms that sells multiple product lines could be Nike’s multiple product lines including footwear, clothing, and equipment. Keeping track of many product lines is a constant challenge for organizations in terms of inventory management, vendor database, and a tracking system. The ability to track and maintain your product data accurately and consistently is crucial for a successful supply chain (whether in a warehouse, distribution center, or retail office), which leads to improved customer satisfaction and increased sales.

    Info-Tech Insight
    A master data management solution will assist you in solving master data challenges if your organization is large or complex such as a multinational corporation or a company with multiple product lines, frequent mergers and acquisitions, or adopting a digital transformation strategy such as omnichannel.

    Omni-channel

    In e-commerce and retail industry, omnichannel means a business strategy that offers seamless shopping experiences across all channels, such as in-store, mobile, and online (Oracle). This also means the company needs to provide consistent information on orders, inventory, pricing, and promotions to customers and keep the customer records up to date. The challenges of omnichannel include having to synchronize data across channels and systems such as ERP, CRM, and social media. MDM becomes a solution for the success of an omnichannel strategy that refers to the same source of truth across business functions and channels.

    Assess business model using Info-Tech’s MDM Readiness Assessment Tool

    30 Minutes

    • The MDM Readiness Assessment Tool will help you make the decision to stop the MDM project now or to continue on the path to MDM.
    • Not all organizations need MDM. Don’t waste precious IT time and resources if your organization does not have a master data problem.

    The image contains screenshots of the MDM Readiness Assessment Tool.

    Download the MDM Readiness Assessment Tool

    Input Output
    • List of key MDM decision points
    • MDM readiness
    Materials Participants
    • Master Data Management Readiness Assessment Tool
    • Head of Information Management
    • CIO, CDO, or IT Executive

    Step 1.2

    Identify the Master Data Domains

    Objectives

    Determine which data domain contains the most critical master data in the organization for an MDM strategy.

    This step involves the following participants:

    Business Domain Representatives

    Data Stewards or Data Owners

    Information Management Team

    Outcomes of this step

    Determine the ideal data domain target for the organization based on where the business is experiencing the largest pains related to master data and where it will see the most benefit from MDM.

    Reference data makes tackling master data easier

    Reference data serves as a great starting place for an MDM project.

    • Reference data is the simple lists of data that are typically static and help categorize other data using code tables. Examples include lists of countries or states, postal codes, general ledger charts of accounts, currencies, or product codes.
    • Loading information into the warehouse or an MDM hub usually requires reconciling reference data from multiple sources. By getting reference data in order first, MDM will be easier to implement.
    • Reference data also requires a relatively small investment with good returns so the value of the project can easily be demonstrated to stakeholders.
    • One example of how reference data makes master data easier to tackle is a master list of an organization’s customers that needs an attribute of an address. By maintaining a list of postal codes or cities as reference data, this is made much easier to manage than simply allowing free text.

    Info-Tech Insight

    Organizations often have trouble getting started because of the difficulty of agreeing on the definition of master data within the enterprise. Reference data is an easy place to find that common ground.

    There are several key considerations when defining which data is master data in the organization

    A successful implementation of MDM depends on the careful selection of the data element to be mastered. As departments often have different interests, establishing a standard set of data elements can lead to a lot of discussion. When selecting what data should be considered master data, consider the following:

    • Complexity. As the number of elements in a set increases, the likelihood that the data is master data also increases.
    • Volatility. Master data tends to be less volatile. The more volatile data is, the more likely it is transactional data.
    • Risk. The more likely data may have a risk associated with it, the more likely it should be managed with MDM.
    • Value. The more valuable a data set is to the organization, the greater the chance it is master data.
    • Sharing. If the data set is used in multiple systems, it likely should be managed with an MDM system.

    Begin by documenting the existing data sources within the organization.

    Use Info-Tech’s Master Data Management Business Needs Assessment Tool to determine master data sources.

    Info-Tech Insight

    While the organization may have data that fits into more than one master data domain, it does not necessarily need to be mastered. Determine what master data entities your organization needs.

    Master data also fall into these four areas

    More perspectives to consider and define which data is your master data.

    Internally Created Entities

    Externally Created Entities

    Large Non-Recurring Transactions

    Categories/Relationships/ Hierarchies/Aggregational Patterns

    • Business objects and concepts at the core of organizational activities that are created and maintained only by this organization.
    • Examples: customers, suppliers, products, projects
    • Business objects and concepts at the core of organizational activities that are created outside of this organization, but it keeps its own master list of these entities with additional attributions.
    • Examples: equipment, materials, industry classifications
    • Factual records reflecting the organization’s activities.
    • Examples: large purchases, large sales, measuring equipment data, student academic performance
    • Lateral and hierarchical relationships across master entities.
    • Organization-wide standards for data / information organization and aggregation.
    • Examples: classifications of equipment and materials, legal relationships across legal entities, sales regions or sub-regions

    Master data types can be divided into four main domains

    Parties

    • Data about individuals, organizations, and the roles they play in business relationships.
    • In the commercial world this means customer, employee, vendor, partner, and competitor data.

    Product

    • Can focus on organization's internal products or services or the entire industry, including competitor products and services.
    • May include information about part/ingredient usage, versions, patch fixes, pricing, and bundles.

    Financial

    • Data about business units, cost centers, profit centers, general ledger accounts, budgets, projections, and projects
    • Typically, ERP systems serve as the central hub for this.

    Locations

    • Often seen as the domain that encompasses other domains. Typically includes geopolitical data such as sales territories.
    • Provides ability to track and share reference information about different geographies and create hierarchical relationships based on information.

    Single Domain vs. Multi-Domain

    • By focusing on a single master data domain, organizations can start with smaller, more manageable steps, rather than trying to tackle everything at once.
    • MDM solutions can be domain-specific or be designed to support multiple domains.
    • Multi-domain MDM is a solution that manages multiple types of master data in one repository. By implementing multi-domain from the beginning, an organization is better able to support growth across all dimensions and business units.

    Use Info-Tech’s Master Data Management Business Needs Assessment Tool to determine master data priorities

    2 hours

    Use the Master Data Management Business Needs Assessment Tool to assist you in determining the master data domains present in your organization and the suggested domain(s) for your MDM solution.

    The image contains screenshots of the Master Data Management Business Needs Assessment Tool.

    Download the MDM Business Needs Assessment Tool

    Input Output
    • Current data sources within the organization
    • Business requirements of master data
    • Prioritized list of master data domains
    • Project scope
    Materials Participants
    • Master Data Management Business Needs Assessment Tool
    • Data Stewards or Data Custodians
    • Information Management Team

    Step 1.3

    Create a Strategic Vision for Your MDM Program

    Objectives

    1. Understand the true goal of MDM – ensuring that the needs of the master data users in the organization are fulfilled.

    2. Create a plan to obtain organizational buy-in for the MDM initiative.

    3. Organize and officialize your project by documenting key metrics, responsibilities, and goals for MDM.

    This step involves the following participants:

    CEO, CDO, or CIO

    Business Domain Representatives

    Information Management Team

    Outcomes of this step

    Obtain business buy-in and direction for the MDM initiative.

    Create the critical foundation plans that will guide you in evaluating, planning, and implementing your immediate and long-term MDM goals.

    MDM is not just IT’s responsibility

    Make sure the whole organization is involved throughout the project.

    • Master data is created for the organization as a whole, so get business input to ensure IT decisions fit with corporate goals and objectives.
    • The ownership of master data is the responsibility of the business. IT is responsible for the MDM project’s technology, support, platforms, and infrastructure; however, the ownership of business rules and standards reside with the business.
    • MDM requires IT and the business to form a partnership. While IT is responsible for the technical component, the business will be key in identifying master data.
    • MDM belongs to the entire organization – not a specific department – and should be created with the needs of the whole organization in mind. As such, MDM needs to be aligned with company’s overall data strategy. Data strategy planning involves identifying and translating business objectives and capability goals into strategies for improving data usage by the business and enhancing the capabilities of MDM.

    Keep the priorities of the users of master data at the forefront of your MDM initiative.

    • To fully satisfy the needs of the users of master data, you have to know how the data is consumed. Information managers and architects must work with business teams to determine how organizational objectives are achieved by using master data.
    • Steps to understanding the users of master data and their needs:
    1. Identify and document the users of master data – some examples include business units such as marketing, sales, and innovation teams.
    2. Interview those identified to understand how their strategic goals can be enabled by MDM. Determine their needs and expectations.
    3. Determine how changes to the master data management strategy will bring about improvements to information sharing and increase the value of this critical asset.

    Info-Tech Insight

    Although it is easy to get distracted by the technical aspects of the MDM project – such as extraction and consolidation rules – the true goal of MDM is to make sure that the consumers of master data (such as business units, sales reps) have access to consistent, relevant, and trusted shared data.

    Interview business stakeholders to understand how IT’s implementation of MDM will enable better business decisions

    1 hours

    Instructions

    1. Identify which members of the business you would like to interview to gather an understanding of their current data issues and desired data usage. (Recommendation: Gather a diverse set of individuals to help build a broader and more holistic knowledge of data consumption wants or requirements.)
    2. Prepare your interview questions.
    3. Interview the identified members of the business.
    4. Debrief and document results.

    Tactical Tips

    • Include members of your team to help heighten their knowledge of the business.
    • Identify a team member to operate as the formal scribe.
    • Keep the discussion as free flowing as possible; it will likely enable the business to share more. Don’t get defensive – one of the goals of the interviews is to open communication lines and identify opportunities for change, not create tension between IT and the business.
    Input Output
    • Current master data pain points and issues
    • Desired master data usage
    • Prioritized list of master data management enablers
    • Understanding of organizational strategic plan
    Materials Participants
    • Interview questions
    • Whiteboard/flip charts
    • Information Management Team
    • Business Line Representatives

    Info-Tech Insight

    Prevent the interviews from being just a venue for the business to complain about data by opening the discussion of having them share current concerns and then focus the second half on what they would like to do with data and how they see master data assets supporting their strategic plans.

    Ensure buy-in for the MDM project by aligning the MDM vision and the drivers of the organization

    MDM exists to enable the success of the organization as a whole, not just as a technology venture. To be successful in the MDM initiative, IT must understand how MDM will help the critical aspects of the business. Likewise, the business must understand why it is important to them to ensure long-term support of the project.

    The image contains a screenshot example of the text above.

    “If an organization only wants to look at MDM as a tech project, it will likely be a failure. It takes a very strong business and IT partnership to make it happen.”

    – Julie Hunt, Software Industry Analyst, Hub Designs Magazine

    Use Info-Tech’s Master Data Management Business Case Presentation Template to help secure business buy-in

    1-2 hours

    The image contains screenshots of the Master Data Management Business Case Presentation Template.

    Objectives

    • This presentation should be used to help obtain momentum for the ongoing master data management initiative and continued IT- business collaboration.
    • Master data management and the state of processes around data can be a sensitive business topic. To overcome issues of resistance from the operational or strategic levels, create a well-crafted business case.
    Input Output
    • Business requirements
    • Goals of MDM
    • Pain points of inadequate MDM
    • Awareness built for MDM project
    • Target data domains
    • Project scope
    Materials Participants
    • Master Data Management Business Case Presentation Template
    • Data Stewards or Data Custodians
    • CEO, CDO, or CIO
    • Information Management Team

    Download the MDM Business Case Presentation Template

    Use Info-Tech’s project charter to support your team in organizing their master data management plans

    Use this master document to centralize the critical information regarding the objectives, staffing, timeline, budget, and expected outcome of the project.

    1. MDM Vision and Mission

    Overview

    Define the value proposition behind addressing master data strategies and developing the organization's master data management practice.

    Consider

    Why is this project critical for the business?

    Why should this project be done now, instead of delayed further down the road?

    2. Goals or Objectives

    Overview

    Your goals and objectives should be practical and measurable. Goals and objectives should be mapped back to the reasons for MDM that we identified in the Executive Brief.

    Example Objectives

    Align the organization’s IT and business capabilities in MDM to the requirements of the organization’s business processes and the data that supports it.

    3. Expected Outcomes

    Overview

    Master data management as a concept can change based on the organization and with definitions and expectations varying heavily for individuals. Ensure alignment at the outset of the project by outlining and attaining agreement on the expectations and expected outcomes (deliverables) of the project.

    Recommended Outcomes

    Outline of an action plan

    Documented data strategies

    4. Outline of Action Plan

    Overview

    Document the plans for your project in the associated sections of the project charter to align with the outcomes and deliverables associated with the project. Use the sample material in the charter and the “Develop Your Timeline for the MDM Project” section to support developing your project plans.

    Recommended Project Scope

    Align master data MDM plan with the business.

    Document current and future architectural state of MDM.

    Download the MDM Project Charter Template

    5. Identify the Resourcing Requirements

    Overview

    Create a project team that has representation of both IT and the business (this will help improve alignment and downstream implementation planning).

    Business Roles to Engage

    Data owners (for subject area data)

    Data stewards who are custodians of business data (related to subject areas evaluated)

    Data scientists or other power users who are heavy consumers of data

    IT Roles to Engage

    Data architect(s)

    Any data management professionals who are involved in modeling data, managing data assets, or supporting the systems in which the data resides.

    Database administrators or data warehousing architects with a deep knowledge of data operations.

    Individuals responsible for data governance.

    Phase 2: Build the MDM Practice and Platform

    Develop a Master Data Management Practice and Platform

    Step 2.1

    Document the Current Data State

    Objectives

    1. Understand roles that data strategy, data governance, and data architecture play in MDM.

    2. Document the organization’s current data state for MDM.

    This step involves the following participants:

    Data Stewards or Data Custodians

    Data or Enterprise Architect

    Information Management Team

    Outcomes of this step

    Document the organization’s current data state, understanding the business processes and movement of data across the company.

    Effective data governance will create the necessary roles and rules within the organization to support MDM

    • A major success factor for MDM falls under data governance. If you don’t establish data governance early on, be prepared to face major obstacles throughout your project. Governance includes data definitions, data standards, access rights, and quality rules and ensures that MDM continues to offer value.
    • Data governance involves an organizational committee or structure that defines the rules of how data is used and managed – rules around its quality, processes to remediate data errors, data sharing, managing data changes, and compliance with internal and external regulations.
    • What is required for governance of master data? Defined roles, including data stewards and data owners, that will be responsible for creating the definitions relevant to master data assets.

    The image contains a screenshot of the Data Governance Key to Data Enablement.

    For more information, see Info-Tech Research Group’s Establish Data Governance blueprint.

    Ensure MDM success by defining roles that represent the essential high-level aspects of MDM

    Regardless of the maturity of the organization or the type of MDM project being undertaken, all three representatives must be present and independent. Effective communication between them is also necessary.

    Technology Representative

    Governance Representative

    Business Representative

    Role ensures:

    • MDM technology requirements are defined.
    • MDM support is provided.
    • Infrastructure to support MDM is present.

    Role ensures:

    • MDM roles and responsibilities are clearly defined.
    • MDM standards are adhered to.

    Role ensures:

    • MDM business requirements are defined.
    • MDM business matching rules are defined.

    The following roles need to be created and maintained for effective MDM:

    Data Owners are accountable for:

    • Data created and consumed.
    • Ensuring adequate data risk management is in place.

    Data Stewards are responsible for:

    • The daily and routine care of all aspects of data systems.
    • Supporting the user community.
    • Collecting, collating, and evaluating issues and problems with data.
    • Managing standard business definitions and metadata for critical data elements.

    Another crucial aspect of implementing MDM governance is defining match rules for master data

    • Matching, merging, and linking data from multiple systems about the same item, person, group, etc. attempts to remove redundancy, improve data quality, and provide information that is more comprehensive.
    • Matching is performed by applying inference rules. Data cleansing tools and MDM applications often include matching engines used to match data.
      • Engines are dependent on clearly defined matching rules, including the acceptability of matches at different confidence levels.
    • Despite best efforts, match decisions sometimes prove to be incorrect. It is essential to maintain the history of matches so that matches can be undone when they are discovered to be incorrect.
    • Artificial intelligence (AI) for match and merge is also an option, where the AI engine can automatically identify duplicate master data records to create a golden record.

    Match-Merge Rules vs. Match-Link Rules

    Match-Merge Rules

    • Match records and merge the data from these records into a single, unified, reconciled, and comprehensive record. If rules apply across data sources, create a single unique and comprehensive record in each database.
    • Complex due to the need to identify so many possible circumstances, with different levels of confidence and trust placed on data values in different fields from different sources.
    • Challenges include the operational complexity of reconciling the data and the cost of reversing the operation if there is a false merge.

    Match-Link Rules

    • Identify and cross-reference records that appear to relate to a master record without updating the content of the cross-referenced record.
    • Easier to implement and much easier to reverse.
    • Simple operation; acts on the cross-reference table and not the individual fields of the merged master data record, even though it may be more difficult to present comprehensive information from multiple records.

    Data architecture will assist in producing an effective data integration model for the technology underlying MDM

    Data quality is directly impacted by architecture.

    • With an MDM architecture, access, replication, and flow of data are controlled, which increases data quality and consistency.
    • Without an MDM architecture, master data occurs in application silos. This can cause redundant and inconsistent data.

    Before designing the MDM architecture, consider:

    • How the business is going to use the master data.
    • Architectural style (this is often dependent on the existing IT architecture, but generally, organizations starting with MDM find a hub architecture easiest to work with).
    • Where master data is entered, updated, and stored.
    • Whether transactions should be processed as batch or real-time.
    • What systems will contribute to the MDM system.
    • Implementation style. This will help ensure the necessary applications have access to the master data.

    “Having an architectural oversight and reference model is a very important step before implementing the MDM solutions.”

    – Selwyn Samuel, Director of Enterprise Architecture

    Document the organization’s data architecture to generate an accurate picture of the current data state

    2-3 hours

    Populate the template with your current organization's data components and the business flow that forms the architecture.

    Think about the source of master data and what other systems will contribute to the MDM system.

    The image contains a screenshot of the MDM Architecture Design Template.

    Input Output
    • Business process streamline
    • Current data state
    Materials Participants
    • MDM Architecture Design Template ArchiMate file
    • Enterprise Architect
    • Data Architect

    Download the MDM Architecture Design Template ArchiMate file

    Step 2.2

    Document the Target Data State

    Objectives

    1. Understand four implementation styles for MDM deployments.

    2. Document target MDM implementation systems.

    This step involves the following participants:

    Data Stewards or Data Custodians

    Data or Enterprise Architect

    Information Management Team

    Outcomes of this step

    Document the organization’s target architectural state surrounding MDM, identifying the specific MDM implementation style.

    How the organization’s data flows through IT systems is a convenient way to define your MDM state

    Understanding the data sources present in the organization and how the business organizes and uses this data is critical to implementing a successful MDM strategy.

    Operational MDM

    • As you manage data in an operational MDM system, the data gets integrated back into the systems that were the source of the data in the first place. The “best records” are created from a combination of data elements from systems that create relevant data (e.g. billing system, call center, reservation system) and then the data is sent back to the systems to update it to the best record. This includes both batch and real-time processing data.

    Analytical MDM

    • Generates “best records” the same way that operational MDM does. However, the data doesn’t go back to the systems that generated the data but rather to a repository for analytics, decision management, or reporting system purposes.

    Discovery of master data is the same for both approaches, but the end use is very different.

    The approaches are often combined by technologically mature organizations, but analytical MDM is generally more expensive due to increased complexity.

    Central to an MDM program is the implementation of an architectural framework

    Info-Tech Research Group’s Reference MDM Architecture uses a top-down approach.

    A top-down approach shows the interdependent relationship between layers – one layer of functionality uses services provided by the layers below, and in turn, provides services to the layers above.

    The image contains a screenshot of the Architectural Framework.

    Info-Tech Research Group’s Reference MDM Architecture can meet the unique needs of different organizations

    The image contains a screenshot of Info-Tech Research Group's Reference MDM Architecture.

    The MDM service layers that make up the hub are:

    • Virtual Registry. The virtual registry is used to create a virtual view of the master data (this layer is not necessary for every MDM implementation).
    • Interface Services. The interface services work directly with the transport method (e.g. Web Service, Pub/Sub, Batch/FTP).
    • Rules Management. The rules management layer manages business rules and match rules set by the organization.
    • Lifecycle Management. This layer is responsible for managing the master data lifecycle. This includes maintaining relationships across domains, modeling classification and hierarchies within the domains, helping with master data quality through profiling rules, deduplicating and merging data to create golden records, keeping authoring logs, etc.
    • Base Services. The base services are responsible for managing all data (master, history, metadata, and reference) in the MDM hub.
    • Security. Security is the base layer and is responsible for protecting all layers of the MDM hub.

    An important architectural decision concerns where master data should live

    All MDM architectures will contain a system of entry, a system of record, and in most cases, a system of reference. Collectively, these systems identify where master data is authored and updated and which databases will serve as the authoritative source of master data records.

    System of Entry (SOE)

    System of Record (SOR)

    System of Reference (SORf)

    Any system that creates master data. It is the point in the IT architecture where one or more types of master data are entered. For example, an enterprise resource planning (ERP) application is used as a system of entry for information about business entities like products (product master data) and suppliers (supplier master data).

    The system designated as the authoritative data source for enterprise data. The true system of record is the system responsible for authoring and updating master data and this is normally the SOE. An ideal MDM system would contain and manage a single, up-to-date copy of all master data. This database would provide timely and accurate business information to be used by the relevant applications. In these cases, one or more SOE applications (e.g. customer relationship management or CRM) will be declared the SOR for certain types of data. The SOR can be made up of multiple physical subsystems.

    A replica of master data that can be synchronized with the SOR(s). It is updated regularly to resolve discrepancies between data sets, but will not always be completely up to date. Changes in the SOR are typically batched and then transmitted to the SORf. When a SORf is implemented, it acts as the authoritative source of enterprise data, given that it is updated and managed relative to the SOR. The SORf can only be used as a read-only source for data consumers.

    Central to an MDM program is the implementation of an architectural framework

    These styles are complementary and see increasing functionality; however, organizations do not need to start with consolidation.

    Consolidation

    Registry

    Coexistence

    Transactional

    What It Means

    The MDM is a system of reference (application systems serve as the systems of record). Data is created and stored in the applications and sent (generally in batch mode) to a centralized MDM system.

    The MDM is a system of reference. Master data is created and stored in the

    application systems, but key master data identifiers are linked with the MDM system, which allows a view of master data records to be assembled.

    The MDM is a system of reference. Master data is created and stored in application systems; however, an authoritative record of master data is also created (through matching) and stored in the MDM system.

    The MDM is a genuine source of record. All master data records are centrally authored and materialized in the MDM system.

    Use Case

    This style is ideal for:

    • Organizations that want to have access to master data for reporting.
    • Organizations that do not need real-time access to master data.

    This style is ideal for:

    • A view of key master data identifiers.
    • Near real-time master data reference.
    • Organizations that need access to key master data for operational systems.
    • Organizations facing strict data replication regulations.

    This style is ideal for:

    • A complete view of each master data entity.
    • Deployment of workflows for collaborative authoring.
    • A central reference system for master data.

    This style is ideal for:

    • Organizations that want true master data management.
    • Organizations that need complete, accurate, and consistent master data at all times.
    • Transactional access to master data records.
    • Tight control over master data.

    Method of Use

    Analytical

    Operational

    Analytical, operational, or collaborative

    Analytical, operational, or collaborative

    Consolidation implementation style

    Master data is created and stored in application systems and then placed in a centralized MDM hub that can be used for reference and reporting.

    The image contains a screenshot of the architectural framework and MDM hub.

    Advantages

    • Prepares master data for enterprise data warehouse and reporting by matching/merging.
    • Can serve as a basis for coexistence or transactional MDM.

    Disadvantages

    • Does not provide real-time reference because updates are sent to the MDM system in batch mode.
    • New data requirements will need to be managed at the system of entry.

    Registry implementation style

    Master data is created and stored in applications. Key identifiers are then linked to the MDM system and used as reference for operational systems.

    The image contains a screenshot of the architectural framework with a focus on registry implementation style.

    Advantages

    • Quick to deploy.
    • Can get a complete view of key master data identifiers when needed.
    • Data is always current since it is accessed from the source systems.

    Disadvantages

    • Depends on clean data at the source system level.
    • Can be complex to manage.
    • Except for the identifiers persisting in the MDM system, all master data records remain in the applications, which means there is not a complete view of all master data records.

    Coexistence implementation style

    Master data is created and stored in existing systems and then synced with the MDM system to create an authoritative record of master data.

    The image contains a screenshot of the architectural framework with a focus on the coexistence implementation style.

    Advantages

    • Easier to deploy workflows for collaborative authoring.
    • Creates a complete view for each master data record.
    • Increased master data quality.
    • Allows for data harmonization across systems.
    • Provides organizations with a central reference system.

    Disadvantages

    • Master data is altered in both the MDM system and source systems. Data may not be up to date until synchronization takes place.
    • Higher deployment costs because all master data records must be harmonized.

    Transactional implementation style

    All master data records are materialized in the MDM system, which provides the organization with a single, complete source of master data at all times.

    The image contains a screenshot of the architectural framework with a focus on the transactional implementation style.

    Advantages

    • Functions as a system of record, providing complete, consistent, accurate, and up-to-date data.
    • Provides a single location for updating and managing master data.

    Disadvantages

    • The implementation of this style may require changes to existing systems and business processes.
    • This implementation style comes with increased cost and complexity.

    All organizations are different; identify the architecture and implementation needs of your organization

    Architecture is not static – it must be able to adapt to changing business needs.

    • The implementation style an organization chooses is dependent on organizational factors such as the purpose of MDM and method of use.
    • Some master data domains may require that you start with one implementation style and later graduate to another style while retaining the existing data model, metadata, and matching rules. Select a starting implementation style that will best suit the organization.
    • Organizations with multi-domain master data may have to use multiple implementation styles. For example, data domain X may require the use of a registry implementation, while domain Y requires a coexistence implementation.

    Document your target data state surrounding MDM

    2-3 hours

    Populate the template with your target organization’s data architecture.

    Highlight new capabilities and components that MDM introduced based on MDM implementation style.

    The image contains a screenshot of the MDM Architecture Design Template.

    Input Output
    • Business process streamline
    • MDM architectural framework
    • Target data state
    Materials Participants
    • MDM Architecture Design Template ArchiMate File
    • Enterprise Architect
    • Data Architect
    • Head of Data

    Step 2.3

    Develop MDM Practice and Platform

    Objectives

    1. Review Info-Tech’s practice pattern and design your master data management practice.

    2. Design your master data management platform.

    3. Consider next steps for the MDM project.

    This step involves the following participants:

    Data Stewards or Data Custodians

    Data or Enterprise Architect

    Information Management Team

    Outcomes of this step

    Define the key services and outputs that must be delivered by establishing core capabilities, accountabilities, roles, and governance for the practice and platform.

    What does a master data management practice pattern look like?

    The master data management practice pattern describes the core capabilities, accountabilities, processes, and essential roles and the elements that provide oversight or governance of the practice, all of which are required to deliver on high-value services and deliverables or output for the organization.

    The image contains a screenshot to demonstrate the intentional relationships between the business and the master data.

    Download the Master Data Management Practice Pattern Template ArchiMate File

    Master data management data practice setup

    • Define the practice lead’s accountabilities and responsibilities.
    • Assign the practice lead.
    • Design the practice, defining the details of the practice (including the core capabilities, accountabilities, processes, and essential roles; the elements that provide oversight or governance of the practice; and the practice’s services and deliverables or output for the organization).
    • Define services and accountabilities:
    1. Define deployment and engagement model
    2. Define practice governance and metrics
    3. Define processes and deliverables
    4. Summarize capabilities
    5. Use activity slide to assign the skills to the role

    General approach to setting up data practices

    Guidelines for designing and establishing your various data practices.

    Understand master data management practice pattern

    A master data management practice pattern includes key services and outputs that must be delivered by establishing core capabilities, accountabilities, roles, and governance for the practice.

    Assumption:

    The accountabilities and responsibilities for the master data management practice have been established and assigned to a practice lead.

    1. Download and review Master Data Management Practice Pattern (Level 1 – Master Data Management Practice Pattern).
    2. Review and update master data management processes for your organization.

    Download the Master Data Management Practice Pattern Template ArchiMate File

    Info-Tech Insight

    An organization with heavy merger and acquisition activity poses a significant master data challenge. Prioritize your master data practice based on your organization’s ability to locate and maintain a single source of master data.

    The image contains a screenshot of the Master Data Management Process.

    Initiate your one-time master data management practice setup

    1. Ensure data governance committees are established.
    2. Align master data management working group responsibilities with data governance committee.
    3. Download and review Master Data Management Practice Pattern Setup (Level 1 – Master Data Management Practice Setup).
    4. Start establishing your master data practice:

      5. 4.1 Define services and accountabilities

      4.2 Define processes and deliverables by stakeholder

      4.3 Design practice operating model

      4.4 Perform skills inventory and design roles

      4.5 Determine practice governance and metrics

      4.6 Summarize practice capabilities

    5. Define key master data management deliverable and processes.

    The image contains a screenshot of the Process Template MDM Conflict Resolution.

    Download and Update:

    Process Template: MDM Conflict Resolution

    MDM operating model

    The operating model is a visualization of how MDM commonly operates and the value it brings to the organization. It illustrates the master data flow, which works from left to right, from source system to consumption layer. Another important component of the model is the business data glossary, which is part of your data governance plan, to define terminology and master data’s key characteristics across business units.

    The image contains a screenshot of the MDM Operating Model.

    Choosing the appropriate technology capabilities

    An MDM platform should include certain core technical capabilities:

    • Master data hub: Functions as a system of reference, providing an authoritative source of data in read-only format to systems downstream.
    • Data modeling: Ability to model complex relationships between internal application sources and other parties.
    • Workflow management: Ability to support flexible and comprehensive workflow-based capabilities.
    • Relationship and hierarchies: Ability to determine relationships and identify hierarchies within the same domain or across different domains of master data.
    • Information quality: Ability to profile, cleanse, match, link, identify, and reconcile master data in different data sources to create and maintain the “golden record.”
    • Loading, integration, synchronization: Ability to load data quality tools and integrate so there is a bidirectional flow of data. Enable data migration and updates that prevent duplicates within the incoming data and data found in the hub.
    • Security: Ability to control access of MDM and the ability to report on activities. Ability to configure and manage different rules and visibilities.
    • Ease of use: Including different user interfaces for technical and business roles.
    • Scalability and high performance/high availability: Ability to expand or shrink depending on the business needs and maintain a high service level.

    Other requirements may include:

    • MDM solution that can handle multiple domains on a single set of technology and hardware.
    • Offers a broad set of data integration connectors out of the box.
    • Offers flexible deployments (on-premises, cloud, as-a-service).
    • Supports all architectural implementation styles: registry, consolidation, coexistence, and transactional.
    • Data governance tools: workflow and business process management (BPM) functionality to link data governance with operational MDM.
    • Uses AI to automate MDM processes.

    Info-Tech Research Group’s MDM platform

    The image contains a screenshot of Info-Tech's MDM Platform.

    Info-Tech Research Group’s MDM platform summarizes an organization’s data environment and the technical capabilities that should be taken into consideration for your organization's MDM implementation.

    Design your master data management platform

    2-3 hours

    Instructions

    Download the Master Data Management Platform Template.

    The platform is not static. Adapt the template to your own needs based on your target data state, required technical capabilities, and business use cases.

    The image contains a screenshot of Info-Tech's MDM Platform.

    Input Output
    • Technology capabilities
    • Target data state
    • Master Data Management Platform
    Materials Participants
    • Master Data Management Platform Template
    • Data Architect
    • Enterprise Architect
    • Head of Data

    Download the MDM Platform Template

    Next steps for the MDM project

    There are several deployment options for MDM platforms; pick the one best suited to the organization’s business needs:

    On-Premises Solutions

    Cloud Solutions

    Hybrid Solutions

    Embrace the technology

    MDM has traditionally been an on-premises initiative. On-premises solutions have typically had different instances for various divisions. On-premises solutions offer interoperability and consistency.

    Many IT teams of larger companies prefer an on-premises implementation. They want to purchase a perpetual MDM software license, install it on hardware systems, configure and test the MDM software, and maintain it on an ongoing basis.

    Cloud MDM solutions can be application-specific or platform-specific, which involves using a software platform or web-based portal interface to connect internal and external data. Cloud is seen as a more cost-effective MDM solution as it doesn’t require a large IT staff to configure the system and can be paid for through a monthly subscription. Because many organizations are averse to storing their master data outside of their firewalls, some cloud MDM solutions manage the data where it resides (either software as a service or on-premises), rather than maintaining it in the cloud.

    MDM system resides both on premises and in the cloud. As many organizations have some applications on premises and others in the cloud, having a hybrid MDM solution is a realistic option for many. MDM can be leveraged from either on-premises or in the cloud solutions, depending on the current needs of the organization.

    • Vendor-supplied MDM solutions often provide complete technical functionality in the package and various deployment options.
    • Consider leverage Info-Tech’s SoftwareReviews to accelerate and improve your software selection process.

    Capitalizing on trends in the MDM technology space would increase your competitive edge

    AI improves master data management.

    • With MDM technology improving every year, there are a greater number of options to choose from than ever before. AI is one of the hottest trends in MDM.
    • By using machine learning (ML) techniques, AI can automate many activities surrounding MDM to ease manual processes and improve accuracy, such as automating master data profiling, managing workflow, identifying duplication, and suggesting match and merge proposals.
    • Some other powerful applications include product categorization and hierarchical management. The product is assigned to the correct level of the category hierarchy based on the probability that a block of words in a product title or description belongs to product categories (Informatica, 2021).

    Info-Tech Insight

    Leverage modern capabilities such as AI and ML to support large and complex MDM deployments.

    The image contains a screenshot of the AI Activities in MDM.

    Informatica, 2021

    Related Info-Tech Research

    Build Your Data Quality Program

    • Data needs to be good, but truly spectacular data may go unnoticed. Provide the right level of data quality, with the appropriate effort, for the correct usage. This blueprint will help you determine what “the right level of data quality” means and create a plan to achieve that goal for the business.

    Build a Data Architecture Roadmap

    • Optimizing data architecture requires a plan, not just a data model.

    Create a Data Management Roadmap

    • Streamline your data management program with our simplified framework.

    Related Info-Tech Research

    Build a Robust and Comprehensive Data Strategy

    • Formulate a data strategy that stitches all of the pieces together to better position you to unlock the value in your data.

    Build Your Data Practice and Platform

    • The true value of data comes from defining intentional relationships between the business and the data through a well-thought-out data platform and practice.

    Establish Data Governance

    • Establish data trust and accountability with strong governance.

    Research Authors and Contributors

    Authors:

    Name

    Position

    Company

    Ruyi Sun

    Research Specialist, Data & Analytics

    Info-Tech Research Group

    Rajesh Parab

    Research Director, Data & Analytics

    Info-Tech Research Group

    Contributors:

    Name

    Position

    Company

    Selwyn Samuel

    Director of Enterprise Architecture

    Furniture manufacturer

    Julie Hunt

    Consultant and Author

    Hub Designs Magazine and Julie Hunt Consulting

    David Loshin

    President

    Knowledge Integrity Inc.

    Igor Ikonnikov

    Principal Advisory Director

    Info-Tech Research Group

    Irina Sedenko

    Advisory Director

    Info-Tech Research Group

    Anu Ganesh

    Principal Research Director

    Info-Tech Research Group

    Wayne Cain

    Principal Advisory Director

    Info-Tech Research Group

    Reddy Doddipalli

    Senior Workshop Director

    Info-Tech Research Group

    Imad Jawadi

    Senior Manager, Consulting

    Info-Tech Research Group

    Andy Neill

    Associate Vice President

    Info-Tech Research Group

    Steve Wills

    Practice Lead

    Info-Tech Research Group

    Bibliography

    “DAMA Guide to the Data Management Body of Knowledge (DAMA-DMBOK Guide).” First Edition. DAMA International. 2009. Digital. April 2014.
    “State of the Connected Customer, Fifth Edition.” Salesforce, 2022. Accessed Jan. 2023.
    “The new digital edge: Rethinking strategy for the postpandemic era.” McKinsey & Company, 26 May. 2021. Assessed Dec. 2022.
    “Value and resilience through better risk management.” Mckinsey & Company, 1 Oct. 2018. Assessed Dec. 2022.
    “Plotting a course through turbulent times (9TH ANNUAL B2B SALES & MARKETING DATA REPORT)” Dun & Bradstreet, 2022. Assessed Jan. 2023.
    ““How to Win on Customer Experience.”, Deloitte Digital, 2020. Assessed Dec. 2022.
    “CX Trends 2022.”, Zendesk, 2022. Assessed Jan. 2023
    .”Global consumer trends to watch out for in 2023.” Qualtrics XM Institute, 8 Nov. 2022. Assessed Dec. 2022
    “How to Understand Single Versus Multiple Software Instances.” Brightwork Research & Analysis, 24 Mar. 2021. Assessed Dec. 2022
    “What is omnichannel?” Oracle. Assessed Dec. 2022
    “How AI Improves Master Data Management (MDM).” Informatica, 30 May. 2021. Assessed Dec. 2022

    Applications Priorities 2023

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    • Parent Category Name: Architecture & Strategy
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    • Economic, social, and regulatory conditions have changed livelihoods, businesses, and marketplaces. Modern tools and technologies have acted as lifelines by minimizing operating and delivery costs, and in the process, establishing a strong foundation for growth and maturity.
    • These tools and technologies must meet the top business goals of CXOs: ensure service continuity, improve customer experience, and make data-driven decisions.
    • While today’s business applications are good and well received, there is still room for improvement. The average business application satisfaction score among IT leadership was 72% (n=1582, CIO Business Vision).

    Our Advice

    Critical Insight

    • Applications are critical components in any business strategic plan. They can directly influence an organization’s internal and external brand and reputation, such as their uniqueness, competitiveness and innovativeness in the industry
    • Business leaders are continuously looking for innovative ways to better position their application portfolio to satisfy their goals and objectives, i.e., application priorities. Given the scope and costs often involved, these priorities must be carefully crafted to clearly state achievable business outcomes that satisfies the different needs very different customers, stakeholders, and users.
    • Unfortunately, expectations on your applications team have increased while the gap between how stakeholders and applications teams perceive effectiveness remains wide. This points to a need to clarify the requirements to deliver valuable and quality applications and address the pressures challenging your teams.

    Impact and Result

    Learn and explore the technology and practice initiatives in this report to determine which initiatives should be prioritized in your application strategy and align to your business organizational objectives:

    • Optimize the effectiveness of the IT organization.
    • Boost the productivity of the enterprise.
    • Enable business growth through technology.

    Applications Priorities 2023 Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Applications Priorities Report 2023 – A report that introduces and describes five opportunities to prioritize in your 2023 application strategy.

    In this report, we explore five priorities for emerging and leading-edge technologies and practices that can improve on capabilities needed to meet the ambitions of your organization.

    • Applications Priorities 2023 Report

    Infographic

    Further reading

    Applications Priorities 2023

    Applications are the engine of the business: keep them relevant and modern

    What we are facing today is transforming the ways in which we work, live, and relate to one another. Applications teams and portfolios MUST change to meet this reality.

    Economic, social, and regulatory conditions have changed livelihoods, businesses, and marketplaces. Modern tools and technologies have acted as lifelines by minimizing operating and delivery costs, and in the process, establishing a strong foundation for growth and maturity.

    As organizations continue to strengthen business continuity, disaster recovery, and system resilience, activities to simply "keep the lights on" are not enough. Be pragmatic in the prioritization and planning of your applications initiatives, and use your technologies as a foundation for your growth.

    Your applications must meet the top business goals of your CXOs

    • Ensure service continuity
    • Improve customer experience
    • Make data-driven decisions
    • Maximize stakeholder value
    • Manage risk

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022, n=568.

    Select and align your applications priorities to your business goals and objectives

    Applications are critical components in any business strategic plan. They can directly influence an organization's internal and external brand and reputation, such as their:

    • Uniqueness, competitiveness, and innovativeness in the industry.
    • Ability to be dynamic, flexible, and responsive to changing expectations, business conditions, and technologies.

    Therefore, business leaders are continuously looking for innovative ways to better position their application portfolios to satisfy their goals and objectives, i.e. applications priorities. Given the scope and costs often involved, these priorities must be carefully crafted to clearly state achievable business outcomes that satisfy
    the different needs of very different customers, stakeholders, and users.

    Today's business applications are good but leave room for improvement

    72%
    Average business application satisfaction score among IT leadership in 1582 organizations.

    Source: CIO Business Vision, August 2021 to July 2022, N=190.

    Five Applications Priorities for 2023

    In this report, we explore five priorities for emerging and leading-edge technologies and practices that can improve on capabilities needed to meet the Ambitions of your organization.

    this is an image of the Five Applications Priorities for which will be addressed in this blueprint.

    Strengthen your foundations to better support your applications priorities

    These key capabilities are imperative to the success of your applications strategy.

    KPI and Metrics

    Easily attainable and insightful measurements to gauge the progress of meeting strategic objectives and goals (KPIs), and the performance of individual teams, practices and processes (metrics).

    BUSINESS ALIGNMENT

    Gain an accurate understanding and interpretation of stakeholder, end-user, and customer expectations and priorities. These define the success of business products and services considering the priorities of individual business units and teams.

    EFFICIENT DELIVERY & SUPPORT PRACTICE

    Software delivery and support roles, processes, and tools are collaborative, well equipped and resourced, and optimized to meet changing stakeholder expectations.

    Data Management & Governance

    Ensuring data is continuously reliable and trustworthy. Data structure and integrations are defined, governed, and monitored.

    Product & Service Ownership

    Complete inventory and rationalization of the product and service portfolio, prioritized backlogs, roadmaps, and clear product and service ownership with good governance. This helps ensure this portfolio is optimized to meet its goals and objectives.

    Strengthen your foundations to better support your applications priorities (cont'd)

    These key capabilities are imperative to the success of your applications strategy.

    Organizational Change Management

    Manage the adoption of new and modified processes and technologies considering reputational, human, and operational concerns.

    IT Operational Management

    Continuous monitoring and upkeep of products and services to assure business continuity, and system reliability, robustness and disaster recovery.

    Architectural Framework

    A set of principles and standards that guides the consistent, sustainable and scalable growth of enterprise technologies. Changes to the architecture are made in collaboration with affected parties, such as security and infrastructure.

    Application Security

    The measures, controls, and tactics at the application layer that prevent vulnerabilities against external and internal threats and ensure compliance to industry and regulatory security frameworks and standards.

    There are many factors that can stand in your team's way

    Expectations on your applications team have increased, while the gap between how stakeholders and applications teams perceive effectiveness remains wide. This points to a need to clarify the requirements to deliver valuable and quality applications and address the pressures challenging your teams.

    1. Attracting and retaining talent
    2. Maximizing the return on technology
    3. Confidently shifting to digital
    4. Addressing competing priorities
    5. Fostering a collaborative culture
    6. Creating high-throughput teams

    CIOs agree that at least some improvement is needed across key IT activities

    A bar graph is depicted which shows the proportion of CIOs who believe that some, or significant improvement is necessary for the following categories: Measure IT Project Success; Align IT Budget; Align IT Project Approval Process; Measure Stakeholder Satisfaction With IT; Define and Align IT Strategy; Understand Business Goals

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022, n=568.

    Pressure Point 1:
    Attracting and Retaining Talent

    Recent environmental pressures impacted traditional working arrangements and showed more workplace flexibility is often possible. At the same time, many employees' expectations about how, when, and where they choose to work have also evolved. Recruitment and retention are reflections of different sides of the same employee value proposition coin. Organizations that fail to reinvent their approach to attracting and retaining talent by focusing on candidate and employee experience risk turnover, vacancies, and lost opportunities that can negatively impact the bottom line.

    Address the underlying challenges

    • Lack of employee empowerment and few opportunities for learning and development.
    • Poor coworker and manager relationships.
    • Compensation and benefits are inadequate to maintain desired quality of life.
    • Unproductive work environment and conflicting balance of work and life.
    • Unsatisfactory employee experience, including lack of employee recognition
      and transparency of organizational change.

    While workplace flexibility comes with many benefits, longer work hours jeopardize wellbeing.
    62% of organizations reported increased working hours, while 80% reported an increase in flexibility.
    Source: McLean & Company, 2022; n=394.

    Be strategic in how you fill and train key IT skills and capabilities

    • Cybersecurity
    • Big Data/Analytics
    • Technical Architecture
    • DevOps
    • Development
    • Cloud

    Source: Harvey Nash Group, 2021; n=2120.

    Pressure Point 2:
    Maximizing the Return of Technology

    Recent environmental pressures impacted traditional working arrangements and showed more workplace flexibility is often possible. At the same time, many employees' expectations about how, when, and where they choose to work have also evolved. Recruitment and retention are reflections of different sides of the same employee value proposition coin. Organizations that fail to reinvent their approach to attracting and retaining talent by focusing on candidate and employee experience risk turnover, vacancies, and lost opportunities that can negatively impact the bottom line.

    Address the underlying challenges

    • Inability to analyze, propose, justify, and communicate modernization solutions in language the stakeholders understand and in a way that shows they clearly support business priorities and KPIs and mitigate risks.
    • Little interest in documenting and rationalizing products and services through business-IT collaboration.
    • Lack of internal knowledge of the system and loss of vendor support.
    • Undefined, siloed product and service ownership and governance, preventing solutions from working together to collectively deliver more value.
    • Little stakeholder appetite to invest in activities beyond "keeping the lights on."

    Only 64% of applications were identified as effective by end users.
    Effective applications are identified as at least highly important and have high feature and usability satisfaction.
    Source: Application Portfolio Assessment, August 2021 to July 2022; N=315.

    "Regardless of the many definitions of modernization floating around, the one characteristic that we should be striving for is to ensure our applications do an outstanding job of supporting the users and the business in the most effective and efficient manner possible."
    Source: looksoftware.

    Pressure Point 3:
    Confidently Shifting to Digital

    "Going digital" reshapes how the business operates and drives value by optimizing how digital and traditional technologies and tactics work together. This shift often presents significant business and technical risks to business processes, enterprise data, applications, and systems which stakeholders and teams are not aware of or prepared to accommodate.

    Address the underlying challenges

    • Differing perspectives on digital can lead to disjointed transformation initiatives, oversold benefits, and a lack of synergy among digital technologies and processes.
    • Organizations have difficulty adapting to new technologies or rethinking current business models, processes, and ways of working because of the potential human, ethical, and reputational impacts and restrictions from legacy systems.
    • Management lacks a framework to evaluate how their organization manages and governs business value delivery.
    • IT is not equipped or resourced to address these rapidly changing business, customer, and technology needs.
    • The wrong tools and technologies were chosen to support the shift to digital.

    The shift to digital processes is starting, but slowly.
    62% of respondents indicated that 1-20% of their processes were digitized during the past year.
    Source: Tech Trends and Priorities 2023; N=500

    Resistance to change and time/budget constraints are top barriers preventing companies from modernizing their applications.
    Source: Konveyor, 2022; n=600.

    Pressure Point 4:
    Addressing Competing Priorities

    Enterprise products and services are not used, operated, or branded in isolation. The various parties involved may have competing priorities, which often leads to disagreements on when certain business and technology changes should be made and how resources, budget, and other assets should be allocated. Without a broader product vision, portfolio vision, and roadmap, the various dependent or related products and services will not deliver the same level of value as if they were managed collectively.

    Address the underlying challenges

    • Undefined product and service ownership and governance, including escalation procedures when consensus cannot be reached.
    • Lack of a unified and grounded set of value and quality definitions, guiding principles, prioritization standards, and broad visibility across portfolios, business capabilities, and business functions.
    • Distrust between business units and IT teams, which leads to the scaling of unmanaged applications and fragmented changes and projects.
    • Decisions are based on opinions and experiences without supporting data.

    55% of CXOs stated some improvement is necessary in activities to understand business goals.
    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    CXOs are moderately satisfied with IT's performance as a business partner (average score of 69% among all CXOs). This sentiment is similarly felt among CIOs (64%).
    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    Pressure Point 5:
    Fostering a Collaborative Culture

    Culture impacts business results, including bottom-line revenue and productivity metrics. Leaders appreciate the impact culture can have on applications initiatives and wish to leverage this. How culture translates from an abstract concept to something that is measurable and actionable is not straightforward. Executives need to clarify how the desired culture will help achieve their applications strategy and need to focus on the items that will have the most impact.

    Address the underlying challenges

    • Broad changes do not consider the unique subcultures, personalities, and behaviors of the various teams and individuals in the organization.
    • Leaders mandate cultural changes without alleviating critical barriers and do not embody the principles of the target state.
    • Bureaucracy and politics restrict changes and encourage the status quo.
    • Industry standards, technologies, and frameworks do not support or cannot be tailored to fit the desired culture.
    • Some teams are deliberately excluded from the scoping, planning, and execution of key product and service delivery and management activities.

    Agile does not solve team culture challenges.
    43% of organizations cited organizational culture as a significant barrier to adopting and scaling Agile practices.
    Source: Digital.ai, 2021.

    "Providing a great employee experience" as the second priority (after recruiting) highlights the emphasis organizations are placing on helping employees adjust after having been forced to change the way work gets done.
    Source: McLean & Company, 2022; N=826.

    Use your applications priorities to help address your pressure points

    Success can be dependent on your ability to navigate around or alleviate your pressure points. Design and market your applications priorities to bring attention to your pressure points and position them as key risk factors to their success.

    Applications Priorities
    Digital Experience (DX) Intelligent Automation Proactive Application Management Multisource Systems Digital Organization as a Platform
    Attracting and Retaining Talent Enhance the employee experience Be transparent and support role changes Shift focus from maintenance to innovation Enable business-managed applications Promote and showcase achievements and successes
    Maximizing the Return on Technology Modernize or extend the use of existing investments Automate applications across multiple business functions Improve the reliability of mission-critical applications Enhance the functionality of existing applications Increase visibility of underused applications
    Confidently Shifting to Digital Prioritize DX in your shift to digital Select the capabilities that will benefit most from automation Prepare applications to support digital tools and technologies Use best-of-breed tools to meet specific digital needs Bring all applications up to a common digital standard
    Addressing Competing Priorities Ground your digital vision, goals, and objectives Recognize and evaluate the architectural impact Rationalize the health of the applications Agree on a common philosophy on system composition Map to a holistic platform vision, goals, and objectives
    Fostering a Collaborative Culture Involve all perspectives in defining and delivering DX Involve the end user in the delivery and testing of the automated process Include the technical perspective in the viability of future applications plans Discuss how applications can work together better in an ecosystem Ensure the platform is configured to meet the individual needs of the users
    Creating High-Throughput Teams Establish delivery principles centered on DX Remove manual, error-prone, and mundane tasks Simplify applications to ease delivery and maintenance Alleviate delivery bottlenecks and issues Abstract the enterprise system to expedite delivery

    Digital Experience (DX)

    PRIORITY 1

    • Deliver Valuable User, Customer, Employee, and Brand Experiences

    Delivering valuable digital experiences requires the adoption of good management, governance, and operational practices to accommodate stakeholder, employee, customer, and end-user expectations of digital experiences (e.g. product management, automation, and iterative delivery). Technologies are chosen based on what best enables, delivers, and supports these expectations.

    Introduction

    Digital transformation is not just about new tools and technologies. It is also about delivering a valuable digital experience

    What is digital experience (DX)?

    Digital experience (DX) refers to the interaction between a user and an organization through digital products and services. Digital products and services are tools, systems, devices, and resources that gather, store, and process data; are continuously modernized; and embody eight key attributes that are described on the following slide. DX is broken down into four distinct perspectives*:

    • Customer Experience – The immediate perceptions of transactions and interactions experienced through a customer's journey in the use of the organization's digital
      products and services.
    • End-User Experience – Users' emotions, beliefs, and physical and psychological responses
      that occur before, during, or after interacting with a digital product or service.
    • Brand Experience – The broader perceptions, emotions, thoughts, feelings and actions the public associate with the organization's brand and reputation or its products and services. Brand experience evolves over time as customers continuously engage with the brand.
    • Employee Experience – The satisfaction and experience of an employee through their journey with the organization, from recruitment and hiring to their departure. How an employee embodies and promotes the organization brand and culture can affect their performance, trust, respect, and drive to innovate and optimize.
    Digital Products and Services
    Customer Experience Brand Experience Employee Experience End-User Experience

    Digital products and services have a common set of attributes

    Digital transformation is not just about new tools and technologies. It is also about delivering a valuable digital experience

    • Digital products and services must keep pace with changing business and end-user needs as well as tightly supporting your maturing business model with continuous modernization. Focus your continuous modernization on the key characteristics that drive business value.
    • Fit for purpose: Functionalities are designed and implemented for the purpose of satisfying the end user's needs and solving their problems.
    • User-centric: End users see the product as rewarding, engaging, intuitive, and emotionally satisfying. They want to come back to it.
    • Adaptable: The product can be quickly tailored to meet changing end-user and technology needs with reusable and customizable components.
    • Accessible: The product is available on demand and on the end user's preferred interface.
      End users have a seamless experience across all devices.
    • Private and secured: The end user's activity and data are protected from unauthorized access.
    • Informative and insightful: The product delivers consumable, accurate, and trustworthy real-time data that is important to the end user.
    • Seamless application connection: The product facilitates direct interactions with one or more other products through an uninterrupted user experience.
    • Relationship and network building: The product enables and promotes the connection and interaction of people.

    The Business Value cycle of continuous modernization.

    Signals

    DX is critical for business growth and maturity, but the organization may not be ready

    A good DX has become a key differentiator that gives organizations an advantage over their competition and peers. Shifts in working environments; employee, customer, and stakeholder expectations; and the advancements in modern technologies have raised the importance of adopting and transitioning to digital processes and tools to stay relevant and responsive to changing business and technology conditions.

    Applications teams are critical to ensuring the successful delivery and operation of these digital processes and tools. However, they are often under-resourced and challenged to meet their DX goals.

    • 7% of both business and IT respondents think IT has the resources needed to keep up with digital transformation initiatives and meet deadlines (Cyara, 2021).
    • 43% of respondents said that the core barrier to digital transformation is a lack of skilled resources (Creatio, 2021).
    A circle graph is shown with 91% of the circle coloured in dark blue, with the number 91% in the centre.

    of organizations stated that at least 1% of processes were shifted from being manually completed to digitally completed in the last year. 29% of organizations stated at least 21% were shifted.

    Source: Tech Trends and Priorities 2023; N=500.

    A circle graph is shown with 98% of the circle coloured in dark blue, with the number 98% in the centre.

    of organizations recognized digital transformation is important for competitive advantage. 94% stated it is important to enhance customer experience, and 91% stated it will have a positive impact on revenue.

    Source: Cyara, 2021.

    Drivers

    Brand and reputation

    Customers are swayed by the innovations and advancements in digital technologies and expect your applications team to deliver and support them. Your leaders recognize the importance of these expectations and are integrating them into their business strategy and brand (how the organization presents itself to its customers, employees and the public). They hope that their actions will improve and shape the company's reputation (public perception of the company) as effective, customer-focused, and forward-thinking.

    Worker productivity

    As you evolve and adopt more complex tools and technology, your stakeholders will expect more from business units and IT teams. Unfortunately, teams employing manual processes and legacy systems will struggle to meet these expectations. Digital products and services promote the simplification of complex operations and applications and help the business and your teams better align operational practices with strategic goals and deliver valuable DX.

    Organization modernization

    Legacy processes, systems, and ways of working are no longer suitable for meeting the strategic digital objectives and DX needs stakeholders expect. They drive up operational costs without increased benefits, impede business growth and innovation, and consume scarce budgets that could be used for other priorities. Shifting to digital tools and technologies will bring these challenges to light and demonstrate how modernization is an integral part of DX success.

    Benefits & Risks

    Benefits

    • Flexibility & Satisfaction
    • Adoption
    • Reliability

    Employees and customers can choose how they want to access, modify, and consume digital products and services. They can be tailored to meet the specific functional needs, behaviors, and habits of the end user.

    The customer, end user, brand, and employee drive selection, design, and delivery of digital products and services. Even the most advanced technologies will fail if key roles do not see the value in their use.

    Digital products and services are delivered with technical quality built into them, ensuring they meet the industry, regulatory, and company standards throughout their lifespan and in various conditions.

    Risks

    • Legacy & Lore
    • Bureaucracy & Politics
    • Process Inefficiencies
    • No Quality Standards

    Some stakeholders may not be willing to change due to their familiarity and comfort of business practices.

    Competing and conflicting priorities of strategic products and services undermine digital transformation and broader modernization efforts.

    Business processes are often burdened by wasteful activities. Digital products and services are only as valuable as the processes they support.

    The performance and support of your digital products and services are hampered due to unmanageable technical debt because of a deliberate decision to bypass or omit quality good practices.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Enhance the employee experience.

    Design the digital processes, tools, and technologies to meet the individual needs of the employee.

    Maximizing the Return on Technology

    Modernize or extend the use of existing investments.

    Drive higher adoption of applications and higher user value and productivity by implementing digital capabilities to the applications that will gain the most.

    Confidently Shifting to Digital

    Prioritize DX in your shift to digital. Include DX as part of your definition of success.

    Your products and services are not valuable if users, customers, and employees do not use them.

    Addressing Competing Priorities

    Ground your digital vision, goals, and objectives

    Establish clear ownership of DX and digital products and services with a cross-functional prioritization framework.

    Fostering a Collaborative Culture

    Involve all perspectives in defining and delivering DX.

    Maintain a committee of owners, stakeholders, and delivery teams to ensure consensus and discuss how to address cross-functional opportunities and risks.

    Creating High-Throughput Teams

    Establish delivery principles centered on DX.

    Enforce guiding principles to streamline and simplify DX delivery, such as plug-and-play architecture and quality standards.

    Recommendations

    Build a digital business strategy

    A digital business strategy clearly articulates the goals and ambitions of the business to adopt digital practices, tools, and technologies. This document:

    • Looks for ways to transform the business by identifying what technologies to embrace, what processes to automate, and what new business models to create.
    • Unifies digital possibilities with your customer experiences.
    • Establishes accountability with the executive leadership.
    • States the importance of cross-functional participation from senior management across the organization.

    Related Research:

    Learn, understand, and empathize with your users, employees, and customers

    • To create a better product, solution, or service, understanding those who use it, their needs, and their context is critical.
    • A great experience design practice can help you balance those goals so that they are in harmony with those of your users.
    • IT leaders must find ways to understand the needs of the business and develop empathy on a much deeper level. This empathy is the foundation for a thriving business partnership.

    Related Research:

    Recommendations

    Center product and service delivery decisions and activities on DX and quality

    User, customer, employee, and brand are integral perspectives on the software development lifecycle (SDLC) and the management and governance practices supporting digital products and services. It ensures quality standards and controls are consistently upheld while maintaining alignment with various needs and priorities. The goal is to come to a consensus on a universal definition and approach to embed quality and DX-thinking throughout the delivery process.

    Related Research:

    Instill collaborative delivery practices

    Today's rapidly scaling and increasingly complex digital products and services create mounting pressure on delivery teams to release new features and changes quickly and with sufficient quality. This pressure is further compounded by the competing priorities of individual stakeholders and the nuances among different personas of digital products and services.

    A collaborative delivery practice sets the activities, channels, and relationships needed to deliver a valuable and quality product or service with cross-functional awareness, accountability, and agreement.

    Related Research:

    Recommendations

    Continuously monitor and modernize your digital products and services

    Today's modern digital products and services are tomorrow's shelfware. They gradually lose their value, and the supporting technologies will become obsolete. Modernization is a continuous need.

    Data-driven insights help decision makers decide which products and services to retire, upgrade, retrain on, or maintain to meet the demands of the business.

    Enhancements focusing on critical business capabilities strengthen the case for investment and build trust with all stakeholders.

    Related Research:

    CASE STUDY
    Mastercard in Asia

    Focus on the customer journey

    Chief Marketing Officer M.V. Rajamannar (Raja) wanted to change Mastercard's iconic "Priceless" ad campaign (with the slogan "There are some things money can't buy. For everything else there's Mastercard."). The main reasons were that the campaign relied on one-way communication and targeted end customers, even though Mastercard doesn't issue cards directly to customers; partner banks do. To drive the change in campaign, Raja and his team created a digital engine that leveraged digital and social media. Digital engine is a seven-step process based on insights gleaned from data and real-time optimization.

    1. Emotional spark: Using data to understand customers' passion points, Mastercard builds videos and creatives to ignite an emotional spark and give customers a reason to engage. For example, weeks before New Year's Eve, Mastercard produced a video with Hugh Jackman to encourage customers to submit a story about someone who deeply mattered to them. The authors of the winning story would be flown to reunite with those both distant and dear.
    2. Engagement: Mastercard targets the right audience with a spark video through social media to encourage customers to share their stories.
    3. Offers: To help its partner banks and merchants in driving their business, the company identifies the best offers to match consumers' interests. In the above campaign, Mastercard's Asia-Pacific team found that Singapore was a favorite destination for Indian customers, so they partnered with Singapore's Resorts World Sentosa with an attractive offer.
    4. Real-time optimization: Mastercard optimizes, in real time, a portfolio of several offers through A/B testing and other analysis.
    5. Amplification: Real-time testing provides confidence to Mastercard about the potential success of these offers and encourages its bank and merchant partners to co-market and co-fund these campaigns.
    6. Network effects: A few weeks after consumers submitted their stories about distant loved ones, Mastercard selected winners, produced videos of them surprising their friends and families, and used these videos in social media to encourage sharing.
    7. Incremental transactions: These programs translate into incremental business for banks who issue cards, for merchants where customers spend money, and for Mastercard, which gets a portion of every transaction.

    Source: Harvard Business Review Press

    CASE STUDY
    Mastercard in Asia (cont'd)

    Focus on the customer journey

    1. Emotional Spark
      Drives genuine personal stories
    2. Engagement
      Through Facebook
      and social media
    3. Offers
      From merchants
      and Mastercard assets
    4. Optimization
      Real-time testing of offers and themes
    5. Amplification
      Paid and organic programmatic buying
    6. Network Effects
      Sharing and
      mass engagement
    7. Incremental Transactions
      Win-win for all parties

    CASE STUDY
    Mastercard in Asia (cont'd)

    The Mastercard case highlights important lessons on how to engage customers:

    • Have a broad message. Brands need to connect with consumers over how they live and spend their time. Organizations need to go beyond the brand or product message to become more relevant to consumers' lives. Dove soap was very successful in creating a conversation among consumers with its "Real Beauty" campaign, which focused not on the brand or even the product category, but on how women and society view beauty.
    • Shift from storytelling to story making. To break through the clutter of advertising, companies need to move from storytelling to story making. A broader message that is emotionally engaging allows for a two-way conversation.
    • Be consistent with the brand value. The brand needs to stand for something, and the content should be relevant to and consistent with the image of the brand. Pepsi announced an award of $20 million in grants to individuals, businesses, and nonprofits that promote a new idea to make a positive impact on community. A large number of submissions were about social causes that had nothing to do with Pepsi, and some, like reducing obesity, were in conflict with Pepsi's product.
    • Create engagement that drives business. Too much entertainment in ads may engage customers but detract from both communicating the brand message and increasing sales. Simply measuring the number of video views provides only a partial picture of a program's success.

    Intelligent Automation

    PRIORITY 2

    • Extend Automation Practices with AI and ML

    AI and ML are rapidly growing. Organizations see the value of machines intelligently executing high-performance and dynamic tasks such as driving cars and detecting fraud. Senior leaders see AI and ML as opportunities to extend their business process automation investments.

    Introduction

    Intelligent automation is the next step in your business process automation journey

    What is intelligent automation (IA)?

    Intelligent automation (IA) is the combination of traditional automation technologies, such as business process management (BPM) and robotic process automation (RPA), with AI and ML. The goal is to further streamline and scale decision making across various business processes by:

    • Removing human interactions.
    • Addressing decisions that involve complex variables.
    • Automatically adapting processes to changing conditions.
    • Bridging disparate automation technologies into an integrated end-to-end value delivery pipeline.

    "For IA to succeed, employees must be involved in the transformation journey so they can experience firsthand the benefits of a new way of working and creating business value," (Cognizant).

    What is the difference between IA and hyperautomation?

    "Hyperautomation is the act of automating everything in an organization that can be automated. The intent is to streamline processes across an organization using intelligent automation, which includes AI, RPA and other technologies, to run without human intervention. … Hyperautomation is a business-driven, disciplined approach that organizations use to rapidly identify, vet, and automate as many business and IT processes as possible" (IBM, 2021).

    Note that hyperautomation often enables IA, but teams solely adopting IA do not need to abide to its automation-first principles.

    IA is a combination of various tools and technologies

    What tools and technologies are involved in IA?

    • Artificial intelligence (AI) & Machine Learning (ML) – AI systems perform tasks mimicking human intelligence such as learning from experience and problem solving. AI is making its own decisions without human intervention. Machine learning systems learn from experience and without explicit instructions. They learn patterns from data then analyze and make predictions based on past behavior and the patterns learned. AI is a combination of technologies and can include machine learning.
    • Intelligent Business Process Management System (iBPMS) – Combination of BPM tools with AI and other intelligence capabilities.
    • Robotic Process Automation (RPA) – Robots leveraging an application's UI rather than programmatic access. Automate rules-based, repetitive tasks performed by human workers with AI/ML.
    • Process Mining & Discovery – Process mining involves reading system event logs and application transactions and applying algorithmic analysis to automatically identify and map inferred business processes. Process discovery involves unintrusive virtual agents that sit on a user's desktop and record and monitor how they interact with applications to perform tasks and processes. Algorithms are then used to map and analyze the processes.
    • Intelligent Document Processing – The conversion of physical or unstructured documents into a structured, digital format that can be used in automation solutions. Optical character recognition (OCR) and natural language processing (NPL) are common tools used to enable this capability.
    • Advanced Analytics – The gathering, synthesis, transformation, and delivery of insightful and consumable information that supports data-driven decision making. Data is queried from various disparate sources and can take on a variety of structured and unstructured formats.

    The cycle of IA technologies

    Signals

    Process automation is an executive priority and requires organizational buy-in

    Stakeholders recognize the importance of business process automation and AI and are looking for ways to deliver more value using these technologies.

    • 90% of executives stated automating business workflows post-COVID-19 will ensure business continuity (Kofax, 2022).
    • 88% of executives stated they need to fast-track their end-to-end digital transformation (Kofax, 2022).

    However, the advertised benefits to vendors of enabling these desired automations may not be easily achievable because of:

    • Manual and undocumented business processes.
    • Fragmented and inaccessible systems.
    • Poor data quality, insights, and security.
    • The lack of process governance and management practice.
    A circle graph is shown with 49% of the circle coloured in dark blue, with the number 49% in the centre.

    of CXOs stated staff sufficiency, skill and engagement issues as a minor IT pain point compared to 51% of CIOs stated this issue as a major pain point.

    Source: CEO-CIO Alignment Diagnostics, August 2021 to July 2022; n=568.

    A circle graph is shown with 36% of the circle coloured in dark blue, with the number 36% in the centre.

    of organizations have already invested in AI or machine learning.

    Source: Tech Trends and Priorities 2023; N=662

    Drivers

    Quality & throughput

    Products and services delivered through an undefined and manual process risk the creation of preventable and catchable defects, security flaws and holes, missing information, and other quality issues. IA solutions consistently reinforce quality standards the same way across all products and services while tailoring outputs to meet an individual's specific needs. Success is dependent on the accurate interpretation and application of quality standards and the user's expectations.

    Worker productivity

    IA removes the tedious, routine, and mundane tasks that distract and restrict employees from doing more valuable, impactful, and cognitively focused activities. Practical insights can also be generated through IA tools that help employees make data-driven decisions, evaluate problems from different angles, and improve the usability and value of the products and services they produce.

    Good process management practices

    Automation magnifies existing inefficiencies of a business process management practice, such as unclear and outdated process documentation and incorrect assumptions. IA reinforces the importance of good business process optimization practices, such as removing waste and inefficiencies in a thoughtful way, choosing the most appropriate automation solution, and configuring the process in the right way to maximize the solution's value.

    Benefits & Risks

    Benefits

    • Documentation
    • Hands-Off
    • Reusability

    All business processes must be mapped and documented to be automated, including business rules, data entities, applications, and control points.

    IA can be configured and orchestrated to automatically execute when certain business, process, or technology conditions are met in an unattended or attended manner.

    IA is applicable in use cases beyond traditional business processes, such as automated testing, quality control, audit, website scraping, integration platform, customer service, and data transfer.

    Risks

    • Data Quality & Bias
    • Ethics
    • Recovery & Security
    • Management

    The accuracy and relevance of the decisions IA makes are dependent on the overall quality of the data
    used to train it.

    Some decisions can have significant reputational, moral, and ethical impacts if made incorrectly.
    The question is whether it is appropriate for a non-human to make that decision.

    IA is composed of technologies that can be compromised or fail. Without the proper monitoring, controls,
    and recovery protocols, impacted IA will generate significant business and IT costs and can potentially harm customers, employees, and the organization.

    Low- and no-code capabilities ease and streamline IA development, which makes it susceptible to becoming unmanageable. Discipline is needed to ensure IA owners are aware of the size and health of the IA portfolio.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Be transparent and support role changes.

    Plan to address the human sentiment with automation (e.g. job security) and the transition of the role to other activities.

    Maximizing the Return on Technology

    Automate applications across multiple business functions.

    Recognize the value opportunities of improving and automating the integration of cross-functional processes.

    Confidently Shifting to Digital

    Maximize the learning of automation fit.

    Select the right capabilities to demonstrate the value of IA while using lessons learned to establish the appropriate support.

    Addressing Competing Priorities

    Recognize automation opportunities with capability maps.

    Use a capability diagram to align strategic IA objectives with tactical and technical IA initiatives.

    Fostering a Collaborative Culture

    Involve the user in the delivery process.

    Maximize automation adoption by ensuring the user finds value in its use before deployment.

    Creating High-Throughput Teams

    Remove manual, error-prone, and mundane tasks.

    Look for ways to improve team throughput by removing wasteful activities, enforcing quality, and automating away tasks driving down productivity.

    Recommendations

    Build your business process automation playbook and practice

    Formalize your business process automation practice with a good toolkit and a repeatable set of tactics and techniques.

    • Clarify the problem being solved with IA.
    • Optimate your processes. Apply good practices to first optimize (opti-) and then automate (-mate) key business processes.
    • Deliver minimum viable automations (MVAs). Maximize the learning of automation solutions and business operational changes through small, strategic automation use cases.

    Related Research:

    Explore the various IA tooling options

    Each IA tool will address a different problem. Which tool to choose is dependent on a variety of factors, such as functional suitability, technology suitability, delivery and support capabilities, alignment to strategic business goals, and the value it is designed to deliver.

    Related Research:

    Recommendations

    Introduce AI and ML thoughtfully and with a plan

    Despite the many promises of AI, organizations are struggling to fully realize its potential. The reasons boil down to a lack of understanding of when these technologies should and shouldn't be used, as well as a fear of the unknown. The plan to adopt AI should include:

    • Understanding of what AI really means in practice.
    • Identifying specific applications of AI in the business.
    • Understanding the type of AI applicable for the situation.

    Related Research:

    Mitigate AI and ML bias

    Biases can be introduced into an IA system at any stage of the development process, from the data you collect, to the way you collect it, to which algorithms are used and what assumptions were made. In most cases, AI and ML bias is a is a social, political, and business problem.

    While bias may not be intentional nor completely prevented or eliminated, early detection, good design, and other proactive preventative steps can be taken to minimize its scope and impact.

    Related Research:

    CASE STUDY
    University Hospitals

    Challenge

    University Hospitals Cleveland (UH) faces the same challenge that every major hospital confronts regarding how to deliver increasingly complex, high-quality healthcare to a diverse population efficiently and economically. In 2017, UH embarked on a value improvement program aiming to improve quality while saving $400 million over a five-year period.

    In emergency department (ED) and inpatient units, leaders found anticipating demand difficult, and consequently units were often over-staffed when demand was low and under-staffed when demand was high. Hospital leaders were uncertain about how to reallocate resources based on capacity needs.

    Solution

    UH turned to Hospital IQ's Census Solution to proactively manage capacity, staff, and flow in the ED and inpatient areas.

    By applying AI, ML, and external data (e.g. weather forecasts) to the hospital's own data (including EMR data and hospital policies), the solution helped UH make two-day census forecasts that managers used to determine whether to open or close in-patient beds and, when necessary, divert low-acuity patients to other hospitals in the system to handle predicted patient volume.

    Source: University Hospitals

    Results

    ED boarding hours have declined by 10% and the hospital has seen a 50% reduction in the number of patients who leave the hospital without
    being seen.

    UH also predicts in advance patients ready for discharge and identifies roadblocks, reducing the average length of stay by 15%. UH is able to better manage staff, reducing overtime and cutting overall labor costs.

    The hospital has also increased staff satisfaction and improved patient safety by closing specific units on weekends and increasing the number of rooms that can be sterilized.

    Proactive Application Management

    PRIORITY 3

    • Strengthen Applications to Prevent and Minimize the Impact of Future Issues

    Application management is often viewed as a support function rather than an enabler of business growth. Focus and investments are only placed on application management when it becomes a problem. The lack of governance and practice accountability leaves this practice in a chaotic state: politics take over, resources are not strategically allocated, and customers are frustrated. As a result, application management is often reactive and brushed aside for new development.

    Introduction

    What is application management?

    Application management ensures valuable software is successfully delivered and is maintained for continuous and sustainable business operations. It contains a repeatable set of activities needed to rationalize and roadmap products and services while balancing priorities of new features and maintenance tasks.

    Unfortunately, application management is commonly perceived as a practice that solely addresses issues, updates, and incidents. However, application management teams are also tasked with new value delivery that was not part of the original release.

    Why is an effective application maintenance (reactive) practice not good enough?

    Application maintenance is the "process of modifying a software system or its components after delivery to correct faults, improve performance or other attributes, or adapt to a changed environment or business process," (IEEE, 1998). While it is critical to quickly fix defects and issues when they occur, reactively addressing them is more expensive than discovering them early and employing the practices to prevent them.

    Even if an application is working well, its framework, architecture, and technology may not be compatible with the possible upcoming changes stakeholders and vendors may want to undertake. Applications may not be problems now, but they soon can be.

    What motivates proactive application changes?

    This image shows the motivations for proactive application changes, sorted by external and internal sources.

    Proactive application management must be disciplined and applied strategically

    Proactive application management practices are critical to maintaining business continuity. They require continuous review and modification so that applications are resilient and can address current and future scenarios. Depending on the value of the application, its criticality to business operations, and its susceptibility to technology change, a more proactive management approach may be warranted. Stakeholders can then better manage resources and budget according to the needs of specific products.

    Reactive Management

    Run-to-Failure

    Fix and enhance the product when it breaks. In most cases, a plan is in place ahead of a failure, so that the problem can be addressed without significant disruption and costs.

    Preventive

    Regularly inspect and optimize the product to reduce the likelihood that it will fail in the future. Schedule inspections based on a specific timeframe or usage threshold.

    Predictive

    Predict failures before they happen using performance and usage data to alert teams when products are at risk of failure according to specified conditions.

    Reliability and Risk Based

    Analyze all possible failure scenarios for each component of the product and create tailored delivery plans to improve the stability, reliability, and value of each product.

    Proactive Management

    Signals

    Applications begin to degrade as soon as they are used

    Today's applications are tomorrow's shelfware. They gradually lose their value, stability, robustness, and compatibility with other enterprise technologies. The longer these applications are left unattended or simply "keeping the lights on," the more risks they will bring to the application portfolio, such as:

    • Discovery and exploitation of security flaws and gaps.
    • Increasing the lock-in to specific vendor technologies.
    • Inconsistent application performance across various workloads.

    These impacts are further compounded by the continuous work done on a system burdened with technical debt. Technical debt describes the result of avoided costs that, over time, cause ongoing business impacts. Left unaddressed, technical debt can become an existential threat that risks your organization's ability to effectively compete and serve its customers. Unfortunately, most organizations have a significant, growing, unmanageable technical debt portfolio.

    A circle graph is shown with 60% of the circle coloured in dark green, with the number 60% in the centre.

    of respondents stated they saw an increase in perceived change in technical debt during the past three years. A quarter of respondents indicated that it stayed the same.

    Source: McKinsey Digital, 2020.

    US
    $4.35
    Million

    is the average cost of a data breach in 2022. This figure represents a 2.6% increase from last year. The average cost has climbed 12.7% since 2020.

    Source: IBM, 2022; N=537.

    Drivers

    Technical debt

    Historical decisions to meet business demands by deferring key quality, architectural, or other software delivery activities often lead to inefficient and incomplete code, fragile legacy systems, broken processes, data quality problems, and the other contributors to technical debt. The impacts for this challenge is further heightened if organizations are not actively refactoring and updating their applications behind the scenes. Proactive application management is intended to raise awareness of application fragility and prioritize comprehensive refactoring activities alongside new feature development.

    Long-term application value

    Applications are designed, developed, and tested against a specific set of parameters which may become less relevant over time as the business matures, technology changes, and user behaviors and interactions shift. Continuous monitoring of the application system, regular stakeholder and user feedback, and active technology trend research and vendor engagement will reveal tasks to prepare an application for future value opportunities or stability and resilience concerns.

    Security and resiliency

    Innovative approaches to infiltrating and compromising applications are becoming prevailing stakeholder concerns. The loopholes and gaps in existing application security protocols, control points, and end-user training are exploited to gain the trust of unsuspecting users and systems. Proactive application management enforces continuous security reviews to determine whether applications are at risk. The goal is to prevent an incident from happening by hardening or complementing measures already in place.

    Benefits & Risks

    Benefits

    • Consistent Performance
    • Robustness
    • Operating Costs

    Users expect the same level of performance and experience from their applications in all scenarios. A proactive approach ensures the configurations meet the current needs of users and dependent technologies.

    Proactively managed applications are resilient to the latest security concerns and upcoming trends.

    Continuous improvements to the underlying architecture, codebase, and interfaces can minimize the cost to maintain and operate the application, such as the transition to a loosely coupled architecture and the standardization of REST APIs.

    Risks

    • Stakeholder Buy-In
    • Delayed Feature Releases
    • Team Capacity
    • Discipline

    Stakeholders may not see the association between the application's value and its technical quality.

    Updates and enhancements are system changes much like any application function. Depending
    on the priority of these changes, new functions may be pushed off to a future release cycle.

    Applications teams require dedicated capacity to proactively manage applications, but they are often occupied meeting other stakeholder demands.

    Overinvesting in certain application management activities (such as refactoring, re-architecture, and redesign) can create more challenges. Knowing how much to do is important.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Shift focus from maintenance to innovation.

    Work on the most pressing and critical requests first, with a prioritization framework reflecting cross-functional priorities.

    Maximizing the Return on Technology

    Improve the reliability of mission-critical applications.

    Regularly verify and validate applications are up to date with the latest patches and fixes and comply with industry good practices and regulations.

    Confidently Shifting to Digital

    Prepare applications to support digital tools and technologies.

    Focus enhancements on the key components required to support the integration, performance, and security needs of digital.

    Addressing Competing Priorities

    Rationalize the health of the applications.

    Use data-driven, compelling insights to justify the direction and prioritization of applications initiatives.

    Fostering a Collaborative Culture

    Include the technical perspective in the viability of future applications plans.

    Demonstrate how poorly maintained applications impede the team's ability to deliver confidently and quickly.

    Creating High-Throughput Teams

    Simplify applications to ease delivery and maintenance.

    Refactor away application complexities and align the application portfolio to a common quality standard to reduce the effort to deliver and test changes.

    Recommendations

    Reinforce your application maintenance practice

    Maintenance is often viewed as a support function rather than an enabler of business growth. Focus and investments are only placed on maintenance when it becomes a problem.

    • Justify the necessity of streamlined maintenance.
    • Strengthen triaging and prioritization practices.
    • Establish and govern a repeatable process.

    Ensure product issues, incidents, defects, and change requests are promptly handled to minimize business and IT risks.

    Related Research:

    Build an application management practice

    Apply the appropriate management approaches to maintain business continuity and balance priorities and commitments among maintenance and new development requests.

    This practice serves as the foundation for creating exceptional customer experience by emphasizing cross-functional accountability for business value and product and service quality.

    Related Research:

    Recommendations

    Manage your technical debt

    Technical debt is a type of technical risk, which in turn is business risk. It's up to the business to decide whether to accept technical debt or mitigate it. Create a compelling argument to stakeholders as to why technical debt should be a business priority rather than just an IT one.

    • Define and identify your technical debt.
    • Conduct a business impact analysis.
    • Identify opportunities to better manage technical debt.

    Related Research:

    Gauge your application's health

    Application portfolio management is nearly impossible to perform without an honest and thorough understanding of your portfolio's alignment to business capabilities, business value, total cost of ownership, end-user reception and satisfaction, and technical health.

    Develop data-driven insights to help you decide which applications to retire, upgrade, retrain on, or maintain to meet the demands of the business.

    Related Research:

    Recommendations

    Adopt site reliability engineering (SRE) and DevOps practices

    Site reliability engineering (SRE) is an operational model for running online services more reliably by a team of dedicated reliability-focused engineers.

    DevOps, an operational philosophy promoting development and operations collaboration, can bring the critical insights to make application management practices through SRE more valuable.

    Related Research:

    CASE STUDY
    Government Agency

    Goal

    A government agency needed to implement a disciplined, sustainable application delivery, planning, and management process so their product delivery team could deliver features and changes faster with higher quality. The goal was to ensure change requests, fixes, and new features would relieve requester frustrations, reduce regression issues, and allow work to be done on agreeable and achievable priorities organization-wide. The new model needed to increase practice efficiency and visibility in order to better manage technical debt and focus on value-added solutions.

    Solution

    This organization recognized a number of key challenges that were inhibiting its team's ability to meet its goals:

    • The product backlog had become too long and unmanageable.
    • Delivery resources were not properly allocated to meet the skills and capabilities needed to successfully meet commitments.
    • Quality wasn't defined or enforced, which generated mounting technical debt.
    • There was a lack of clear metrics and defined roles and responsibilities.
    • The business had unrealistic and unachievable expectations.

    Source: Info-Tech Workshop

    Key practices implemented

    • Schedule quarterly business satisfaction surveys.
    • Structure and facilitate regular change advisory board meetings.
    • Define and enforce product quality standards.
    • Standardize a streamlined process with defined roles.
    • Configure management tools to better handle requests.

    Multisource Systems

    PRIORITY 4

    • Manage an Ecosystem Composed of In-House and Outsourced Systems

    Various market and company factors are motivating a review on resource and system sourcing strategies. The right sourcing model provides key skills, resources, and capabilities to meet innovation, time to market, financial, and quality goals of the business. However, organizations struggle with how best to support sourcing partners and to allocate the right number of resources to maximize success.

    Introduction

    A multisource system is an ecosystem of integrated internally and externally developed applications, data, and infrastructure. These technologies can be custom developed, heavily configured vendor solutions, or they may be commercial off-the-shelf (COTS) solutions. These systems can also be developed, supported, and managed by internal staff, in partnership with outsourced contractors, or be completely outsourced. Multisource systems should be configured and orchestrated in a way that maximizes the delivery of specific value drivers for the targeted audience.

    Successfully selecting a sourcing approach is not a simple RFP exercise to choose the lowest cost

    Defining and executing a sourcing approach can be a significant investment and risk because of the close interactions third-party services and partners will have with internal staff, enterprise applications and business capabilities. A careful selection and design is necessary.

    The selection of a sourcing partner is not simple. It involves the detailed inspection and examination of different candidates and matching their fit to the broader vision of the multisource system. In cases where control is critical, technology stack and resource sourcing consolidation to a few vendors and partners is preferred. In other cases, where worker productivity and system flexibility are highly prioritized, a plug-and-play best-of-breed approach is preferred.

    Typical factors involved in sourcing decisions.

    Sourcing needs to be driven by your department and system strategies

    How does the department want to be perceived?

    The image that your applications department and teams want to reflect is frequently dependent on the applications they deliver and support, the resources they are composed of, and the capabilities they provide.

    Therefore, choosing the right sourcing approach should be driven by understanding who the teams are and want to be (e.g. internal builder, an integrator, a plug-in player), what they can or want to do (e.g. custom-develop or implement), and what they can deliver or support (e.g. cloud or on-premises) must be established.

    What value is the system delivering?

    Well-integrated systems are the lifeblood of your organization. They provide the capabilities needed to deliver value to customers, employees, and stakeholders. However, underlying system components may not be sourced under a unified strategy, which can lead to duplicate vendor services and high operational costs.

    The right sourcing approach ensures your partners address key capabilities in your system's delivery and support, and that they are positioned to maximize the value of critical and high-impact components.

    Signals

    Business demand may outpace what vendors can support or offer

    Outsourcing and shifting to a buy-over-build applications strategy are common quick fixes to dealing with capacity and skills gaps. However, these quick fixes often become long-term implementations that are not accounted for in the sourcing selection process. Current application and resource sourcing strategies must be reviewed to ensure that vendor arrangements meet the current and upcoming demands and challenges of the business, customers, and enterprise technologies, such as:

    • Pressure from stakeholders to lower operating costs while maintaining or increasing quality and throughput.
    • Technology lock-in that addresses short-term needs but inhibits long-term growth and maturity.
    • Team capacity and talent acquisition not meeting the needs of the business.
    A circle graph is shown with 42% of the circle coloured in dark brown, with the number 42% in the centre.

    of respondents stated they outsourced software development fully or partly in the last 12 months (2021).

    Source: Coding Sans, 2021.

    A circle graph is shown with 65% of the circle coloured in dark brown, with the number 65% in the centre.

    of respondents stated they were at least somewhat satisfied with the result of outsourcing software development.

    Source: Coding Sans, 2021.

    Drivers

    Business-managed applications

    Employees are implementing and building applications without consulting, notifying, or heeding the advice of IT. IT is often ill-equipped and under-resourced to fight against shadow IT. Instead, organizations are shifting the mindset of "fight shadow IT" to "embrace business-managed applications," using good practices in managing multisource systems. A multisource approach strikes the right balance between user empowerment and centralized control with the solutions and architecture that can best enable it.

    Unique problems to solve

    Point solutions offer features to address unique use cases in uncommon technology environments. However, point solutions are often deployed in siloes with limited integration or overlap with other solutions. The right sourcing strategy accommodates the fragmented nature of point solutions into a broader enterprise system strategy, whether that be:

    • Multisource best of breed – integrate various technologies that provide subsets of the features needed for supporting business functions.
    • Multisource custom – integrate systems built in-house with technologies developed by external organizations.
    • Vendor add-ons and integrations – enhance an existing vendor's offering by using their system add-ons as upgrades, new add-ons, or integrations.

    Vendor services

    Some vendor services in a multisource environment may be redundant, conflicting, or incompatible. Given that multisource systems are regularly changing, it is difficult to identify what services are affected, what would be needed to fill the gap of the removed solution, or which redundant services should be removed.

    A multisource approach motivates the continuous rationalization of your vendor services and partners to determine the right mixture of in-house and outsourced resources, capabilities, and technologies.

    Benefits & Risks

    Benefits

    • Business-Focused Solution
    • Flexibility
    • Cost Optimization

    Multisource systems can be designed to support an employee's ability to select the tools they want and need.

    The environment is architected in a loosely coupled approach to allow applications to be easily added, removed, and modified with minimized impact to other integrated applications.

    Rather than investing in large solutions upfront, applications are adopted when they are needed and are removed when little value is gained. Disciplined application portfolio management is necessary to see the full value of this benefit.

    Risks

    • Manageable Sprawl
    • Policy Adherence
    • Integration & Compatibility

    The increased number and diversity of applications in multisource system environments can overwhelm system managers who do not have an effective application portfolio management practice.

    Fragmented application implementations risk inconsistent adherence to security and other quality policies, especially in situations where IT is not involved.

    Application integration can quickly become tangled, untraceable, and unmanageable because of varying team and vendor preferences for specific integration technologies and techniques.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent

    Enable business-managed applications.

    Create the integrations to enable the easy connection of desired tools to enterprise systems with the appropriate guardrails.

    Maximizing the Return on Technology

    Enhance the functionality of existing applications.

    Complement current application capability gaps with data, features, and services from third-party applications.

    Confidently Shifting to Digital

    Use best-of-breed tools to meet specific digital needs.

    Select the best tools to meet the unique and special functional needs of the digital vision.

    Addressing Competing Priorities

    Agree on a common philosophy on system composition.

    Establish an owner of the multisource system to guide how the system should mature as the organization grows.

    Fostering a Collaborative Culture

    Discuss how applications can work together better in an ecosystem.

    Build committees to discuss how applications can better support each other and drive more value.

    Creating High-Throughput Teams

    Alleviate delivery bottlenecks and issues.

    Leverage third-party sources to fill skills and capacity gaps until a long-term solution can be implemented.

    Recommendations

    Define the goals of your applications department and product vision

    Understanding the applications team's purpose and image is critical in determining how the system they are managing and the skills and capacities they need should be sourced.

    Changing and conflicting definitions of value and goals make it challenging to convey an agreeable strategy of the multisource system. An achievable vision and practical tactics ensure all parties in the multisource system are moving in the same direction.

    Related Research:

    Develop a sourcing partner strategy

    Almost half of all sourcing initiatives do not realize projected savings, and the biggest reason is the choice of partner (Zhang et al., 2018). Making the wrong choice means inferior products, higher costs and the loss of both clients and reputation.

    Choosing the right sourcing partner involves understanding current skills and capacities, finding the right matching partner based on a desired profile, and managing a good working relationship that sees short-term gains and supports long-term goals.

    Related Research:

    Recommendations

    Strengthen enterprise integration practices

    Integration strategies that are focused solely on technology are likely to complicate rather than simplify because little consideration is given on how other systems and processes will be impacted. Enterprise integration needs to bring together business process, applications, and data – in that order.

    Kick-start the process of identifying opportunities for improvement by mapping how applications and data are coordinated to support business activities.

    Related Research:

    Manage your solution architecture and application portfolio

    Haphazardly implementing and integrating applications can generate significant security, performance, and data risks. A well-thought-through solution architecture is essential in laying the architecture quality principles and roadmap on how the multisource system can grow and evolve in a sustainable and maintainable way.

    Good application portfolio management complements the solution architecture as it indicates when low-value and unused applications should be removed to reduce system complexity.

    Related Research:

    Recommendations

    Embrace business-managed applications

    Multisource systems bring a unique opportunity to support the business and end users' desire to implement and develop their own applications. However, traditional models of managing applications may not accommodate the specific IT governance and management practices required to operate business-managed applications:

    • A collaborative and trusting business-IT relationship is key.
    • The role of IT must be reimagined.
    • Business must be accountable for its decisions.

    Related Research:

    CASE STUDY
    Cognizant

    Situation

    • Strives to be primarily an industry-aligned organization that delivers multiple service lines in multiple geographies.
    • Cognizant seeks to carefully consider client culture to create a one-team environment.
    • Value proposition is a consultative approach bringing thought leadership and mutually adding value to the relationship vs. the more traditional order-taker development partner.
    • Wants to share in solution development to facilitate shared successes. Geographic alignment drives knowledge of the client and their challenges, not just about time zone and supportability.
    • Offers one of the largest offshore capabilities in the world, supported by local and nearshore resources to drive local knowledge.
    • Today's clients don't typically want a black box, they are sophisticated and want transparency around the process and solution, to have a partner.
    • Clients do want to know where the work is being delivered from, how it's being done.

    Source: interview with Jay MacIsaac, Cognizant.

    Approach

    • Best relationship comes where teams operate as one.
    • Clients are seeking value, not a development black box.
    • Clients want to have a partner they can engage with, not just an order taker.
    • Want to build a one-team culture with shared goals and deliver business value.
    • Seek a partner that will add to their thinking not echo it.

    Results

    • Cognizant is continuing to deliver double-digit growth and continues to strive for top quartile performance.
    • Growth in the client base has seen the company grow to over 340,000 associates worldwide.

    Digital Organization as a Platform

    PRIORITY 5

    • Create a Common Digital Interface to Access All Products and Services

    A digital platform enables organizations to leverage a flexible, reliable, and scalable foundation to create a valuable DX, ease delivery and management efforts, maximize existing investments, and motivate the broader shift to digital. This approach provides a standard to architect, integrate, configure, and modernize the applications that compose the platform.

    Introduction

    What is digital organization as a platform (DOaaP)?

    Digital organization as a platform (DOaaP) is a collection of integrated digital services, products, applications, and infrastructure that is used as a vehicle to meet and exceed an organization's digital strategies. It often serves as an accessible "place for exchanges of information, goods, or services to occur between producers and consumers as well as the community that interacts
    with said platform" (Watts, 2020).

    DOaaP involves a strategy that paves the way for organizations to be digital. It helps organizations use their assets (e.g. data, processes, products, services) in the most effective ways and become more open to cooperative delivery, usage, and management. This opens opportunities for innovation and cross-department collaborations.

    How is DOaaP described?

    1. Open and Collaborative
      • Open organization: open data, open APIs, transparency, and user participation.
      • Collaboration, co-creation, crowdsourcing, and innovation
    2. Accessible and Connected
      • Digital inclusion
      • Channel ubiquity
      • Integrity and interoperability
      • Digital marketplace
    3. Digital and Programmable
      • Digital identity
      • Policies and processes as code
      • Digital products and services
      • Enabling digital platforms

    Digital organizations follow a common set of principles and practices

    Customer-centricity

    Digital organizations are driven by customer focus, meeting and exceeding customer expectations. It must design its services with a "digital first" principle, providing access through every expected channel and including seamless integration and interoperability with various departments, partners, and third-party services. It also means creating trust in its ability to provide secure services and to keep privacy and ethics as core pillars.

    Leadership, management, and strategies

    Digital leadership brings customer focus to the enterprise and its structures and organizes efficient networks and ecosystems. Accomplishing this means getting rid of silos and a siloed mentality and aligning on a digital vision to design policies and services that are efficient, cost-effective, and provide maximum benefit to the user. Asset sharing, co-creation, and being open and transparent become cornerstones of a digital organization.

    Infrastructure

    Providing digital services across demographics and geographies requires infrastructure, and that in turn requires long-term vision, smart investments, and partnerships with various source partners to create the necessary foundational infrastructure upon which to build digital services.

    Digitization and automation

    Automation and digitization of processes and services, as well as creating digital-first products, lead to increased efficiency and reach of the organization across demographics and geographies. Moreover, by taking a digital-first approach, digital organizations future-proof their services and demonstrate their commitment to stakeholders.

    Enabling platforms

    DOaaP embraces open standards, designing and developing organizational platforms and ecosystems with a cloud-first mindset and sound API strategies. Developer experience must also take center stage, providing the necessary tools and embracing Agile and DevOps practices and culture become prerequisites. Cybersecurity and privacy are central to the digital platform; hence they must be part of the design and development principles and practices.

    Signals

    The business expects support for digital products and services

    Digital transformation continues to be a high-priority initiative for many organizations, and they see DOaaP as an effective way to enable and exploit digital capabilities. However, DOaaP unleashes new strategies, opportunities, and challenges that are elusive or unfamiliar to business leaders. Barriers in current business operating models may limit DOaaP success, such as:

    • Department and functional silos
    • Dispersed, fragmented and poor-quality data
    • Ill-equipped and under-skilled resources to support DOaaP adoption
    • System fragmentation and redundancies
    • Inconsistent integration tactics employed across systems
    • Disjointed user experience leading to low engagement and adoption

    DOaaP is not just about technology, and it is not the sole responsibility of either IT or business. It is the collective responsibility of the organization.

    A circle graph is shown with 47% of the circle coloured in dark blue, with the number 47% in the centre.

    of organizations plan to unlock new value through digital. 50% of organizations are planning major transformation over the next three years.

    Source: Nash Squared, 2022.

    A circle graph is shown with 70% of the circle coloured in dark blue, with the number 70% in the centre.

    of organizations are undertaking digital expansion projects focused on scaling their business with technology. This result is up from 57% in 2021.

    Source: F5 Inc, 2022.

    Drivers

    Unified brand and experience

    Users should have the same experience and perception of a brand no matter what product or service they use. However, fragmented implementation of digital technologies and inconsistent application of design standards makes it difficult to meet this expectation. DOaaP embraces a single design and DX standard for all digital products and services, which creates a consistent perception of your organization's brand and reputation irrespective of what products and services are being used and how they are accessed.

    Accessibility

    Rapid advancement of end-user devices and changes to end-user behaviors and expectations often outpace an organization's ability to meet these requirements. This can make certain organization products and services difficult to find, access and leverage. DOaaP creates an intuitive and searchable interface to all products and services and enables the strategic combination of technologies to collectively deliver more value.

    Justification for modernization

    Many opportunities are left off the table when legacy systems are abstracted away rather than modernized. However, legacy systems may not justify the investment in modernization because their individual value is outweighed by the cost. A DOaaP initiative motivates decision makers to look at the entire system (i.e. modern and legacy) to determine which components need to be brought up to a minimum digital state. The conversation has now changed. Legacy systems should be modernized to increase the collective benefit of the entire DOaaP.

    Benefits & Risks

    Benefits

    • Look & Feel
    • User Adoption
    • Shift to Digital

    A single, modern, customizable interface enables a common look and feel no matter what and how the platform is being accessed.

    Organizations can motivate and encourage the adoption and use of all products and services through the platform and increase the adoption of underused technologies.

    DOaaP motivates and supports the modernization of data, processes, and systems to meet the goals and objectives outlined in the broader digital transformation strategy.

    Risks

    • Data Quality
    • System Stability
    • Ability to Modernize
    • Business Model Change

    Each system may have a different definition of commonly used entities (e.g. customer), which can cause data quality issues when information is shared among these systems.

    DOaaP can stress the performance of underlying systems due to the limitations of some systems to handle increased traffic.

    Some systems cannot be modernized due to cost constraints, business continuity risks, vendor lock-in, legacy and lore, or other blocking factors.

    Limited appetite to make the necessary changes to business operations in order to maximize the value of DOaaP technologies.

    Address your pressure points to fully realize the benefits of this priority

    Success can be dependent on your ability to address your pressure points.

    Attracting and Retaining Talent Promote and showcase achievements and successes. Share the valuable and innovative work of your teams across the organization and with the public.
    Maximizing the Return on Technology Increase visibility of underused applications. Promote the adoption and use of all products and services through the platform and use the lessons learned to justify removal, updates or modernizations.
    Confidently Shifting to Digital Bring all applications up to a common digital standard. Define the baseline digital state all applications, data, and processes must be in to maximize the value of the platform.
    Addressing Competing Priorities Map to a holistic platform vision, goals and objectives. Work with relevant stakeholders, teams and end users to agree on a common directive considering all impacted perspectives.
    Fostering a Collaborative Culture Ensure the platform is configured to meet the individual needs of the users. Tailor the interface and capabilities of the platform to address users' functional and personal concerns.
    Creating High-Throughput Teams Abstract the enterprise system to expedite delivery. Use the platform to standardize application system access to simplify platform changes and quicken development and testing.

    Recommendations

    Define your platform vision

    Organizations realize that a digital model is the way to provide more effective services to their customers and end users in a cost-effective, innovative, and engaging fashion. DOaaP is a way to help support this transition.

    However, various platform stakeholders will have different interpretations of and preferences for what this platform is intended to solve, what benefits it is supposed to deliver, and what capabilities it will deliver. A grounded vision is imperative to steer the roadmap and initiatives.

    Related Research:

    Assess and modernize your applications

    Certain applications may not sufficiently support the compatibility, flexibility, and efficiency requirements of DOaaP. While workaround technologies and tactics can be employed to overcome these application challenges, the full value of the DOaaP may not be realized.

    Reviewing the current state of the application portfolio will indicate the functional and value limitations of what DOaaP can provide and an indication of the scope of investment needed to bring applications up to a minimum state.

    Related Research:

    Recommendations

    Understand and evaluate end-user needs

    Technology has reached a point where it's no longer difficult for teams to build functional and valuable digital platforms. Rather, the difficulty lies in creating an interface and platform that people want to use and use frequently.

    While it is important to increase the access and promotion of all products and services, orchestrating and configuring them in a way to deliver a satisfying experience is even more important. Applications teams must first learn about and empathize with the needs of end users.

    Related Research:

    Architect your platform

    Formalizing and constructing DOaaP just for the sake of doing so often results in an initiative that is lengthy and costly and ends up being considered a failure.

    The build and optimization of the platform must be predicated on a thorough understanding of the DOaaP's goals, objectives, and priorities and the business capabilities and process they are meant to support and enable. The appropriate architecture and delivery practices can then be defined and employed.

    Related Research:

    CASE STUDY
    e-Estonia

    Situation

    The digital strategy of Estonia resulted in e-Estonia, with the vision of "creating a society with more transparency, trust, and efficiency." Estonia has addressed the challenge by creating structures, organizations, and a culture of innovation, and then using the speed and efficiency of digital infrastructure, apps, and services. This strategy can reduce or eliminate bureaucracy through transparency and automation.

    Estonia embarked on its journey to making digital a priority in 1994-1996, focusing on a committed investment in infrastructure and digital literacy. With that infrastructure in place, they started providing digital services like an e-banking service (1996), e-tax and mobile parking (2002), and then went full steam ahead with a digital information interoperability platform in 2001, digital identity in 2002, e-health in 2008, and e-prescription in 2010. The government is now strategizing for AI.

    Results

    This image contains the results of the e-Estonia case study results

    Source: e-Estonia

    Practices employed

    The e-Estonia digital government model serves as a reference for governments across the world; this is acknowledged by the various awards it has received, like #2 in "internet freedom," awarded by Freedom House in 2019; #1 on the "digital health index," awarded by the Bertelsmann Foundation in 2019; and #1 on "start-up friendliness," awarded by Index Venture in 2018.

    References

    "15th State of Agile Report." Digital.ai, 2021. Web.
    "2022 HR Trends Report." McLean & Company, 2022.
    "2022: State of Application Strategy Report." F5 Inc, 2022.
    "Are Executives Wearing Rose-Colored Glasses Around Digital Transformation?" Cyara, 2021. Web.
    "Cost of a Data Breach Report 2022." IBM, 2022. Web.
    Dalal, Vishal, et al. "Tech Debt: Reclaiming Tech Equity." McKinsey Digital, Oct. 2020. Web.
    "Differentiating Between Intelligent Automation and Hyperautomation." IBM, 15 October 2021. Web.
    "Digital Leadership Report 2021." Harvey Nash Group, 2021.
    "Digital Leadership Report 2022: The State of Digital." Nash Squared, 2022. Web.
    Gupta, Sunil. "Driving Digital Strategy: A Guide to Reimagining Your Business." Harvard Business Review Press, 2018. Web.
    Haff, Gordon. "State of Application Modernization Report 2022." Konveyor, 2022. Web.
    "IEEE Standard for Software Maintenance: IEEE Std 1219-1998." IEEE Standard for Software Maintenance, 1998. Accessed Dec. 2015.
    "Intelligent Automation." Cognizant, n.d. Web.
    "Kofax 2022: Intelligent Automation Benchmark Study". Kofax, 2021. Web.
    McCann, Leah. "Barco's Virtual Classroom at UCL: A Case Study for the Future of All University Classrooms?" rAVe, 2 July 2020, Web.
    "Proactive Staffing and Patient Prioritization to Decompress ED and Reduce Length of Stay." University Hospitals, 2018. Web.
    "Secrets of Successful Modernization." looksoftware, 2013. Web.
    "State of Software Development." Coding Sans, 2021. Web.
    "The State of Low-Code/No-Code." Creatio, 2021. Web.
    "We Have Built a Digital Society and We Can Show You How." e-Estonia. n.d. Web.
    Zanna. "The 5 Types of Experience Series (1): Brand Experience Is Your Compass." Accelerate in Experience, 9 February 2020. Web.
    Zhang, Y. et al. "Effects of Risks on the Performance of Business Process Outsourcing Projects: The Moderating Roles of Knowledge Management Capabilities." International Journal of Project Management, 2018, vol. 36 no. 4, 627-639.

    Research Contributors and Experts

    This is a picture of Chris Harrington

    Chris Harrington
    Chief Technology Officer
    Carolinas Telco Federal Credit Union

    Chris Harrington is Chief Technology Officer (CTO) of Carolinas Telco Federal Credit Union. Harrington is a proven leader with over 20 years of experience developing and leading information technology and cybersecurity strategies and teams in the financial industry space.

    This is a picture of Benjamin Palacio

    Benjamin Palacio
    Senior Information Technology Analyst County of Placer

    Benjamin Palacio has been working in the application development space since 2007 with a strong focus on system integrations. He has seamlessly integrated applications data across multiple states into a single reporting solution for management teams to evaluate, and he has codeveloped applications to manage billions in federal funding. He is also a CSAC-credentialed IT Executive (CA, USA).

    This is a picture of Scott Rutherford

    Scott Rutherford
    Executive Vice President, Technology
    LGM Financial Services Inc.

    Scott heads the Technology division of LGM Financial Services Inc., a leading provider of warranty and financing products to automotive OEMs and dealerships in Canada. His responsibilities include strategy and execution of data and analytics, applications, and technology operations.

    This is a picture of Robert Willatts

    Robert Willatts
    IT Manager, Enterprise Business Solutions and Project Services
    Town of Newmarket

    Robert is passionate about technology, innovation, and Smart City Initiatives. He makes customer satisfaction as the top priority in every one of his responsibilities and accountabilities as an IT manager, such as developing business applications, implementing and maintaining enterprise applications, and implementing technical solutions. Robert encourages communication, collaboration, and engagement as he leads and guides IT in the Town of Newmarket.

    This is a picture of Randeep Grewal

    Randeep Grewal
    Vice President, Enterprise Applications
    Red Hat

    Randeep has over 25 years of experience in enterprise applications, advanced analytics, enterprise data management, and consulting services, having worked at numerous blue-chip companies. In his most recent role, he is the Vice President of Enterprise Applications at Red Hat. Reporting to the CIO, he is responsible for Red Hat's core business applications with a focus on enterprise transformation, application architecture, engineering, and operational excellence. He previously led the evolution of Red Hat into a data-led company by maturing the enterprise data and analytics function to include data lake, streaming data, data governance, and operationalization of analytics for decision support.

    Prior to Red Hat, Randeep was the director of global services strategy at Lenovo, where he led the strategy using market data to grow Lenovo's services business by over $400 million in three years. Prior to Lenovo, Randeep was the director of advanced analytics at Alliance One and helped build an enterprise data and analytics function. His earlier work includes seven years at SAS, helping SAS become a leader in business analytics, and at KPMG consulting, where he managed services engagements at Fortune 100 companies.

    Reinforce End-User Security Awareness During Your COVID-19 Response

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    • Parent Category Name: Endpoint Security
    • Parent Category Link: /endpoint-security

    Without the control over the areas in which employees are working, businesses are opening themselves up to a greater degree of risk during the pandemic. How does a business raise awareness for employees who are going to be working remotely?

    Our Advice

    Critical Insight

    • An expanding remote workforce requires training efforts to evolve to include the unique security threats that face remote end users.
    • By presenting security as a personal and individualized issue, you can make this new personal focus a driver for your organizational security awareness and training program.

    Impact and Result

    • Teach remote end users how to recognize current cyberattacks before they fall victim and turn them into active barriers against cyberattacks.
    • Use Info-Tech’s blueprint and materials to build a customized training program that uses best practices.

    Reinforce End-User Security Awareness During Your COVID-19 Response Research & Tools

    Start here

    COVID-19 is forcing many businesses to expand their remote working capabilities further than before. Using this blueprint, see how to augment your existing training or start from scratch during a remote work situation.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Reinforce End-User Security Awareness During Your COVID-19 Response Storyboard
    • Security Awareness and Training Program Development Tool
    • Security Awareness and Training Metrics Tool
    • End-User Security Knowledge Test Template

    1. Training Materials

    Use Info-Tech’s training materials to get you started on remote training and awareness.

    • Training Materials – Phishing
    • Training Materials – Incident Response
    • Training Materials – Cyber Attacks
    • Training Materials – Web Usage
    • Training Materials – Physical Computer Security
    • Training Materials – Mobile Security
    • Training Materials – Passwords
    • Training Materials – Social Engineering
    • Security Training Email Templates
    [infographic]

    Develop an IT Infrastructure Services Playbook

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Infrastructure and operations teams are managing deployments on- and off-premises, and across multiple infrastructure services providers.
    • Though automation tools speed up the delivery process, documentation is always pushed off so the team can meet urgent deadlines.
    • Without documented delivery processes, wait times are longer, controls are adequate but ad hoc, builds are non-standard, and errors are more likely to be introduced in production.

    Our Advice

    Critical Insight

    • Prioritize in-demand services to add to the playbook. Pilot a few services to get value from the project quickly.
    • Do not get lost in automation or tooling. You do not need a complex tool or back-end automation to get value from this project.
    • Learn, then iterate. With a few completed service processes, it is much easier to identify opportunities for service automation.

    Impact and Result

    • Prioritize in-demand services for documentation and standardization.
    • Build service workflows and document service requirements in the services playbook.
    • Create a costing model and track costs to deliver defined services.
    • Leverage data on costs and service requirements to improve service delivery.

    Develop an IT Infrastructure Services Playbook Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to find out why you should create an infrastructure services playbook, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define and prioritize infrastructure services

    Produce a prioritized list of high-demand infrastructure services.

    • Develop an IT Infrastructure Services Playbook – Phase 1: Define and Prioritize Infrastructure Services
    • Infrastructure Services Playbook

    2. Build workflows and an infrastructure services playbook

    Design workflows and create the first draft of the infrastructure services playbook.

    • Develop an IT Infrastructure Services Playbook – Phase 2: Build Workflows and an Infrastructure Services Playbook
    • Infrastructure Service Workflows (Visio)
    • Infrastructure Service Workflows (PDF)

    3. Identify costs and mature service delivery capabilities

    Build a service rate sheet to track costs and develop better service capabilities.

    • Develop an IT Infrastructure Services Playbook – Phase 3: Identify Costs and Mature Service Delivery Capabilities
    • Service Rate Sheet
    • Infrastructure Service Catalog Mind Map Example
    [infographic]

    Workshop: Develop an IT Infrastructure Services Playbook

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Define and Prioritize Infrastructure Services

    The Purpose

    Define and prioritize infrastructure services.

    Key Benefits Achieved

    Identify candidate services for the Playbook.

    Activities

    1.1 Define the services you own.

    1.2 Prioritize infrastructure services.

    Outputs

    Affinity map of infrastructure services

    Service pain points and root causes

    A list of high-demand infrastructure services

    2 Build the Infrastructure Services Playbook

    The Purpose

    Build workflows and an infrastructure services playbook.

    Key Benefits Achieved

    Produce a draft infrastructure services playbook.

    Activities

    2.1 Design workflow for service delivery.

    2.2 Add steps and requirements to the Services Playbook.

    Outputs

    Documented service workflows

    Infrastructure Services Playbook

    3 Identify Costs and Mature Service Delivery Capabilities

    The Purpose

    Identify costs and mature service delivery capabilities.

    Key Benefits Achieved

    Build an infrastructure service rate sheet.

    Define next steps for infrastructure service capabilities.

    Activities

    3.1 Optimize infrastructure cost estimates.

    3.2 Mature your I&O organization into a service broker.

    Outputs

    Service Rate Sheet

    Master list of infrastructure services

    Action plan for Playbook implementation

    Further reading

    Develop an IT Infrastructure Services Playbook

    Automation, SDI, and DevOps – build a cheat sheet to manage a changing Infrastructure & Operations environment.

    Table of contents

    Analyst Perspective

    Executive Summary

    Project Overview

    Summary and Conclusion

    ANALYST PERSPECTIVE

    Technology is changing how infrastructure services are delivered.

    "Managing a hybrid infrastructure environment is challenge enough. Add to this the pressure on IT Operations to deliver services faster and more continuously – it’s a recipe for boondoggle deployments, overcommitted staff, end-user frustration, and operational gridlock.

    It’s not every service you provide that causes problems, so prioritize a few in-demand, painful services. Build and maintain durable, flexible processes that enable your team to provide consistent, repeatable services at a standard cost. Identify opportunities to improve service delivery.

    You’ll save the business time and money and your own team significant grief." (Andrew Sharp, Research Manager, Infrastructure & Operations, Info-Tech Research Group)

    Your infrastructure and operations team is a service provider; standardize, document, and communicate service capabilities

    This Research is Designed For:

    • CTOs and Infrastructure Managers
    • Service Level Managers
    • ITSM Managers and Process Owners

    This Research Will Help You:

    • Inventory services that IT Infrastructure & Operations (I&O) provides to the business (servers, storage, and network).
    • Standardize services and track costs.
    • Articulate the value of these services to business owners.
    • Develop a catalog of infrastructure services.

    This Research Will Also Assist:

    • CIOs
    • Application Development Managers
    • Security Managers
    • Auditors

    This Research Will Help Them:

    • Understand the complexities of technical service delivery.
    • Make better strategic IT infrastructure decisions.

    Executive summary

    Situation

    • Infrastructure and operations teams are managing deployments on- and off-premises and across multiple infrastructure service providers.
    • Though automation tools speed up the delivery process, documentation is always pushed off so the team can meet urgent deadlines.

    Complication

    • Cloud providers have set the bar high for ease of access to stable infrastructure services.
    • Without documented delivery processes, wait times are longer, controls are adequate but ad hoc, builds are non-standard, and errors are more likely to be introduced in production.

    Resolution

    • Prioritize in-demand services for documentation and standardization.
    • Build service workflows and document service requirements in the services playbook.
    • Create a costing model and track costs to deliver defined services.
    • Leverage data on costs and service requirements to improve service delivery.

    Info-Tech Insight

    1. Keep it simple. Work through a few in-demand services to get early value from the project.
    2. Don’t get lost in automation or tooling. You don’t need a complex tool or back-end automation to get value from standardized services.
    3. Do then iterate. With a few completed service processes, it’s much easier to identify opportunities for service automation.

    Create an infrastructure services playbook to improve efficiency, support DevOps, and streamline service delivery

    Begin building an infrastructure services playbook by defining the services you provide. This will also help your team support changes to service delivery (e.g. more use of cloud services and the shift to DevOps).

    In this blueprint, the first step will be to document infrastructure services to:

    1. Clarify infrastructure capabilities and achievable service levels.

      Document infrastructure services to clarify achievable service levels with given resources and what you will need to meet service-level requirement gaps. Establishing your ability to meet customer demands is the first step toward becoming a broker of internal or external services.

    2. Standardize infrastructure service delivery.

      Sometimes, it’s extremely important to do the exact same thing every time (e.g. server hardening). Sometimes, your team needs room to deviate from the script. Create a playbook that allows you to standardize service delivery as needed.

    3. Make good strategic infrastructure decisions.

      Knowledge is power. Defined services and capabilities will help you make important strategic infrastructure decisions around capacity planning and when outsourcing is appropriate.

    Review and optimize infrastructure service delivery as you shift to more cloud-based services

    If you can’t standardize and streamline how you support cloud services, you risk AppDev and business leaders circumventing the I&O team.

    Logo for 'vmware'.

    Example:

    Create a new server resource in a virtual environment vs. public cloud

    In a virtualized environment, provisioning processes can still be relatively siloed.

    In a software-defined environment, many steps require knowledge across the infrastructure stack. Better documentation will help your team deliver services outside their area of specialty.

    		 Logo for 'Microsoft Azure'.
    • Identify CPU requirements for a virtual machine (VM)
    • Calculate VM memory requirements
    • Configure the floppy drive for a VM
    • Configure IDE devices for a VM
    • Configure SCSI adapters for a VM
    • Configure network adapters for a VM
    • Configure VM priority for host CPU resources

      • Server is live
    • Complete SDI code development & review, version control, build status, etc.
    • Identify software and specifications for the instance you want to use
    • Review configuration, storage, and security settings
    • Secure the instance with an existing key pair or create a new key pair
    • Update documentation – public IP address, physical & logical connections, data flows, etc.
    • Launch and connect to instance

      • Server is live

    Strengthen DevOps with an infrastructure playbook

    The purpose behind DevOps is to reduce friction and deliver faster, more continuous, more automated services through the use of cross-functional teams.

    DevOps: bridging Applications Development and Infrastructure & Operations by embracing a culture, practices, and tools born out of Lean and Agile methodologies.

    • Create a common language across functions.
    • Ensure that all service steps are documented.
    • Move towards more standard deployments.
    • Increase transparency within the IT department.
    • Cultivate trust across teams.
    • Build the foundation for automated services.
    A colorful visualization of the DevOps cycle. On the Development side is 'Feedback', Plan', 'Build', 'Integrate', then over to the Operations side is 'Deploy', and 'Operate', then back to Dev with 'Feedback', starting the cycle over again.

    "The bar has been raised for delivering technology products and services – what was good enough in previous decades is not good enough now." (Kim, Humble, Debois, Willis (2016))

    Leverage an infrastructure services playbook to improve service delivery, one step at a time

    Crawl

    • Prioritize infrastructure services that are good candidates for standardization.
    • Document the steps and requirements to deliver the service.
    • Use the playbook and workflows internally as you gather requirements and deliver on requests.
    • Track costs internally.

    Walk

    • Provide infrastructure clients with the playbook and allow them to make requests against it.
    • Update and maintain existing documentation.
    • Automate, where possible.
    • Showback costs to the business.

    Run

    • Provide infrastructure customers with scripts to provision infrastructure resources.
    • Audit requests before fulfilling them.
    • Chargeback costs, as needed.
    A turtle smiles happily on four legs, simply content to be alive. Another turtle moves quickly on two legs, seemingly in a runner's trance, eyes closed, oblivious to the fact that another turtle has beaten him to finish line.

    Focus on in-demand infrastructure services — PHASE 1

    Standardize in-demand, repeatable services first.

    Demand for infrastructure services is usually driven by external requests or operational requirements. Prioritize services based on criticality, durability, frequency, availability, and urgency requirements.

    Scheduling Delays
    • Dealing with a slew of capital projects driven by a major funding initiative, the IT team of a major US transit system is struggling to execute on basic operational tasks.

      • Action:
    • A brainstorming and prioritization exercise identifies web server deployment as their most in-demand service.
    • Identifying breakdowns in web server deployment helps free up resources for other tasks and addresses a serious pain point.
    Think outside the box
    • On a new project for a sporting goods client, the IT department for a marketing firm deploys and supports a “locker” kiosk that users engage with for a chance to win a gift.

      • Action:
    • As the campaign proves successful, the I&O Manager creates a playbook to guide kiosk support and deployment in the future, including required skills, timelines, success metrics, and costs.
    Keep it standard, keep it safe
    • An IT audit at a higher education institution finds that no standard process for server hardening has been defined or documented by the infrastructure team.

      • Action:
    • Improving IT security is a strategic priority for the department.
    • The infrastructure team decides to standardize and document processes, guidelines, and configurations for hardening OS, SCCM, SaltStack, scripting, and patching.

    Leverage service workflows to populate the playbook — PHASE 2

    Infrastructure as Code is breaking down traditional infrastructure silos and support models.

    1. Document the workflow to deliver the service. Identify pain points and target broken processes first.
      Provision –› Configure –› Run –› Quiesce –› Destroy
    2. Define logical expected results and metrics for problematic steps in the process. Identify challenges and possible improvements to each problematic step.
      Building and deploying toolsets is taking a long time
      Start
      • Create a baseline offering for common requests.
      • Make clear that non-standard requests will take time to fulfil.
      		 Stop
      • Move to just one web server.
      		 Continue
      • Use weekly drop-ins to communicate the change.
    3. Document skills and roles, approvers, and pre-requirements to fill out the documentation, as needed. Use the documented process to guide internal process and align with external expectations.

    Cross-silo knowledge is needed: In a software-defined environment, building and launching a new server requires knowledge across the stack.

    • Complete SDI code development & review, version control, build status, etc.
    • Identify software and specifications for the instance you want to use
    • Review configuration, storage, and security settings
    • Secure the instance with an existing key pair, or create a new key pair
    • Update documentation – public IP address, physical & logical connections, data flows, etc.
    • Launch and connect to the instance

      • Server is live

    Take a progressive approach to cost tracking — PHASE 3

    Infrastructure & Operations are bound by two metrics:

    1. Are systems up?
    2. Is technology delivered as efficiently as possible?

    Because tracking cost is integral to efficiency, cost and budget management, by proxy, is one of the most important Infrastructure & Operations metrics.

    Cost management is not a numbers game. It is an indicator of how well infrastructure is managed.

    Track costs in a practical way that delivers value to your organization:

    1. Build and leverage an internal rate sheet to help estimate cost to serve.
    2. Showback rate sheet to help managers and architects make better infrastructure decisions.
    3. Chargeback costs to defined cost centers.

    Project overview

    Use Info-Tech’s methodology to get value faster from your infrastructure services playbook.

    Phases

    		 Phase 1: Define and prioritize infrastructure services Phase 2: Build the infrastructure services playbook Phase 3: Identify costs and mature service delivery capabilities

    Steps

    		 1.1 Define the services you own 2.1 Design workflows for service delivery 3.1 Estimate infrastructure service costs
    1.2 Prioritize infrastructure services 2.2 Add steps and requirements to the services playbook 3.2 Mature your I&O organization into a service broker

    Tools & Templates

    		 Infrastructure Services Playbook Infrastructure Service Workflows Service Rate Sheet

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

    A small monochrome icon depicting a person in front of a blank slide.

    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation Overview

    Your Trusted Advisor is just a call away.

    Scoping
    (Call 1)

    Scope requirements, objectives, and stakeholders. Review the playbook toolset and methodology, and establish fit-for-need.

    		 Identify Services
    (Call 2)

    Brainstorm common infrastructure services your group provides. Consolidate the list and identify priority services.

    		 Create Service Workflows
    (Calls 3-4)

    Build Visio workflows for 2-3 priority services.

    		 Populate the Playbook
    (Calls 4-5)

    Add data to the playbook based on infrastructure service workflows

    		 Create a Rate Sheet for Costs
    (Call 6)

    Build a rate sheet that allows you to calculate costs for additional

    Your Guided Implementation will pair you with an advisor from our analyst team for the duration of your infrastructure services project.

    Workshop Overview

    Module 1
    (Day 1)    		 Module 1
    (Day 1)    		 Module 1
    (Day 1)    		 Offsite deliverables wrap-up (Day 5)
    Activities
    Define and Prioritize Infrastructure Services

    1.1 Assess current maturity of services and standardization processes.

    1.2 Identify, group, and break out important infrastructure services.

    1.3 Define service delivery pain points and perform root-cause analysis.

    1.4 Prioritize services based on demand criteria.
    Build the Infrastructure Services Playbook

    2.1 Determine criteria for standard versus custom services.

    2.2 Document standard workflows for better alignment and consistent delivery.

    2.3 Build a flowchart for the identified high-demand service(s).

    2.4 Outline information as it relates to the service lifecycle in the Playbook template.
    Identify Costs and Mature Service Delivery Capabilities

    4.1 Gather information for the rate sheet.

    4.2 Choose an allocation method for overhead costs.

    4.3 Select the right approach in the crawl, walk, run model for your organization.

    4.4 Discuss the promotion plan and target revision dates for playbook and rate sheet.
    Deliverables
    1. High-demand infrastructure services list
    1. Right-sized criteria for standardization
    2. Service workflows
    3. Infrastructure Services Playbook
    1. Service Rate Sheet
    2. Deployment plan

    Develop an IT Infrastructure Services Playbook

    PHASE 1

    Define and Prioritize Infrastructure Services

    Step 1.1: Define the services you own

    PHASE 1

    Define and prioritize infrastructure services

    		 1.1

    Define the services you own

    		 1.2

    Prioritize infrastructure services

    This step will walk you through the following activities:

    • Define “infrastructure service”
    • Brainstorm service offerings
    • Consolidate services with affinity map

    This step involves the following participants:

    • Infrastructure Manager
    • I&O SMEs

    Results & Insights

    • Results: Consolidated list of end-to-end services
    • Insights: Avoid analysis paralysis by brainstorming without restrictions. It is more effective to cut down in Step 1.2 rather than risk neglecting important services for the playbook.

    Consider a range of infrastructure services

    Your infrastructure team is a service provider to the applications team – and sometimes other users as well.

    Service Requests
    • A developer requests a new web server.
    • The marketing department asks for a database to support a six-month digital marketing campaign.
    Projects
    • A new service is promoted to production.
    Operations
    • Firewall rules are updated to support server, network, or security posture changes.
    • Standard practices are followed and maintained to harden a range of different operating systems.
    • Engineers follow a standard process to integrate new tools and entitlements into Active Directory.
    • Patches and firmware updates are applied to core infrastructure components as needed.
    Problems
    • A database batch job often breaks on overnight batch jobs and requires manual intervention to check and restart.
    A visualization of the word 'Infrastructure Services' being orbited by 'Service Requests', 'Projects', 'Operations', and 'Problems'.

    IT infrastructure & operations teams deliver services that fulfil requests, support projects, resolve problems, and operate systems.

    IT Asset Management (ITAM) Market Overview

    • Buy Link or Shortcode: {j2store}62|cart{/j2store}
    • member rating overall impact: 8.5/10 Overall Impact
    • member rating average dollars saved: $12,999 Average $ Saved
    • member rating average days saved: 24 Average Days Saved
    • Parent Category Name: Asset Management
    • Parent Category Link: /asset-management
    • Data management is challenging at the best of times but managing assets that change on a daily basis are difficult without automation and a good asset tool.
    • For organizations moving beyond basic hardware inventory, knowing what to look for to prepare for future processes seems impossible.
    • Using price as the leading criteria or just as an add-on to your ITSM solution may frustrate your efforts, especially if managing complex licensing is part of your mandate.

    Our Advice

    Critical Insight

    • If the purchase is happening independent of process design or review, it’s easy to end up with a solution that doesn’t fit your environment.
    • The complexity of your environment should be a significant factor in choosing an IT asset management solution.
    • Imagining the possibilities and understanding the differences between IT asset tools will drive you to the right solution for long term gain in managing dynamic assets.

    Impact and Result

    • Regardless of whether your IT environment is on-premises, in the cloud, or a complex hybrid of the two, knowing where your asset funds are allocated is key to right-sizing costs and reducing risks of non-compliance or lost assets.
    • Choosing the right tools for the job will be key to your success.

    IT Asset Management (ITAM) Market Overview Research & Tools

    Start here: Read the Market Overview

    Read the Market Overview to understand what features and capabilities are available in ITAM tools. The right features match is key to making a data heavy and challenging process easier for your team.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • IT Asset Management Market Overview

    1. Prepare your project plan and selection process

    Use the Info-Tech templates to identify and document your requirements, plan your project, and prepare to engage with vendors.

    • ITAM Project Charter Template
    • ITAM Demonstration Script Template
    • Proof of Concept Template
    • ITAM Vendor Evaluation Workbook
    [infographic]

    Optimize IT Change Management

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    • member rating average dollars saved: $33,585 Average $ Saved
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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Infrastructure managers and change managers need to re-evaluate their change management processes due to slow change turnaround time, too many unauthorized changes, too many incidents and outages because of poorly managed changes, or difficulty evaluating and prioritizing changes.
    • IT system owners often resist change management because they see it as slow and bureaucratic.
    • Infrastructure changes are often seen as different from application changes, and two (or more) processes may exist.

    Our Advice

    Critical Insight

    • ITIL provides a usable framework for change management, but full process rigor is not appropriate for every change request.
    • You need to design a process that is flexible enough to meet the demand for change, and strict enough to protect the live environment from change-related incidents.
    • A mature change management process will minimize review and approval activity. Counterintuitively, with experience in implementing changes, risk levels decline to a point where most changes are “pre-approved.”

    Impact and Result

    • Create a unified change management process that reduces risk. The process should be balanced in its approach toward deploying changes while also maintaining throughput of innovation and enhancements.
    • Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    • Establish and empower a change manager and change advisory board with the authority to manage, approve, and prioritize changes.
    • Integrate a configuration management database with the change management process to identify dependencies.

    Optimize IT Change Management Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should optimize change management, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Optimize IT Change Management – Phases 1-4

    1. Define change management

    Assess the maturity of your existing change management practice and define the scope of change management for your organization.

    • Change Management Maturity Assessment Tool
    • Change Management Risk Assessment Tool

    2. Establish roles and workflows

    Build your change management team and standardized process workflows for each change type.

    • Change Manager
    • Change Management Process Library – Visio
    • Change Management Process Library – PDF
    • Change Management Standard Operating Procedure

    3. Define the RFC and post-implementation activities

    Bookend your change management practice by standardizing change intake, implementation, and post-implementation activities.

    • Request for Change Form Template
    • Change Management Pre-Implementation Checklist
    • Change Management Post-Implementation Checklist

    4. Measure, manage, and maintain

    Form an implementation plan for the project, including a metrics evaluation, change calendar inputs, communications plan, and roadmap.

    • Change Management Metrics Tool
    • Change Management Communications Plan
    • Change Management Roadmap Tool
    • Optimize IT Change Management Improvement Initiative: Project Summary Template

    [infographic]

    Workshop: Optimize IT Change Management

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Define Change Management

    The Purpose

    Discuss the existing challenges and maturity of your change management practice.

    Build definitions of change categories and the scope of change management.

    Key Benefits Achieved

    Understand the starting point and scope of change management.

    Understand the context of change request versus other requests such as service requests, projects, and operational tasks.

    Activities

    1.1 Outline strengths and challenges

    1.2 Conduct a maturity assessment

    1.3 Build a categorization scheme

    1.4 Build a risk assessment matrix

    Outputs

    Change Management Maturity Assessment Tool

    Change Management Risk Assessment Tool

    2 Establish Roles and Workflows

    The Purpose

    Define roles and responsibilities for the change management team.

    Develop a standardized change management practice for approved changes, including process workflows.

    Key Benefits Achieved

    Built the team to support your new change management practice.

    Develop a formalized and right-sized change management practice for each change category. This will ensure all changes follow the correct process and core activities to confirm changes are completed successfully.

    Activities

    2.1 Define the change manager role

    2.2 Outline the membership and protocol for the Change Advisory Board (CAB)

    2.3 Build workflows for normal, emergency, and pre-approved changes

    Outputs

    Change Manager Job Description

    Change Management Standard Operating Procedure (SOP)

    Change Management Process Library

    3 Define the RFC and Post-Implementation Activities

    The Purpose

    Create a new change intake process, including a new request for change (RFC) form.

    Develop post-implementation review activities to be completed for every IT change.

    Key Benefits Achieved

    Bookend your change management practice by standardizing change intake, implementation, and post-implementation activities.

    Activities

    3.1 Define the RFC template

    3.2 Determine post-implementation activities

    3.3 Build your change calendar protocol

    Outputs

    Request for Change Form Template

    Change Management Post-Implementation Checklist

    Project Summary Template

    4 Measure, Manage, and Maintain

    The Purpose

    Develop a plan and project roadmap for reaching your target for your change management program maturity.

    Develop a communications plan to ensure the successful adoption of the new program.

    Key Benefits Achieved

    A plan and project roadmap for reaching target change management program maturity.

    A communications plan ready for implementation.

    Activities

    4.1 Identify metrics and reports

    4.2 Build a communications plan

    4.3 Build your implementation roadmap

    Outputs

    Change Management Metrics Tool

    Change Management Communications Plan

    Change Management Roadmap Tool

    Further reading

    Optimize IT Change Management

    Right-size IT change management practice to protect the live environment.

    EXECUTIVE BRIEF

    Analyst Perspective

    Balance risk and efficiency to optimize IT change management.

    Change management (change enablement, change control) is a balance of efficiency and risk. That is, pushing changes out in a timely manner while minimizing the risk of deployment. On the one hand, organizations can attempt to avoid all risk and drown the process in rubber stamps, red tape, and bureaucracy. On the other hand, organizations can ignore process and push out changes as quickly as possible, which will likely lead to change related incidents and debilitating outages.

    Right-sizing the process does not mean adopting every recommendation from best-practice frameworks. It means balancing the efficiency of change request fulfillment with minimizing risk to your organization. Furthermore, creating a process that encourages adherence is key to avoid change implementers from skirting your process altogether.

    Benedict Chang, Research Analyst, Infrastructure and Operations, Info-Tech Research Group

    Executive Summary

    Your Challenge

    Infrastructure and application change occurs constantly and is driven by changing business needs, requests for new functionality, operational releases and patches, and resolution of incidents or problems detected by the service desk.

    IT managers need to follow a standard change management process to ensure that rogue changes are never deployed while the organization remains responsive to demand.

    Common Obstacles

    IT system owners often resist change management because they see it as slow and bureaucratic.

    At the same time, an increasingly interlinked technical environment may cause issues to appear in unexpected places. Configuration management systems are often not kept up-to-date and do not catch the potential linkages.

    Infrastructure changes are often seen as “different” from application changes and two (or more) processes may exist.

    Info-Tech’s Approach

    Info-Tech’s approach will help you:

    • Create a unified change management practice that balances risk and throughput of innovation.
    • Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    • Establish and empower a Change Manager and Change Advisory Board (CAB) with the authority to manage, approve, and prioritize changes.

    Balance Risk and Efficiency to Optimize IT Change Management

    Two goals of change management are to protect the live environment and deploying changes in a timely manner. These two may seem to sometimes be at odds against each other, but assessing risk at multiple points of a change’s lifecycle can help you achieve both.

    Your challenge

    This research is designed to help organizations who need to:

    • Build a right-sized change management practice that encourages adherence and balances efficiency and risk.
    • Integrate the change management practice with project management, service desk processes, configuration management, and other areas of IT and the business.
    • Communicate the benefits and impact of change management to all the stakeholders affected by the process.

    Change management is heavily reliant on organizational culture

    Having a right-sized process is not enough. You need to build and communicate the process to gather adherence. The process is useless if stakeholders are not aware of it or do not follow it.

    Increase the Effectiveness of Change Management in Your Organization

    The image is a bar graph, with the segments labelled 1 and 2. The y-axis lists numbers 1-10. Segment 1 is at 6.2, and segment 2 is at 8.6.

    Of the eight infrastructure & operations processes measured in Info-Tech’s IT Management and Governance Diagnostic (MGD) program, change management has the second largest gap between importance and effectiveness of these processes.

    Source: Info-Tech 2020; n=5,108 IT professionals from 620 organizations

    Common obstacles

    These barriers make this challenge difficult to address for many organizations:

    • Gaining buy-in can be a challenge no matter how well the process is built.
    • The complexity of the IT environment and culture of tacit knowledge for configuration makes it difficult to assess cross-dependencies of changes.
    • Each silo or department may have their own change management workflows that they follow internally. This can make it difficult to create a unified process that works well for everyone.

    “Why should I fill out an RFC when it only takes five minutes to push through my change?”

    “We’ve been doing this for years. Why do we need more bureaucracy?”

    “We don’t need change management if we’re Agile.”

    “We don’t have the right tools to even start change management.”

    “Why do I have to attend a CAB meeting when I don’t care what other departments are doing?”

    Info-Tech’s approach

    Build change management by implementing assessments and stage gates around appropriate levels of the change lifecycle.

    The image is a circle, comprised of arrows, with each arrow pointing to the next, forming a cycle. Each arrow is labelled, as follows: Improve; Request; Assess; Plan; Approve; Implement

    The Info-Tech difference:

    1. Create a unified change management process that balances risk and throughput of innovation.
    2. Categorize changes based on an industry-standard risk model with objective measures of impact and likelihood.
    3. Establish and empower a Change Manager and Change Advisory Board (CAB) with the authority to manage, approve, and prioritize changes.

    IT change is constant and is driven by:

    Change Management:

    1. Operations - Operational releases, maintenance, vendor-driven updates, and security updates can all be key drivers of change. Example: ITSM version update
      • Major Release
      • Maintenance Release
      • Security Patch
    2. Business - Business-driven changes may include requests from other business departments that require IT’s support. Examples: New ERP or HRIS implementation
      • New Application
      • New Version
    3. Service desk → Incident & Problem - Some incident and problem tickets require a change to facilitate resolution of the incident. Examples: Outage necessitating update of an app (emergency change), a user request for new functionality to be added to an existing app
      • Workaround
      • Fix
    4. Configuration Management Database (CMDB) ↔ Asset Management - In addition to software and hardware asset dependencies, a configuration management database (CMDB) is used to keep a record of changes and is queried to assess change requests.
      • Hardware
      • Software

    Insight summary

    “The scope of change management is defined by each organization…the purpose of change management is to maximize the number of successful service and product changes by ensuring that the risk have been properly assessed, authorizing changes to process, and managing the change schedule.” – ALEXOS Limited, ITIL 4

    Build a unified change management process balancing risk and change throughput.

    Building a unified process that oversees all changes to the technical environment doesn’t have to be burdensome to be effective. However, the process is a necessary starting point to identifying cross dependencies and avoiding change collisions and change-related incidents.

    Use an objective framework for estimating risk

    Simply asking, “What is the risk?” will result in subjective responses that will likely minimize the perceived risk. The level of due diligence should align to the criticality of the systems or departments potentially impacted by the proposed changes.

    Integrate your change process with your IT service management system

    Change management in isolation will provide some stability, but maturing the process through service integrations will enable data-driven decisions, decrease bureaucracy, and enable faster and more stable throughput.

    Change management and DevOps can work together effectively

    Change and DevOps tend to be at odds, but the framework does not have to change. Lower risk changes in DevOps are prime candidates for the pre-approved category. Much of the responsibility traditionally assigned to the CAB can be diffused throughout the software development lifecycle.

    Change management and DevOps can coexist

    Shift the responsibility and rigor to earlier in the process.

    • If you are implementing change management in a DevOps environment, ensure you have a strong DevOps lifecycle. You may wish to refer to Info-Tech’s research Implementing DevOps Practices That Work.
    • Consider starting in this blueprint by visiting Appendix II to frame your approach to change management. Follow the blueprint while paying attention to the DevOps Callouts.

    DEVOPS CALLOUTS

    Look for these DevOps callouts throughout this storyboard to guide you along the implementation.

    The image is a horizontal figure eight, with 7 arrows, each pointing into the next. They are labelled are follows: Plan; Create; Verify; Package; Release; Configure; Monitor. At the centre of the circles are the words Dev and Ops.

    Successful change management will provide benefits to both the business and IT

    Respond to business requests faster while reducing the number of change-related disruptions.

    IT Benefits

    • Fewer change-related incidents and outages
    • Faster change turnaround time
    • Higher rate of change success
    • Less change rework
    • Fewer service desk calls related to poorly communicated changes

    Business Benefits

    • Fewer service disruptions
    • Faster response to requests for new and enhanced functionalities
    • Higher rate of benefits realization when changes are implemented
    • Lower cost per change
    • Fewer “surprise” changes disrupting productivity

    IT satisfaction with change management will drive business satisfaction with IT. Once the process is working efficiently, staff will be more motivated to adhere to the process, reducing the number of unauthorized changes. As fewer changes bypass proper evaluation and testing, service disruptions will decrease and business satisfaction will increase.

    Change management improves core benefits to the business: the four Cs

    Most organizations have at least some form of change control in place, but formalizing change management leads to the four Cs of business benefits:

    Control

    Change management brings daily control over the IT environment, allowing you to review every relatively new change, eliminate changes that would have likely failed, and review all changes to improve the IT environment.

    Collaboration

    Change management planning brings increased communication and collaboration across groups by coordinating changes with business activities. The CAB brings a more formalized and centralized communication method for IT.

    Consistency

    Request for change templates and a structured process result in implementation, test, and backout plans being more consistent. Implementing processes for pre-approved changes also ensures these frequent changes are executed consistently and efficiently.

    Confidence

    Change management processes will give your organization more confidence through more accurate planning, improved execution of changes, less failure, and more control over the IT environment. This also leads to greater protection against audits.

    You likely need to improve change management more than any other infrastructure & operations process

    The image shows a vertical bar graph. Each segment of the graph is labelled for an infrastructure/operations process. Each segment has two bars one for effectiveness, and another for importance. The first segment, Change Management, is highlighted, with its Effectiveness at a 6.2 and Importance at 8.6

    Source: Info-Tech 2020; n=5,108 IT Professionals from 620 organizations

    Of the eight infrastructure and operations processes measured in Info-Tech’s IT Management and Governance Diagnostic (MGD) program, change management consistently has the second largest gap between importance and effectiveness of these processes.

    Executives and directors recognize the importance of change management but feel theirs is currently ineffective

    Info-Tech’s IT Management and Governance Diagnostic (MGD) program assesses the importance and effectiveness of core IT processes. Since its inception, the MGD has consistently identified change management as an area for immediate improvement.

    The image is a vertical bar graph, with four segments, each having 2 bars, one for Effectiveness and the other for Importance. The four segments are (with Effectiveness and Importance ratings in brackets, respectively): Frontline (6.5/8.6); Manager (6.6/8.9); Director (6.4/8.8); and Executive (6.1/8.8)

    Source: Info-Tech 2020; n=5,108 IT Professionals from 620 organizations

    Importance Scores

    No importance: 1.0-6.9

    Limited importance: 7.0-7.9

    Significant importance: 8.0-8.9

    Critical importance: 9.0-10.0

    Effectiveness Scores

    Not in place: n/a

    Not effective: 0.0-4.9

    Somewhat Ineffective: 5.0-5.9

    Somewhat effective: 6.0-6.9

    Very effective: 7.0-10.0

    There are several common misconceptions about change management

    Which of these have you heard in your organization?

     Reality
    “It’s just a small change; this will only take five minutes to do.” Even a small change can cause a business outage. That small fix could impact a large system connected to the one being fixed.
    “Ad hoc is faster; too many processes slow things down.” Ad hoc might be faster in some cases, but it carries far greater risk. Following defined processes keeps systems stable and risk-averse.
    “Change management is all about speed.” Change management is about managing risk. It gives the illusion of speed by reducing downtime and unplanned work.
    “Change management will limit our capacity to change.” Change management allows for a better alignment of process (release management) with governance (change management).

    Overcome perceived challenges to implementing change management to reap measurable reward

    Before: Informal Change Management

    Change Approval:

    • Changes do not pass through a formal review process before implementation.
    • 10% of released changes are approved.
    • Implementation challenge: Staff will resist having to submit formal change requests and assessments, frustrated at the prospect of having to wait longer to have changes approved.

    Change Prioritization

    • Changes are not prioritized according to urgency, risk, and impact.
    • 60% of changes are urgent.
    • Implementation challenge: Influential stakeholders accustomed to having changes approved and deployed might resist having to submit changes to a standard cost-benefit analysis.

    Change Deployment

    • Changes often negatively impact user productivity.
    • 25% of changes are realized as planned.
    • Implementation challenge: Engaging the business so that formal change freeze periods and regular maintenance windows can be established.

    After: Right-Sized Change Management

    Change Approval

    • All changes pass through a formal review process. Once a change is repeatable and well-tested, it can be pre-approved to save time. Almost no unauthorized changes are deployed.
    • 95% of changes are approved.
    • KPI: Decrease in change-related incidents

    Change Prioritization

    • The CAB prioritizes changes so that the business is satisfied with the speed of change deployment.
    • 35% of changes are urgent.
    • KPI: Decrease in change turnaround time.

    Change deployment

    • Users are always aware of impending changes and changes don’t interrupt critical business activities.
    • Over 80% of changes are realized as planned
    • KPI: Decrease in the number of failed deployments.

    Info-Tech’s methodology for change management optimization focuses on building standardized processes

     1. Define Change Management2. Establish Roles and Workflows3. Define the RFC and Post-Implementation Activities4. Measure, Manage, and Maintain
    Phase Steps

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project
      Change Management Standard Operating Procedure (SOP) Change Management Project Summary Template
    Phase Deliverables
    • Change Management Maturity Assessment Tool
    • Change Management Risk Assessment Tool
    • Change Manager Job Description
    • Change Management Process Library
    • Request for Change (RFC) Form Template
    • Change Management Pre-Implementation Checklist
    • Change Management Post-Implementation Checklist
    • Change Management Metrics Tool
    • Change Management
    • Communications Plan
    • Change Management Roadmap Tool

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Change Management Process Library

    Document your normal, pre-approved, and emergency change lifecycles with the core process workflows .

    Change Management Risk Assessment Tool

    Test Drive your impact and likelihood assessment questionnaires with the Change Management Risk Assessment Tool.

    Project Summary Template

    Summarize your efforts in the Optimize IT Change Management Improvement Initiative: Project Summary Template.

    Change Management Roadmap Tool

    Record your action items and roadmap your steps to a mature change management process.

    Key Deliverable:

    Change Management SOP

    Document and formalize your process starting with the change management standard operating procedure (SOP).

    These case studies illustrate the value of various phases of this project

    Define Change Management

    Establish Roles and Workflows

    Define RFC and Post-Implementation Activities

    Measure, Manage, and Maintain

    A major technology company implemented change management to improve productivity by 40%. This case study illustrates the full scope of the project.

    A large technology firm experienced a critical outage due to poor change management practices. This case study illustrates the scope of change management definition and strategy.

    Ignorance of change management process led to a technology giant experiencing a critical cloud outage. This case study illustrates the scope of the process phase.

    A manufacturing company created a makeshift CMDB in the absence of a CMDB to implement change management. This case study illustrates the scope of change intake.

    A financial institution tracked and recorded metrics to aid in the success of their change management program. This case study illustrates the scope of the implementation phase.

    Working through this project with Info-Tech can save you time and money

    Engaging in a Guided Implementation doesn’t just offer valuable project advice, it also results in significant cost savings.

    Guided ImplementationMeasured Vale
    Phase 1: Define Change Management
    • We estimate Phase 1 activities will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).

    Phase 2: Establish Roles and Workflows
    • We estimate Phase 2 will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).
    Phase 3: Define the RFC and Post-Implementation Activities
    • We estimate Phase 3 will take 2 FTEs 10 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $3,100 (2 FTEs * 5 days * $80,000/year).

    Phase 4: Measure, Manage, and Maintain
    • We estimate Phase 4 will take 2 FTEs 5 days to complete on their own, but the time saved by using Info-Tech’s methodology will cut that time in half, thereby saving $1,500 (2 FTEs * 2.5 days * $80,000/year).
    Total Savings $10,800

    Case Study

    Industry: Technology

    Source: Daniel Grove, Intel

    Intel implemented a robust change management program and experienced a 40% improvement in change efficiency.

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    ITIL Change Management Implementation

    With close to 4,000 changes occurring each week, managing Intel’s environment is a formidable task. Before implementing change management within the organization, over 35% of all unscheduled downtime was due to errors resulting from change and release management. Processes were ad hoc or scattered across the organization and no standards were in place.

    Results

    After a robust implementation of change management, Intel experienced a number of improvements including automated approvals, the implementation of a formal change calendar, and an automated RFC form. As a result, Intel improved change productivity by 40% within the first year of the program’s implementation.

    Define Change Management

    ↓

    Establish Roles and Workflows

    ↓

    Define RFC and Post-Implementation Activities

    ↓

    Measure, Manage, and Maintain

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    Workshop

    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."

    Consulting

    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks are used throughout all four options.

    Guided Implementation

    What does a typical GI on this topic look like?

    A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 8 to 12 calls over the course of 4 to 6 months.

    Define Change Management

    • Call #1: Introduce change concepts.
    • Call #2: Assess current maturity.
    • Call #3: Identify target-state capabilities.

    Establish Roles and Workflows

    • Call #4: Review roles and responsibilities.
    • Call #5: Review core change processes.

    Define RFC and Post- Implementation Activities

    • Call #6: Define change intake process.
    • Call #7: Create pre-implementation and post-implementation checklists.

    Measure, Manage, and Maintain

    • Call #8: Review metrics.
    • Call #9: Create roadmap.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

     Day 1Day 2Day 3Day 4Day 5
    Activities

    Define Change Management

    1.1 Outline Strengths and Challenges

    1.2 Conduct a Maturity Assessment

    1.3 Build a Change Categorization Scheme

    1.4 Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Define the Change Manager Role

    2.2 Outline CAB Protocol and membership

    2.3 Build Normal Change Process

    2.4 Build Emergency Change Process

    2.5 Build Pre-Approved Change Process

    Define the RFC and Post-Implementation Activities

    3.1 Create an RFC Template

    3.2 Determine Post-Implementation Activities

    3.3 Build a Change Calendar Protocol

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Reports

    4.2 Create Communications Plan

    4.3 Build an Implementation Roadmap

    Next Steps and Wrap-Up (offsite)

    5.1 Complete in-progress deliverables from previous four days

    5.2 Set up review time for workshop deliverables and to discuss next steps
    Deliverables
    1. Maturity Assessment
    2. Risk Assessment
    1. Change Manager Job Description
    2. Change Management Process Library
    1. Request for Change (RFC) Form Template
    2. Pre-Implementation Checklist
    3. Post-Implementation Checklist
    1. Metrics Tool
    2. Communications Plan
    3. Project Roadmap
    1. Change Management Standard Operating Procedure (SOP)
    2. Workshop Summary Deck

    Phase 1

    Define Change Management

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define the RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following steps:

    • Assess Maturity
    • Categorize Changes and Build Your Risk Assessment

    This phase involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Step 1.1

    Assess Maturity

    Activities

    1.1.1 Outline the Organization’s Strengths and Challenges

    1.1.2 Complete a Maturity Assessment

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • An understanding of maturity change management processes and frameworks
    • Identification of existing change management challenges and potential causes
    • A framework for assessing change management maturity and an assessment of your existing change management processes

    Define Change Management

    Step 1.1: Assess Maturity → Step 1.2: Categorize Changes and Build Your Risk Assessment

    Change management is often confused with release management, but they are distinct processes

    Change

    • Change management looks at software changes as well as hardware, database, integration, and network changes, with the focus on stability of the entire IT ecosystem for business continuity.
    • Change management provides a holistic view of the IT environment, including dependencies, to ensure nothing is negatively affected by changes.
    • Change documentation is more focused on process, ensuring dependencies are mapped, rollout plans exist, and the business is not at risk.

    Release

    • Release and deployment are the detailed plans that bundle patches, upgrades, and new features into deployment packages, with the intent to change them flawlessly into a production environment.
    • Release management is one of many actions performed under change management’s governance.
    • Release documentation includes technical specifications such as change schedule, package details, change checklist, configuration details, test plan, and rollout and rollback plans.

    Info-Tech Insight

    Ensure the Release Manager is present as part of your CAB. They can explain any change content or dependencies, communicate business approval, and advise the service desk of any defects.

    Integrate change management with other IT processes

    As seen in the context diagram, change management interacts closely with many other IT processes including release management and configuration management (seen below). Ensure you delineate when these interactions occur (e.g. RFC updates and CMDB queries) and which process owns each task.

    The image is a chart mapping the interactions between Change Management and Configuration Management (CMDB).

    Avoid the challenges of poor change management

    1. Deployments
      • Too frequent: The need for frequent deployments results in reduced availability of critical business applications.
      • Failed deployments or rework is required: Deployments are not successful and have to be backed out of and then reworked to resolve issues with the installation.
      • High manual effort: A lack of automation results in high resource costs for deployments. Human error is likely, which adds to the risk of a failed deployment.
    2. Incidents
      • Too many unauthorized changes: If the process is perceived as cumbersome and ineffective, people will bypass it or abuse the emergency designation to get their changes deployed faster.
      • Changes cause incidents: When new releases are deployed, they create problems with related systems or applications.
    3. End Users
      • Low user satisfaction: Poor communication and training result in surprised and unhappy users and support staff.

    “With no controls in place, IT gets the blame for embarrassing outages. Too much control, and IT is seen as a roadblock to innovation.” – Anonymous, VP IT of a federal credit union

    1.1.1 Outline the Organization’s Strengths and Challenges

    Input

    • Current change documentation (workflows, SOP, change policy, etc.)
    • Organizational chart(s)

    Output

    • List of strengths and challenges for change management

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. As group, discuss and outline the change management challenges facing the organization. These may be challenges caused by poor change management processes or by a lack of process.
    2. Use the pain points found on the previous slide to help guide the discussion.
    3. As a group, also outline the strengths of change management and the strengths of the current organization. Use these strengths as a guide to know what practices to continue and what strengths you can leverage to improve the change management process.
    4. Record the activity results in the Project Summary Template.

    Download the Optimize IT Change Management Improvement Initiative: Project Summary Template

    Assess current change management maturity to create a plan for improvement

     ChaosReactiveControlled

    Proactive

    		Optimized
    Change Requests No defined processes for submitting changes Low process adherence and no RFC form RFC form is centralized and a point of contact for changes exists RFCs are reviewed for scope and completion RFCs trend analysis and proactive change exists
    Change Review Little to no change risk assessment Risk assessment exists for each RFC RFC form is centralized and a point of contact for changes exists Change calendar exists and is maintained System and component dependencies exist (CMDB)
    Change Approval No formal approval process exists Approval process exists but is not widely followed Unauthorized changes are minimal or nonexistent Change advisory board (CAB) is established and formalized Trend analysis exists increasing pre-approved changes
    Post-Deployment No post-deployment change review exists Process exists but is not widely followed Reduction of change-related incidents Stakeholder satisfaction is gathered and reviewed Lessons learned are propagated and actioned
    Process Governance Roles & responsibilities are ad hoc Roles, policies & procedures are defined & documented Roles, policies & procedures are defined & documented KPIs are tracked, reported on, and reviewed KPIs are proactively managed for improvement

    Info-Tech Insight

    Reaching an optimized level is not feasible for every organization. You may be able to run a very good change management process at the Proactive or even Controlled stage. Pay special attention to keeping your goals attainable.

    1.1.2 Complete a Maturity Assessment

    Input

    • Current change documentation (workflows, SOP, change policy, etc.)

    Output

    • Assessment of current maturity level and goals to improve change management

    Materials

    Participants

    • Change Manager
    • Service Desk Manager
    • Operations (optional)
    1. Use Info-Tech’s Change Management Maturity Assessment Tool to assess the maturity and completeness of your change process.
    2. Significant gaps revealed in this assessment should be the focal points of your discussion when investigating root causes and brainstorming remediation activities:
      1. For each activity of each process area of change management, determine the degree of completeness of your current process.
      2. Review your maturity assessment results and discuss as a group potential reasons why you arrived at your maturity level. Identify areas where you should focus your initial attention for improvement.
      3. Regularly review the maturity of your change management practices by completing this maturity assessment tool periodically to identify other areas to optimize.

    Download the Change Management Maturity Assessment Tool

    Case Study

    Even Google isn’t immune to change-related outages. Plan ahead and communicate to help avoid change-related incidents

    Industry: Technology

    Source: The Register

    As part of a routine maintenance procedure, Google engineers moved App Engine applications between data centers in the Central US to balance out traffic.

    Unfortunately, at the same time that applications were being rerouted, a software update was in progress on the traffic routers, which triggered a restart. This temporarily diminished router capacity, knocking out a sizeable portion of Google Cloud.

    The server drain resulted in a huge spike in startup requests, and the routers simply couldn’t handle the traffic.

    As a result, 21% of Google App Engine applications hosted in the Central US experienced error rates in excess of 10%, while an additional 16% of applications experienced latency, albeit at a lower rate.

    Solution

    Thankfully, engineers were actively monitoring the implementation of the change and were able to spring into action to halt the problem.

    The change was rolled back after 11 minutes, but the configuration error still needed to be fixed. After about two hours, the change failure was resolved and the Google Cloud was fully functional.

    One takeaway for the engineering team was to closely monitor how changes are scheduled. Ultimately, this was the result of miscommunication and a lack of transparency between change teams.

    Step 1.2

    Categorize Changes and Build Your Risk Assessment

    Activities

    1.2.1 Define What Constitutes a Change

    1.2.2 Build a Change Categorization Scheme

    1.2.3 Build a Classification Scheme to Assess Impact

    1.2.4 Build a Classification Scheme to Define Likelihood

    1.2.5 Evaluate and Adjust Your Risk Assessment Scheme

    Define Change Management

    Step 1.1: Assess Maturity → Step 1.2: Categorize Changes and Build Your Risk Assessment

    This step involves the following participants:

    • Infrastructure/Applications Manager
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A clear definition of what constitutes a change in your organization
    • A defined categorization scheme to classify types of changes
    • A risk assessment matrix and tool for evaluating and prioritizing change requests according to impact and likelihood of risk

    Change must be managed to mitigate risk to the infrastructure

    Change management is the gatekeeper protecting your live environment.

    Successfully managed changes will optimize risk exposure, severity of impact, and disruption. This will result in the bottom-line business benefits of removal of risk, early realization of benefits, and savings of money and time.

    • IT change is constant; change requests will be made both proactively and reactively to upgrade systems, acquire new functionality, and to prevent or resolve incidents.
    • Every change to the infrastructure must pass through the change management process before being deployed to ensure that it has been properly assessed and tested, and to check that a backout /rollback plan is in place.
    • It will be less expensive to invest in a rigorous change management process than to resolve incidents, service disruptions, and outages caused by the deployment of a bad change.
    • Change management is what gives you control and visibility regarding what is introduced to the live environment, preventing incidents that threaten business continuity.

    80%

    In organizations without formal change management processes, about 80% (The Visible Ops Handbook) of IT service outage problems are caused by updates and changes to systems, applications, and infrastructure. It’s crucial to track and systematically manage change to fully understand and predict the risks and potential impact of the change.

    Attributes of a change

    Differentiate changes from other IT requests

    Is this in the production environment of a business process?

    The core business of the enterprise or supporting functions may be affected.

    Does the task affect an enterprise managed system?

    If it’s for a local application, it’s a service request

    How many users are impacted?

    It should usually impact more than a single user (in most cases).

    Is there a configuration, or code, or workflow, or UI/UX change?

    Any impact on a business process is a change; adding a user or a recipient to a report or mailing list is not a change.

    Does the underlying service currently exist?

    If it’s a new service, then it’s better described as a project.

    Is this done/requested by IT?

    It needs to be within the scope of IT for the change management process to apply.

    Will this take longer than one week?

    As a general rule, if it takes longer than 40 hours of work to complete, it’s likely a project.

    Defining what constitutes a change

    Every change request will initiate the change management process; don’t waste time reviewing requests that are out of scope.

    ChangeService Request (User)Operational Task (Backend)
    • Fixing defects in code
    • Changing configuration of an enterprise system
    • Adding new software or hardware components
    • Switching an application to another VM
    • Standardized request
    • New PC
    • Permissions request
    • Change password
    • Add user
    • Purchases
    • Change the backup tape
    • Delete temporary files
    • Maintain database (one that is well defined, repeatable, and predictable)
    • Run utilities to repair a database

    Do not treat every IT request as a change!

    • Many organizations make the mistake of calling a standard service request or operational task a “change.”
    • Every change request will initiate the change management process; don’t waste time reviewing requests that are out of scope.
    • While the overuse of RFCs for out-of-scope requests is better than a lack of process, this will slow the process and delay the approval of more critical changes.
    • Requiring an RFC for something that should be considered day-to-day work will also discourage people from adhering to the process, because the RFC will be seen as meaningless paperwork.

     

    1.2.1 Define What Constitutes a Change

    Input

    • List of examples of each category of the chart

    Output

    • Definitions for each category to be used at change intake

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Service catalog (if applicable)
    • Sticky notes
    • Markers/pens
    • Change Management SOP

    Participants

    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. As a group, brainstorm examples of changes, projects, service requests (user), operational tasks (backend), and releases. You may add additional categories as needed (e.g. incidents).
    2. Have each participant write the examples on sticky notes and populate the following chart on the whiteboard/flip chart.
    3. Use the examples to draw lines and define what defines each category.
      • What makes a change distinct from a project?
      • What makes a change distinct from a service request?
      • What makes a change distinct from an operational task?
      • When do the category workflows cross over with other categories? (For example, when does a project interact with change management?)
    4. Record the definitions of requests and results in section 2.3 of the Change Management Standard Operating Procedure (SOP).
    ChangeProjectService Request (User)Operational Task (Backend)Release
    Changing Configuration ERP upgrade Add new user Delete temp files Software release

    Download the Change Management Standard Operating Procedure (SOP).

    Each RFC should define resources needed to effect the change

    In addition to assigning a category to each RFC based on risk assessment, each RFC should also be assigned a priority based on the impact of the change on the IT organization, in terms of the resources needed to effect the change.

    Categories include

    Normal

    Emergency

    Pre-Approved

    The majority of changes will be pre-approved or normal changes. Definitions of each category are provided on the next slide.

    Info-Tech uses the term pre-approved rather than the ITIL terminology of standard to more accurately define the type of change represented by this category.

    A potential fourth change category of expedited may be employed if you are having issues with process adherence or if you experience changes driven from outside change management’s control (e.g. from the CIO, director, judiciary, etc.) See Appendix I for more details.

    Info-Tech Best Practice

    Do not rush to designate changes as pre-approved. You may have a good idea of which changes may be considered pre-approved, but make sure they are in fact low-risk and well-documented before moving them over from the normal category.

    The category of the change determines the process it follows

     Pre-ApprovedNormalEmergency
    Definition
    • Tasks are well-known, documented, and proven
    • Budgetary approval is preordained or within control of change requester
    • Risk is low and understood
    • There’s a low probability of failure
    • All changes that are not pre-approved or emergency will be classified as normal
    • Further categorized by priority/risk
    • The change is being requested to resolve a current or imminent critical/severity-1 incident that threatens business continuity
    • Associated with a critical incident or problem ticket
    Trigger
    • The same change is built and changed repeatedly using the same install procedures and resulting in the same low-risk outcome
    • Upgrade or new functionality that will capture a business benefit
    • A fix to a current problem
    • A current or imminent critical incident that will impact business continuity
    • Urgency to implement the change must be established, as well as lack of any alternative or workaround
    Workflow
    • Pre-established
    • Repeatable with same sequence of actions, with minimal judgment or decision points
    • Dependent on the change
    • Different workflows depending on prioritization
    • Dependent on the change
    Approval
    • Change Manager (does not need to be reviewed by CAB)
    • CAB
    • Approval from the Emergency Change Advisory Board (E-CAB) is sufficient to proceed with the change
    • A retroactive RFC must be created and approved by the CAB

    Pay close attention to defining your pre-approved changes. They are going to be critical for running a smooth change management practice in a DevOps Environment

    1.2.2 Build a Change Categorization Scheme

    Input

    • List of examples of each change category

    Output

    • Definitions for each change category

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Service catalog (if applicable)
    • Sticky notes
    • Markers
    • Change Management SOP

    Participants

    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Discuss the change categories on the previous slide and modify the types of descriptions to suit your organization.
    2. Once the change categories or types are defined, identify several examples of change requests that would fall under each category.
    3. Types of normal changes will be further defined in the next activity and can be left blank for now.
    4. Examples are provided below. Capture your definitions in section 4 of your Change Management SOP.
    Pre-Approved (AKA Standard)NormalEmergency
    • Microsoft patch management/deployment
    • Windows update
    • Minor form changes
    • Service pack updates on non-critical systems
    • Advance label status on orders
    • Change log retention period/storage
    • Change backup frequency

    Major

    • Active directory server upgrade
    • New ERP

    Medium

    • Network upgrade
    • High availability implementation

    Minor

    • Ticket system go-live
    • UPS replacement
    • Cognos update
    • Any change other than a pre-approved change
    • Needed to resolve a major outage in a Tier 1 system

    Assess the risk for each normal change based on impact (severity) and likelihood (probability)

    Create a change assessment risk matrix to standardize risk assessment for new changes. Formalizing this assessment should be one of the first priorities of change management.

    The following slides guide you through the steps of formalizing a risk assessment according to impact and likelihood:

    1. Define a risk matrix: Risk matrices can either be a 3x3 matrix (Minor, Medium, or High Risk as shown on the next slide) or a 4x4 matrix (Minor, Medium, High, or Critical Risk).
    2. Build an impact assessment: Enable consistent measurement of impact for each change by incorporating a standardized questionnaire for each RFC.
    3. Build a likelihood assessment: Enable the consistent measurement of impact for each change by incorporating a standardized questionnaire for each RFC.
    4. Test drive your risk assessment and make necessary adjustments: Measure your newly formed risk assessment questionnaires against historical changes to test its accuracy.

    Consider risk

    1. Risk should be the primary consideration in classifying a normal change as Low, Medium, High. The extent of governance required, as well as minimum timeline to implement the change, will follow from the risk assessment.
    2. The business benefit often matches the impact level of the risk – a change that will provide a significant benefit to a large number of users may likely carry an equally major downside if deviations occur.

    Info-Tech Insight

    All changes entail an additional level of risk. Risk is a function of impact and likelihood. Risk may be reduced, accepted, or neutralized through following best practices around training, testing, backout planning, redundancy, timing and sequencing of changes, etc.

    Create a risk matrix to assign a risk rating to each RFC

    Every normal RFC should be assigned a risk rating.

    How is risk rating determined?

    • Priority should be based on the business consequences of implementing or denying the change.
    • Risk rating is assigned using the impact of the risk and likelihood/probability that the event may occur.

    Who determines priority?

    • Priority should be decided with the change requester and with the CAB, if necessary.
    • Don’t let the change requester decide priority alone, as they will usually assign it a higher priority than is justified. Use a repeatable, standardized framework to assess each request.

    How is risk rating used?

    • Risk rating is used to determine which changes should be discussed and assessed first.
    • Time frames and escalation processes should be defined for each risk level.

    RFCs need to clearly identify the risk level of the proposed change. This can be done through statement of impact and likelihood (low/medium/high) or through pertinent questions linked with business rules to assess the risk.

    Risk always has a negative impact, but the size of the impact can vary considerably in terms of cost, number of people or sites affected, and severity of the impact. Impact questions tend to be more objective and quantifiable than likelihood questions.

    Risk Matrix

    Risk Matrix. Impact vs. Likelihood. Low impact, Low Likelihood and Medium Impact, Medium Likelihood are minor risks. High Likelihood, Low Impact; Medium Likelihood, Medium Impact; and Low Likelihood, High Impact are Medium Risk. High Impact, High Likelihood; High Impact, Medium Likelihood; and Medium Impact, High Likelihood are Major risk.

    1.2.3 Build a Classification Scheme to Assess Impact

    Input

    • Current risk assessment (if available)

    Output

    • Tailored impact assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Define a set of questions to measure risk impact.
    2. For each question, assign a weight that should be placed on that factor.
    3. Define criteria for each question that would categorize the risk as high, medium, or low.
    4. Capture your results in section 4.3.1 of your Change Management SOP.
    Impact
    Weight Question High Medium Low
    15% # of people affected 36+ 11-35 <10
    20% # of sites affected 4+ 2-3 1
    15% Duration of recovery (minutes of business time) 180+ 30-18 <3
    20% Systems affected Mission critical Important Informational
    30% External customer impact Loss of customer Service interruption None

    1.2.4 Build a Classification Scheme to Define Likelihood

    Input

    • Current risk assessment (if available)

    Output

    • Tailored likelihood assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Define a set of questions to measure risk likelihood.
    2. For each question, assign a weight that should be placed on that factor.
    3. Define criteria for each question that would categorize the risk as high, medium, or low.
    4. Capture your results in section 4.3.2 of your Change Management SOP.
    LIKELIHOOD
    Weight Question High Medium Low
    25% Has this change been tested? No   Yes
    10% Have all the relevant groups (companies, departments, executives) vetted the change? No Partial Yes
    5% Has this change been documented? No   Yes
    15% How long is the change window? When can we implement? Specified day/time Partial Per IT choice
    20% Do we have trained and experienced staff available to implement this change? If only external consultants are available, the rating will be “medium” at best. No   Yes
    25% Has an implementation plan been developed? No   Yes

    1.2.5 Evaluate and Adjust Your Risk Assessment Scheme

    Input

    • Impact and likelihood assessments from previous two activities

    Output

    • Vetted risk assessment

    Materials

    Participants

    • CIO
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Draw your risk matrix on a whiteboard or flip chart.
    2. As a group, identify up to 10 examples of requests for changes that would apply within your organization. Depending on the number of people participating, each person could identify one or two changes and write them on sticky notes.
    3. Take turns bringing your sticky notes up to the risk matrix and placing each where it belongs, according to the assessment criteria you defined.
    4. After each participant has taken a turn, discuss each change as a group and adjust the placement of any changes, if needed. Update the risk assessment weightings or questions, if needed.

    Download the Change Management Rick Assessment Tool.

    #

    Change Example

    Impact

    Likelihood

    Risk

    1

    ERP change

    High

    Medium

    Major

    2

    Ticket system go-live

    Medium

    Low

    Minor

    3

    UPS replacement

    Medium

    Low

    Minor

    4

    Network upgrade

    Medium

    Medium

    Medium

    5

    AD upgrade

    Medium

    Low

    Minor

    6

    High availability implementation

    Low

    Medium

    Minor

    7

    Key-card implementation

    Low

    High

    Medium

    8

    Anti-virus update

    Low

    Low

    Minor

    9

    Website

    Low

    Medium

    Minor

     

    Case Study

    A CMDB is not a prerequisite of change management. Don’t let the absence of a configuration management database (CMDB) prevent you from implementing change management.

    Industry: Manufacturing

    Source: Anonymous Info-Tech member

    Challenge

    The company was planning to implement a CMDB; however, full implementation was still one year away and subject to budget constraints.

    Without a CMDB, it would be difficult to understand the interdependencies between systems and therefore be able to provide notifications to potentially affected user groups prior to implementing technical changes.

    This could have derailed the change management project.

    Solution

    An Excel template was set up as a stopgap measure until the full implementation of the CMDB. The template included all identified dependencies between systems, along with a “dependency tier” for each IT service.

    Tier 1: The dependent system would not operate if the upstream system change resulted in an outage.

    Tier 2: The dependent system would suffer severe degradation of performance and/or features.

    Tier 3: The dependent system would see minor performance degradation or minor feature unavailability.

    Results

    As a stopgap measure, the solution worked well. When changes ran the risk of degrading downstream dependent systems, the impacted business system owner’s authorization was sought and end users were informed in advance.

    The primary takeaway was that a system to manage configuration linkages and system dependencies was key.

    While a CMDB is ideal for this use case, IT organizations shouldn’t let the lack of such a system stop progress on change management.

    Case Study (part 1 of 4)

    Intel used a maturity assessment to kick-start its new change management program.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Due to the sheer volume of change management activities present at Intel, over 35% of unscheduled outages were the result of changes.

    Ineffective change management was identified as the top contributor of incidents with unscheduled downtime.

    One of the major issues highlighted was a lack of process ownership. The change management process at Intel was very fragmented, and that needed to change.

    Results

    Daniel Grove, Senior Release & Change Manager at Intel, identified that clarifying tasks for the Change Manager and the CAB would improve process efficiency by reducing decision lag time. Roles and responsibilities were reworked and clarified.

    Intel conducted a maturity assessment of the overall change management process to identify key areas for improvement.

    Phase 2

    Establish Roles and Workflows

    For running change management in DevOps environment, see Appendix II.

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following steps:

    • Determine Roles and Responsibilities
    • Build Core Workflows

    This phase involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Step 2.1

    Determine Roles and Responsibilities

    Activities

    2.1.1 Capture Roles and Responsibilities Using a RACI Chart

    2.1.2 Determine Your Change Manager’s Responsibilities

    2.1.3 Define the Authority and Responsibilities of Your CAB

    2.1.4 Determine an E-CAB Protocol for Your Organization

    Establish Roles and Workflows

    Step 2.1: Determine Roles and Responsibilities → Step 2.2: Build Core Workflows

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • Clearly defined responsibilities to form the job description for a Change Manager
    • Clearly defined roles and responsibilities for the change management team, including the business system owner, technical SME, and CAB members
    • Defined responsibilities and authority of the CAB
    • Protocol for an emergency CAB (E-CAB) meeting

    Identify roles and responsibilities for your change management team

    Business System Owner

    • Provides downtime window(s)
    • Advises on need for change (prior to creation of RFC)
    • Validates change (through UAT or other validation as necessary)
    • Provides approval for expedited changes (needs to be at executive level)

    Technical Subject Matter Expert (SME)

    • Advises on proposed changes prior to RFC submission
    • Reviews draft RFC for technical soundness
    • Assesses backout/rollback plan
    • Checks if knowledgebase has been consulted for prior lessons learned
    • Participates in the PIR, if necessary
    • Ensures that the service desk is trained on the change

    CAB

    • Approves/rejects RFCs for normal changes
    • Reviews lessons learned from PIRs
    • Decides on the scope of change management
    • Reviews metrics and decides on remedial actions
    • Considers changes to be added to list of pre-approved changes
    • Communicates to organization about upcoming changes

    Change Manager

    • Reviews RFCs for completeness
    • Ensures RFCs brought to the CAB have a high chance of approval
    • Chairs CAB meetings, including scheduling, agenda preparation, reporting, and follow-ups
    • Manages post-implementation reviews and reporting
    • Organizes internal communications (within IT)

    2.1.1 Capture Roles and Responsibilities Using a RACI Chart

    Input

    • Current SOP

    Output

    • Documented roles and responsibilities in change management in a RACI chart

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. As a group, work through developing a RACI chart to determine the roles and responsibilities of individuals involved in the change management practice based on the following criteria:
      • Responsible (performs the work)
      • Accountable (ensures the work is done)
      • Consulted (two-way communication)
      • Informed (one-way communication)
    2. Record your results in slide 14 of the Project Summary Template and section 3.1 of your Change Management SOP.
    Change Management TasksOriginatorSystem OwnerChange ManagerCAB MemberTechnical SMEService DeskCIO/ VP ITE-CAB Member
    Review the RFC C C A C R C R  
    Validate changes C C A C R C R  
    Assess test plan A C R R C   I  
    Approve the RFC I C A R C   I  
    Create communications plan R I A     I I  
    Deploy communications plan I I A I   R    
    Review metrics   C A R   C I  
    Perform a post implementation review   C R A     I  
    Review lessons learned from PIR activities     R A   C    

    Designate a Change Manager to own the process, change templates, and tools

    The Change Manager will be the point of contact for all process questions related to change management.

    • The Change Manager needs the authority to reject change requests, regardless of the seniority of the requester.
    • The Change Manager needs the authority to enforce compliance to a standard process.
    • The Change Manager needs enough cross-functional subject-matter expertise to accurately evaluate the impact of change from both an IT and business perspective.

    Info-Tech Best Practice

    Some organizations will not be able to assign a dedicated Change Manager, but they must still task an individual with change review authority and with ownership of the risk assessment and other key parts of the process.

    Responsibilities

    1. The Change Manager is your first stop for change approval. Both the change management and release and deployment management processes rely on the Change Manager to function.
    2. Every single change that is applied to the live environment, from a single patch to a major change, must originate with a request for change (RFC), which is then approved by the Change Manager to proceed to the CAB for full approval.
    3. Change templates and tools, such as the change calendar, list of preapproved changes, and risk assessment template are controlled by the Change Manager.
    4. The Change Manager also needs to have ownership over gathering metrics and reports surrounding deployed changes. A skilled Change Manager needs to have an aptitude for applying metrics for continual improvement activities.

    2.1.2 Document Your Change Manager’s Responsibilities

    Input

    • Current Change Manager job description (if available)

    Output

    • Change Manager job description and list of responsibilities

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Markers/pens
    • Info-Tech’s Change Manager Job Description
    • Change Management SOP

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    1.Using the previous slide, Info-Tech’s Change Manager Job Description, and the examples below, brainstorm responsibilities for the Change Manager.

    2.Record the responsibilities in Section 3.2 of your Change Management SOP.

    Example:

    Change Manager: James Corey

    Responsibilities

    1. Own the process, tools, and templates.
    2. Control the Change Management SOP.
    3. Provide standard RFC forms.
    4. Distribute RFCs for CAB review.
    5. Receive all initial RFCs and check them for completion.
    6. Approve initial RFCs.
    7. Approve pre-approved changes.
    8. Approve the conversion of normal changes to pre-approved changes.
    9. Assemble the Emergency CAB (E-CAB) when emergency change requests are received.
    10. Approve submission of RFCs for CAB review.
    11. Chair the CAB:
      • Set the CAB agenda and distribute it at least 24 hours before the meeting.
      • Ensure the agenda is adhered to.
      • Make the final approval/prioritization decision regarding a change if the CAB is deadlocked and cannot come to an agreement.
      • Distribute CAB meeting minutes to all members and relevant stakeholders.

    Download the Change Manager Job Description

    Create a Change Advisory Board (CAB) to provide process governance

    The primary functions of the CAB are to:

    1. Protect the live environment from poorly assessed, tested, and implemented changes.
      • CAB approval is required for all normal and emergency changes.
      • If a change results in an incident or outage, the CAB is effectively responsible; it’s the responsibility of the CAB to assess and accept the potential impact of every change.
    2. Prioritize changes in a way that fairly reflects change impact and urgency.
      • Change requests will originate from multiple stakeholders, some of whom have competing interests.
      • It’s up to the CAB to prioritize these requests effectively so that business need is balanced with any potential risk to the infrastructure.
      • The CAB should seek to reduce the number of emergency/expedited changes.
    3. Schedule deployments in a way that minimizes conflict and disruption.
      • The CAB uses a change calendar populated with project work, upcoming organizational initiatives, and change freeze periods. They will schedule changes around these blocks to avoid disrupting user productivity.
      • The CAB should work closely with the release and deployment management teams to coordinate change/release scheduling.

    See what responsibilities in the CAB’s process are already performed by the DevOps lifecycle (e.g. authorization, deconfliction etc.). Do not duplicate efforts.

    Use diverse representation from the business to form an effective CAB

    The CAB needs insight into all areas of the business to avoid approving a high-risk change.

    Based on the core responsibilities you have defined, the CAB needs to be composed of a diverse set of individuals who provide quality:

    • Change need assessments – identifying the value and purpose of a proposed change.
    • Change risk assessments – confirmation of the technical impact and likelihood assessments that lead to a risk score, based on the inputs in RFC.
    • Change scheduling – offer a variety of perspectives and responsibilities and will be able to identify potential scheduling conflicts.
     CAB RepresentationValue Added
    Business Members
    • CIO
    • Business Relationship Manager
    • Service Level Manager
    • Business Analyst
    • Identify change blackout periods, change impact, and business urgency.
    • Assess impact on fiduciary, legal, and/or audit requirements.
    • Determine acceptable business risk.
    IT Operations Members
    • Managers representing all IT functions
    • IT Directors
    • Subject Matter Experts (SMEs)
    • Identify dependencies and downstream impacts.
    • Identify possible conflicts with pre-existing OLAs and SLAs.
    CAB Attendees
    • Specific SMEs, tech specialists, and business and vendor reps relevant to a particular change
    • Only attend meetings when invited by the Change Manager
    • Provide detailed information and expertise related to their particular subject areas.
    • Speak to requirements, change impact, and cost.

    Info-Tech Best Practice

    Form a core CAB (members attend every week) and an optional CAB (members who attend only when a change impacts them or when they can provide value in discussions about a change). This way, members can have their voice heard without spending every week in a meeting where they do not contribute.

    2.1.3 Define the Authority and Responsibilities of Your CAB

    Input

    • Current SOP or CAB charter (if available)

    Output

    • Documented list of CAB authorities and responsibilities

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    1.Using the previous slide and the examples below, list the authorities and responsibilities of your CAB.

    2.Record the responsibilities in section 3.3.2 of your Change Management SOP and the Project Summary Template.

    Example:

    CAP AuthorityCAP Responsibilities
    • Final authority over the deployment of all normal and emergency changes.
    • Authority to absorb the risk of a change.
    • Authority to set the change calendar:
      • Maintenance windows.
      • Change freeze periods.
      • Project work.
      • Authority to delay changes.
    • Evaluate all normal and emergency changes.
    • Verify all normal change test, backout, and implementation plans.
    • Verify all normal change test results.
    • Approve all normal and emergency changes.
    • Prioritize all normal changes.
    • Schedule all normal and emergency changes.
    • Review failed change deployments.

    Establish an emergency CAB (E-CAB) protocol

    • When an emergency change request is received, you will not be able to wait until the regularly scheduled CAB meeting.
    • As a group, decide who will sit on the E-CAB and what their protocol will be when assessing and approving emergency changes.

    Change owner conferences with E-CAB (best efforts to reach them) through email or messaging.

    E-CAB members and business system owners are provided with change details. No decision is made without feedback from at least one E-CAB member.

    If business continuity is being affected, the Change Manager has authority to approve change.

    Full documentation of the change (a retroactive RFC) is done after the change and is then reviewed by the CAB.

    Info-Tech Best Practice

    Members of the E-CAB should be a subset of the CAB who are typically quick to respond to their messages, even at odd hours of the night.

    2.1.4 Determine an E-CAB Protocol for Your Organization

    Input

    • Current SOP or CAB charter (if available)

    Output

    • E-CAB protocol

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather the members of the E-CAB and other necessary representatives from the change management team.
    2. Determine the order of operations for the E-CAB in the event that an emergency change is needed.
    3. Consult the example emergency protocol below. Determine what roles and responsibilities are involved at each stage of the emergency change’s implementation.
    4. Document the E-CAB protocol in section 3.4 of your Change Management SOP.

    Example

    Assemble E-CAB

    Assess Change

    Test (if Applicable)

    Deploy Change

    Create Retroactive RFC

    Review With CAB

    Step 2.2

    Build Core Workflows

    Activities

    2.2.1 Build a CMDB-lite as a Reference for Requested Changes

    2.2.2 Create a Normal Change Process

    2.2.3 Create a Pre-Approved Change Process

    2.2.4 Create an Emergency Change Process

    Establish Roles and Workflows

    Step 2.1: Determine Roles and Responsibilities → Step 2.2: Build Core Workflows

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • Emergency change workflow
    • Normal process workflow
    • Pre-approved change workflow

    Establishing Workflows: Change Management Lifecycle

    Improve

    • A post-implementation review assesses the value of the actual change measured against the proposed change in terms of benefits, costs, and impact.
    • Results recorded in the change log.
    • Accountability: Change Manager Change Implementer

    Request

    • A change request (RFC) can be submitted via paper form, phone, email, or web portal.
    • Accountability: Change requester/Initiator

    Assess

    • The request is screened to ensure it meets an agreed-upon set of business criteria.
    • Changes are assessed on:
      • Impact of change
      • Risks or interdependencies
      • Resourcing and costs
    • Accountability: Change Manager

    Plan

    • Tasks are assigned, planned, and executed.
    • Change schedule is consulted and necessary resources are identified.
    • Accountability: Change Manager

    Approve

    • Approved requests are sent to the most efficient channel based on risk, urgency, and complexity.
    • Change is sent to CAB members for final review and approval
    • Accountability: Change Manager
      • Change Advisory Board

    Implement

    • Approved changes are deployed.
    • A rollback plan is created to mitigate risk.
    • Accountability: Change Manager Change Implementer

    Establishing workflows: employ a SIPOC model for process definition

    A good SIPOC (supplier, input, process, output, customer) model helps establish the boundaries of each process step and provides a concise definition of the expected outcomes and required inputs. It’s a useful and recommended next step for every workflow diagram.

    For change management, employ a SIPOC model to outline your CAB process:

    Supplier

    • Who or what organization provides the inputs to the process? The supplier can be internal or external.

    Input

    • What goes into the process step? This can be a document, data, information, or a decision.

    Process

    • Activities that occur in the process step that’s being analyzed.

    Output

    • What does the process step produce? This can be a document, data, information, or a decision.

    Customer

    • Who or what organization(s) takes the output of the process? The customer can be internal or external.

    Optional Fields

    Metrics

    • Top-level indicators that usually relate to the input and output, e.g. turnaround time, risk matrix completeness.

    Controls

    • Checkpoints to ensure process step quality.

    Dependencies

    • Other process steps that require the output.

    RACI

    • Those who are Responsible, Accountable, Consulted, or Informed (RACI) about the input, output, and/or process.

    Establish change workflows: assess requested changes to identify impact and dependencies

    An effective change assessment workflow is a holistic process that leaves no stone unturned in an effort to mitigate risk before any change reaches the approval stage. The four crucial areas of risk in a change workflow are:

    Dependencies

    Identify all components of the change.

    Ask how changes will affect:

    • Services on the same infrastructure?
    • Applications?
    • Infrastructure/app architecture?
    • Security?
    • Ability to support critical systems?

    Business Impact

    Frame the change from a business point of view to identify potential disruptions to business activities.

    Your assessment should cover:

    • Business processes
    • User productivity
    • Customer service
    • BCPs

    SLA Impact

    Each new change can impact the level of service available.

    Examine the impact on:

    • Availability of critical systems
    • Infrastructure and app performance
    • Infrastructure and app capacity
    • Existing disaster recovery plans and procedures

    Required Resources

    Once risk has been assessed, resources need to be identified to ensure the change can be executed.

    These include:

    • People (SMEs, tech support, work effort/duration)
    • System time for scheduled implementation
    • Hardware or software (new or existing, as well as tools)

    Establishing workflows: pinpoint dependencies to identify the need for additional changes

    An assessment of each change and a query of the CMDB needs to be performed as part of the change planning process to mitigate outage risk.

    • A version upgrade on one piece of software may require another component to be upgraded as well. For example, an upgrade to the database management system requires that an application that uses the database be upgraded or modified.
    • The sequence of the release must also be determined, as certain components may need to be upgraded before others. For example, if you upgrade the Exchange Server, a Windows update must be installed prior to the Exchange upgrade.
    • If you do not have a CMDB, consider building a CMDB-lite, which consists of a listing of systems, primary users, SMEs, business owners, and system dependencies (see next slide).

    Services Impacted

    • Have affected services been identified?
    • Have supporting services been identified?
    • Has someone checked the CMDB to ensure all dependencies have been accounted for?
    • Have we referenced the service catalog so the business approves what they’re authorizing?

    Technical Teams Impacted

    • Who will support the change throughout testing and implementation?
    • Will additional support be needed?
    • Do we need outside support from eternal suppliers?
    • Has someone checked the contract to ensure any additional costs have been approved?

    Build a dependency matrix to avoid change related collisions (optional)

    A CMDB-lite does not replace a CMDB but can be a valuable tool to leverage when requesting changes if you do not currently have configuration management. Consider the following inputs when building your own CMDB-lite.

    • System
      • To build a CMDB-lite, start with the top 10 systems in your environment that experience changes. This list can always be populated iteratively.
    • Primary Users
      • Listing the primary users will give a change requester a first glance at the impact of the change.
      • You can also use this information when looking at the change communication and training after the change is implemented.
    • SME/Backup
      • These are the staff that will likely build and implement the change. The backup is listed in case the primary is on holiday.
    • Business System Owner
      • The owner of the system is one of the people needed to sign off on the change. Having their support from the beginning of a change is necessary to build and implement it successfully.
    • Tier 1 Dependency
      • If the primary system experiences and outage, Tier 1 dependency functionality is also lost. To request a change, include the business system owner signoffs of the Tier 1 dependencies of the primary system.
    • Tier 2 Dependency
      • If the primary system experiences an outage, Tier 2 dependency functionality is lost, but there is an available workaround. As with Tier 1, this information can help you build a backout plan in case there is a change-related collision.
    • Tier 3 Dependency
      • Tier 3 functionality is not lost if the primary system experiences an outage, but nice-to-haves such as aesthetics are affected.

    2.2.1 Build a CMDB-lite as a Reference for Requested Changes

    Input

    • Current system ownership documentation

    Output

    • Documented reference for change requests (CMDB-lite)

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Sticky notes
    • Markers/pens

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Start with a list of your top 10-15 systems/services with the highest volume of changes.
    2. Using a whiteboard, flip chart, or shared screen, complete the table below by filling the corresponding Primary Users, SMEs, Business System Owner, and Dependencies as shown below. It may help to use sticky notes.
    3. Iteratively populate the table as you notice gaps with incoming changes.
    SystemPrimary UsersSMEBackup SME(s)Business System OwnerTier 1 Dependency (system functionality is down)Tier 2 (impaired functionality/ workaround available)Tier 3 Dependency (nice to have)
    Email Enterprise Naomi Amos James
    • ITSMs
    • Scan-to-email
    • Reporting
    		  
    • Lots
    Conferencing Tool Enterprise Alex Shed James
    • Videoconferencing
    • Conference rooms (can use Facebook messenger instead in worst case scenario)
    • IM
    ITSM (Service Now) Enterprise (Intl.) Anderson TBD Mike
    • Work orders
    • Dashboards
    • Purchasing
    		  
    ITSM (Manage Engine) North America Bobbie Joseph Mike
    • Work orders
    • Dashboards
    • Purchasing
    		  

    Establishing workflows: create standards for change approvals to improve efficiency

    • Not all changes are created equal, and not all changes require the same degree of approval. As part of the change management process, it’s important to define who is the authority for each type of change.
    • Failure to do so can create bureaucratic bottlenecks if each change is held to an unnecessary high level of scrutiny, or unplanned outages may occur due to changes circumventing the formal approval process.
    • A balance must be met and defined to ensure the process is not bypassed or bottlenecked.

    Info-Tech Best Practice

    Define a list pre-approved changes and automate them (if possible) using your ITSM solution. This will save valuable time for more important changes in the queue.

    Example:

    Change CategoryChange Authority
    Pre-approved change Department head/manager
    Emergency change E-CAB
    Normal change – low and medium risk CAB
    Normal change – high risk CAB and CIO (for visibility)

    Example process: Normal Change – Change Initiation

    Change initiation allows for assurance that the request is in scope for change management and acts as a filter for out-of-scope changes to be redirected to the proper workflow. Initiation also assesses who may be assigned to the change and the proper category of the change, and results in an RFC to be populated before the change reaches the build and test phase.

    The image is a horizontal flow chart, depicting an example of a change process.

    The change trigger assessment is critical in the DevOps lifecycle. This can take a more formal role of a technical review board (TRB) or, with enough maturity, may be automated. Responsibilities such as deconfliction, dependency identification, calendar query, and authorization identification can be done early in the lifecycle to decrease or eliminate the burden on CAB.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Technical Build and Test

    The technical build and test stage includes all technical prerequisites and testing needed for a change to pass before proceeding to approval and implementation. In addition to a technical review, a solution consisting of the implementation, rollback, communications, and training plan are also built and included in the RFC before passing it to the CAB.

    The image is a flowchart, showing the process for change during the technical build and test stage.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Change Approval (CAB)

    Change approval can start with the Change Manager reviewing all incoming RFCs to filter them for completeness and check them for red flags before passing them to the CAB. This saves the CAB from discussing incomplete changes and allows the Change Manager to set a CAB agenda before the CAB meeting. If need be, change approval can also set vendor communications necessary for changes, as well as the final implementation date of the change. The CAB and Change Manager may follow up with the appropriate parties notifying them of the approval decision (accepted, rescheduled, or rejected).

    The image shows a flowchart illustrating the process for change approval.

    For the full process, refer to the Change Management Process Library.

    Example process: Normal Change – Change Implementation

    Changes should not end at implementation. Ensure you define post-implementation activities (documentation, communication, training etc.) and a post-implementation review in case the change does not go according to plan.

    The image is a flowchart, illustrating the work process for change implementation and post-implementation review.

    For the full process, refer to the Change Management Process Library.

    2.2.2 Create a Normal Change Process

    Input

    • Current SOP/workflow library

    Output

    • Normal change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for a normal change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
      5. Implementation and Post-Implementation Activities
    3. Optionally, you may create variations of the workflow for minor, medium, and major changes (e.g. there will be fewer authorizations for minor changes).
    4. For further documentation, you may choose to run the SIPOC activity for your CAB as outlined on this slide.
    5. Document the resulting workflows in the Change Management Process Library and section 11 of your Change Management SOP.

    Download the Change Management Process Library.

    Identify and convert low-risk normal changes to pre-approved once the process is established

    As your process matures, begin creating a list of normal changes that might qualify for pre-approval. The most potential for value in gains from change management comes from re-engineering and automating of high-volume changes. Pre-approved changes should save you time without threatening the live environment.

    IT should flag changes they would like pre-approved:

    • Once your change management process is firmly established, hold a meeting with all staff that make change requests and build changes.
    • Run a training session detailing the traits of pre-approved changes and ask these individuals to identify changes that might qualify.
    • These changes should be submitted to the Change Manager and reviewed, with the help of the CAB, to decide whether or not they qualify for pre-approval.

    Pre-approved changes are not exempt from due diligence:

    • Once a change is designated as pre-approved, the deployment team should create and compile all relevant documentation:
      • An RFC detailing the change, dependencies, risk, and impact.
      • Detailed procedures and required resources.
      • Implementation and backout plan.
      • Test results.
    • When templating the RFC for pre-approved changes, aim to write the documentation as if another SME were to implement it. This reduces confusion, especially if there’s staff turnover.
    • The CAB must approve, sign off, and keep a record of all documents.
    • Pre-approved changes must still be documented and recorded in the CMDB and change log after each deployment.

    Info-Tech Best Practice

    At the beginning of a change management process, there should be few active pre-approved changes. However, prior to launch, you may have IT flag changes for conversion.

    Example process: Pre-Approved Change Process

    The image shows two horizontal flow charts, the first labelled Pre-Approval of Recurring RFC, and the second labelled Implementation of Child RFC.

    For the full process, refer to the Change Management Process Library.

    Review the pre-approved change list regularly to ensure the list of changes are still low-risk and repeatable.

    IT environments change. Don’t be caught by surprise.

    • Changes which were once low-risk and repeatable may cause unforeseen incidents if they are not reviewed regularly.
    • Dependencies change as the IT environment changes. Ensure that the changes on the pre-approved change list are still low-risk and repeatable, and that the documentation is up to date.
    • If dependencies have changed, then move the change back to the normal category for reassessment. It may be redesignated as a pre-approved change once the documentation is updated.

    Info-Tech Best Practice

    Other reasons for moving a pre-approved change back to the normal category is if the change led to an incident during implementation or if there was an issue during implementation.

    Seek new pre-approved change submissions. → Re-evaluate the pre-approved change list every 4-6 months.

    The image shows a horizontal flow chart, depicting the process for a pre-approved change list review.

    For the full process, refer to the Change Management Process Library.

    2.2.3 Create a Pre-Approved Change Process

    Input

    • Current SOP/workflow library

    Output

    • Pre-approved change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for a pre-approved change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
    3. Document the process of a converting a normal change to pre-approved. Include the steps from flagging a low-risk change to creating the related RFC template.
    4. Document the resulting workflows in the Change Management Process Library and sections 4.2 and 13 of your Change Management SOP.

    Reserve the emergency designation for real emergencies

    • Emergency changes have one of the following triggers:
      • A critical incident is impacting user productivity.
      • An imminent critical incident will impact user productivity.
    • Unless a critical incident is being resolved or prevented, the change should be categorized as normal.
    • An emergency change differs from a normal change in the following key aspects:
      • An emergency change is required to recover from a major outage – there must be a validated service desk critical incident ticket.
      • An urgent business requirement is not an “emergency.”
      • An RFC is created after the change is implemented and the outage is over.
      • A review by the full CAB occurs after the change is implemented.
      • The first responder and/or the person implementing the change may not be the subject matter expert for that system.
    • In all cases, an RFC must be created and the change must be reviewed by the full CAB. The review should occur within two business days of the event.
    Sample ChangeQuick CheckEmergency?
    Install the latest critical patches from the vendor. Are the patches required to resolve or prevent an imminent critical incident? No
    A virus or worm invades the network and a patch is needed to eliminate the threat. Is the patch required to resolve or prevent an imminent critical incident? Yes

    Info-Tech Best Practice

    Change requesters should be made aware that senior management will be informed if an emergency RFC is submitted inappropriately. Emergency requests trigger urgent CAB meetings, are riskier to deploy, and delay other changes waiting in the queue.

    Example process: Emergency Change Process

    The image is a flowchart depicting the process for an emergency change process

    When building your emergency change process, have your E-CAB protocol from activity 2.1.4 handy.

    • Focus on the following requirements for an emergency process:
      • E-CAB protocol and scope: Does the SME need authorization first before working on the change or can the SME proceed if no E-CAB members respond?
      • Documentation and communication to stakeholders and CAB after the emergency change is completed.
      • Input from incident management.

    For the full process, refer to the Change Management Process Library.

    2.2.4 Create an Emergency Change Process

    Input

    • Current SOP/workflow library

    Output

    • Emergency change process

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Using the examples shown on the previous few slides, work as a group to determine the workflow for an emergency change, with particular attention to the following sub-processes:
      1. Request
      2. Assessment
      3. Plan
      4. Approve
    3. Ensure that the E-CAB protocol from activity 2.1.4 is considered when building your process.
    4. Document the resulting workflows in the Change Management Process Library and section 12 of your Change Management SOP.

    Case Study (part 2 of 4)

    Intel implemented a robust change management process.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Intel identified 37 different change processes and 25 change management systems of record with little integration.

    Software and infrastructure groups were also very siloed, and this no doubt contributed to the high number of changes that caused outages.

    The task was simple: standards needed to be put in place and communication had to improve.

    Results

    Once process ownership was assigned and the role of the Change Manager and CAB clarified, it was a simple task to streamline and simplify processes among groups.

    Intel designed a new, unified change management workflow that all groups would adopt.

    Automation was also brought into play to improve how RFCs were generated and submitted.

    Phase 3

    Define the RFC and Post-Implementation Activities

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Your Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define the RFC and Post-Implementation Activities

    3.1 Design the RFC

    3.2 Establish Post-Implementation Activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following activities:

    • Design the RFC
    • Establish Post-Implementation Activities

    This phase involves the following participants:

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board

    Step 3.1

    Design the RFC

    Activities

    3.1.1 Evaluate Your Existing RFC Process

    3.1.2 Build the RFC Form

    Define the RFC and Post-Implementation Activities

    Step 3.1: Design the RFC

    Step 3.2: Establish Post-Implementation Activities

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A full RFC template and process that compliments the workflows for the three change categories

    A request for change (RFC) should be submitted for every non-standard change

    An RFC should be submitted through the formal change management practice for every change that is not a standard, pre-approved change (a change which does not require submission to the change management practice).

    • The RFC should contain all the information required to approve a change. Some information will be recorded when the change request is first initiated, but not everything will be known at that time.
    • Further information can be added as the change progresses through its lifecycle.
    • The level of detail that goes into the RFC will vary depending on the type of change, the size, and the likely impact of the change.
    • Other details of the change may be recorded in other documents and referenced in the RFC.

    Info-Tech Insight

    Keep the RFC form simple, especially when first implementing change management, to encourage the adoption of and compliance with the process.

    RFCs should contain the following information, at a minimum:

    1. Contact information for requester
    2. Description of change
    3. References to external documentation
    4. Items to be changed, reason for the change, and impact of both implementing and not implementing the change
    5. Change type and category
    6. Priority and risk assessment
    7. Predicted time frame, resources, and cost
    8. Backout or remediation plan
    9. Proposed approvers
    10. Scheduled implementation time
    11. Communications plan and post-implementation review

    3.1.1 Evaluate Your Existing RFC Process

    Input

    • Current RFC form or stock ITSM RFC
    • Current SOP (if available)

    Output

    • List of changes to the current RFC form and RFC process

    Materials

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. If the organization is already using an RFC form, review it as a group now and discuss its contents:
      • Does this RFC provide adequate information for the Change Manager and/or CAB to review?
      • Should any additional fields be added?
    2. Show the participants Info-Tech’s Request for Change Form Template and compare it to the one the organization is currently using.
    3. As a group, finalize an RFC table of contents that will be used to formalize a new or improved RFC.
    4. Decide which fields should be filled out by the requester before the initial RFC is submitted to the Change Manager:
      • Many sections of the RFC are relevant for change assessment and review. What information does the Change Manager need when they first receive a request?
      • The Change Manager needs enough information to ensure that the change is in scope and has been properly categorized.
    5. Decide how the RFC form should be submitted and reviewed; this can be documented in section 5 of your Change Management SOP.

    Download the Request for Change Form Template.

    Design the RFC to encourage process buy-in

    • When building the RFC, split the form up into sections that follow the normal workflow (e.g. Intake, Assessment and Build, Approval, Implementation/PIR). This way the form walks the requester through what needs to be filled and when.
    • Revisit the form periodically and solicit feedback to continually improve the user experience. If there’s information missing on the RFC that the CAB would like to know, add the fields. If there are sections that are not used or not needed for documentation, remove them.
    • Make sure the user experience surrounding your RFC form is a top priority – make it accessible, otherwise change requesters simply will not use it.
    • Take advantage of your ITSM’s dropdown lists, automated notifications, CMDB integrations, and auto-generated fields to ease the process of filling the RFC

    Draft:

    • Change requester
    • Requested date of deployment
    • Change risk: low/medium/high
    • Risk assessment
    • Description of change
    • Reason for change
    • Change components

    Technical Build:

    • Assess change:
      • Dependencies
      • Business impact
      • SLA impact
      • Required resources
      • Query the CMS
    • Plan and test changes:
      • Test plan
      • Test results
      • Implementation plan
      • Backout plan
      • Backout plan test results

    CAB:

    • Approve and schedule changes:
      • Final CAB review
      • Communications plan

    Complete:

    • Deploy changes:
      • Post-implementation review

    Designing your RFC: RFC draft

    • Change requester – link your change module to the active directory to pull the change requester’s contact information automatically to save time.
    • A requested date of deployment gives approvers information on timeline and can be used to query the change calendar for possible conflicts
    • Information about risk assessment based on impact and likelihood questionnaires are quick to fill out but provide a lot of information to the CAB. The risk assessment may not be complete at the draft stage but can be updated as the change is built. Ensure this field is up-to- date before it reaches CAB.
    • If you have a technical review stage where changes are directed to the proper workflow and resourcing is assessed, the description, reason, and change components are high-level descriptors of the change that will aid in discovery and lining the change up with the business vision (viability from both a technical and business standpoint).
    • Change requester
    • Requested date of deployment
    • Change Risk: low/medium/high
    • Risk assessment
    • Description of change
    • Reason for change
    • Change components

    Use the RFC to point to documentation already gathered in the DevOps lifecycle to cut down on unnecessary manual work while maintaining compliance.

    Designing your RFC: technical build

    • Dependencies and CMDB query, along with the proposed implementation date, are included to aid in calendar deconfliction and change scheduling. If there’s a conflict, it’s easier to reschedule the proposed change early in the lifecycle.
    • Business, SLA impact, and required resources can be tracked to provide the CAB with information on the business resources required. This can also be used to prioritize the change if conflicts arise.
    • Implementation, test, and backout plans must be included and assessed to increase the probability that a change will be implemented without failure. It’s also useful in the case of PIRs to determine root causes of change-related incidents.
    • Assess change:
      • Dependencies
      • Business impact
      • SLA impact
      • Required resources
      • Query the CMS
    • Plan and test changes:
      • Test plan
      • Test results
      • Implementation plan
      • Backout plan
      • Backout plan test results

    Designing your RFC: approval and deployment

    • Documenting approval, rejection, and rescheduling gives the change requester the go-ahead to proceed with the change, rationale on why it was prioritized lower than another change (rescheduled), or rationale on rejection.
    • Communications plans for appropriate stakeholders can also be modified and forwarded to the communications team (e.g. service desk or business system owners) before deployment.
    • Post-implementation activities and reviews can be conducted if need be before a change is closed. The PIR, if filled out, should then be appended to any subsequent changes of the same nature to avoid making the same mistake twice.
    • Approve and schedule changes:
      • Final CAB review
      • Communications plan
    • Deploy changes:
      • Post-implementation review

    Standardize the request for change protocol

    1. Submission Standards
      • Electronic submission will make it easier for CAB members to review the documentation.
      • As the change goes through the assessment, plan, and test phase, new documentation (assessments, backout plans, test results, etc.) can be attached to the digital RFC for review by CAB members prior to the CAB meeting.
      • Change management software won’t be necessary to facilitate the RFC submission and review; a content repository system, such as SharePoint, will suffice.
    2. Designate the first control point
      • All RFCs should be submitted to a single point of contact.
      • Ideally, the Change Manager or Technical Review Board should fill this role.
      • Whoever is tasked with this role needs the subject matter expertise to ensure that the change has been categorized correctly, to reject out-of-scope requests, or to ask that missing information be provided before the RFC moves through the full change management practice.

    Info-Tech Best Practice

    Technical and SME contacts should be noted in each RFC so they can be easily consulted during the RFC review.

    3.1.2 Build the RFC Form

    Input

    • Current RFC form or stock ITSM RFC
    • Current SOP (if available)

    Output

    • List of changes to the current RFC and RFC process

    Materials

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board
    1. Use Info-Tech’s Request for Change Form Template as a basis for your RFC form.
    2. Use this template to standardize your change request process and ensure that the appropriate information is documented effectively each time a request is made. The change requester and Change Manager should consolidate all information associated with a given change request in this form. This form will be submitted by the change requester and reviewed by the Change Manager.

    Case Study (part 3 of 4)

    Intel implemented automated RFC form generation.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    One of the crucial factors that was impacting Intel’s change management efficiency was a cumbersome RFC process.

    A lack of RFC usage was contributing to increased ad hoc changes being put through the CAB, and rescheduled changes were quite high.

    Additionally, ad hoc changes were also contributing heavily to unscheduled downtime within the organization.

    Results

    Intel designed and implemented an automated RFC form generator to encourage end users to increase RFC usage.

    As we’ve seen with RFC form design, the UX/UI of the form needs to be top notch, otherwise end users will simply circumvent the process. This will contribute to the problems you are seeking to correct.

    Thanks to increased RFC usage, Intel decreased emergency changes by 50% and reduced change-caused unscheduled downtime by 82%.

    Step 3.2

    Establish Post-Implementation Activities

    Activities

    3.2.1 Determine When the CAB Would Reject Tested Changes

    3.2.2 Create a Post-Implementation Activity Checklist

    Define the RFC and Post-Implementation Activities

    Step 3.1: Design RFC

    Step 3.2: Establish Post-Implementation Activities

    This step involves the following participants:

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board

    Outcomes of this step

    • A formalized post-implementation process for continual improvement

    Why would the CAB reject a change that has been properly assessed and tested?

    Possible reasons the CAB would reject a change include:

    • The product being changed is approaching its end of life.
    • The change is too costly.
    • The timing of the change conflicts with other changes.
    • There could be compliance issues.
    • The change is actually a project.
    • The risk is too high.
    • There could be regulatory issues.
    • The peripherals (test, backout, communication, and training plans) are incomplete.

    Info-Tech Best Practice

    Many reasons for rejection (listed above) can be caught early on in the process during the technical review or change build portion of the change. The earlier you catch these reasons for rejection, the less wasted effort there will be per change.

    Sample RFCReason for CAP Rejection
    There was a request for an update to a system that a legacy application depends on and only a specific area of the business was aware of the dependency. The CAB rejects it due to the downstream impact.
    There was a request for an update to a non-supported application, and the vendor was asking for a premium support contract that is very costly. It’s too expensive to implement, despite the need for it. The CAB will wait for an upgrade to a new application.
    There was a request to update application functionality to a beta release. The risk outweighs the business benefits.

    Determine When the CAB Would Reject Tested Changes

    Input

    • Current SOP (if available)

    Output

    • List of reasons to reject tested changes

    Materials

    • Whiteboard/flip charts (or shared screen if working remotely)
    • Projector
    • Markers/pens
    • Laptop with ITSM admin access
    • Project Summary Template

    Participants

    • IT Director
    • Infrastructure Manager
    • Change Manager
    • Members of the Change Advisory Board

    Avoid hand-offs to ensure a smooth implementation process

    The implementation phase is the final checkpoint before releasing the new change into your live environment. Once the final checks have been made to the change, it’s paramount that teams work together to transition the change effectively rather than doing an abrupt hand-off. This could cause a potential outage.

    1.

    • Deployment resources identified, allocated, and scheduled
    • Documentation complete
    • Support team trained
    • Users trained
    • Business sign-off
    • Target systems identified and ready to receive changes
    • Target systems available for installation maintenance window scheduled
    • Technical checks:
      • Disk space available
      • Pre-requisites met
      • Components/Services to be updated are stopped
      • All users disconnected
    • Download Info-Tech’sChange Management Pre-Implementation Checklist

    Implement change →

    2.

    1. Verification – once the change has been implemented, verify that all requirements are fulfilled.
    2. Review – ensure that all affected systems and applications are operating as predicted. Update change log.
    3. Transition – a crucial phase of implementation that’s often overlooked. Once the change implementation is complete from a technical point of view, it’s imperative that the team involved with the change inform and train the group responsible for managing the new change.

    Create a backout plan to reduce the risk of a failed change

    Every change process needs to plan for the potential for failure and how to address it effectively. Change management’s solution to this problem is a backout plan.

    A backout plan needs to contain a record of the steps that need to be taken to restore the live environment back to its previous state and maintain business continuity. A good backout plan asks the following questions:

    1. How will failure be determined? Who will make the determination to back out of a change be made and when?
    2. Do we fix on fail or do we rollback to the previous configuration?
    3. Is the service desk aware of the impending change? Do they have proper training?

    Notify the Service Desk

    • Notify the Service Desk about backout plan initiation.

    Disable Access

    • Disable user access to affected system(s).

    Conduct Checks

    • Conduct checks to all affected components.

    Enable User Access

    • Enable user access to affected systems.

    Notify the Service Desk

    • Notify the service desk that the backout plan was successful.

    Info-Tech Best Practice

    As part of the backout plan, consider the turnback point in the change window. That is, the point within the change window where you still have time to fully back out of the change.

    Ensure the following post-implementation review activities are completed

    Service Catalog

    Update the service catalog with new information as a result of the implemented change.

    CMDB

    Update new dependencies present as a result of the new change.

    Asset DB

    Add notes about any assets newly affected by changes.

    Architecture Map

    Update your map based on the new change.

    Technical Documentation

    Update your technical documentation to reflect the changes present because of the new change.

    Training Documentation

    Update your training documentation to reflect any information about how users interact with the change.

    Use a post-implementation review process to promote continual improvement

    The post-implementation review (PIR) is the most neglected change management activity.

    • All changes should be reviewed to understand the reason behind them, appropriateness, and recommendations for next steps.
    • The Change Manager manages the completion of information PIRs and invites RFC originators to present their findings and document the lessons learned.

    Info-Tech Best Practice

    Review PIR reports at CAB meetings to highlight the root causes of issues, action items to close identified gaps, and back-up documentation required. Attach the PIR report to the relevant RFC to prevent similar changes from facing the same issues in the future.

    1. Why do a post-implementation review?
      • Changes that don’t fail but don’t perform well are rarely reviewed.
      • Changes may fail subtly and still need review.
      • Changes that cause serious failures (i.e. unplanned downtime) receive analysis that is unnecessarily in-depth.
    2. What are the benefits?
      • A proactive, post-implementation review actually uses less resources than reactionary change reviews.
      • Root-cause analysis of failed changes, no matter what the impact.
      • Insight into changes that took longer than projected.
      • Identification of previously unidentified risks affecting changes.

    Determine the strategy for your PIR to establish a standardized process

    Capture the details of your PIR process in a table similar to the one below.

    Frequency Part of weekly review (IT team meeting)
    Participants
    • Change Manager
    • Originator
    • SME/supervisor/impacted team(s)

    Categories under review

    Current deviations and action items from previous PIR:

    • Complete
    • Partially complete
    • Complete, late
    • Change failed, rollback succeeded
    • Change failed, rollback failed
    • Major deviation from implementation plan
    Output
    • Root cause or failure or deviation
    • External factors
    • Remediation focus areas
    • Remediation timeline (follow-up at appropriate time)
    Controls
    • Reviewed at next CAB meeting
    • RFC close is dependent on completion of PIR
    • Share with the rest of the technical team
    • Lessons learned stored in the knowledgebase and attached to RFC for easy search of past issues.

    3.2.2 Create a Post-Implementation Activity Checklist

    Input

    • Current SOP (if available)

    Output

    • List of reasons to reject tested changes

    Materials

    Participants

    • CIO
    • IT Managers
    • Change Manager
    • Members of the Change Advisory Board
    1. Gather representatives from the change management team.
    2. Brainstorm duties to perform following the deployment of a change. Below is a sample list:
      • Example:
        • Was the deployment successful?
          • If no, was the backout plan executed successfully?
        • List change-related incidents
        • Change assessment
          • Missed dependencies
          • Inaccurate business impact
          • Incorrect SLA impact
          • Inaccurate resources
            • Time
            • Staff
            • Hardware
        • System testing
        • Integration testing
        • User acceptance testing
        • No backout plan
        • Backout plan failure
        • Deployment issues
    3. Record your results in the Change Management Post-Implementation Checklist.

    Download the Change Management Post-Implementation Checklist

    Case Study

    Microsoft used post-implementation review activities to mitigate the risk of a critical Azure outage.

    Industry: Technology

    Source: Jason Zander, Microsoft

    Challenge

    In November 2014, Microsoft deployed a change intended to improve Azure storage performance by reducing CPU footprint of the Azure Table Front-Ends.

    The deployment method was an incremental approach called “flighting,” where software and configuration deployments are deployed incrementally to Azure infrastructure in small batches.

    Unfortunately, this software deployment caused a service interruption in multiple regions.

    Solution

    Before the software was deployed, Microsoft engineers followed proper protocol by testing the proposed update. All test results pointed to a successful implementation.

    Unfortunately, engineers pushed the change out to the entire infrastructure instead of adhering to the traditional flighting protocol.

    Additionally, the configuration switch was incorrectly enabled for the Azure Blob storage Front-Ends.

    A combination of the two mistakes exposed a bug that caused the outage.

    Results

    Thankfully, Microsoft had a backout plan. Within 30 minutes, the change was rolled back on a global scale.

    It was determined that policy enforcement was not integrated across the deployment system. An update to the system shifted the process of policy enforcement from human-based decisions and protocol to automation via the deployment platform.

    Defined PIR activities enabled Microsoft to take swift action against the outage and mitigate the risk of a serious outage.

    Phase 4

    Measure, Manage, and Maintain

    Define Change Management

    1.1 Assess Maturity

    1.2 Categorize Changes and Build Risk Assessment

    Establish Roles and Workflows

    2.1 Determine Roles and Responsibilities

    2.2 Build Core Workflows

    Define RFC and Post-Implementation Activities

    3.1 Design RFC

    3.2 Establish post-implementation activities

    Measure, Manage, and Maintain

    4.1 Identify Metrics and Build the Change Calendar

    4.2 Implement the Project

    This phase will guide you through the following activities:

    • Identify Metrics and Build the Change Calendar
    • Implement the Project

    This phase involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Step 4.1

    Identify Metrics and Build the Change Calendar

    Activities

    4.1.1 Create an Outline for Your Change Calendar

    4.1.2 Determine Metrics, Key Performance Indicators (KPIs), and Critical Success Factors (CSFs)

    4.1.3 Track and Record Metrics Using the Change Management Metrics Tool

    Measure, Manage, and Maintain

    Step 4.1: Identify Metrics and Build the Change Calendar

    Step 4.2: Implement the Project

    This step involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Outcomes of this step

    • Clear definitions of change calendar content
    • Guidelines for change calendar scheduling
    • Defined metrics to measure the success of change management with associated reports, KPIs, and CSFs

    Enforce a standard method of prioritizing and scheduling changes

    The impact of not deploying the change and the benefit of deploying it should determine its priority.

    Risk of Not Deploying

    • What is the urgency of the change?
    • What is the risk to the organization if the change is not deployed right away?
    • Will there be any lost productivity, service disruptions, or missed critical business opportunities?
      • Timing
        • Does the proposed timing work with the approved changes already on the change schedule?
        • Has the change been clash checked so there are no potential conflicts over services or resources?
      • Once prioritized, a final deployment date should be set by the CAB. Check the change calendar first to avoid conflicts.

    Positive Impact of Deployment

    • What benefits will be realized once the change is deployed?
    • How significant is the opportunity that triggered the change?
    • Will the change lead to a positive business outcome (e.g. increased sales)?

    “The one who has more clout or authority is usually the one who gets changes scheduled in the time frame they desire, but you should really be evaluating the impact to the organization. We looked at the risk to the business of not doing the change, and that’s a good way of determining the criticality and urgency of that change.” – Joseph Sgandurra, Director, Service Delivery, Navantis

    Info-Tech Insight

    Avoid a culture where powerful stakeholders are able to push change deployment on an ad hoc basis. Give the CAB the full authority to make approval decisions based on urgency, impact, cost, and availability of resources.

    Develop a change schedule to formalize the planning process

    A change calendar will help the CAB schedule changes more effectively and increase visibility into upcoming changes across the organization.

    1. Establish change windows in a consistent change schedule:
      • Compile a list of business units that would benefit from a change.
      • Look for conflicts in the change schedule.
      • Avoid scheduling two or more major business units in a day.
      • Consider clients when building your change windows and change schedule.
    2. Gain commitments from key participants:
      • These individuals can confirm if there are any unusual or cyclical business requirements that will impact the schedule.
    3. Properly control your change calendar to improve change efficiency:
      • Look at the proposed start and end times: Are they sensible? Does the implementation window leave time for anything going wrong or needing to roll back the change?
      • Special considerations: Are there special circumstances that need to be considered? Ask the business if you don’t know.
      • The key principle is to have a sufficient window available for implementing changes so you only need to set up calendar freezes for sound business or technical reasons.

    “Our mantra is to put it on the calendar. Even if it’s a preapproved change and doesn’t need a vote, having it on the calendar helps with visibility. The calendar is the one-stop shop for scheduling and identifying change dependencies.“ – Wil Clark, Director of Service and Performance Management, University of North Texas Systems

    Provide clear definitions of what goes on the change calendar and who’s responsible

    Roles

    • The Change Manager will be responsible for creating and maintaining a change calendar.
    • Only the Change Manager can physically alter the calendar by adding a new change after the CAB has agreed upon a deployment date.
    • All other CAB members, IT support staff, and other impacted stakeholders should have access to the calendar on a read-only basis to prevent people from making unauthorized changes to deployment dates.

    Inputs

    • Freeze periods for individual business departments/applications (e.g. finance month-end periods, HR payroll cycle, etc. – all to be investigated).
    • Maintenance windows and planned outage periods.
    • Project schedules, and upcoming major/medium changes.
    • Holidays.
    • Business hours (some departments work 9-5, others work different hours or in different time zones, and user acceptance testing may require business users to be available).

    Guidelines

    • Business-defined freeze periods are the top priority.
    • No major or medium normal changes should occur during the week between Christmas and New Year’s Day.
    • Vendor SLA support hours are the preferred time for implementing changes.
    • The vacation calendar for IT will be considered for major changes.
    • Change priority: High > Medium > Low.
    • Minor changes and preapproved changes have the same priority and will be decided on a case-by-case basis.

    The change calendar is a critical pre-requisite to change management in DevOps. Use the calendar to be proactive with proposed implementation dates and deconfliction before the change is finished.

    4.1.1 Create Guidelines for Your Change Calendar

    Input

    • Current change calendar guidelines

    Output

    • Change calendar inputs and schedule checklist

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Gather representatives from the change management team.
      • Example:
        • The change calendar/schedule includes:
          • Approved and scheduled normal changes.
          • Scheduled project work.
          • Scheduled maintenance windows.
          • Change freeze periods with affected users noted:
            • Daily/weekly freeze periods.
            • Monthly freeze periods.
            • Annual freeze periods.
            • Other critical business events.
    2. Create a checklist to run through before each change is scheduled:
      • Check the schedule and assess resource availability:
        • Will user productivity be impacted?
        • Are there available resources (people and systems) to implement the change?
        • Is the vendor available? Is there a significant cost attached to pushing change deployment before the regularly scheduled refresh?
        • Are there dependencies? Does the deployment of one change depend on the earlier deployment of another?
    3. Record your results in your Project Summary Template.

    Start measuring the success of your change management project using three key metrics

    Number of change-related incidents that occur each month

    • Each month, record the number of incidents that can be directly linked to a change. This can be done using an ITSM tool or manually by service desk staff.
    • This is a key success metric: if you are not tracking change-related incidents yet, start doing so as soon as possible. This is the metric that the CIO and business stakeholders will be most interested in because it impacts users directly.

    Number of unauthorized changes applied each month

    • Each month, record the number of changes applied without approval. This is the best way to measure adherence to the process.
    • If this number decreases, it demonstrates a reduction in risk, as more changes are formally assessed and approved before being deployed.

    Percentage of emergency changes

    • Each month, compare the number of emergency change requests to the total number of change requests.
    • Change requesters often designate changes as emergencies as a way of bypassing the process.
    • A reduction in emergency changes demonstrates that your process is operating smoothly and reduces the risk of deploying changes that have not been properly tested.

    Info-Tech Insight

    Start simple. Metrics can be difficult to tackle if you’re starting from scratch. While implementing your change management practice, use these three metrics as a starting point, since they correlate well with the success of change management overall. The following few slides provide more insight into creating metrics for your change process.

    If you want more insight into your change process, measure the progress of each step in change management with metrics

    Improve

    • Number of repeat failures (i.e. making the same mistake twice)
    • Number of changes converted to pre-approved
    • Number of changes converted from pre-approved back to normal

    Request

    • What percentage of change requests have errors or lack appropriate support?
    • What percentage of change requests are actually projects, service requests, or operational tasks?
    • What percentage of changes have been requested before (i.e. documented)?

    Assess

    • What percentage of change requests are out of scope?
    • What percentage of changes have been requested before (i.e. documented)?
    • What are the percentages of changes by category (normal, pre-approved, emergency)?

    Plan

    • What percentage of change requests are reviewed by the CAB that should have been pre-approved or emergency (i.e. what percentage of changes are in the wrong category)?

    Approve

    • Number of changes broken down by department (business unit/IT department to be used in making core/optional CAB membership more efficient)
    • Number of workflows that can be automated

    Implement

    • Number of changes completed on schedule
    • Number of changes rolled back
    • What percentage of changes caused an incident?

    Use metrics to inform project KPIs and CSFs

    Leverage the metrics from the last slide and convert them to data communicable to IT, management, and leadership

    • To provide value, metrics and measurements must be actionable. What actions can be taken as a result of the data being presented?
    • If the metrics are not actionable, there is no value and you should question the use of the metric.
    • Data points in isolation are mostly meaningless to inform action. Observe trends in your metrics to inform your decisions.
    • Using a framework to develop measurements and metrics provides a defined methodology that enables a mapping of base measurements through CSFs.
    • Establishing the relationship increases the value that measurements provide.

    Purposely use SDLC and change lifecycle metrics to find bottlenecks and automation candidates.

    Metrics:

    Metrics are easily measured datapoints that can be pulled from your change management tool. Examples: Number of changes implemented, number of changes without incident.

    KPIs:

    Key Performance Indicators are metrics presented in a way that is easily digestible by stakeholders in IT. Examples: Change efficiency, quality of changes.

    CSFs:

    Critical Success Factors are measures of the business success of change management taken by correlating the CSF with multiple KPIs. Examples: consistent and efficient change management process, a change process mapped to business needs

    List in-scope metrics and reports and align them to benefits

    Metric/Report (by team)Benefit
    Total number of RFCs and percentages by category (pre-approved, normal, emergency, escalated support, expedited)
    • Understand change management activity
    • Tracking maturity growth
    • Identifying “hot spots”
    Pre-approved change list (and additions/removals from the list) Workload and process streamlining (i.e. reduce “red tape” wherever possible)
    Average time between RFC lifecycle stages (by service/application) Advance planning for proposed changes
    Number of changes by service/application/hardware class
    • Identifying weaknesses in the architecture
    • Vendor-specific TCO calculations
    Change triggers Business- vs. IT-initiated change
    Number of RFCs by lifecycle stage Workload planning
    List of incidents related to changes Visible failures of the CM process
    Percentage of RFCs with a tested backout/validation plan Completeness of change planning
    List of expedited changes Spotlighting poor planning and reducing the need for this category going forward (“The Hall of Shame”)
    CAB approval rate Change coordinator alignment with CAB priorities – low approval rate indicates need to tighten gatekeeping by the change coordinator
    Calendar of changes Planning

    4.1.2 Determine Metrics, Key Performance Indicators (KPIs), and Critical Success Factors (CSFs)

    Input

    • Current metrics

    Output

    • List of trackable metrics, KPIs and CSFs

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Draw three tables for metrics, KPIs, and CSFs.
    2. Starting with the CSF table, fill in all relevant CSFs that your group wishes to track and measure.
    3. Next, work to determine relevant KPIs correlated with the CSFs and metrics needed to measure the KPIs. Use the tables included below (taken from section 14 of the Change Management SOP) to guide the process.
    4. Record the results in the tables in section 14 of your Change Management SOP.
    5. Decide on where and when to review the metrics to discuss your change management strategy. Designate and owner and record in the RACI and Communications section of your Change Management SOP.
    Ref #Metric

    M1

    		 Number of changes implemented for a time period
    M2 Number of changes successfully implemented for a time period
    M3 Number of changes implemented causing incidents
    M4 Number of accepted known errors when change is implemented
    M5 Total days for a change build (specific to each change)
    M6 Number of changes rescheduled
    M7 Number of training questions received following a change
    Ref#KPIProduct
    K1 Successful changes for a period of time (approach 100%) M2 / M1 x 100%
    K2 Changes causing incidents (approach 0%) M3 / M1 x 100%
    K3 Average days to implement a change ΣM5 / M1
    K4 Change efficiency (approach 100%) [1 - (M6 / M1)] x 100%
    K5 Quality of changes being implemented (approach 100%) [1 - (M4 / M1)] x 100%
    K6 Change training efficiency (approach 100%) [1 - (M7 / M1)] x 100%
    Ref#CSFIndicator
    C1 Successful change management process producing quality changes K1, K5
    C2 Consistent efficient change process K4, K6
    C3 Change process maps to business needs K5, K6

    Measure changes in selected metrics to evaluate success

    Once you have implemented a standardized change management practice, your team’s goal should be to improve the process, year over year.

    • After a process change has been implemented, it’s important to regularly monitor and evaluate the CSFs, KPIs, and metrics you chose to evaluate. Examine whether the process change you implemented has actually resolved the issue or achieved the goal of the critical success factor.
    • Establish a schedule for regularly reviewing the key metrics. Assess changes in those metrics and determine progress toward reaching objectives.
    • In addition to reviewing CSFs, KPIs, and metrics, check in with the release management team and end users to measure their perceptions of the change management process once an appropriate amount of time has passed.
    • Ensure that metrics are telling the whole story and that reporting is honest in order to be informative.

    Outcomes of standardizing change management should include:

    1. Improved efficiency, effectiveness, and quality of changes.
    2. Changes and processes are more aligned with the business needs and strategy.
    3. Improved maturity of change processes.

    Info-Tech Best Practice

    Make sure you’re measuring the right things and considering all sources of information. It’s very easy to put yourself in a position where you’re congratulating yourselves for improving on a specific metric such as number of releases per month, but satisfaction remains low.

    4.1.3 Track and Record Metrics Using the Change Management Metrics Tool

    Input

    • Current metrics

    Output

    • List of trackable metrics, KPIs and CSFs to be observed over the length of a year

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)

    Tracking the progress of metrics is paramount to the success of any change management process. Use Info-Tech’s Change Management Metrics Tool to record metrics and track your progress. This tool is intended to be a substitute for organizations who do not have the capability to track change-related metrics in their ITSM tool.

    1. Input metrics from the previous activity to track over the course of a year.
    2. To record your metrics, open the tool and go to tab 2. The tool is currently primed to record and track five metrics. If you need more than that, you can edit the list in the hidden calculations tab.
    3. To see the progress of your metrics, move to tab 3 to view a dashboard of all metrics in the tool.

    Download the Change Management Metrics Tool

    Case Study

    A federal credit union was able to track maturity growth through the proper use of metrics.

    Industry: Federal Credit Union (anonymous)

    Source: Info-Tech Workshop

    Challenge

    At this federal credit union, the VP of IT wanted a tight set of metrics to engage with the business, communicate within IT, enable performance management of staff, and provide visibility into workload demands, among other requirements.

    The organization was suffering from “metrics fatigue,” with multiple reports being generated from all groups within IT, to the point that weekly/monthly reports were being seen as spam.

    Solution

    Stakeholders were provided with an overview of change management benefits and were asked to identify one key attribute that would be useful to their specific needs.

    Metrics were designed around the stakeholder needs, piloted with each stakeholder group, fine-tuned, and rolled out.

    Some metrics could not be automated off-the-shelf and were rolled out in a manual fashion. These metrics were subsequently automated and finally made available through a dashboard.

    Results

    The business received clear guidance regarding estimated times to implement changes across different elements of the environment.

    The IT managers were able to plan team workloads with visibility into upstream change activity.

    Architects were able to identify vendors and systems that were the leading source of instability.

    The VP of IT was able to track the maturity growth of the change management process and proactively engage with the business on identified hot spots.

    Step 4.2

    Implement the Project

    Activities

    4.2.1 Use a Communications Plan to Gain End User Buy-In

    4.2.2 Create a Project Roadmap to Track Your Implementation Progress

    Measure, Manage, and Maintain

    Step 4.1: Identify Metrics and Build the Change Calendar

    Step 3.2: Implement the Project

    This step involves the following participants:

    • CIO/IT Director
    • IT Managers
    • Change Manager

    Outcomes of this step

    • A communications plan for key messages to communicate to relevant stakeholders and audiences
    • A roadmap with assigned action items to implement change management

    Success of the new process will depend on introducing change and gaining acceptance

    Change management provides value by promptly evaluating and delivering changes required by the business and by minimizing disruption and rework caused by failed changes. Communication of your new change management process is key. If people do not understand the what and why, it will fail to provide the desired value.

    Info-Tech Best Practice

    Gather feedback from end users about the new process: if the process is too bureaucratic, end users are more likely to circumvent it.

    Main Challenges with Communication

    • Many people fail before they even start because they are buried in a mess created before they arrived – either because of a failed attempt to get change management implemented or due to a complicated system that has always existed.
    • Many systems are maintained because “that’s the way it’s always been done.”
    • Organizations don’t know where to start; they think change management is too complex a process.
    • Each group needs to follow the same procedure – groups often have their own processes, but if they don’t agree with one another, this could cause an outage.

    Educate affected stakeholders to prepare for organizational change

    An organizational change management plan should be part of your change management project.

    • Educate stakeholders about:
      • The process change (describe it in a way that the user can understand and is clear and concise).
        • IT changes will be handled in a standardized and repeatable fashion to minimize change-related incidents.
      • Who is impacted?
        • All users.
      • How are they impacted?
        • All change requests will be made using a standard form and will not be deployed until formal approval is received.
      • Change messaging.
        • How to communicate the change (benefits).
      • Learning and development – training your users on the change.
        • Develop and deliver training session on the Change Management SOP to familiarize users with this new method of handling IT change.

    Host a lunch-and-learn session

    • For the initial deployment, host a lunch-and-learn session to educate the business on the change management practice. Relevant stakeholders of affected departments should host it and cover the following topics:
    • What is change management (change management/change control)?
    • The value of change management.
    • What the Change Management SOP looks like.
    • Who is involved in the change management process (the CAB, etc.)?
    • What constitutes a pre-approved change and an emergency change?
    • An overview of the process, including how to avoid unauthorized changes.
    • Who should they contact in case of questions?

    Communicate the new process to all affected stakeholders

    Do not surprise users or support staff with changes. This will result in lost productivity and low satisfaction with IT services.

    • User groups and the business need to be given sufficient notice of an impending change.
    • This will allow them to make appropriate plans to accept the change, minimizing the impact of the change on productivity.
    • A communications plan will be documented in the RFC while the release is being built and tested.
    • It’s the responsibility of the change team to execute on the communications plan.

    Info-Tech Insight

    The success of change communication can be measured by monitoring the number of service desk tickets related to a change that was not communicated to users.

    Communication is crucial to the integration and overall implementation of your change management initiative. An effective communications plan will:

    • Gain support from management at the project proposal phase.
    • Create end-user buy-in once the program is set to launch.
    • Maintain the presence of the program throughout the business.
    • Instill ownership throughout the business from top-level management to new hires.

    Create your communications plan to anticipate challenges, remove obstacles, and ensure buy-in

    Management

    Technicians

    Business Stakeholders

    Provide separate communications to key stakeholder groups

    Why? What problems are you trying to solve?

    What? What processes will it affect (that will affect me)?

    Who? Who will be affected? Who do I go to if I have issues with the new process?

    When? When will this be happening? When will it affect me?

    How? How will these changes manifest themselves?

    Goal? What is the final goal? How will it benefit me?

    Info-Tech Insight

    Pay close attention to the medium of communication. For example, stakeholders on their feet all day would not be as receptive to an email communication compared to those who primarily work in front of a computer. Put yourself into various stakeholders’ shoes to craft a tailored communication of change management.

    4.2.1 Use a Communications Plan to Gain End User Buy-In

    Input

    • List of stakeholder groups for change management

    Output

    • Tailored communications plans for various stakeholder groups

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Using Info-Tech’s Change Management Communications Plan, identify key audiences or stakeholder groups that will be affected by the new change management practice.
    2. For each group requiring a communications plan, identify the following:
      • The benefits for that group of individuals.
      • The impact the change will have on them.
      • The best communication method(s) for them.
      • The time frame of the communication.
    3. Complete this information in a table like the one below:
    GroupBenefitsImpactMethodTimeline
    IT Standardized change process All changes must be reviewed and approved Poster campaign 6 months
    End Users Decreased wait time for changes Formal process for RFCs Lunch-and-learn sessions 3 months
    Business Reduced outages Increased involvement in planning and approvals Monthly reports 1 year
    1. Discuss the communications plan:
      • Will this plan ensure that users are given adequate opportunities to accept the changes being deployed?
      • Is the message appropriate for each audience? Is the format appropriate for each audience?
      • Does the communication include training where necessary to help users adopt any new functions/workflows being introduced?

    Download the Change Management Communications Plan

    Present your SOP to key stakeholders and obtain their approval

    Now that you have completed your Change Management SOP, the final step is to get sign-off from senior management to begin the rollout process.

    Know your audience:

    • Determine the service management stakeholders who will be included in the audience for your presentation.
    • You want your presentation to be succinct and hard hitting. Management’s time is tight and they will lose interest if you drag out the delivery.
    • Briefly speak about the need for more formal change management and emphasize the benefits of implementing a more formal process with a SOP.
    • Present your current state assessment results to provide context before presenting the SOP itself.
    • As with any other foundational activity, be prepared with some quick wins to gain executive attention.
    • Be prepared to review with both technical and less technical stakeholders.

    Info-Tech Insight

    The support of senior executive stakeholders is critical to the success of your SOP rollout. Try to wow them with project benefits and make sure they know about the risks/pain points.

    Download the Change Management Project Summary Template

    4.2.2 Create a Project Roadmap to Track Your Implementation Progress

    Input

    • List of implementation tasks

    Output

    • Roadmap and timeline for change management implementation

    Materials

    Participants

    • Change Manager
    • Members of the Change Advisory Board
    • Service Desk Manager
    • Operations (optional)
    1. Info-Tech’s Change Management Roadmap Tool helps you identify and prioritize tasks that need to be completed for the change management implementation project.
    2. Use this tool to identify each action item that will need to be completed as part of the change management initiative. Chart each action item, assign an owner, define the duration, and set a completion date.
    3. Use the resulting rocket diagram as a guide to task completion as you work toward your future state.

    Download the Change Management Roadmap Tool

    Case Study (part 4 of 4)

    Intel implemented a robust change management process.

    Industry: Technology

    Source: Daniel Grove, Intel

    Challenge

    Founded in 1968, the world’s largest microchip and semiconductor company employs over 100,000 people. Intel manufactures processors for major players in the PC market including Apple, Lenovo, HP, and Dell.

    Intel IT supports over 65,000 servers, 3.2 petabytes of data, over 70,000 PCs, and 2.6 million emails per day.

    Intel’s change management program is responsible for over 4,000 changes each week.

    Solution

    Intel had its new change management program in place and the early milestones planned, but one key challenge with any new project is communication.

    The company also needed to navigate the simplification of a previously complex process; end users could be familiar with any of the 37 different change processes or 25 different change management systems of record.

    Top-level buy-in was another concern.

    Results

    Intel first communicated the process changes by publishing the vision and strategy for the project with top management sponsorship.

    The CIO published all of the new change policies, which were supported by the Change Governance Council.

    Intel cited the reason for success as the designation of a Policy and Guidance Council – a group designed to own communication and enforcement of the new policies and processes put in place.

    Summary of Accomplishment

    Problem Solved

    You now have an outline of your new change management process. The hard work starts now for an effective implementation. Make use of the communications plan to socialize the new process with stakeholders and the roadmap to stay on track.

    Remember as you are starting your implementation to keep your documents flexible and treat them as “living documents.” You will likely need to tweak and refine the processware and templates several times to continually improve the process. Furthermore, don’t shy away from seeking feedback from your stakeholders to gain buy-in.

    Lastly, keep an eye on your progress with objective, data-driven metrics. Leverage the trends in your data to drive your decisions. Be sure to revisit the maturity assessment not only to measure and visualize your progress, but to gain insight into your next steps.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.

    workshops@infotech.com

    1-888-670-8889

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

    Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic office in Toronto, Ontario, Canada to participate in an innovative onsite workshop.

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.2 Complete a Change Management Maturity Assessment

    Run through the change management maturity assessment with tailored commentary for each action item outlining context and best practices.

    2.2.1 Plot the Process for a Normal Change

    Build a normal change process using Info-Tech’s Change Management Process Library template with an analyst helping you to right size the process for your organization.

    Related Info-Tech Research

    Standardize the Service Desk

    Improve customer service by driving consistency in your support approach and meeting SLAs.

    Stabilize Release and Deployment Management

    Maintain both speed and control while improving the quality of deployments and releases within the infrastructure team.

    Incident and Problem Management

    Don’t let persistent problems govern your department.

    Select Bibliography

    AXELOS Limited. ITIL Foundation: ITIL 4th edition. TSO, 2019, pp. 118–120.

    Behr, Kevin and George Spafford. The Visible Ops Handbook: Implementing ITIL in 4 Practical and Auditable Steps. IT Revolution Press. 2013.

    BMC. “ITIL Change Management.” BMC Software Canada, 22 December 2016.

    Brown, Vance. “Change Management: The Greatest ROI of ITIL.” Cherwell Service Management.

    Cisco. “Change Management: Best Practices.” Cisco, 10 March 2008.

    Grove, Daniel. “Case Study ITIL Change Management Intel Corporation.” PowerShow, 2005.

    ISACA. “COBIT 5: Enabling Processes.” ISACA, 2012.

    Jantti, M. and M. Kainulainen. “Exploring an IT Service Change Management Process: A Case Study.” ICDS 2011: The Fifth International Conference on Digital Society, 23 Feb. 2011.

    Murphy, Vawns. “How to Assess Changes.” The ITSM Review, 29 Jan. 2016.

    Nyo, Isabel. “Best Practices for Change Management in the Age of DevOps.” Atlassian Engineering, 12 May 2021.

    Phillips, Katherine W., Katie A. Liljenquist, and Margaret A. Neale. “Better Decisions Through Diversity.” Kellogg Insight, 1 Oct. 2010.

    Pink Elephant. “Best Practices for Change Management.” Pink Elephant, 2005.

    Sharwood, Simon. “Google broke its own cloud by doing two updates at once.” The Register, 24 Aug. 2016.

    SolarWinds. “How to Eliminate the No: 1 Cause of Network Downtime.” SolarWinds Tech Tips, 25 Apr. 2014.

    The Stationery Office. “ITIL Service Transition: 2011.” The Stationary Office, 29 July 2011.

    UCISA. “ITIL – A Guide to Change Management.” UCISA.

    Zander, Jason. “Final Root Cause Analysis and Improvement Areas: Nov 18 Azure Storage Service Interruption.” Microsoft Azure: Blog and Updates, 17 Dec. 2014.

    Appendix I: Expedited Changes

    Employ the expedited change to promote process adherence

    In many organizations, there are changes which may not fit into the three prescribed categories. The reason behind why the expedited category may be needed generally falls between two possibilities:

    1. External drivers dictate changes via mandates which may not fall within the normal change cycle. A CIO, judge, state/provincial mandate, or request from shared services pushes a change that does not fall within a normal change cycle. However, there is no imminent outage (therefore it is not an emergency). In this case, an expedited change can proceed. Communicate to the change requester that IT and the change build team will still do their best to implement the change without issue, but any extra risk of implementing this expedited change (compared to an normal change) will be absorbed by the change requester.
    2. The change requester did not prepare for the change adequately. This is common if a new change process is being established (and stakeholders are still adapting to the process). Change requesters or the change build team may request the change to be done by a certain date that does not fall within the normal change cycle, or they simply did not give the CAB enough time to vet the change. In this case, you may use the expedited category as a metric (or a “Hall of Shame” example). If you identify a department or individual that frequently request expedited changes, use the expedited category as a means to educate them about the normal change to discourage the behavior moving forward.

    Two possible ways to build an expedited change category”

    1. Build the category similar to an emergency change. In this case, one difference would be the time allotted to fully obtain authorization of the change from the E-CAB and business owner before implementing the change (as opposed to the emergency change workflow).
    2. Have the expedited change reflect the normal change workflow. In this case, all the same steps of the normal change workflow are followed except for expedited timelines between processes. This may include holding an impromptu CAB meeting to authorize the change.

    Example process: Expedited Change Process

    The image is a flowchart, showing the process for Expedited Change.

    For the full process, refer to the Change Management Process Library.

    Appendix II: Optimize IT Change Management in a DevOps Environment

    Change Management cannot be ignored because you are DevOps or Agile

    But it can be right-sized.

    The core tenets of change management still apply no matter the type of development environment an organization has. Changes in any environment carry risk of degrading functionality, and must therefore be vetted. However, the amount of work and rigor put into different stages of the change life cycle can be altered depending on the maturity of the development workflows. The following are several stage gates for change management that MUST be considered if you are a DevOps or Agile shop:

    • Intake assessment (separation of changes from projects, service requests, operational tasks)
      • Within a DevOps or Agile environment, many of the application changes will come directly from the SDLC and projects going live. It does not mean a change must go through CAB, but leveraging the pre-approved category allows for an organization to stick to development lifecycles without being heavily bogged down by change bureaucracy.
    • Technical review
      • Leveraging automation, release contingencies, and the current SDLC documentation to decrease change risk allows for various changes to be designated as pre-approved.
    • Authorization
      • Define the authorization and dependencies of a change early in the lifecycle to gain authorization and necessary signoffs.
    • Documentation/communication
      • Documentation and communication are post-implementation activities that cannot be ignored. If documentation is required throughout the SDLC, then design the RFC to point to the correct documentation instead of duplicating information.

    "Understand that process is hard and finding a solution that fits every need can be tricky. With this change management process we do not try to solve every corner case so much as create a framework by which best judgement can be used to ensure maximum availability of our platforms and services while still complying with our regulatory requirements and making positive changes that will delight our customers.“ -IT Director, Information Cybersecurity Organization

    Five principals for implementing change in DevOps

    Follow these best practices to make sure your requirements are solid:

    People

    The core differences between an Agile or DevOps transition and a traditional approach are the restructuring and the team behind it. As a result, the stakeholders of change management must be onboard for the process to work. This is the most difficult problem to solve if it’s an issue, but open avenues of feedback for a process build is a start.

    DevOps Lifecycles

    • Plan the dev lifecycle so people can’t skirt it. Ensure the process has automated checks so that it’s more work to skirt the system than it is to follow it. Make the right process the process of least resistance.
    • Plan changes from the start to ensure that cross-dependencies are identified early and that the proposed implementation date is deconflicted and visible to other change requesters and change stakeholders.

    Automation

    Automation comes in many forms and is well documented in many development workflows. Having automated signoffs for QA/security checks and stakeholders/cross dependency owner sign offs may not fully replace the CAB but can ease the burden on discussions before implementation.

    Contingencies

    Canary releases, phased releases, dark releases, and toggles are all options you can employ to reduce risk during a release. Furthermore, building in contingencies to the test/rollback plan decreases the risk of the change by decreasing the factor of likelihood.

    Continually Improve

    Building change from the ground up doesn’t meant the process has to be fully fledged before launch. Iterative improvements are possible before achieving an optimal state. Having the proper metrics on the pain points and bottlenecks in the process can identify areas for automation and improvement.

    Increasing the proportion of pre-approved changes

    Leverage the traditional change infrastructure to deploy changes quickly while keeping your risk low.

    • To designate a change as a pre-approved change it must have a low risk rating (based on impact and likelihood). Fortunately, many of the changes within the Agile framework are designed to be small and lower risk (at least within application development). Putting in the work ahead of time to document these changes, template RFCs, and document the dependencies for various changes allows for a shift in the proportion of pre-approved changes.
    • The designation of pre-approved changes is an ongoing process. This is not an overnight initiative. Measure the proportion of changes by category as a metric, setting goals and interim goals to shift the change proportion to a desired ratio.

    The image is a bar graph, with each bar having 3 colour-coded sections: Emergency, Normal, and Pre-Approved. The first bar is before, where the largest change category is Normal. The second bar is after, and the largest change category is Pre-Approved.

    Turn your CAB into a virtual one

    • The CAB does not have to fully disappear in a DevOps environment. If the SDLC is built in a way that authorizes changes through peer reviews and automated checks, by the time it’s deployed, the job of the CAB should have already been completed. Then the authorization stage-gate (traditionally, the CAB) shifts to earlier in the process, reducing the need for an actual CAB meeting. However, the change must still be communicated and documented, even if it’s a pre-approved change.
    • As the proportion of changes shifts from a high degree of normal changes to a high degree of pre-approved changes, the need for CAB meetings should decrease even further. As an end-state, you may reserve actual CAB meetings for high-profile changes (as defined by risk).
    • Lastly, change management does not disappear as a process. Periodic reviews of change management metrics and the pre-approved change list must still be completed.

    Develop Meaningful Service Metrics

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    • Parent Category Name: Service Management
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    • IT organizations measure services from a technology perspective but rarely from a business goal or outcome perspective.
    • Most organizations do a poor job of identifying and measuring service outcomes over the duration of a service’s lifecycle – never ensuring the services remain valuable and meet expected long-term ROI.

    Our Advice

    Critical Insight

    • Service metrics are critical to ensuring alignment of IT service performance and business service value achievement.
    • Service metrics reinforce positive business and end-user relationships by providing user-centric information that drives responsiveness and consistent service improvement.
    • Poorly designed metrics drive unintended and unproductive behaviors that have negative impacts on IT and produce negative service outcomes.

    Impact and Result

    Effective service metrics will provide the following service gains:

    • Confirm service performance and identify gaps.
    • Drive service improvement to maximize service value.
    • Validate performance improvements while quantifying and demonstrating business value.
    • Ensure service reporting aligns with end-user experience.
    • Achieve and confirm process and regulatory compliance.

    Which will translate into the following relationship gains:

    • Embed IT into business value achievement.
    • Improve the relationship between the business and IT.
    • Achieve higher customer satisfaction (happier end users receiving expected service, the business is able to identify how things are really performing).
    • Reinforce desirable actions and behaviors from both IT and the business.

    Develop Meaningful Service Metrics Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop meaningful service metrics, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Develop Meaningful Service Metrics – Executive Brief
    • Develop Meaningful Service Metrics – Phases 1-3

    1. Design the metrics

    Identify the appropriate service metrics based on stakeholder needs.

    • Develop Meaningful Service Metrics to Ensure Business and User Satisfaction – Phase 1: Design the Metrics
    • Metrics Development Workbook

    2. Design reports and dashboards

    Present the right metrics in the most interesting and stakeholder-centric way possible.

    • Develop Meaningful Service Metrics to Ensure Business and User Satisfaction – Phase 2: Design Reports and Dashboards
    • Metrics Presentation Format Selection Guide

    3. Implement, track, and maintain

    Run a pilot with a smaller sample of defined service metrics, then continuously validate your approach and make refinements to the processes.

    • Develop Meaningful Service Metrics to Ensure Business and User Satisfaction – Phase 3: Implement, Track, and Maintain
    • Metrics Tracking Tool
    [infographic]

    Workshop: Develop Meaningful Service Metrics

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Design the Metrics

    The Purpose

    Define stakeholder needs for IT based on their success criteria and identify IT services that are tied to the delivery of business outcomes.

    Derive meaningful service metrics based on identified IT services and validate that metrics can be collected and measured.

    Key Benefits Achieved

    Design meaningful service metrics from stakeholder needs.

    Validate that metrics can be collected and measured.

    Activities

    1.1 Determine stakeholder needs, goals, and pain points.

    1.2 Determine the success criteria and related IT services.

    1.3 Derive the service metrics.

    1.4 Validate the data collection process.

    1.5 Validate metrics with stakeholders.

    Outputs

    Understand stakeholder priorities

    Adopt a business-centric perspective to align IT and business views

    Derive meaningful business metrics that are relevant to the stakeholders

    Determine if and how the identified metrics can be collected and measured

    Establish a feedback mechanism to have business stakeholders validate the meaningfulness of the metrics

    2 Design Reports and Dashboards

    The Purpose

    Determine the most appropriate presentation format based on stakeholder needs.

    Key Benefits Achieved

    Ensure the metrics are presented in the most interesting and stakeholder-centric way possible to guarantee that they are read and used.

    Activities

    2.1 Understand the different presentation options.

    2.2 Assess stakeholder needs for information.

    2.3 Select and design the metric report.

    Outputs

    Learn about infographic, scorecard, formal report, and dashboard presentation options

    Determine how stakeholders would like to view information and how the metrics can be presented to aid decision making

    Select the most appropriate presentation format and create a rough draft of how the report should look

    3 Implement, Track, and Maintain Your Metrics

    The Purpose

    Run a pilot with a smaller sample of defined service metrics to validate your approach.

    Make refinements to the implementation and maintenance processes prior to activating all service metrics.

    Key Benefits Achieved

    High user acceptance and usability of the metrics.

    Processes of identifying and presenting metrics are continuously validated and improved.

    Activities

    3.1 Select the pilot metrics.

    3.2 Gather data and set initial targets.

    3.3 Generate the reports and validate with stakeholders.

    3.4 Implement the service metrics program.

    3.5 Track and maintain the metrics program.

    Outputs

    Select the metrics that should be first implemented based on urgency and impact

    Complete the service intake form for a specific initiative

    Create a process to gather data, measure baselines, and set initial targets

    Establish a process to receive feedback from the business stakeholders once the report is generated

    Identify the approach to implement the metrics program across the organization

    Set up mechanism to ensure the success of the metrics program by assessing process adherence and process validity

    Further reading

    Develop Meaningful Service Metrics

    Select IT service metrics that drive business value.

    ANALYST PERSPECTIVE

    Are you measuring and reporting what the business needs to know?

    “Service metrics are one of the key tools at IT’s disposal in articulating and ensuring its value to the business, yet metrics are rarely designed and used for that purpose.

    Creating IT service metrics directly from business and stakeholder outcomes and goals, written from the business perspective and using business language, is critical to ensuring that the services that IT provides are meeting business needs.

    The ability to measure, manage, and improve IT service performance in relation to critical business success factors, with properly designed metrics, embeds IT in the value chain of the business and ensures IT’s focus on where and how it enables business outcomes.”

    Valence Howden,
    Senior Manager, CIO Advisory
    Info-Tech Research Group

    Our understanding of the problem

    This Research Is Designed For:
    • CIO
    • IT VPs
    		 This Research Will Help You:
    • Align business/IT objectives (design top-down or outside-in)
    • Significantly improve the relationship between the business and IT aspects of the organization
    • Reinforce desirable actions and behaviors
    This Research Will Also Assist:
    • Service Level Managers
    • Service Owners
    • Program Owners
    		 This Research Will Help Them
    • Identify unusual deviations from the normal operating state
    • Drive service improvement to maximize service value
    • Validate the value of performance improvements while quantifying and demonstrating benefits realization

    Executive summary

    Situation

    • IT organizations measure services from a technology perspective yet rarely measure services from a business goal/outcome perspective.
    • Most organizations do a poor job of identifying and measuring service outcomes over the duration of a service’s lifecycle – never ensuring the services remain valuable and meet expected long-term ROI.

    Complication

    • IT organizations have difficulty identifying the right metrics to demonstrate the value of IT services to the business in tangible terms.
    • IT metrics, as currently designed, reinforce division between the IT and business perspectives of service performance. They drive siloed thinking and finger-pointing within the IT structure, and prevent IT resources from understanding how their work impacts business value.

    Resolution

    • Our program enables IT to develop the right service metrics to tie IT service performance to business value and user experience.
    • Ensure the metrics you implement have immediate stakeholder value, reinforcing alignment between IT and the business while influencing behavior in the desired direction.
    • Make sure that your metrics are defined in relation to the business goals and drivers, ensuring they will provide actionable outcomes.

    Info-Tech Insight

    1. Service metrics are critical to ensuring alignment of IT service performance and business service value achievement.
    2. Service metrics reinforce positive business and end-user relationships by providing user-centric information that drives responsiveness and consistent service improvement.
    3. Poorly designed metrics drive unintended and unproductive behaviors, which have negative impacts on IT and produce negative service outcomes.

    Service metrics 101

    What are service metrics?

    Service metrics measure IT services in a way that relates to a business outcome. IT needs to measure performance from the business perspective using business language.

    		Why do we need service metrics?

    To ensure the business cares about the metrics that IT produces, start with business needs to make sure you’re measuring the right things. This will give IT the opportunity talk to the right stakeholders and develop metrics that will meet their business needs.

    Service metrics are designed with the business perspective in mind, so they are fully aligned with business objectives.

    Perspectives Matter

    Different stakeholders will require different types of metrics. A CEO may require metrics that provide a snapshot of the critical success of the company while a business manager is more concerned about the performance metrics of their department.

    		What are the benefits of implementing service metrics?

    Service metrics help IT communicate with the business in business terms and enables IT to articulate how and where they provide business value. Business stakeholders can also easily understand how IT services contribute to their success.

    The majority of CIOs feel metrics relating to business value and stakeholder satisfaction require significant improvement

    A significantly higher proportion of CIOs than CEOs feel that there is significant improvement necessary for business value metrics and stakeholder satisfaction reporting. Stacked horizontal bar chart presenting survey results from CIOs and CXOs of 'Business Value Metrics'. Answer options are 'Effective', 'Some Improvement Necessary', 'Significant Improvement Necessary', and 'Not Required'.N=364

    Stacked horizontal bar chart presenting survey results from CIOs and CXOs of 'Stakeholder Satisfaction Reporting'. Answer options are 'Effective', 'Some Improvement Necessary', 'Significant Improvement Necessary', and 'Not Required'.N=364

    (Source: Info-Tech CIO-CXO Alignment Diagnostic Survey)

    Meaningless metrics are a headache for the business

    A major pitfall of many IT organizations is that they often provide pages of technical metrics that are meaningless to their business stakeholders.

    1. Too Many MetricsToo many metrics are provided and business leaders don’t know what to do with these metrics.
    2. Metrics Are Too TechnicalIT provides technical metrics that are hard to relate to business needs, and methods of calculating metrics are not clearly understood, articulated, and agreed on.
    3. Metrics Have No Business ValueService metrics are not mapped to business goals/objectives and they drive incorrect actions or spend.
    		 When considering only CEOs who said that stakeholder satisfaction reporting needed significant improvement, the average satisfaction score goes down to 61.6%, which is a drop in satisfaction of 12%.

    A bar that says 73% dropping to a bar that says 61%. Description above.

    (Source: Info-Tech Research Group CIO-CXO Alignment Diagnostic Survey)

    Poorly designed metrics hurt IT’s image within the organization

    By providing metrics that do not articulate the value of IT services, IT reinforces its role as a utility provider and an outsider to strategic decisions.

    When the CIOs believe business value metrics weren’t required, 50% of their CEOs said that significant improvements were necessary.

    Pie Chart presenting the survey results from CEOs regarding 'Business Value Metrics'. Description above.

    (Source: Info-Tech Research Group CIO-CXO Alignment Diagnostic Survey)
    1. Reinforce the wrong behaviorThe wrong metrics drive us-against-them, siloed thinking within IT, and meeting metric targets is prioritized over providing meaningful outcomes.
    2. Do not reflect user experienceMetrics don’t align with actual business/user experience, reinforcing a poor view of IT services.
    3. Effort ≠ ValueInvesting dedicated resources and effort to the achievement of the wrong metrics will only leave IT more constrained for other important initiatives.

    Articulate meaningful service performance that supports the achievement of business outcomes

    Service metrics measure the performance of IT services and how they enable or drive the activity outcomes.

    A business process consists of multiple business activities. In many cases, these business activities require one or more supporting IT services.

    A 'Business Process' broken down to its parts, multiple 'Business Activities' and their 'IT Services'. For each business process, business stakeholders and their goals and objectives should be identified.

    For each business activity that supports the completion of a business process, define the success criteria that must be met in order to produce the desirable outcome.

    Identify the IT services that are used by business stakeholders for each business activity. Measure the performance of these services from a business perspective to arrive at the appropriate service metrics.

    Differentiate between different types of metrics

    Stakeholders have different goals and objectives; therefore, it is critical to identify what type of metrics should be presented to each stakeholder.

    Business Metrics

    Determine Business Success

    Business metrics are derived from a pure business perspective. These are the metrics that the business stakeholders will measure themselves on, and business success is determined using these metrics.

    Arrow pointing right.

    		Service Metrics

    Manage Service Value to the Business

    Service metrics are used to measure IT service performance against business outcomes. These metrics, while relating to IT services, are presented in business terms and are tied to business goals.

    Arrow pointing right.

    		IT Metrics

    Enable Operational Excellence

    IT metrics are internal to the IT organization and used to manage IT service delivery. These metrics are technical, IT-specific, and drive action for IT. They are not presented to the business, and are not written in business language.

    Implementing service metrics is a key step in becoming a service provider and business partner

    As a prerequisite, IT organizations must have already established a solid relationship with the business and have a clear understanding of its critical business-facing services.

    At the very least, IT needs to have a service-oriented view and understand the specific needs and objectives associated with each stakeholder.

    Visualization of 'Business Relationship Management' with an early point on the line representing 'Service Provider: Establish service-oriented culture and business-centric service delivery', and the end of the line being 'Strategic Partner'.

    Once IT can present service metrics that the business cares about, it can continue on the service provider journey by managing the performance of services based on business needs, determine and influence service demand, and assess service value to maximize benefits to the business.

    Which processes drive service metrics?

    Both business relationship management (BRM) and service level management (SLM) provide inputs into and receive outputs from service metrics.

    Venn Diagram of 'Business Relationship Management', 'Service Metrics', and 'Service Level Management'.

    Business Relationship Management

    BRM works to understand the goals and objectives of the business and inputs them into the design of the service metrics.

    Service Metrics

    BRM leverages service metrics to help IT organizations manage the relationship with the business.

    BRM articulates and manages expectations and ensures IT services are meeting business requirements.

    Which processes drive service metrics?

    Both BRM and SLM provide inputs into and receive outputs from service metrics.

    Venn Diagram of 'Business Relationship Management', 'Service Metrics', and 'Service Level Management'.

    Service Level Management

    SLM works with the business to understand service requirements, which are key inputs in designing the service metrics.

    Service Metrics

    SLM leverages service metrics in overseeing the day-to-day delivery of IT services. It ensures they are provided to meet expected service level targets and objectives.

    Effective service metrics will deliver both service gains and relationship gains

    Effective service metrics will provide the following service gains:

    • Confirm service performance and identify gaps
    • Drive service improvement to maximize service value
    • Validate performance improvements while quantifying and demonstrating business value
    • Ensure service reporting aligns with end-user experience
    • Achieve and confirm process and regulatory compliance
        Which will translate into the following relationship gains:
        • Embed IT into business value achievement
        • Improve relationship between the business and IT
        • Achieve higher customer satisfaction (happier end users receiving expected service, the business is able to identify how things are really performing)
        • Reinforce desirable actions and behaviors from both IT and the business

    Don’t let conventional wisdom become your roadblock

    Conventional Wisdom

    Info-Tech Perspective
    Metrics are measured from an application or technology perspective Metrics need to be derived from a service and business outcome perspective.
    The business doesn’t care about metrics Metrics are not usually designed to speak in business terms about business outcomes. Linking metrics to business objectives creates metrics that the business cares about.
    It is difficult to have a metrics discussion with the business It is not a metrics/number discussion, it is a discussion on goals and outcomes.
    Metrics are only presented for the implementation of the service, not the ongoing outcome of the service IT needs to focus on service outcome and not project outcome.
    Quality can’t be measured Quality must be measured in order to properly manage services.

    Our three-phase approach to service metrics development

    Let Info-Tech guide you through your service metrics journey

    1

    2

    3
    Design Your Metrics Develop and Validate Reporting Implement, Track, and Maintain
    Sample of Phase 1 of Info-Tech's service metric development package, 'Design Your Metrics'. Sample of Phase 2 of Info-Tech's service metric development package, 'Develop and Validate Reporting'. Sample of Phase 3 of Info-Tech's service metric development package, 'Implement, Track, and Maintain'.
    Start the development and creation of your service metrics by keeping business perspectives in mind, so they are fully aligned with business objectives. Identify the most appropriate presentation format based on stakeholder preference and need for metrics. Track goals and success metrics for your service metrics programs. It allows you to set long-term goals and track your results over time.

    CIOs must actively lead the design of the service metrics program

    The CIO must actively demonstrate support for the service metrics program and lead the initial discussions to determine what matters to business leaders.

    1. Lead the initiative by defining the need
      Show visible support and demonstrate importance
    2. Articulate the value to both IT and the business
      Establish the urgency and benefits
    3. Select and assemble an implementation group
      Find the best people to get the job done
    4. Drive initial metrics discussions: goals, objectives, actions
      Lead brainstorming with senior business leaders
    5. Work with the team to determine presentation formats and communication methods
      Identify the best presentation approach for senior stakeholders
    6. Establish a feedback loop for senior management
      Solicit feedback on improvements
    7. Validate the success of the metrics
      Confirm service metrics support business outcomes

    Measure the success of your service metrics

    It is critical to determine if the designed service metrics are fulfilling their intended purpose. The process of maintaining the service metrics program and the outcomes of implementing service metrics need to be monitored and tracked.

    Validating Service Metrics Design

    Target Outcome

    Related Metrics
    The business is enabled to identify and improve service performance to their end customer # of improvement initiatives created based on service metrics
    $ cost savings/revenue generated due to actions derived from service metrics

    Procedure to validate the usefulness of IT metrics

    # / % of service metrics added/removed per year

    Alignment between IT and business objectives and processes Business’ satisfaction with IT

    Measure the success of your service metrics

    It is critical to determine if the designed service metrics are fulfilling their intended purpose. The process of maintaining the service metrics program and the outcomes of implementing service metrics need to be monitored and tracked.

    Validating Service Metrics Process

    Target Outcome

    Related Metrics

    Properly defined service metrics aligned with business goals/outcomes
    Easy understood measurement methodologies    		% of services with (or without) defined service metrics

    % of service metrics tied to business goals

    Consistent approach to review and adjust metrics# of service metrics adjusted based on service reviews

    % of service metrics reviewed on schedule

    Demonstrate monetary value and impact through the service metrics program

    In a study done by the Aberdeen Group, organizations engaged in the use of metrics benchmarking and measurement have:
    • 88% customer satisfaction rate
    • 60% service profitability
    • 15% increase in workforce productivity over the last 12 months

    Stock image of a silhouette of three people's head and shoulders.
    (Source: Aberdeen Group. “Service Benchmarking and Measurement.”)

    		A service metric is defined for: “Response time for Business Application A”

    The expected response time has not been achieved and this is visible in the service metrics. The reduced performance has been identified as having an impact of $250,000 per month in lost revenue potential.

    The service metric drove an action to perform a root-cause analysis, which identified a network switch issue and drove a resolution action to fix the technology and architect redundancy to ensure continuity.

    The fix eliminated the performance impact, allowing for recovery of the $250K per month in revenue, improved end-user confidence in the organization, and increased use of the application, creating additional revenue.

    Implementing and measuring a video conferencing service

    CASE STUDY
    Industry: Manufacturing | Source: CIO interview and case material
    Situation

    The manufacturing business operates within numerous countries and requires a lot of coordination of functions and governance oversight. The company has monthly meetings, both regional and national, and key management and executives travel to attend and participate in the meetings.

    Complication

    While the meetings provide a lot of organizational value, the business has grown significantly and the cost of business travel has started to become prohibitive.

    Action

    It was decided that only a few core meetings would require onsite face-to-face meetings, and for all other meetings, the company would look at alternative means. The face-to-face aspect of the meetings was still considered critical so they focused on options to retain that aspect.

    The IT organization identified that they could provide a video conferencing service to meet the business need. The initiative was approved and rolled out in the organization.

    Result:

    IT service metrics needed to be designed to confirm that the expected value outcome of the implementation of video conferencing was achieved.

    Under the direction of the CIO, the business goals and needs driving use of the service (i.e. reduction in travel costs, efficiency, no loss of positive outcome) were used to identify success criteria and key questions to confirm success.

    With this information, the service manager was able to implement relevant service metrics in business language and confirmed an 80% adoption rate and a 95% success rate in term meetings running as expected and achieving core outcomes.

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

    A small monochrome icon depicting a person in front of a blank slide.

    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Develop meaningful service metrics to ensure business and user satisfaction

    1. Design the Metrics 2. Design Reports and Dashboards 3. Implement, Track, and Maintain
    Supporting Tool icon

    Best-Practice Toolkit
    1. Defining stakeholder needs for IT based on their success criteria
    2. Derive meaningful service metrics based on identified IT services and validate with business stakeholders
    3. Validate metrics can be collected and measured
    4. Determine calculation methodology
    1. Presentation format selected based on stakeholder needs and preference for information
    2. Presentation format validated with stakeholders
    1. Identify metrics that will be presented first to the stakeholders based on urgency or impact of the IT service
    2. Determine the process to collect data, select initial targets, and integrate with SLM and BRM functions
    3. Roll out the metrics implementation for a broader audience
    4. Establish roles and timelines for metrics maintenance

    Guided Implementations
    • Design metrics based on business needs
    • Validate the metrics
    • Select presentation format
    • Review metrics presentation design
    • Select and implement pilot metrics
    • Determine rollout process and establish maintenance/tracking mechanism
    Associated Activity icon

    Onsite Workshop

    		 Module 1:
    Derive Service Metrics From Business Goals     		Module 2:
    Select and Design Reports and Dashboards     		Module 3:
    Implement, Track, and Maintain Your Metrics to Ensure Success
    Phase 1 Outcome:
    • Meaningful service metrics designed from stakeholder needs
    		 Phase 2 Outcome:
    • Appropriate presentation format selected for each stakeholder
    		 Phase 3 Outcome:
    • Metrics implemented and process established to maintain and track program success

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.
    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4
    Design the Metrics
    Determine Presentation Format and Implement Metrics
    Gather Service Level Requirements
    Monitor and Improve Service Levels

    Activities
    • 1.1 Determine stakeholder needs
    • 1.2 Determine success criteria and key performance indicators
    • 1.3 Derive metrics
    • 1.4 Validate the metric collection
    • 2.1 Discuss stakeholder needs/preference for data and select presentation format
    • 2.2 Select and design the metric report
    • Requirements
    • 3.1 Determine the business requirements
    • 3.2 Negotiate service levels
    • 3.3 Align operational level agreements (OLAs) and supplier contracts
    • 4.1 Conduct service report and perform service review
    • 4.2 Communicate service review
    • 4.3 Remediate issues using action plan
    • 4.4 Proactive prevention

    Deliverables
    1. Metrics Development Workbook
    1. Metrics Presentation Format Selection Guide
    2. Metrics Tracking Tool
    1. Service Level Management SOP
    2. Service Level Agreement
    1. Service Level Report
    2. Service Level Review
    3. Business Satisfaction Report

    Develop Meaningful Service Metrics to Ensure Business and User Satisfaction

    PHASE 1

    Design the Metrics

    Step (1): Design the Metrics

    PHASE 1 PHASE 2 PHASE 3

    1.1

    Derive the Service Metrics

    1.2

    Validate the Metrics

    2.1

    Determine Reporting Format

    3.1

    Select Pilot Metrics

    3.2

    Activate and Maintain Metrics

    This step involves the following participants:

    • CIO
    • Business Relationship Manager (BRM)
    • Service Level Manager (SLM)

    Outcomes of this step

    • Defined stakeholder needs for IT based on their success criteria
    • Identified IT services that are tied to the delivery of business outcomes
    • Derived meaningful service metrics based on identified IT services and validated with business stakeholders
    • Validated that metrics can be collected and measured
    • Determined calculation methodology

    Phase 1 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Design the Metrics

    Proposed Time to Completion (in weeks): 4 weeks
    Step 1.1: Design Metrics Step 1.2: Validate the Metrics
    Start with an analyst kick-off call:
    • Determine the stakeholder and their needs
    • Identify IT services that are tied to the delivery of business outcomes
    • Derive the service metrics
    		 Review findings with analyst:
    • For the selected metrics, identify the data source for collection
    • Validate whether or not the data can be created
    • Create a calculation method for the metrics
    Then complete these activities…
    • Using the methodology provided, identify additional stakeholders and map out their success criteria, including KPIs to determine the appropriate service metrics
    		 Then complete these activities…
    • Determine whether the designed metrics are measurable, and if so, how
    With these tools & templates:
    • Metrics Development Workbook
    		 With these tools & templates:
    • Metrics Development Workbook

    Design your service metrics – overview

    Figure representing 'CIO'. Step 1
    Derive your service metrics

    Metrics Worksheet

    		Figure representing 'SLM' and/or 'BRM'. Step 2
    Validate your metrics

    Metrics Worksheet

    		Figures representing 'CIO', 'SLM', and/or 'BRM'. Step 3
    Confirm with stakeholders

    Metrics Tracking Sheet

    		A star.

    Defined IT Service Metrics

    Deriving the right metrics is critical to ensuring that you will generate valuable and actionable service metrics.

    Derive your service metrics from business objectives and needs

    Service metrics must be designed with the business perspective in mind so they are fully aligned with business objectives.

    Thus, IT must start by identifying specific stakeholder needs. The more IT understands about the business, the more relevant the metrics will be to the business stakeholders.

    1. Who are your stakeholders?
    2. What are their goals and pain points?
    3. What do the stakeholders need to know?
    4. What do I need to measure?
    5. Derive your service metrics

    Derive your service metrics

    Supporting Tool icon 1.1 Metrics Development Workbook

    This workbook guides the development and creation of service metrics that are directly tied to stakeholder needs.

    This process will ensure that your service metrics are designed with the business perspective in mind so they are fully aligned with business objectives.

    1. Who are the relevant stakeholders?
    2. What are the goals and pain points of your stakeholders?
    3. What do the stakeholders need to know?
    4. What does IT need to measure?
    5. What are the appropriate IT metrics?

    Download the Metrics Development Workbook.

    		Sample of Info-Tech's Metrics Development Workbook.

    Determine your stakeholders

    Supporting Tool icon 1.1 0.5 Hour

    Who are your stakeholders?

    1. Identify the primary stakeholders of your service metrics. Stakeholders are the people who have a very specific need to know about how IT services affect their business outcomes. Different stakeholders can have different perspective on the same IT service metric.Most often, the primary target of service metrics are the business stakeholders, e.g. VP of a business unit.
    2. Identify any additional stakeholders. The CIO is also a stakeholder since they are effectively the business relationship manager for the senior leaders.

    Video Conferencing Case Study
    Manufacturing company

    For this phase, we will demonstrate how to derive the service metrics by going through the steps in the methodology.

    At a manufacturing company, the CIO’s main stakeholder is the CEO, whose chief concern is to improve the financial position of the company.

    Identify goals and pain points of your stakeholders

    Supporting Tool icon 1.2 0.5 Hour

    What are their goals and pain points?

    1. Clearly identify each stakeholder’s business goals and outcomes. These would be particular business goals related to a specific business unit.
    2. Identify particular pain points for each business unit to understand what is preventing them from achieving the desirable business outcome.

    VC Case Study

    One of the top initiatives identified by the company to improve financial performance was to reduce expense.

    Because the company has several key locations in different states, company executives used to travel extensively to carry out meetings at each location.

    Therefore, travel expenses represent a significant proportion of operational expenses and reducing travel costs is a key goal for the company’s executives.

    What do the stakeholders need to know?

    Supporting Tool icon 1.3 0.5 Hour

    What do the stakeholders need to know?

    1. Identify the key things that the stakeholders would need to know based on the goals and pain points derived from the previous step.These are your success criteria and must be met to successfully achieve the desired goals.

    VC Case Study

    The CEO needs to have assurance that without executives traveling to each location, remote meetings can be as effective as in-person meetings.

    These meetings must provide the same outcome and allow executives to collaborate and make similar strategic decisions without the onsite, physical presence.

    Therefore, the success criteria are:

    • Reduced travel costs
    • Effective collaboration
    • High-quality meetings

    What do I need to measure?

    Supporting Tool icon 1.4 1 Hour

    What does IT need to measure?

    1. Identify the IT services that are leveraged to achieve the business goals and success criteria.
    2. Identify the users of those services and determine the nature of usage for each group of users.
    3. Identify the key indicators that must be measured for those services from an IT perspective.

    VC Case Study

    The IT department decides to implement the video conferencing service to reduce the number of onsite meetings. This technology would allow executives to meet remotely with both audio and video and is the best option to replicate a physical meeting.

    The service is initially available to senior executives and will be rolled out to all internal users once the initial implementation is deemed successful.

    To determine the success of the service, the following needs to be measured:

    1. Outcomes of VC meetings
    2. Quality of the VC meetings
    3. Reduction in travel expenses

    Derive service metrics

    Supporting Tool icon 1.5 0.5 Hour

    Derive your service metrics

    1. Derive the service metrics that are meaningful to business stakeholders based on the IT services and the key indicators identified in the previous steps.
    2. Distinguish between service metrics and business metrics. You may identify some business metrics in addition to the IT metrics, and although these are important, IT doesn’t own the process of tracking and reporting business metrics.

    VC Case Study

    In the previous step, IT identified that it must measure the outcomes of VC meetings, quality of the VC meetings, and the reduction in travel expenses. From these, the appropriate service metrics can be derived to answer the needs of the CEO.

    IT needs to measure:

    1. Percent of VC meetings successfully delivered
    2. Growth of number of executive meetings conducted via VC
    Outcomes

    IT also identified the following business metrics:

    1. Reduction in percent of travel expense/spend
    2. Reduction in lost time due to travel

    Validate your metrics

    Once appropriate service metrics are derived from business objectives, the next step is to determine whether or not it is viable to actually measure the metrics.

    Can you measure it? The first question IT must answer is whether the metric is measurable. IT must identify the data source, validate its ability to collect the data, and specify the data requirement. Not all metrics can be measured!
    How will you measure it? If the metric is measurable, the next step is to create a way to measure the actual data. In most cases, simple formulas that can be easily understood are the best approach.
    Define your actions Metrics must be used to drive or reinforce desirable outcomes and behaviors. Thus, IT must predetermine the necessary actions associated with the different metric levels, thresholds, or trends.

    Determine if you can measure the identified metric

    Supporting Tool icon 1.6 0.5 Hour

    INSTRUCTIONS

    1. Determine what data sources are available. Make sure that you know where the information you need is captured, or will need to be captured. This would include:
      • A ticket/request system
      • An auto discovery tool
      • A configuration management database ( CMDB)
    2. Confirm that IT has the ability to collect the information.
      • If the necessary data is already contained in an identified data source, then you can proceed.
      • If not, consider whether it’s possible to gather the information using current sources and systems.
      • Understand the constraints and cost/ROI to implement new technology or revise processes and data gathering to produce the data.

    VC Case Study

    Using the metric derived from the video conferencing service example, IT wants to measure the % of VC meetings successfully delivered.

    What are the data sources?

    • Number of VC meetings that took place
    • Number of service incidents
    • User survey

    Determine if you can measure the identified metric

    Supporting Tool icon 1.6 0.5 Hour

    INSTRUCTIONS

    1. Understand your data requirements
      • To produce relevant metrics from your data, you need to ensure the level of quality and currency that provides you with useful information. You need to define:
        • The level of detail that has to be captured to make the data useful.
        • The consistency of the data, and how it needs to be entered or gathered.
        • The accuracy of the data. This includes how current the data needs to be, how quickly changes have to be made, and how data quality will be verified.

    VC Case Study

    Data requirement for percent of successful VC meetings:

    • Level of detail – user category, location, date/time,
    • Consistency – how efficiently are VC-related incidents opened and closed? Is the data collected and stored consistently?
    • Accuracy – is the information entered accurately?

    Create the calculation to measure it

    Supporting Tool icon 1.7 0.5 Hour

    Determine how to calculate the metrics.

    INSTRUCTIONS
    1. Develop the calculations that will be used for each accepted metric. The measurement needs to be clear and straightforward.
    2. Define the scope and assumptions for each calculation, including:
      • The defined measurement period (e.g. monthly, weekly)
      • Exclusions (e.g. nonbusiness hours, during maintenance windows)

    VC Case Study

    Metric: Percent of VC meetings delivered successfully

    IT is able to determine the total number of VC meetings that took place and the number of VC service requests to the help desk.

    That makes it possible to use the following formula to determine the success percentage of the VC service:

    ((total # VC) – (# of VC with identified incidents)) / (total # VC) * 100

    Define the actions to be taken for each metric

    Supporting Tool icon 1.7 1.5 Hour

    INSTRUCTIONS

    Centered on the defined metrics and their calculations, IT can decide on the actions that should be driven out of each metric based on one of the following scenarios:
    • Scenario 1: Ad hoc remedial action and root-cause investigation. If the reason for the result is unknown, determining root cause or identifying trends is required to determine required actions.
    • Scenario 2: Predefined remedial action. A set of predetermined actions associated with different results. This is useful when the meaning of the results is clear and points to specific issues within the environment.
    • Scenario 3: Nonremedial action. The metrics may produce a result that reinforces or supports company direction and strategy, or identifies an opportunity that may drive a new initiative or idea.

    VC Case Study

    If the success rate of the VC meetings is below 90%, IT needs to focus on determining if there is a common cause and identify if this is a consistent downward trend.

    A root-cause analysis is performed that identifies that network issues are causing difficulties, impacting the connection quality and usability of the VC service.

    Validate the confirmed metrics with the business

    Supporting Tool icon 1.8 1 Hour

    INPUT: Selected service metrics, Discussion with the business

    OUTPUT: Validated metrics with the business

    Materials: Metrics with calculation methodology

    Participants: IT and business stakeholders, Service owners

    INSTRUCTIONS

    1. Once you have derived the appropriate metrics and established that the metrics are measurable, you must go back to the targeted stakeholders and validate that the selected metrics will provide the right information to meet their identified goals and success criteria.
    2. Add confirmed metrics to the Metrics Tracking Tool, in the Metrics Tracking Plan tab.
    Service Metric Corresponding
    Business Goal     		Measurement
    Method     		Defined Actions

    Example: Measuring the online banking service at a financial institution

    Who are IT’s stakeholders? The financial institution provides various banking solutions to its customers. Retail banking is a core service offered by the bank and the VP of retail banking is a major stakeholder of IT.
    What are their goals and pain points? The VP of retail banking’s highest priorities are to increase revenue, increase market share, and maintain the bank’s brand and reputation amongst its customers.
    What do they need to know? In order to measure success, the VP of retail banking needs to determine performance in attracting new clients, retaining clients, expanding into new territory, and whether they have increased the number of services provided to existing clients.
    What does IT need to measure? The recent implementation of an online banking service is a key initiative that will keep the bank competitive and help retail banking meet its goals. The key indicators of this service are: the total number of clients, the number of products per client, percent of clients using online banking, number of clients by segment, service, territory.
    Derive the service metrics Based on the key indicators, IT can derive the following service metrics:
    1. Number of product applications originated from online banking
    2. Customer satisfaction/complaints
    As part of the process, IT also identified some business metrics, such as the number of online banking users per month or the number of times a client accesses online banking per month.

    Design service metrics to track service performance and value

    CASE STUDY
    Industry: Manufacturing | Source: CIO
    Challenge Solution Results
    The IT organization needed to generate metrics to show the business whether the video conferencing service was being adopted and if it was providing the expected outcome and value.

    Standard IT metrics were technical and did not provide a business context that allowed for easy understanding of performance and decision making.

    		The IT organization, working through the CIO and service managers, sat down with the key business stakeholders of the video conferencing service.

    They discussed the goals for the meeting and defined the success criteria for those goals in the context of video conference meeting outcomes.

    The success criteria that were discussed were then translated into a set of questions (key performance indicators) that if answered, would show that the success criteria were achieved.

    		The service manager identified what could be measured to answer the defined questions and eliminated any metrics that were either business metrics or non-IT related.

    The remaining metrics were identified as the possible service metrics, and the ability to gather the information and produce the metric was confirmed.

    Service metrics were defined for:

    1. Percent of video conference meetings delivered successfully
    2. Growth in the number of executive meetings conducted via video conference

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of Valence Howden, Senior Manager, CIO Advisory, Info-Tech Research Group.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1

    		 Sample of activity 1.1 'Determine your stakeholders'. Determine stakeholder needs, goals, and pain points

    The onsite analyst will help you select key stakeholders and analyze their business objectives and current pain points.

    1.2

    		 Sample of activity 1.2 'Identify goals and pain points of your stakeholders'. Determine the success criteria and related IT services

    The analyst will facilitate a discussion to uncover the information that these stakeholders care about. The group will also identify the IT services that are supporting these objectives.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    1.5

    		 Sample of activity 1.5 'Derive service metrics'. Derive the service metrics

    Based on the key performance indicators obtained in the previous page, derive meaningful business metrics that are relevant to the stakeholders.

    1.6

    		 Sample of activity 1.6 'Determine if you can measure the identified metric'. Validate the data collection process

    The analyst will help the workshop group determine whether the identified metrics can be collected and measured. If so, a calculation methodology is created.

    1.7

    		 Sample of activity 1.7 'Create the caluclation to measure it'. Validate metrics with stakeholders

    Establish a feedback mechanism to have business stakeholders validate the meaningfulness of the metrics.

    Develop Meaningful Service Metrics to Ensure Business and User Satisfaction

    PHASE 2

    Design Reports and Dashboards

    Step (2): Design Reports and Dashboards

    PHASE 1PHASE 2PHASE 3

    1.1

    Derive the Service Metrics

    1.2

    Validate the Metrics

    2.1

    Determine Reporting Format

    3.1

    Select Pilot Metrics

    3.2

    Activate and Maintain Metrics

    This step involves the following participants:

    • Business Relationship Manager
    • Service Level Manager
    • Business Stakeholders

    Outcomes of this step

    • Presentation format selected based on stakeholder needs and preference for information
    • Presentation format validated with stakeholders

    Phase 2 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Design Reports and Dashboards

    Proposed Time to Completion (in weeks): 3 weeks
    Step 2.1: Select Presentation Format Step 2.2: Review Design
    Start with an analyst kick-off call:
    • Review the different format of metrics presentation and discuss the pros/cons of each format
    • Discuss stakeholder needs/preference for data
    • Select the presentation format
    		 Review findings with analyst:
    • Discuss stakeholder feedback based on selected presentation format
    • Modify and adjust the presentation format as needed
    Then complete these activities…
    • Design the metrics using the selected format
    		 Then complete these activities…
    • Finalize the design for metrics presentation
    With these tools & templates:
    • Metrics Presentation Format Selection Guide
    		 With these tools & templates:
    • Metrics Presentation Format Selection Guide

    Design the reports – overview

    Figure representing 'SLM' and/or 'BRM'. Step 1
    Understand the pros and cons of different reporting styles     		Figure representing 'SLM' and/or 'BRM'. Step 2
    Determine your reporting and presentation style

    Presentation Format Selection

    		Figure representing 'SLM' and/or 'BRM'. Step 3
    Design your metrics reports     		A star.

    Validated Service Reports

    The design of service metrics reporting is critically important. The reporting style must present the right information in the most interesting and stakeholder-centric way possible to ensure that it is read and used.

    The reports must also display information in a way that generates actions. If your stakeholders cannot make decisions, kick off activities, or ask questions based on your reports, then they have no value.

    Determine the right presentation format for your metrics

    Most often, metrics are presented in the following ways:

    Dashboard
    (PwC. “Mega-Trends and Implications.”)
    Sample of the 'Dashboard' metric presentation format.     		Infographic
    (PwC. “Healthcare’s new entrants.”)
    Sample of the 'Infographic' metric presentation format.
    Report
    (PwC Blogs. “Northern Lights.”)
    Sample of the 'Report' metric presentation format.     		Scorecard
    (PwC. “Annual Report 2015.”)
    Sample of the 'Scorecard' metric presentation format.

    Understand the advantages and disadvantages of each reporting style – Dashboard

    A dashboard is a reporting method that provides a dynamic at-a-glance view of key metrics from the perspective of key stakeholders. It provides a quick graphical way to process important performance information in real time.

    Features

    Typically web-based

    Dynamic data that is updated in real time

    		Advantage

    Aggregates a lot of information into a single view

    Presents metrics in a simplistic style that is well understood

    Provides a quick point-in-time view of performance

    Easy to consume visual presentation style

    		Disadvantage

    Complicated to set up well.
    Requires additional technology support: programming, API, etc.

    Promotes a short-term outlook – focus on now, no historical performance and no future trends. Doesn’t provide the whole picture and story.

    Existing dashboard tools are often not customized enough to provide real value to each stakeholder.

    Dashboards present real-time metrics that can be accessed and viewed at any time

    Sample of the 'Dashboard' metric presentation format.
    (Source: PwC. “Mega-Trends and Implications.”)     		Metrics presented through online dashboards are calculated in real time, which allows for a dynamic, current view into the performance of IT services at any time.

    Understand the advantages and disadvantages of each reporting style – Infographic

    An infographic is a graphical representation of metrics or data, which is used to show information quickly and clearly. It’s based on the understanding that people retain and process visual information more readily than written details.

    Features

    Turns dry into attractive –transforms data into eye-catching visual memory that is easier to retain

    Can be used as the intro to a formal report

    There are endless types of infographics

    		Advantage

    Easily consumable

    Easy to retain

    Eye catching

    Easily shared

    Spurs conversation

    Customizable

    		Disadvantage

    Require design expertise and resources

    Can be time consuming to generate

    Could be easily misinterpreted

    Message can be lost with poor design

    Infographics allow for completely unique designs

    Sample of the 'Infographic' metric presentation format.
    (Source: PwC. “Healthcare’s new entrants…”)     		There is no limit when it comes to designing an infographic. The image used here visually articulates the effects of new entrants pulling away the market.

    Understand the advantages and disadvantages of each reporting style – Formal Report

    A formal report is a more structured and official reporting style that contains detailed research, data, and information required to enable specific business decisions, and to help evaluate performance over a defined period of time.

    Definition

    Metrics can be presented as a component of a periodic, formal report

    A physical document that presents detailed information to a particular audience

    		Advantage

    More detailed, more structured and broader reporting period

    Formal, shows IT has put in the effort

    Effectively presents a broader and more complete story

    Targets different stakeholders at the same time

    		Disadvantage

    Requires significant effort and resources

    Higher risk if the report does not meet the expectation of the business stakeholder

    Done at a specific time and only valuable for that specific time period

    Harder to change format

    Formal reports provide a detailed view and analysis of performance

    Sample of the 'Formal Report' metric presentation format.
    (Source: PwC Blogs. “Northern Lights: Where are we now?”)     		An effective report incorporates visuals to demonstrate key improvements.

    Formal reports can still contain visuals, but they are accompanied with detailed explanations.

    Understand the advantages and disadvantages of each reporting style – Scorecard

    A scorecard is a graphic view of the progress and performance over time of key performance metrics. These are in relation to specified goals based on identified critical stakeholder objectives.

    Features

    Incorporates multiple metrics effectively.

    Scores services against the most important organizational goals and objectives. Scorecards may tie back into strategy and different perspectives of success.

    		Advantage

    Quick view of performance against objectives

    Measure against a set of consistent objectives

    Easily consumable

    Easy to retain

    		Disadvantage

    Requires a lot of forethought

    Scorecards provide a time-bound summary of performance against defined goals

    Sample of the 'Scorecard' metric presentation format.
    (PwC. “Annual Report 2015.”)     		Scorecards provide a summary of performance that is directly linked to the organizational KPIs.

    Determine your report style

    Supporting Tool icon 2.1 Metrics Presentation Format Selection Guide

    In this section, you will determine the optimal reporting style for the service metrics.

    This guide contains four questions, which will help IT organizations identify the most appropriate presentation format based on stakeholder preference and needs for metrics.

    1. Who is the relevant stakeholder?
    2. What are the defined actions for the metric?
    3. How frequently does the stakeholder need to see the metric?
    4. How does the stakeholder like to receive information?
    		 Sample of Info-Tech's Metrics Presentation Format Selection Guide.
    Download the Metrics Presentation Format Selection Guide.

    Determine your best presentation option

    Supporting Tool icon 2.1 2 Hours

    INPUT: Identified stakeholder and his/her role

    OUTPUT: Proper presentation format based on need for information

    Materials: Metrics Presentation Format Selection Guide

    Participants: BRM, SLM, Program Manager

    After deciding on the report type to be used to present the metric, the organization needs to consider how stakeholders will consume the metric.

    There are three options based on stakeholder needs and available presentation options within IT.

    1. Paper-based presentation is the most traditional form of reporting and works well with stakeholders who prefer physical copies. The report is produced at a specific time and requires no additional IT capability.
    2. Online documents stored on webpages, SharePoint, or another knowledge management system could be used to present the metrics. This allows the report to be linked to other information and easily shared.
    3. Online dashboards and graphics can be used to have dynamic, real-time reporting and anytime access. These webpages can be incorporated into an intranet and allow the user to view the metrics at any time. This will require IT to continuously update the data in order to maintain the accuracy of the metrics.

    Design your metric reports with these guidelines in mind

    Supporting Tool icon 2.2 30 Minutes
    1. Stakeholder-specificThe report must be driven by the identified stakeholder needs and preferences and articulate the metrics that are important to them.
    2. ClarityTo enable decision making and drive desired actions, the metrics must be clear and straightforward. They must be presented in a way that clearly links the performance measurement to the defined outcome without leading to different interpretations of the results.
    3. SimplicityThe report must be simple to read, understand, and analyze. The language of the report must be business-centric and remove as much complexity as possible in wording, imaging, and context.

    Be sure to consider access rights for more senior reports. Site and user access permissions may need to be defined based on the level of reporting.

    Metrics reporting on the video conferencing service

    CASE STUDY
    Industry: Manufacturing | Source: CIO Interview
    The Situation

    The business had a clear need to understand if the implementation of video conferencing would allow previously onsite meetings to achieve the same level of effectiveness.

    Reporting Context

    Provided reports had always been generated from an IT perspective and the business rarely used the information to make decisions.

    The metrics needed to help the business understand if the meetings were remaining effective and be tied into the financial reporting against travel expenses, but there would be limited visibility during the executive meetings.

    Approach

    The service manager reviewed the information that he had gathered to confirm how often they needed information related to the service. He also met with the CIO to get some insight into the reports that were already being provided to the business, including the ones that were most effective.

    Considerations

    The conversations identified that there was no need for a dynamic real-time view of the performance of the service, since tracking of cost savings and utility would be viewed monthly and quarterly. They also identified that the item would be discussed within a very small window of time during the management meetings.

    The Solution

    It was determined that the best style of reporting for the metric was an existing scorecard that was produced monthly, using some infographics to ensure that the information is clear at a glance to enable quick decision making.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of Valence Howden, Senior Manager, CIO Advisory, Info-Tech Research Group.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1

    		 Sample of presentation format option slide 'Determine the right presentation format for your metrics'. Understand the different presentation options

    The onsite analyst will introduce the group to the communication vehicles of infographic, scorecard, formal report, and dashboard.

    2.1

    		 Sample of activity 2.1 'Determine your best presentation option'. Assess stakeholder needs for information

    For selected stakeholders, the analyst will facilitate a discussion on how stakeholders would like to view information and how the metrics can be presented to aid decision making.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    2.2

    		 Sample of activity 2.2 'Design your metric reports with these guidelines in mind'. Select and design the metric report

    Based on the discussion, the working group will select the most appropriate presentation format and create a rough draft of how the report should look.

    Develop Meaningful Service Metrics to Ensure Business and User Satisfaction

    PHASE 3

    Implement, Track, and Maintain Your Metrics

    Step (3): Implement, Track, and Maintain Your Metrics

    PHASE 1PHASE 2PHASE 3

    1.1

    Derive the Service Metrics

    1.2

    Validate the Metrics

    2.1

    Determine Reporting Format

    3.1

    Select Pilot Metrics

    3.2

    Activate and Maintain Metrics

    This step involves the following participants:

    • Service Level Manager
    • Business Relationship Manager
    • Service Metrics Program Manager

    Activities in this step

    • Determine the first batch of metrics to be implemented as part of the pilot program
    • Create a process to collect and validate data, determine initial targets, and integrate with SLM and BRM functions
    • Present the metric reports to the relevant stakeholders and incorporate the feedback into the metric design
    • Establish a standard process and roll out the implementation of metrics in batches
    • Establish a process to monitor and track the effectiveness of the service metrics program and make adjustments when necessary

    Phase 3 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Implement, Track, and Maintain Your Metrics

    Proposed Time to Completion (in weeks): 4 weeks
    Step 3.1: Select and Launch Pilot Metrics Step 3.2: Track and Maintain the Metrics
    Start with an analyst kick-off call:
    • Identify metrics that will be presented first to the stakeholders based on urgency or impact of the IT service
    • Determine the process to collect data, select initial targets, and integrate with SLM and BRM functions
    		 Review findings with analyst:
    • Review the success of metrics and discuss feedback from stakeholders
    • Roll out the metrics implementation to a broader audience
    • Establish roles and timelines for metrics maintenance
    Then complete these activities…
    • Document the first batch of metrics
    • Document the baseline, initial targets
    • Create a plan to integrate with SLM and BRM functions
    		 Then complete these activities…
    • Create a document that defines how the organization will track and maintain the success of the metrics program
    • Review the metrics program periodically
    With these tools & templates:
    • Metrics Tracking Tool
    		 With these tools & templates:
    • Metrics Tracking Tool

    Implement, Track, and Maintain the Metrics

    Figure representing 'SLM' and/or 'BRM'. Step 1
    Run your pilot

    Metrics Tracking Tool

    		Figure representing 'SLM' and/or 'BRM'. Step 2
    Validate success

    Metrics Tracking Tool

    		Figure representing 'SLM' and/or 'BRM'. Step 3
    Implement your metrics program in batches

    Metrics Tracking Tool

    		A star.

    Active Service Metrics Program

    Once you have defined the way that you will present the metrics, you are ready to run a pilot with a smaller sample of defined service metrics.

    This allows you to validate your approach and make refinements to the implementation and maintenance processes where necessary, prior to activating all service metrics.

    Track the performance of your service metrics

    Supporting Tool icon 3.1

    The Metrics Tracking Tool will enable you to track goals and success metrics for your service metrics programs. It allows you to set long-term goals and track your results over time.

    There are three sections in this tool:
    1. Metrics Tracking Plan. Identify the metrics to be tracked and their purpose.
    2. Metrics Tracking Actuals. Monitor and track the actual performance of the metrics.
    3. Remediation Tracking. Determine and document the steps that need to be taken to correct a sub-performing metric.
    		 Sample of Info-Tech's Metrics Tracking Tool.

    Select pilot metrics

    Supporting Tool icon 3.1 30 Minutes

    INPUT: Identified services, Business feedback

    OUTPUT: Services with most urgent need or impact

    Materials: Service catalog or list of identified services

    Participants: BRM, SLM, Business representatives

    To start the implementation of your service metrics program and drive wider adoption, you need to run a pilot using a smaller subset of metrics.

    INSTRUCTIONS

    To determine the sample for the pilot, consider metrics that:

    • Are related to critical business services and functions
      • or
    • Address known/visible pain points for the business
      • or
    • Were designed for supportive or influential stakeholders

    Metrics that meet two or more criteria are ideal for the pilot

    Collect and validate data

    Supporting Tool icon 3.2 1 Hour

    INPUT: Identified metrics

    OUTPUT: A data collection mythology, Metrics tracking

    Materials: Metrics

    Participants: SLM, BRM, Service owner

    You will need to start collection and validation of your identified data in order to calculate the results for your pilot metrics.

    INSTRUCTIONS

    1. Initiate data collection
      • Use the data sources identified during the design phase and initiate the data collection process.
    2. Determine start date
      • If historical data can be retrieved and gathered, determine how far back you want your measurements to start.
    3. Compile data and validate
      • Ensure that the information is accurate and up to date. This will require some level of data validation and audit.
    4. Run the metric
      • Use the defined calculation and source data to generate the metrics result.
    5. Record metrics results
      • Use the metrics tracking sheet to track the actual results.

    Determine initial targets

    Supporting Tool icon 3.3 1 Hour

    INPUT: Historical data/baseline data

    OUTPUT: Realistic initial target for improvement

    Materials: Metrics Tracking Tool

    Participants: BRM, SLM, Service owner

    INSTRUCTIONS

    Identify an initial service objective based on one or more of the following options:

    1. Establish an initial target using historical data and trends of performance.
    2. Establish an initial target based on stakeholder-identified requirements and expectations.
    3. Run the metrics report over a defined period of time and use the baseline level of achievement to establish an initial target.

    The target may not always be a number - it could be a trend. The initial target will be changed after review with stakeholders

    Integrate with SLM and BRM processes

    Supporting Tool icon 3.4 1 Hour

    INPUT: SLM and BRM SOPs or responsibility documentations

    OUTPUT: Integrate service metrics into the SLM/BRM role

    Materials: SLM / BRM reports

    Participants: SLM, BRM, CIO, Program manager, Service manager

    The service metrics program is usually initiated, used, and maintained by the SLM and BRM functions.

    INSTRUCTIONS

    Ensure that the metrics pilot is integrated with those functions by:

    1. Engaging with SLM and BRM functions/resources
      • Identify SLM and BRM resources associated with or working on the services where the metrics are being piloted
      • Obtain their feedback on the metrics/reporting
    2. Integrating with the existing reporting and meeting cycles
      • Ensure the metrics will be calculated and available for discussion at standing meetings and with existing reports
    3. Establishing the metrics review and validation cycle for these metrics
      • Confirm the review and validation period for the metrics in order to ensure they remain valuable and actionable

    Generate reports and present to stakeholders

    Supporting Tool icon 3.5 1 Hour

    INPUT: Identified metrics, Selected presentation format

    OUTPUT: Metrics reports that are ready for distribution

    Materials: Metrics Presentation Format Selection Guide

    Participants: BRM, SLM, CIO, Business representatives

    INSTRUCTIONS

    Once you have completed the calculation for the pilot metrics:

    1. Confirm the report style for the selected metrics (as defined in Phase 2)
    2. Generate the reporting for the pilot metrics
    3. Present the pilot metric reports to the identified BRM and SLM resources who will present the reporting to the stakeholders
    4. Gather feedback from Stakeholders on metrics - results and process
    5. Create and execute remediation plans for any actions identified from the metrics
    6. Initiate the review cycle for metrics (to ensure they retain value)

    Plan the rollout and implementation of the metrics reporting program

    Supporting Tool icon 3.6 1 Hour

    INPUT: Feedback from pilot, Services in batch

    OUTPUT: Systematic implementation of metrics

    Materials: Metrics Tracking Tool

    Participants: BRM, SLM, Program manager

    Upon completion of the pilot, move to start the broader implementation of metrics across the organization:

    INSTRUCTIONS

    1. Identify the service metrics that you will implement. They can be selected based on multiple criteria, including:
      • Organizational area/business unit
      • Service criticality
      • Pain points
      • Stakeholder engagement (detractors, supporters)
    2. Create a rollout plan for implementation in batches, identifying expected launch timelines, owners, targeted stakeholders, and communications plans
    3. Use the implementation plan from the pilot to roll out each batch of service metrics:
      • Collect and validate data
      • Determine target(s)
      • Integrate with BRM and SLM
      • Generate and communicate reports to stakeholders

    Maintain the service metrics

    Supporting Tool icon 3.7 1.5 Hour

    INPUT: Feedback from business stakeholders

    OUTPUT: Modification to individual metrics or to the process

    Materials: Metrics Tracking Tool, Metrics Development Workbook

    Participants: CIO, BRM, SLM, Program manager, Service owner

    Once service metrics and reporting become active, it is necessary to determine the review time frame for your metrics to ensure they remain useful.

    INSTRUCTIONS

    1. Confirm and establish a review time frame with stakeholders (e.g. annually, bi-annually, after organizational or strategic changes).
    2. Meet with stakeholders by the review date to discuss the value of existing metrics and validate:
      • Whether the goals associated with the metrics are still valid
      • If the metric is still necessary
      • If there is a more effective way to present the metrics
    3. Track actions based on review outcomes and update the remediation tracking sheet.
    4. Update tracking sheet with last complete review date.

    Maintain the metrics

    Supporting Tool icon 3.7

    Based on the outcome of the review meeting, decide what needs to be done for each metric, using the following options:

    Add

    A new metric is required or an existing metric needs large-scale changes (example: calculation method or scope).
    Triggers metrics design as shown in phases 1 and 2.

    		Change

    A minor change is required to the presentation format or data. Note: a major change in a metric would be performed through the Add option.

    Remove

    The metric is no longer required, and it needs to be removed from reporting and data gathering. A final report date for that metric should be determined.

    		Maintain

    The metric is still useful and no changes are required to the metric, its measurement, or how it’s reported.

    Ensuring metrics remain valuable

    VC CASE STUDY
    Industry: Manufacturing | Source: CIO Interview

    Reviewing the value of active metrics

    When the video conferencing service was initially implemented, it was performed as a pilot with a group of executives, and then expanded for use throughout the company. It was understood that prior to seeing the full benefit in cost reduction and increased efficiency and effectiveness, the rate of use and adoption had to be understood.

    The primary service metrics created for the service were based on tracking the number of requests for video conference meetings that were received by the IT organization. This identified the growth in use and could be used in conjunction with financial metrics related to travel to help identify the impact of the service through its growth phase.

    Once the service was adopted, this metric continued to be tracked but no longer showed growth or expanded adoption.

    The service manager was no longer sure this needed to be tracked.

    Key Activity

    The metrics around requests for video conference meetings were reviewed at the annual metrics review meeting with the business. The service manager asked if the need for the metric, the goal of tracking adoption, was still important for the business.

    The discussion identified that the adoption rate was over 80%, higher than anticipated, and that there was no value in continuing to track this metric.

    Based on the discussion, the adoption metrics were discontinued and removed from data gathering and reporting, while a success rate metric was added (how many meetings ran successfully and without issue) to ensure the ongoing value of the video conferencing service.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of Valence Howden, Senior Manager, CIO Advisory, Info-Tech Research Group.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1

    		 Sample of activity 3.1 'Select pilot metrics'. Select the pilot metrics

    The onsite analyst will help the workshop group select the metrics that should be first implemented based on the urgency and impact of these metrics.

    3.2

    		 Sample of activity 3.2 'Collect and validate data'. Gather data and set initial targets

    The analyst will help the group create a process to gather data, measure baselines, and set initial targets.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    3.5

    		 Sample of activity 3.5 'Generate reports and present to stakeholders'. Generate the reports and validate with stakeholders

    The Info-Tech analyst will help the group establish a process to receive feedback from the business stakeholders once the report is generated.

    3.6

    		 Sample of activity 3.6 'Plan the rollout and implementation of the metrics reporting program'. Implement the service metrics program

    The analyst will facilitate a discussion on how to implement the metrics program across the organization.

    3.7

    		 Sample of activity 3.7 'Maintain the service metrics'. Track and maintain the metrics program

    Set up a mechanism to ensure the success of the metrics program by assessing process adherence and process validity.

    Insight breakdown

    Insight 1

    Service metrics are critical to ensuring alignment of IT service performance and business service value achievement.

    Insight 2

    Service metrics reinforce positive business and end-user relationships by providing user-centric information that drives responsiveness and consistent service improvement.

    Insight 3

    Poorly designed metrics drive unintended and unproductive behaviors that have negative impacts on IT and produce negative service outcomes.

    Summary of accomplishment

    Knowledge Gained

    • Follow a methodology to identify metrics that are derived from business objectives.
    • Understand the proper presentation format based on stakeholder needs for information.
    • Establish a process to ensure the metrics provided will continue to provide value and aid decision making.

    Processes Optimized

    • Metrics presentation to business stakeholders
    • Metrics maintenance and tracking

    Deliverables Completed

    • Metrics Development Workbook
    • Metrics Presentation Format Selection Guide
    • Metrics Tracking Tool

    Research contributors and experts

    Name Organization
    Joe Evers Joe Evers Consulting
    Glen Notman Associate Partner, Citihub
    David Parker Client Program Manager, eHealth Ontario
    Marianne Doran Collins CIO, The CIO-Suite, LLC
    Chris Kalbfleisch Manager, Service Management, eHealth Ontario
    Joshua Klingenberg BHP Billiton Canada Inc.

    Related Info-Tech research

    Stock image of a menu. Design & Build a User-Facing Service Catalog
    The user-facing service catalog is the go-to place for IT service-related information.
    Stock image of a laptop keyboard. Unleash the True Value of IT by Transforming Into a Service Provider
    Earn your seat at the table and influence business strategy by becoming an IT service provider.

    Bibliography

    Pollock, Bill. “Service Benchmarking and Measurement: Using Metrics to Drive Customer Satisfaction and Profits.” Aberdeen Group. June 2009. http://722consulting.com/ServiceBenchmarkingandMeasurement.pdf

    PwC. “Mega-Trends and Implications.” RMI Discussion. LinkedIn SlideShare. September 2015. http://www.slideshare.net/AnandRaoPwC/mega-trends-and-implications-to-retirement

    PwC. “Healthcare’s new entrants: Who will be the industry’s Amazon.com?” Health Research Institute. April 2014. https://www.pwc.com/us/en/health-industries/healthcare-new-entrants/assets/pwc-hri-new-entrant-chart-pack-v3.pdf

    PwC. “Northern Lights: Where are we now?” PwC Blogs. 2012. http://pwc.blogs.com/files/12.09.06---northern-lights-2--summary.pdf

    PwC. “PwC’s key performance indicators

    Build an IT Succession Plan

    • Buy Link or Shortcode: {j2store}476|cart{/j2store}
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    • member rating average dollars saved: $338,474 Average $ Saved
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    • Parent Category Name: Lead
    • Parent Category Link: /lead
    • Pending retirements in key roles create workforce risks and potentially impact business continuity.
    • Fifty-six percent of organizations have not engaged in succession planning, so they haven’t identified at-risk key roles or successors for those roles.

    Our Advice

    Critical Insight

    • Just under 60% of organizations haven't tackled succession planning.
    • This means that three out of five organizations don’t know what skills they need for the future or what their key roles truly are. They also haven’t identified at-risk key roles or successors for those roles.
    • In addition, 74% of organizations have no formal process for facilitating knowledge transfer between individuals, so knowledge will be lost.

    Impact and Result

    • Info-Tech's Key Roles Succession Planning Tool will help you assess key role incumbent risk factors as well as identify potential successors and their readiness. Pay particular attention to those employees in key roles that are nearing retirement, and flag them as high risk.
    • Plan for the transfer of critical knowledge held by key role incumbents. Managers and HR leaders see significant tacit knowledge gaps in younger workers; prioritize tacit knowledge in your transfer plan and leverage multiple transfer methods.
    • Explore alternative work arrangements to ensure sufficient time to prepare successors. A key role incumbent must be available to complete knowledge transfer.
    • Define formal transition plans for all employees in at-risk key roles and their successors by leveraging your workforce and succession planning outputs, knowledge transfer strategy, and selected alternative work arrangements.

    Build an IT Succession Plan Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build an IT Succession Plan Deck – A step-by-step document that walks you through how to future-proof your IT team.

    Protect your team and organization from losses associated with departure of people from key roles. This blueprint will help you build an IT succession plan to ensure critical knowledge doesn’t walk out the door and continuity of business when people in key roles leave.

    • Build an IT Succession Plan Storyboard

    2. Critical Role Identifier – A tool to help you determine which roles are most critical to the success of your team.

    The purpose of this tool is to help facilitate a conversation around critical roles.

    • Critical Role Identifier

    3. Key Role Succession Planning Template – A tool that walks you through reviewing your talent, succession planning, and determining successor readiness.

    This tool will help IT leaders work through key steps in succession development for each employee in the team, and present summaries of the findings for easy reference and defensibility.

    • Key Roles Succession Planning Tool

    4. Role Profile Template – A template that helps you outline the minimum requirements for each critical role addressed in succession planning.

    This template is a guide and the categories can be customized to your organization.

    • Role Profile Template

    5. Individual Talent Profile Template – A template to assess an employee against the role profiles of critical roles.

    This profile provides the basis for evidence-based comparison of talent in talent calibration sessions.

    • Individual Talent Profile Template

    6. Role Transition Plan Template – A template to help you plan to implement knowledge transfer and alternative work arrangements.

    As one person exits a role and a successor takes over, a clear checklist-based plan will help ensure a smooth transition.

    • Role Transition Plan Template
    [infographic]

    Further reading

    INFO~TECH RESEARCH GROUP

    Build an IT Succession Plan

    Future-proof your IT team.


    Build an IT Succession Plan

    Future-proof your IT team.

    EXECUTIVE BRIEF

    Executive Summary

    Your Challenge

    Most organizations are unprepared for the loss of employees who hold key roles.

    • The departure of employees in key roles results in the loss of valuable knowledge, core business relationships, and profits.
    • Pending retirements in key roles create workforce risks and potentially impact business continuity.

    Planning and executing on key role transition can take years. CIOs should prepare now to mitigate the risk of loss later.

    		Common Obstacles
    • The number of organizations which have not engaged in succession planning is 56%; they haven’t identified at-risk key roles, or successors for those roles.
    • Analyzing key roles at the incumbent and successor level introduces real-life, individual-focused factors that have a major impact on role-related risk.
    		Info-Tech’s Approach
    • Plan for the transfer of critical knowledge held by key role incumbents.
    • Explore alternative work arrangements to ensure sufficient time to prepare successors.
    • Define formal transition plans for all employees in at-risk key roles and their successors.

    Info-Tech Insight

    Losing employees in key roles without adequate preparation hinders productivity, knowledge retention, relationships, and opportunities. Implement scalable succession planning to mitigate the risks.

    Most organizations are unprepared for the loss of employees who hold key roles

    Due to the atmosphere of uncertainty.

    Not only do they not have the right processes in place, but they are also ill-equipped to deal with the sheer volume of retirees in the future.

    Over 58% of organizations are unprepared for Baby Boomer retirement. Only 8% said they were very prepared.

    Pie chart with percentages of organizations who are prepared for Baby Boomer retirement.
    (Source: McLean & Company, 2013; N=120)

    A survey done by SHRM and AARP found similar results: 41% of HR professionals said their organizations have done nothing and don’t plan to do anything to prepare for a possible worker shortage as Boomers retire.

    (Source: Poll: Organizations Can Do More to Prepare for Talent Shortage as Boomers Retire)     		This means that three out of five organizations don’t know what skills they need for the future, or what their key roles truly are. They also have not identified at-risk key roles or successors for those roles.
    (Source: McLean & Company, 2013, N=120)

    To make matters worse, 74% of organizations have no formal process for facilitating knowledge transfer between individuals, so knowledge will be lost.

    Pie chart with percentages of organizations with a formal process for facilitating knowledge transfer.
    (Source: McLean & Company, 2013; N=120)

    Most organizations underestimate the costs associated with ignoring succession planning

    “In many cases, executives have no idea what knowledge they are losing.” (TLNT: Lost Knowledge – What Are You and Your Organization Doing About It?”)
    Objections to succession planning now: The risks of this mindset…
    “The recession bought us time to plan for Baby Boomer retirement.” Forty-two percent of organizations believe this to be true and may feel a false sense of security. Assume it takes three years to identify an internal successor for a key role, develop them, and execute the transition. Add the idea that, like most organizations, you don’t have a repeatable process for doing this. Do you still have enough time?
    “The skills possessed by my organization’s Baby Boomers are easy to develop in others internally.” Forty percent of organizations agree with this statement, but given the low rate of workforce planning taking place, most may not actually know the skills and knowledge they need to meet future business goals. These organizations may realize their loss too late.
    “We don’t have the time to invest in succession planning.” Thirty-nine percent of organizations cite this as an obstacle, which is a very real concern. Adopting a simple, scalable process that focuses on the most mission critical key roles will be easier to digest, as well as eliminate time wasted trying to recoup losses in the long run. The costs of not planning are much higher than the costs of planning.
    “We don’t know when our boomers plan to retire, so we can’t really plan for it.” The fact that 42% of organizations do not know employees’ retirement plans is proof positive that they’re operating blind. You can’t plan for something if you don’t have any information about what to plan for or the time frame you’re working against.
    “My organization puts a premium on fresh ideas over experience.” While nearly 45% of organizations prioritize fresh ideas, 50% value experience more. Succession planning and knowledge transfer are important strategies for ensuring experience is retained long enough for it to be passed along in the organization.

    Use Info-Tech’s tools and templates

    Talent Review

    Succession Planning

    Knowledge Transfer
    Key tools and templates to help you complete your project deliverables
    Key Roles Succession Planning Tool
    Critical Role Identifier
    Role Profile Template
    Individual Talent Profile Template    		 Key Roles Succession Planning Tool
    Role Profile Template
    Individual Talent Profile Template    		 Role Transition Plan Template
    Key Roles Succession Planning Tool
    Role Profile Template
    Individual Talent Profile Template
    Your completed project deliverables

    Critical Role Identifier

    Key Roles Succession Plan

    Key Role Profiles

    Individual Talent Profiles

    Key Role Transition Plans

    Ignoring succession planning could cause significant costs

    Losing knowledge will undermine your strategy in four ways:

    Inefficiency

    Inefficiency due to “reinvention of the wheel.” When workers leave and don’t effectively transfer their knowledge, duplication of effort to solve problems and find solutions occurs.

    		 Innovation

    Reduced capacity to innovate. Older workers know what works and what doesn’t, what’s new and what’s not. They can identify the status quo faster to make way for novel thinking.

    		 Competitive Advantage

    Loss of competitive advantage. Losing knowledge and/or established client relationships hurts your asset base and stifles growth.

    		Vulnerability

    Increased vulnerability. Losing knowledge can impede your organizational ability to identify, understand, and mitigate risks. You’ll have to learn through experience all over again.

    Succession planning improves performance by reducing the impact of sudden departures

    Business Continuity

    Succession planning limits disruption to daily operations and minimizes recruitment costs:

    • The average time to fill a vacant role externally in the US is approximately 43 days (Workable). Succession planning can reduce this via a talent pool of ready-now successors.
    		 Engagement & Retention

    Effective succession planning is a tool for engaging, developing, and retaining employees:

    • Of departing employees, 45% cite lack of opportunities for career advancement as the moderate, major, or primary reason they left (McLean & Company Exit Survey, 2018, N=7,530).
    		 Innovation & Growth

    Knowledge is a strategic asset, and succession planning can help retain, grow, and capitalize on it:

    • Retaining the experience and expertise of individuals departing from critical roles supports and enhances the quality of innovation (Harvard Business Review, 2008).

    Info-Tech’s approach

    Talent Review

    Conduct a talent review to identify key roles

    Short bracket.    		 Succession Planning

    Succession planning helps you assess which key roles are most at risk

    Long bracket.    		 Knowledge Transfer

    Utilize methods that make it easy to apply the knowledge in day-to-day practice.

    Long bracket.
    Identify Critical Roles Assess Talent Identify Successors Develop Successors Select Successors Identify Critical Knowledge Select Transfer Methods Document Role Transition Plans

    Future-Proofed IT Team
    • Business continuity
    • The right people, in the right positions, at the right time
    • Retention due to employee development & growth
    • IT success
    • Decreased impact of sudden departures
    • Improved performance

    Info-Tech’s methodology for building an IT succession plan

    1. Talent Review 2. Succession Planning 3. Knowledge Transfer
    Phase Steps
    1. Identify critical roles
    2. Assess talent
    1. Identify successor pool
    2. Develop successors
    3. Select successors
    1. Identify critical knowledge
    2. Select knowledge transfer methods
    3. Document role transition plans
    Phase Outcomes
    • Documented business priorities
    • Identified critical roles including required skills and knowledge that support achievement of business strategy
    • Key at-risk roles identified.
    • Potential successors for key roles identified.
    • Gap assessment between key role incumbents and potential successors.
    • Critical knowledge risks identified.
    • Appropriate knowledge transfer methods selected.
    • Documented knowledge transfer initiatives for key role transition plans.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is six to ten calls over the course of four to eight months.

    What does a typical GI on this topic look like?

    Phase 1

    Phase 2

    Phase 3
    Call #1: Scope requirements, objectives, and your specific challenges. Call #2:Review business priorities and clarify criteria weighting.

    Call #3: Review key role criteria. Explain information collection process.

    		 Call #4: Review risk and readiness assessments.

    Call #5: Analyze gaps between key roles and successors for key considerations.

    		 Call #6: Feedback and recommendations on critical knowledge risks.

    Call #7: Review selected transfer methods.

    		 Call #8: Analyze role transition plans for flags.

    Build an IT Succession Plan

    Phase 1

    Talent Review

    Phase 1

    1.1 Identify Critical Roles

    1.2 Assess Talent

    		 Phase 2

    2.1 Identify Successors

    2.2 Develop Successors

    2.3 Select Successors

    		 Phase 3

    3.1 Identify Critical Knowledge

    3.2 Select Transfer Methods

    3.3 Document Role Transition Plan

    This phase will walk you through:

    • Identifying your business priorities
    • Identifying your critical roles including required skills and knowledge that support achievement of business strategy

    Tools and resources used:

    • Key Roles Succession Planning Tool
    • Key Role Profile
    • Individual Talent Profile
    • Critical Role Identifier

    This phase involves the following participants:

    • IT leadership/management team
    • HR

    Conduct a talent review to identify key roles

    Sixty percent of organizations have not engaged in formal workforce planning, so they don’t know what skills they need or what their key roles truly are. (Source: McLean & Company, 2013; N=139)
    1. A talent review ensures that each work unit has the right people, in the right place, at the right time to successfully execute the business strategy.
    2. Only 40% of organizations have engaged in some form of workforce planning.
    3. The first step is to identify your business focus; with this information you can start to note the key roles that drive your business strategy.

    Key roles

    Where an organization’s most valued skills and knowledge reside

    Organizations should prepare now to mitigate the risk of loss later.

    Key roles are:

    • Held by the most senior people in the organization, who carry the bulk of leadership and decision-making responsibility.
    • Highly technical or specialized, and therefore difficult to replace.
    • Tied closely to unique or proprietary processes or possess knowledge that cannot be procured externally.
    • Critical to the continuation of business and cannot be left vacant without risking business operations.

    Info-Tech Insight

    Losing employees in key roles without adequate preparation for their departure has a direct impact on the bottom line in terms of disrupted productivity, lost knowledge, severed relationships, and missed opportunities.

    		A tree of key roles, starting with CEO and branching down.

    Identifying key roles is the first step in a range of workforce management activities because it helps establish organizational needs and priorities, as well as focusing planning effort.

    A talent review allows you to identify the knowledge and skills you need today and for the long term.

    Knowing what you need is the first step in determining what you have and what you need to keep.

    • A talent review is an analytic planning process used to ensure a work unit has the right people, in the right place, at the right time, and for the right cost in order to successfully execute its business strategy. It allows organizations to:
    • Evaluate workforce demographics, review skills, and conduct position inventories.
    • Evaluate business continuity risk from a talent perspective by identifying potential workforce shortages.
    • Identify critical positions, critical skills for each position, and percentage of critical workers retiring to assess the potential impact of losing them.
    • Look at the effect of loss on new product development, revenues, costs, and business strategic objectives.

    Caution

    A talent review is a high-level planning process which does not take individual employees into consideration. Succession planning looks at individuals and will be discussed in Phase 2.

    A talent review gets you to think in terms of:

    • Where your organization wants to be in five years.
    • What skills the organization needs to meet business goals between now and then.
    • How it can be best positioned for the longer-term future.

    Note: Planning against a time frame longer than five years is difficult because uncertainty in the external business environment will have unforeseen effects. Revisit your plan annually and update it, considering changes.

    Step 1.1

    Identify critical roles

    Activities
    • 1.1.1 Document Business Priorities, Goals, and Challenges
    • 1.1.2 Clarify Key Role Criteria and Weighting
    • 1.1.3 Evaluate Role Importance
    • 1.1.4 Key Role Selection and Comparison
    • 1.1.5 Capture Key Elements of Critical Roles

    The primary goal of this step is to ensure we have effectively identified key roles based on business priorities, goals, and challenges, and to capture the key elements of critical roles.

    Outcomes of this step

    • Documented business priorities, goals, and challenges.
    • Key elements of critical roles captured.
    • Key role criteria and weighting.
    Talent Review
    Step 1.1 Step 1.2

    Business priorities will determine the knowledge and skills you value most

    Venn diagram of business priorities: 'Customer Focus', 'Operational Focus', and 'Product Focus'.
    Note: Most organizations will be a blend of all three, with one predominating    		 “I’ve been in the position where the business assumes everyone knows what is required. It’s not until you get people into a room that it becomes clear there is misalignment. It all seems very intuitive but in a lot of cases they haven’t made the critical distinctions regarding what exactly the competencies are. They haven’t spent the time figuring out what they know.” (Anne Roberts, Principal, Leadership Within Inc.)

    1.1.1 Document business priorities

    Input: Business strategic plan

    Output: Completed workforce planning worksheet (Tab 2) of the Key Roles Succession Planning Tool

    Materials: Key Roles Succession Planning Tool

    Participants: IT leadership

    Start by identifying your business priorities based on your strategic plan. The goal of this exercise is to blast away assumptions and make sure leadership has a common understanding of your target.

    With the questions on the previous slide in mind document your business priorities, business goals, and business challenges in Tab 2 of the Key Roles Succession Planning Tool worksheet.

    Get clear answers to these questions:

    • Are we customer focused, product focused, or operationally focused? In other words, is your organization known for:
      • Great customer service or a great customer experience?
      • The lowest price?
      • Having the latest technology, or the best quality product?
    • What are our organizational/departmental business goals? To improve operational effectiveness, are we really talking about reducing operational costs?
    • What are the key business challenges to address within the context of our focus?

    Key Roles Succession Planning Tool

    Clarify what defines a key role

    A key role is crucial to achieving organizational objectives, drives business performance, and includes specialized and rare competencies. Key roles are high in strategic value and rarity – for example, the developer role for a tech company.
    Chart with axes 'Rarity' and 'Strategic Value'. Lowest in both are 'Supporting Roles', Highest in both are 'Critical Roles', and the space in the middle are 'Core Roles'. Look at two dimensions when examining roles:
    • Strategic value refers to the importance of the role in keeping the organization functioning and executing on the strategic objectives.
    • Rarity refers to how difficult it is to find and develop the competencies in the role.

    Info-tech insight

    Traditionally, succession planning has only addressed top management roles. However, until you look at the evidence, you won’t know if these are indeed high-value roles, and you may be missing other critical roles further down the hierarchy.

    Use the Critical Role Identifier to facilitate the identification of critical roles with your leaders.

    1.1.2 Clarify key role criteria & weighting

    Input: Business strategic plan

    Output: Weighted criteria to help identify critical roles

    Materials: Critical Role Identifier

    Participants: IT leadership

    1. Using Tab 2 of the Critical Role Identifier tool, along with the information on the previous slide, determine the relative importance of four criteria as contributing to the importance of a role within the organization.
    2. Rate each of the four criteria: strategic value, rarity, revenue generation, business/operation continuity, and any custom criteria numerically. You might choose only one or two criteria – they all do not need to be included.
    3. Document your decisions in Tab 2 of the Critical Role Identifier.

    Critical Role Identifier

    1.1.3 Evaluate role importance

    Input: List of IT roles

    Output: Full list of roles and a populated Critical Role Selection sheet (Tab 4)

    Materials: Critical Role Identifier

    Participants: IT leadership

    1. Using Tab 3 of the Critical Role Identifier, collect information about IT roles.
    2. Start by listing each role under consideration, and its department or subcategory.
    3. For each criteria statement listed across the top of the sheet, select an option from the drop-down menu to reflect the appropriate answer scale rating. Replace the text in grey with information customized to your team. If criteria has a weighting of zero in Tab 2, the questions associated with that criteria will be greyed out and do not have to be answered.

    Critical Role Identifier

    Identify the key roles that support and drive your business priorities

    Focus on key IT roles instead of all roles to save time and concentrate effort on your highest risk areas.

    Key Roles include:

    • Strategic Roles: Roles that give the greatest competitive advantage. Often these are roles that involve decision-making responsibility.
    • Core Roles: Roles that must provide consistent results to achieve business goals.
    • Proprietary Roles: Roles that are tied closely to unique or proprietary internal processes or knowledge that cannot be procured externally. These are often highly technical or specialized.
    • Required Roles: Roles that support the department and are required to keep it moving forward day-to-day.
    • Influential Roles: Positions filled by employees who are the backbone of the organization, the go-to people who are the corporate culture.
    		 Ask these questions to identify key roles:
    1. What are the roles that have a significant impact on delivering the business strategy?
    2. What are the key differentiating roles for our organization?
    3. Which roles, if vacant, would leave the organization open to non-compliance with regulatory or legal requirements?
    4. Which roles have a direct impact on the customer?
    5. Which roles, if vacant, would create system, function, or process failure for the organization?

    1.1.4 Key role selection and comparison

    Input: Tab 3 of the Critical Role Identifier

    Output: List of roles from highest to lowest criticality score, List of key roles entered in Tab 2 of the Key Roles Succession Planning Tool

    Materials: Critical Role Identifier, Key Roles Succession Planning Tool

    Participants: IT leadership

    1. Using tab 4 of the Critical Role Identifier, which displays the results of the role importance evaluation, review the weighted criticality score. To add or remove roles or departments make changes on Tab 3.
    2. Use this table to see the scores and roles from highest to lowest based on your weightings and scoring.
    3. In column J, classify the roles as critical, core, or supporting based on the weighted overall score and the individual criteria scores.
      1. Critical – is crucial to achieving organizational objectives, drives business performance, and includes specialized and rare skills.
      2. Core – is related to operational excellence. Highly strategically valuable but easy to find or develop.
      3. Supporting – is important in keeping business functioning; however, the strategic value is low. Competencies are easy to develop.
    4. Once you’ve selected the key roles, transfer them into Tab 2 of the Key Roles Succession Planning Tool worksheet where you have documented your business priorities.

    Critical Role Identifier

    Key Roles Succession Planning Tool

    1.1.5 Capture key elements of critical roles

    Input: Job descriptions, Success profiles, Competency profiles

    Output: List of required skills and knowledge for key roles, Role profiles documented for key roles

    Materials: Key Roles Succession Planning Tool, Role Profile Template

    Participants: IT leadership

    1. Document the minimum requirements for critical roles in column E and F of Tab 2 of the Key Roles Succession Planning Tool. Include elements that drive talent decisions, are measurable, and are oriented to future organizational needs.
    2. Consider how leadership competencies and technical skills tie to business expansion plans, new service offerings, etc.
    3. Use the Role Profile Template to help in this process and to maintain up-to-date information.
    4. Role profiles may be informed by existing job descriptions, success profiles, or competency profiles.
    5. Conduct regular maintenance on your role profiles. Outdated and inaccurate role-related information can make succession planning efforts ineffective.

    Key Roles Succession Planning Tool

    Role Profile Template

    Case Study

    Conduct a “sanity check” by walking through a checklist of all roles to ensure you haven’t missed anything.
    INDUSTRY
    Large Provincial Hospital
    SOURCE
    Payroll Manager
    Challenge
    • Key roles may not be what you think they are.
    • The Payroll Manager of a large Provincial hospital, with 20-year tenure, announced her retirement.
    • Throughout her tenure, this employee took on many tasks outside the scope of her role, including pension calculations/filings and other finance-related tasks that required a high level of specialized knowledge of internal systems.
    		 Solution
    • Little time or effort was placed on fully understanding what she did day-to-day.
    • Furthermore, the search for a replacement was left far too late, which meant that she vacated the role without training a replacement.
    • Low level roles can become critical to business continuation if they’re occupied by only one person, creating a “single point of failure” if they become vacant.
    		 Results
    • It wasn’t until after she left that it became obvious how much extra work she was doing, which made it nearly impossible to find a replacement.
    • Her manager found a replacement to take the payroll duties but had to distribute the other duties to colleagues (who were very unhappy about the extra tasks).
    • This role may not seem like a “key role,” but the incumbent turned it into one. Keep tabs on what people are working on to avoid overly nuanced role requirements.

    Step 1.2

    Assess talent

    Activities
    • 1.2.1 Identify Current Incumbents’ Information
    • 1.2.2 Identify Potential Successors and Collect Information

    The primary goal of this step is to assess departmental talent and identify gaps between potential successors and key roles. This analysis is intended to support departmental access to suitable talent ensuring future business success.

    Outcomes of this step

    • Collection of current incumbents’ information.
    • Collection of potential successor information.
    • Gap assessment.

    Talent Review

    Step 1.1 Step 1.2

    Find out key role incumbents’ career plans

    Have career discussions with key role incumbents

    • Do not ask employees directly about their retirement plans as this can be misconstrued as age discrimination – let them take the initiative.
    • To take the spotlight away from older workers and potential feelings of discrimination, supervisors should be having these discussions with their employees at least annually.
    • Having this discussion creates an opportunity for employees to share their retirement plans, if they have any.
    • Warning: This is not the time to make promises about the future. For example, alternative work arrangements cannot be guaranteed without further analysis and planning.
    		 Do the following:
    1. Book a meeting with employees and ask them to prepare for a career development discussion.
    2. Ask direct questions about motivation, lifestyle preferences, and passions.
    3. Spend the time to understand your employees’ goals and their development needs.
    If an employee discloses that they plan to leave within the next few years:
    1. Gather information about approximate exit dates (non-binding).
    2. Find out their opinions about how they would like to transition out of their role, including any alternative work arrangements they would like to pursue.

    Potential questions to ask during career discussions with key role incumbents

    • Where do you see yourself in five years?
    • What role would you see yourself in after this one?
    • What gets you excited about coming to work?
    • Describe your greatest strengths. How would you like to use those strengths in the future?
    • What is standing in the way of your career goals?
    ** Do not ask employees directly about their retirement plans as this can be misconstrued as age discrimination – let them take the initiative.**    		 Stock photo of a smiling employee with grey hair.

    1.2.1 Identify current incumbents' information

    Input: Key roles list, Employee information

    Output: List of key roles with individual incumbent information

    Materials: Key Roles Succession Planning Tool – Succession Plan Worksheet (Tab 3)

    Participants: IT leadership/management team, HR, Current incumbents if necessary

    Identify current incumbents for all key roles and collect information about them.

    Using Tab 3 of the Key Roles Succession Planning Tool identify the incumbent (the person currently in the role) for all key roles.

    Distribute the worksheet to department managers and team leaders to complete the information below for each key role.

    For that incumbent, also document:

    1. Their time in that role.
    2. Their overall performance in current role (does not meet, meets, or exceeds expectations).
    3. Next step in career (target role or retirement).
    4. Time until exit from the current role (known or estimated).
    5. Development needs for next step in career.
    6. Any additional knowledge and skills they possess beyond the role description that is of value to the organization.

    Upon completion, managers and team leaders should review the results with the department leader.

    Key Roles Succession Planning Tool

    Identify potential successors for all key roles

    It’s imperative that multiple sources of information are used to ensure no potential successor is missed and to gain a complete candidate picture.

    Work collaboratively with the management team and HR business partners for names of potential successors.

    The management team includes:

    • The incumbent’s direct supervisor.
    • Managers from the department in which the key role exists.
    • Leaders of teams with which potential successors have worked.
    • The key role incumbent (assuming it’s appropriate to do so).

    Use management roundtable discussions to identify and analyze each potential successor.

    • Participants should come equipped with names of potential successors and be prepared to provide a rationale for their recommendation.
    • Provide all participants with the key role job description in advance of the meeting, including responsibilities and required knowledge and skills.

    Don’t confuse successors with high potentials!

    • Identifying high potential employees involves recognizing those employees who consistently outperform their peers, progress more quickly than their peers, and live the company culture. They are usually striving for leadership roles.
    • While you also want your successors to exemplify these qualities of excellence, succession planning is specifically about identifying the employees who currently possess (or soon will possess) the skills and knowledge required to take over a key role.
    • Remember: Key roles are not limited to leadership roles, so cast a wider net when identifying succession candidates.
    See the following slide for sources of information participants should consult to back up their recommendations and vet succession candidates.

    Determine how employees will be identified for talent assessment

    Description Advice
    Management-nominated employees
    • Managers or skip-level leaders nominate potential successors within or outside their team.
    • Limit bias by requiring management nominations to be based on specific evidence of performance and potential.
    High-potential employees (HiPos)
    • Consider employees who are in an existing high-potential program.
    • Determine whether the HiPo program sufficiently assesses for critical role requirements. Successors must possess the skills and knowledge required for specific critical roles. Expand assessment beyond just HiPo.
    Self-nominated employees
    • Employees are informed about succession planning and asked to indicate their interest in critical roles.
    • Train managers to support the program and to handle difficult conversations (e.g. employee submitted self-nomination and was unsuccessful).
    All employees
    • All employees across a division, geography, function, or leadership level are invited for assessment.
    • While less common, this approach is appropriate for highly inclusive cultures. Be prepared to invest significantly more time and resources.
    When identifying employees, keep the following advice in mind:

    Widen the net

    Don’t limit yourself to the next level down or the same functional group.

    Match transparency

    With less transparency, there are fewer options, and you risk missing out on potential successors.

    Select the appropriate talent assessment methods

    Identify all talent assessment types used in your organization and examine their ability to inform decision-making for critical role assignments. Select multiple sources to ensure a robust talent assessment approach:

    A sound talent assessment methodology will involve both quantitative and qualitative components. Multiple data inputs and perspectives will help ensure relevant information is prioritized and suitable candidates aren’t overlooked.

    However, beware that too many inputs may slow down the process and frustrate managers.

    Beware of biases in talent assessments. A common tendency is for people to recommend successors who are exactly like them or who they like personally, not necessarily the best person for the job. HR must (diplomatically) challenge leaders to use evidence-based assessments.

    Good Successor Information Sources

    • 360-Degree Feedback – (breadth and accuracy)
    • HR-led Interviews – (objectivity and confirmation)
    • Talent Review Meetings – (leadership input)
    • Stretch Assignments – (challenge comfort zones)
    • Competency-Based Aptitude Tests – (objective data)
    • Job Simulations – (real-life testing)
    • Recent Performance Evaluations – (predictor of future performance)

    Prepare to customize the Individual Talent Profile Template

    Ensure the role profile and individual talent profile are synchronized to enable comparing employee qualifications and readiness to critical role requirements. Sample of the Role Profile.

    Role Profile

    A role profile contains information on the skills, competencies, and other minimum requirements for the critical role. It details the type of incumbent that would fit a critical role.    		 Stock image of a chain link.

    Use both in conjunction during:

    • Talent assessment
    • Successor identification
    • Successor development
    • Successor selection
    		 Sample the Individual Talent Profile.

    Individual Talent Profile

    A talent profile provides information about a person. In addition to responding to role profile criteria, it provides information on an employee’s past experiences and performance, career aspirations, and future potential.

    1.2.2 Identify Potential Successors’ Information

    Input: Key roles list, Employee information, Completed role profiles and/or Tab 2 role information.

    Output: List of potential successors for key roles that are selected for talent assessment

    Materials: Key Roles Succession Planning Tool – Succession Plan Worksheet (Tab 3)

    Participants: IT leadership, IT team leads, Employees

    Identify potential successors for key roles and collect critical information.

    Have managers and team leads complete column I on Tab 3 of the Key Roles Succession Planning Tool and review with the department leader.

    There may be more than one potential successor for key roles; this is okay.

    Once the list is compiled, complete an individual talent profile for each potential successor. Record an employee’s:

    1. Employee information
    2. Career goals
    3. Experience and education
    4. Achievements
    5. Competencies
    6. Performance
    7. Any assessment results

    Once the profiles are completed, they can be compared to the role profile to identify development needs.

    Key Roles Succession Planning Tool

    Individual Talent Profile Template

    Build an IT Succession Plan

    Phase 2

    Succession Planning

    Phase 1

    1.1 Identify Critical Roles

    1.2 Assess Talent

    		Phase 2

    2.1 Identify Successors

    2.2 Develop Successors

    2.3 Select Successors

    		Phase 3

    3.1 Identify Critical Knowledge

    3.2 Select Transfer Methods

    3.3 Document Role Transition Plan

    This phase will walk you through how to:

    • Conduct an assessment to identify “at risk” key role incumbents.
    • Identify potential successors for key roles and collect critical information.
    • Assess gaps between key role incumbents and potential successors.

    Tools and resources used:

    • Key Roles Succession Planning Tool
    • Key Role Profile
    • Individual Talent Profile

    This phase involves the following participants:

    • IT leadership/management team
    • HR

    Succession planning helps you assess which key roles are most at risk

    Drilling down to the incumbent and successor level introduces “real life,” individual-focused factors that have a major impact on role-related risk.

    Succession planning is an organizational process for identifying and developing talent internally to fill key business roles. It allows organizations to:

    • Understand the career plans of employees to allow organizations to plan more accurately.
    • Identify suitable successors for key roles and assess their readiness.
    • Mitigate risks to long-term business continuity and growth.
    • Avoid external replacement costs including headhunting and recruitment, HR administration, and productivity loss.
    • Retain internal tacit knowledge.
    • Increase engagement and retention; keeping talented people reinforces career path opportunities and builds team culture.

    Caution:

    Where the talent review was about high-level strategic planning for talent requirements, succession planning looks at individual employees and plans for which employees will fulfill which key roles next.    		 “I ask the questions, What are the risks we have with these particular roles? Is there a way to disperse this knowledge to other members of the group? If yes, then how do we do that?” (Director of HR, Service Industry)

    Succession planning ultimately must drill down to individual people – namely, the incumbent and potential successors.

    This is because individual human beings possess a unique knowledge and skill set, along with their own personal aspirations and life circumstances.

    The risks associated with a key role are theoretical. When people are introduced into the equation, the “real life” risk of loss for that key role can change dramatically.

    Succession Planning

    Funnel titled 'Succession Planning' with 'Critical Roles' at the top of the funnel, 'Critical Knowledge and Skills' as the middle of the funnel, 'Individuals' as the bottom of the funnel, and it drains into 'Incumbent's Potential Successors'.

    Step 2.1

    Identify Successors

    Activities
    • 2.1.1 Conduct Individual Risk Assessment
    • 2.1.2 Successor Readiness Assessment

    This step highlights the relative positioning of all employees assessed for departure risk compared to the potential successors’ readiness, identifying gaps that create risk for the organization, and need mitigation strategies.

    Outcomes of this step

    • Individual risk assessment results – mitigate, manage, accept matrix.
    • Potential successor readiness ranking.
    • Determination on transparency level with successors.

    Succession Planning

    Step 2.1 Step 2.2 Step 2.3

    Decide how to obtain information on employee interest in critical roles

    Not all employees may want to be considered as part of the succession planning program. It might not fit their short- or long-term plans. Avoid misalignment and outline steps to ascertain employee interest.

    Transparency

    • Use your target transparency level to:
      • Determine the degree of employees’ participation in self-assessment.
      • Guide organization-wide and targeted messaging about succession planning (see Step 3).

    Timing

    • Ensure program-level communication has occurred before asking employees about their interests in critical roles, in order to garner more trust and engagement.
    • Decide at what point along the succession planning process (if at all) that employee’s career interests will be collected and incorporated.

    Manager accountability and resources

    • Identify resources needed for managers to conduct targeted career conversations with employees (e.g. training, communication guides, key messaging).
    • If program communication is to be implemented organization-wide, approach accordingly.

    Obtaining employee interest ensures process efficiency because:

    • Time isn’t wasted focusing on candidates who aren’t interested.
    • The assessment group is narrowed down through self-selection.

    Level-set expectations with employees:

    • Communicate that they will be considered for assessment and talent review discussions.
    • Ensure they understand that everyone assessed will not necessarily be identified or selected as a successor.

    Conduct a risk assessment

    Identify key role incumbents who may leave before you’re ready.

    Pay particular attention to those employees nearing retirement and flag them as high risk.

    Understand the impact that employee age has on key role risk. Keep the following in mind when filling out the Individual Risk Assessment of the Key Roles Succession Planning Tool. See the next slide for more details on this.
    High Risk Arrow pointing both ways vertically. Anyone 60 years of age or older, or anyone who has indicated they will be retiring within five years.
    Moderate Risk Employees in their early 50s are still many years away from retirement but have enough years remaining in their career to make a significant move to a new role outside of your organization. Furthermore, they have specialized skills making them more attractive to external organizations.
    Employees in their late 50s are likely more than five years away from retirement but are also less likely than younger employees to leave your organization for another role elsewhere. This is because of increasing personal risk in making such a move, and persistent employer unwillingness to hire older employees.
    Low Risk Technically, when it comes to succession planning for key roles held by employees over the age of 50, no one should be considered “low risk for departure.”
    		Pull some hard demographic data.

    Compile a report that breaks down employees into age-based demographic groups.

    Flag those over the age of 50 – they’re in the “retirement zone” and could decide to leave at any time.

    Check to see which key role incumbents fall into the “over 50” age demographic. You’ll want to shortlist these people for an individual risk assessment.

    Update this report twice a year to keep it current.

    For those people on your shortlist, gather the information that supervisors gained from the career discussions that took place. Specifically, draw out information that indicates their retirement plans.

    2.1.1 Conduct Individual Risk Assessment

    Input: Completed Succession Plan worksheet

    Output: Risk assessment of key role incumbents, understanding of which key role departures to manage, mitigate, and accept

    Materials: Key Roles Succession Planning Tool – Individual Risk Assessment (Tab 4), Key Roles Succession Planning Tool – Risk Assessment Results (Tab 5)

    Participants: IT leadership/management team

    Assign values for probability of departure and impact of departure using the Key Roles Succession Planning Tool.

    For those in key roles and those over 50, complete the Individual Risk Assessment (Tab 4) of the Key Roles Succession Planning Tool:

    1. Assess each key role incumbent’s probability of departure based on your knowledge. If the person is going to another job, is a known flight risk, or faces dismissal, the probability is high.
      • 0-40: Unlikely to Leave. If the employee is new to the role, highly engaged, or a high potential.
      • 41-60: Unknown. If the employee is sending mixed messages about happiness at work, or sending no messages, it may be difficult to guess.
      • 61-100: Likely to Leave. If the employee is nearing retirement, actively job searching, disengaged, or faces dismissal, then the probability of departure is high.
    2. Assess the role and the individual’s impact of departure on a scale of 1 (no impact) to 100 (devasting impact).
    3. Review the risk assessment results on tab 5 of the planning tool. The employees that appear in the mitigate quadrant are your succession planning priorities.

    Key Roles Succession Planning Tool

    Define readiness criteria for successor identification

    1. Select the types of readiness and the number of levels:

      Readiness by time horizon:

      • Successors are identified as ready based on how long it is estimated they will take to acquire the minimum requirements of the critical role.
      • Levels example: Ready Now, Ready in 1-2 Years, Ready in 3-5 Years.

      Readiness by moves:

      • Successors are identified as ready based on how many position moves they have made or how many developmental experiences they have had.
      • Levels example: Ready Now, Ready after 1 Move, Ready after 2 Moves.
    2. Create definitions for each readiness level:
      Example:

      Performance

      Potential
      Ready Now Definition: Ability to deliver in current role Requirement: Meets or exceeds expectations Definition: Ability to take on greater responsibility Requirement: Demonstrates learning agility
      The 9-box is an effective way to map performance and potential requirements and can guide management decision making in talent review and calibration sessions. See McLean & Company’s 9-Box Job Aid for more information. Sample of the 9-Box Job Aid, a 9-field matrix with axes 'Potential: Low to High' and 'Performance: Low to High'.
      “Time means nothing. If you say someone will be ready in a year, and you’ve done nothing in that year to develop them, they won’t be ready. We look at it as moves or experiences: ready now, ready in one move, ready in two moves.” (Amanda Mathieson, Senior Manager, Talent Management, Tangerine)

    2.1.2 Successor Readiness Assessment

    Input: Individual talent profiles, List of potential successors (Tab 3)

    Output: Readiness ranking for each potential successor

    Materials: Key Roles Succession Planning Tool

    Participants: IT leadership/management team

    Assign values for probability of departure and impact of departure using the Key Roles Succession Planning Tool.

    Using Tab 6 of the Key Roles Succession Planning Tool, evaluate the readiness of each potential successor that you previously identified.

    1. Enter the name, current role, and target role of each potential successor into the spreadsheet.
    2. For each employee, fill in a response from “strongly agree” to “strongly disagree” for the assessment criteria statements listed in column B of Tab 6. This will give you a readiness ranking in row 68.

    Key Roles Succession Planning Tool

    Decide if and how successors will be told about their status in the succession plan

    1. Decide if employees will be told. Be as transparent as possible. This will provide several benefits to your organization (e.g. higher engagement, retention) while managing potential risks (e.g. perception that the process is unfair, reducing motivation to perform).
    2. Decide who will tell them. Decide based on the culture of your organization; are official communications usually conveyed through the direct manager, HR, senior leaders, or steering committee?
    1. Determine how you will tell them.

      Suggested messaging to non-successors:

      • Not being identified as a successor does not mean that an employee is not valued by the organization, nor does it indicate the employee will be let go. It simply means that the organization needs a backup plan to manage risk.
      • Employees can still develop toward a critical role they are interested in, and the organization will continue to evaluate whether they can be a potential successor.
      • It is the employee’s responsibility to own their development and communicate to their manager any interest they have in critical roles.

      Suggested messaging to successors:

      • Being identified as a successor is an investment in employee development – not a guaranteed promotion.
      • Successor status may change based on changes to the critical role itself, or if performance is not on par with expectations.
      • The organization strives to be as fair and objective as possible through evidence-based assessments of performance and potential.

    Case Study

    Failing to have a career aspiration discussion with a potential successor leaves a sales director in a bind.

    INDUSTRY
    Professional Services
    SOURCE
    Confidential
    Challenge
    • A senior sales director in a medium-sized private company knew there would be a key management opportunity opening up in six months. He had one candidate in mind: a key contributor from the sales floor.
    • The sales manager assumed that the sales representative would want the management position and began planning the candidate’s required training in order to get him ready.
    		 Solution
    • Three months before the position opened up, the manager finally approached the representative about the opportunity, telling the representative that he was an excellent candidate for the role.
    • However, the sales representative was not interested in managing people. He wanted to come in, do a really great day’s worth of work, and then go home and be done. He already loved what he did.
    		Results
    • The sales representative turned down the offer point blank, leaving the manager with less than three months to find and groom a new internal successor.
    • The manager failed on several fronts. First, he did not ask the employee about his career aspirations. Second, he did not groom a pool of potential successors for the role, affording no protection in the event that the primary candidate couldn’t or wouldn’t assume the role.

    Step 2.2

    Develop Successors

    Activities
    • 2.2.1 Outline Successor Development Process

    The primary goal of this step is to identify the steps that need to be taken to develop potential successors. Focus on training employees for their future role, not just their current one.

    Outcomes of this step

    • Identified gaps between key role exits and successor readiness.

    Succession Planning

    Step 2.1 Step 2.2 Step 2.3

    2.2.1 Outline Successor Development Process

    Input: Role profiles, Talent profiles, Talent assessments

    Output: Identified gaps between key role exits and successor readiness

    Materials: Key Roles Succession Planning Tool – Successor Identification (Tab 7)

    Participants: IT leadership/management team

    Prepare successors for their next role, not just their current one.

    Use role and talent profiles and any talent assessment results to identify gaps for development.

    1. Outline the steps involved in the individual development planning process for successors. Key steps include identifying development timeline, learning needs, learning resources and strategies, and accomplishment metrics/evidence.
    2. Identify learning elements successor development will involve based on critical role type. For example, coaching and/or mentoring, leadership training, functional skills training, or targeted experiences/projects.
    3. Select metrics with associated timelines to measure the progress of successor development plans. Establish guidelines for employee and manager accountability in developing prioritized competencies.
    4. Determine monitoring cadence of successor development plans (i.e. how often successor development plans will be tracked to ensure timely progress). Identify who will be involved in monitoring the process (e.g. steering committee).

    Info-Tech insight

    Succession planning without integrated efforts for successor development is simply replacement planning. Get successors ready for promotion by ensuring a continuously monitored and customized development plan is in place.

    Integrate knowledge transfer in the successor development process

    1

    		 Brainstorm ideas to encourage knowledge-sharing and transfer from incumbent to successor.

    2

    		 Integrate knowledge-transfer methods into the successor development process.
    Identify key knowledge areas to include:
    • Specialized technical knowledge
    • Specialized research and development processes
    • Unique design capabilities/methods/models
    • Special formulas/algorithms/techniques
    • Proprietary production processes
    • Decision-making criteria
    • Innovative sales methods
    • Knowledge about key customers
    • Relationships with key stakeholders
    • Company history and values
    		 Use multiple methods for effective knowledge transfer.

    Explicit knowledge is easily explained and codified, such as facts and procedures. Knowledge transfer methods tend to be more formal and one-way. For example:

    • Formal documentation of processes and best practices
    • Self-published knowledgebase
    • Formal training sessions

    Tacit knowledge accumulates over years of experience and is hard to articulate. Knowledge transfer methods are often informal and interactive. For example:

    • Mentoring and job shadowing
    • Multigenerational work teams
    • Networks and communities
    Knowledge transfer can occur via a wide range of methods that need to be selected and integrated into daily work to suit the needs of the knowledge to be transferred and of the people involved. See Phase 3 for more details on knowledge transfer.

    Step 2.3

    Select Successors

    The goal of this step is to determine how critical roles will be filled when vacancies arise.

    Outcomes of this step

    • Agreement with HR on the process to fill vacancies when key roles exit.

    Succession Planning

    Step 2.1 Step 2.2 Step 2.3

    Determine how critical roles will be filled when vacancies arise

    Choose one of two approaches to successor selection:
    • Talent review meeting:
      • Conduct a talent review meeting with functional leaders to discuss key open positions and select the right successors. Ascertain successor interest prior to the meeting, if not obtained already.
      • If multiple successors are ready now, use both role and talent profiles to arrive at a final decision.
      • If only one successor is ready now, outline steps for their promotion process. Which leaders should be involved for final approval? What is TA’s role?
    • Talent acquisition (TA) process:
      • Align with TA to implement a formal recruitment process to select the right successor (open application and interview process to talent pool).
      • Decide if a talent review meeting is required afterwards to agree on the final successor or if the interview panel will make the final decision.

    Work together with Talent Acquisition (TA) to outline special treatment of critical role vacancies. Ensure TA is aware of succession plan(s).

    Explicitly determine the level of preference for internal successors versus external hires to your TA team to ensure alignment. This will create an environment where promotion from within is customary.

    Build an IT Succession Plan

    Phase 3

    Knowledge Transfer

    Phase 1

    1.1 Identify Critical Roles

    1.2 Assess Talent

    		Phase 2

    2.1 Identify Successors

    2.2 Develop Successors

    2.3 Select Successors

    		Phase 3

    3.1 Identify Critical Knowledge

    3.2 Select Transfer Methods

    3.3 Document Role Transition Plan

    This phase will show you to:

    • Identify critical knowledge risks.
    • Select appropriate transfer methods.
    • Document knowledge transfer initiatives for key role transition plans.

    Tools and resources used:

    • Role Transition Plan Template

    This phase involves the following participants:

    • IT leadership/management team
    • HR
    • Incumbent & successor managers

    Mitigate risk – formalize knowledge transfer

    Use Info-Tech’s Mitigate Key IT Employee Knowledge Loss blueprint to build and implement your knowledge transfer plan.

    Effective knowledge transfer allows organizations to:
    • Maintain or improve speed and productivity by ensuring the right people have the right skills to do their jobs well.
    • Increase agility because knowledge is more evenly distributed amongst employees. Multiple people can perform a given task and no one person becomes a bottleneck.
    • Capture and sustain knowledge; creating a knowledge database provides all employees access to the information, now and in the future.
    		 Knowledge transfer between those in key roles and potential successors yields the highest dividends for:
    • Senior level successions.
    • External hires.
    • Senior expatriate transfers.
    • Developmental stretch assignments.
    • Internal cross-divisional transfers and promotions.
    • High organizational dependency on unique expert knowledge.
    • Critical function/project/team transitions.
    • Large scale reorganizations and mergers & acquisitions.
    (Source: Piktialis and Greenes, 2008)    		 Sample of the Mitigate Key IT Employee Knowledge Loss blueprint.

    Mitigate Key IT Employee Knowledge Loss

    Knowledge transfer is complex and must be both multi-faceted and well supported

    Knowledge transfer is the capture, organization, and distribution of knowledge held by individuals to ensure that it is accessible and usable by others.

    Knowledge transfer is not stopping, learning, and returning to work. Nor is it simply implementing a document management system. Arrow pointing right. Knowledge transfer is a wide range of methods that must be carefully selected and integrated into daily work in order to meet the needs of the knowledge to be transferred and the people involved.

    Knowledge transfer works best when the following techniques are applied

    • Use multiple methods and media to transfer the knowledge.
    • Ensure a two-way interaction between the knowledge source and recipient.
    • Support knowledge transfer with active mentoring.
    • Transfer knowledge at the point of need; that is, when it’s immediately useful.
    • Offer experience-oriented training to reinforce knowledge absorption.
    • Use a knowledge management system to permanently capture knowledge shared.
    		 Personalization is the key.

    Dwyer & Dwyer say that providing “insights to a particular person (or people) needing knowledge at the time of the requirement” is the difference between knowledge transfer that sticks and knowledge that is forgotten.
    “Designing a system in which the employee must interrupt his or her work to learn or obtain new knowledge is not productive. Focus on ‘teachable moments.” (Karl Kapp, “Tools and Techniques for Transferring Know-How from Boomers to Gamers”)

    Step 3.1

    Identify Critical Knowledge to Transfer

    The goal of this step is to understand what knowledge and skills much be transferred, keeping in mind the various types of knowledge.

    Outcomes of this step

    • Critical knowledge and skills for key roles documented in the Key Role Transition plans.

    Knowledge Transfer

    Step 3.1 Step 3.2 Step 3.3

    Understand what knowledge and skills must be transferred

    There are two basic types of knowledge:

    Explicit knowledge:
    Easily explained and codified, e.g. facts and procedures.    		 Image of a head with gears inside. Tacit knowledge:
    Accumulates over years of experience and is hard to verbalize.
    • You should already have a good idea of what knowledge and skills are valued from the worksheets completed earlier.
    • Focus on identifying the knowledge, skills, and relationships essential to the specific incumbent in a key role and what it is he or she does to perform that key role well.
    Document critical knowledge and skills for key roles in the:

    Role Transition Plan Template
    1. Identify key knowledge areas. These include:
      • Specialized technical knowledge and research and development process.
      • Unique design capabilities/methods/models.
      • Special formulas/algorithms/techniques.
      • Proprietary production processes.
      • Decision-making criteria.
      • Innovative sales methods.
      • Knowledge about key customers.
      • Relationships with key stakeholders.
      • Company history and values.
    2. Ask questions of both sources and receivers of knowledge to help determine the best knowledge transfer methods to use.
      • What is the nature of the knowledge? Explicit or tacit?
      • Why is it important to transfer?
      • How will the knowledge be used?
      • What knowledge is critical for success?
      • How will the users find and access it?
      • How will it be maintained and remain relevant and usable?
      • What are the existing knowledge pathways or networks connecting sources to recipients?

    Step 3.2

    Select Knowledge Transfer Methods

    Activities
    • 3.2.1 Select Knowledge Transfer Methods

    This step helps you identify the knowledge transfer methods that will be the most effective, considering the knowledge or skill that needs to be transferred and the individuals involved.

    Outcomes of this step

    • Knowledge transfer methods chosen documented in the Key Role Transition Plans.

    Knowledge Transfer

    Step 3.1 Step 3.2 Step 3.3

    Knowledge transfer methods available

    Be prepared to use various methods to transfer knowledge and use them all liberally.

    The most common knowledge transfer method is simply to have a collaborative culture

    Horizontal bar chart ranking knowledge transfer methods by commonality.
    (Source: McLean & Company, 2013; N=121)

    A basic willingness for a role incumbent to share with a successor is the most powerful item in your tacit knowledge transfer toolkit.

    Formal documentation is critical for explicit knowledge sharing, yet only 40% of organizations use it.

    Rewarding and recognizing employees for doing knowledge transfer well is underutilized yet has emerged as an important reinforcing component of any effective knowledge transfer program.
    Don’t forget it!

    3.2.1 Select Knowledge Transfer Methods

    Input: Role profiles, Talent profiles

    Output: Methods for integrating knowledge transfer into day-to-day practice

    Materials: Role Transition Plan Template

    Participants: IT leadership/management team, HR, Knowledge source, Knowledge recipient

    Utilize methods that make it easy to apply the knowledge in day-to-day practice.

    Select your method according to the following criteria:

    1. The type of knowledge. A soft skill, like professionalism, is best taught via mentoring, while a technical process is best documented and applied on-the-job.
    2. What the knowledge recipient is comfortable with. The recipient may get bored during formal training sessions and retain more during job shadowing.
    3. What the knowledge source is comfortable with. The source may be uncomfortable with blogs and wikis, but comfortable with SharePoint.
    4. The cost. Some methods require an investment in time (e.g. mentoring), while others require an investment in technology (e.g. knowledge bases).
      • The good news is that many supporting technologies may already exist in your organization or can be acquired for free.
      • Methods that cost time may be difficult to get underway since employees may feel they don’t have the time or must change the way they work.

    The more integrated knowledge transfer is in day-to-day activities, the more likely it is to be successful and the lower the time cost. This is because real learning is happening at the same time real work is being accomplished.

    Document the knowledge transfer methods in the Role Transition Plan Template.

    Role Transition Plan Template

    Explore alternative work arrangements

    Ensure sufficient time to prepare successors

    If a key role incumbent isn’t around to complete knowledge transfer, it’s all for naught.

    Alternative work arrangements are critical tools that employers can use to achieve a mutually beneficial solution that mitigates the risk of loss associated with key roles.

    Alternative work arrangements not only support employees who want to keep working, but they allow the business to retain employees that are needed in key roles.

    In a survey from The Conference Board, one out of four older workers indicated that they continue to work because their company provided them with needed flexibility.

    And, nearly half said that more flexibility would make them less likely to retire. (Source: Ivey Business Journal)

    Flexible work options are the most used form of alternative work arrangement

    Horizontal bar chart ranking alternative work arrangements by usage.
    (Source: McLean & Company, N=44)

    Choose the alternative work arrangement that works best for you and the employee

    Alternative Work Arrangement

    Description

    Ideal Use

    Caveats
    Flexible work options Employees work the same number of hours but have flexibility in when and where they work (e.g. from home, evenings). Employees who work fairly independently, with no or few direct reports. Employee may become isolated or disconnected, impeding knowledge transfer methods that require interaction or one-on-one time.
    Contract-based work Working for a defined period of time on a specific project on a non-salaried or non-wage basis. Project-oriented work that requires specialized knowledge or skills. Available work may be sporadic or specific projects more intensive than the employee wants. Knowledge transfer must be built into the contractual arrangement.
    Part-time roles Half-days or a certain number of days per week; indefinite with no end date in mind. Employees whose roles can be readily narrowed and upon whom people and critical processes are not dependent. It may be difficult to break a traditionally full-time job down into a part-time role given the size and nature of associated tasks.
    Graduated retirement Retiring employee has a set retirement date, gradually reducing hours worked per week over time. Roles where a successor has been identified and is available to work alongside the incumbent in an overlapping capacity while he or she learns. The role may only require a single FTE, and the organization may not be able to afford the amount of redundancy inherent in this arrangement.

    The arrangement chosen may be a combination of multiple options

    Alternative Work Arrangement

    Description

    Ideal Use

    Caveats

    Part-year jobs or job sharingWorking part of the year and having the rest of the year off, unpaid.Project-oriented work where ongoing external relationships do not need to be maintained. The employee is unavailable for knowledge transfer activities for a large portion of the year. Another risk is that the employee may opt not to return at the end of the extended time off, with little notice.
    Increased paid time offAdditional vacation days upon reaching a certain age.Best used as recognition or reward for long-term service. This may be a particularly useful retention incentive in organizations that do not offer pension plans. The company may not be able to financially afford to pay for such extensive time off. If the role incumbent is the only one in the role, this may mean crucial work is not being done.
    Altered rolesConcentration of a job description on fewer tasks that allows the employee to focus on his or her specific expertise.Roles where a successor has been identified and is available to work alongside the incumbent, with the incumbent’s new role highly focused on mentoring. The role may only require a single FTE, and the organization may not be able to afford the amount of redundancy inherent in this arrangement.

    Alternative work arrangements require senior management support

    Senior management and other employees must see the value of retaining older workers, or they will not be supportive of these solutions.

    Any changes made to an employee’s work arrangement has an impact on people, processes, and policies.

    If the knowledge and skills of older employees aren’t valued, then:

    • Alternative arrangements will be seen as wasteful accommodation of a low-value employee.
    • Time won’t be allowed to manage the transition properly and make appropriate changes.
    • Other employees may resent any workload spillover.
    		 Alternate work arrangements can’t be implemented on a whim.

    Make sure alternative work arrangements can be done right and are supported – they’re often solutions that come with additional work. Determine the effects and make appropriate adjustments.

    • Review processes, particularly hand-off and approval points, to ensure tasks will still be handled seamlessly.
    • Assess organizational policies to ensure no violations are occurring or to rework policies (where possible) to accommodate alternative work arrangements.
    • Speak to affected employees to answer questions, identify obstacles, gain support, redefine their job descriptions if required, and make appropriate compensation adjustments. Always provide appropriate training when skills requirements are expanded.

    Step 3.3

    Document Role Transition Plans for all Key Roles

    Activities
    • 3.3.1 Document Role Transition Plans

    The primary goal of this step is to build clear checklist-based plans for each key role to help ensure a smooth transition as a successor takes over.

    Outcomes of this step

    • Completed key role transition plans

    Knowledge Transfer

    Step 3.1 Step 3.2 Step 3.3

    3.3.1 Document Role Transition Plans

    Input: Role profiles, Talent profiles, Talent assessments, Workforce plans

    Output: A clear checklist-based plan to help ensure a smooth transition.

    Materials: Role Transition Plan Template

    Participants: IT leadership/management team, Incumbent, Successor(s), HR

    Define a transition plan for all employees in at-risk key roles, and their successors.

    You should already have a good idea of what knowledge and skills are valued from the worksheets completed earlier. Focus on identifying the knowledge, skills, and relationships essential to the specific incumbent in a key role and what it is they do to perform that key role well.

    Using the Role Transition Plan Template develop a plan to transfer what needs to be transferred from the incumbent to the successor.

    1. Record the incumbent and successor information in the template.
    2. Summarize the key accountabilities and expectations of the incumbent’s role. This summary should highlight specific tasks and initiatives that the successor must take on, including success enablers. Attach the job description for a full description of accountabilities and expectations.
    3. Document the knowledge and skills requirements for the key role, as well as any additional knowledge and skills possessed by the key role incumbent that will aid the successor.
    4. Document any alternative work arrangements to the incumbent’s roles.
    5. Populate the Role Transition Checklist for key transition activities that must be completed by certain dates. A list of sample checklist items has been provided. Add, delete, or modify list items to suit your needs.

    Role Transition Plan Template

    DairyNZ leverages alternative work arrangements

    Ensures successful knowledge transfer
    INDUSTRY
    Agricultural research
    SOURCE
    Rose Macfarlane, General Manager Human Resources, DairyNZ
    Challenge
    • DairyNZ employs many people in specialized science research roles. Some very senior employees are international experts in their field.
    • Several experts have reached or are nearing retirement age. These pending retirements have come as no surprise.
    • However, due to the industry’s lack of development investment in the past, there is a 20–30-year experience gap in the organization for some key roles.
    		 Solution
    • One principal scientist gave over two years’ notice. His replacement – an external candidate – had been identified in advance and was hired once retirement notice was given.
    • The incumbent’s role was amended. He worked alongside his successor for 18 months in a controlled hand-over process.
    		 Results
    • The result was ideal in that the advance notice allowed full knowledge transfer to take place.

    Research Contributors and Experts

    Anne Roberts
    Principal, Leadership Within Inc. al,
    • Anne T. Roberts is an experienced organization development professional and executive business coach who works with leaders and their organizations to help them create, articulate and implement their change agenda. Her extensive experience in change management, organizational design, meeting design and facilitation, communication and leadership alignment has helped leaders tap into their creativity, drive and energy. Her ability to work with and coach people at the leadership level on a wide range of topics has them face their own organizational stories.
    		 Amanda Mathieson
    Senior Manager, Talent Management, Tangerine
    • Amanda is responsible for researching people- and leadership-focused trends, developing thought models, and providing resources, tools, and processes to build and drive the success of leaders in a disruptive world.
    • Her expertise in leadership development, organizational change management, and performance and talent management comes from her experience in various industries spanning pharmaceutical, retail insurance, and financial services. She takes a practical, experiential approach to people and leadership development that is grounded in adult learning methodologies and leadership theory. She is passionate about identifying and developing potential talent, as well as ensuring the success of leaders as they transition into more senior roles.

    Related Info-Tech Research

    Stock image of a brain. Mitigate Key IT Employee Knowledge Loss
    • Transfer IT knowledge before it’s gone.
    • Effective knowledge transfer mitigates risks from employees leaving the organization and is a key asset driving innovation and customer service.
    Stock image of sticky notes being organized on a board. Implement an IT Employee Development Plan
    • There is a growing gap between the competencies organizations have been focused on developing, and what is needed in the future.
    • Employees have been left to drive their own development, with little direction or support and without the alignment of development to organizational needs.

    Bibliography

    “Accommodating Older Workers’ Needs for Flexible Work Options.” Ivey Business Journal, July/August 2005. Accessed Jan 7, 2013.

    Christensen, Kathleen and Marcie Pitt-Catsouphes. “Approaching 65: A Survey of Baby Boomers Turning 65 Years Old”. AARP, Dec. 2010.

    Coyne, Kevin P. and Shawn T. Coyne. “The Baby Boomer Retirement Fallacy and What It Means to You. “ HBR Blog Network. Harvard Business Review, May 16, 2008. Accessed 8 Jan. 2013.

    Dwyer, Kevin and Ngoc Luong Dwyer. “Managing the Baby Boomer Brain Drain: The Impact of Generational Change on Human Resource Management.” ChangeFactory, April 2010. Accessed Jan 9, 2013.

    Gurchiek, Kathy. “Poll: Organizations Can Do More to Prepare for Talent Shortage as Boomers Retire.” SHRM, Nov 17, 2010. Accessed Jan 3, 2013.

    Howden, Daniel. “What Is Time to Fill? KPIs for Recruiters.” Workable, 24 March 2016. Web.

    Kapp, Karl M. “Tools and Techniques for Transferring Know-How from Boomers to Gamers.” Global Business and Organizational Excellence, July/August 2007. Web.

    Piktialis, Diane and Kent A. Greenes. Bridging the Gaps: How to Transfer Knowledge in Today’s Multigenerational Workplace. The Conference Board, 2008.

    Pisano, Gary P. “You need an Innovation Strategy.” Harvard Business Review, June 2015.

    Vilet, Jacque. “Lost Knowledge – What Are You and Your Organization Doing About It?” TLNT, 25 April 2012. Accessed 5 Jan. 2013.

    Modernize Data Architecture for Measurable Business Results

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    Identification of key gaps. 

    Activities

    1.1 Explain approach and value proposition

    1.2 Discuss business vision and key drivers

    1.3 Discover business pain points and needs

    1.4 Determine data strategies

    1.5 Assess DA practice capabilities

    Outputs

    Data strategies

    Data architecture vision

    Current and target capabilities for the modernized DA practice

    2 Assess DA Core Capabilities (Part 1)

    The Purpose

    Assess the enterprise data model (EDM).

    Assess current and target data warehouse, BI/analytics, and big data architectures.

    Key Benefits Achieved

    A completed assessment of the organization’s current EDM, data warehouse, BI and analytics, and big data architectures.

    Identification of "to be" capabilities for the organization’s EDM, data warehouse, BI and analytics, and big data architectures.

    Identification of key gaps.

    Activities

    2.1 Present an overarching DA capability model

    2.2 Assess current and target EDM capabilities

    2.3 Assess current/target data warehouse, BI/analytics, and big data architectures

    2.4 Identify gaps and high level strategies

    Outputs

    Target capabilities for EDM

    Target capabilities for data warehouse architecture, BI architecture, and big data architecture

    3 Assess DA Core Capabilities (Part 2)

    The Purpose

    Assess EDM.

    Assess current/target MDM, metadata, data integration, and content architectures.

    Assess dynamic data models.

    Key Benefits Achieved

    A completed assessment of the organization’s current MDM, metadata, data integration, and content architectures.

    Identification of “to be” capabilities for the organization’s MDM, metadata, data integration, and content architectures.

    Identification of key gaps.

    Activities

    3.1 Present an overarching DA capability model

    3.2 Assess current and target MDM, metadata, data integration, and content architectures

    3.3 Assess data lineage and data delivery model

    3.4 Identify gaps and high level strategies

    Outputs

    Target capabilities for MDM architecture, metadata architecture, data integration architecture, and document & content architecture

    Target capabilities for data lineage/delivery

    4 Analyze Gaps and Formulate Strategies

    The Purpose

    Map performance gaps and document key initiatives from the diagnostic assessment.

    Identify additional gaps and action items.

    Formulate strategies and initiatives to address priority gaps. 

    Key Benefits Achieved

    Prioritized gap analysis.

    Improvement initiatives and related strategies.

    Activities

    4.1 Map performance gaps to business vision, pain points, and needs

    4.2 Identify additional gaps

    4.3 Consolidate/rationalize/prioritize gaps

    4.4 Formulate strategies and actions to address gaps

    Outputs

    Prioritized gaps

    Data architecture modernization strategies

    5 Develop a Data Architecture Roadmap

    The Purpose

    Plot initiatives and strategies on a strategic roadmap.

    Key Benefits Achieved

    A roadmap with prioritized and sequenced initiatives.

    Milestone plan.

    Executive report. 

    Activities

    5.1 Transform strategies into a plan of action

    5.2 Plot actions on a prioritized roadmap

    5.3 Identify and discuss next milestone plan

    5.4 Compile an executive report

    Outputs

    Data architecture modernization roadmap

    Data architecture assessment and roadmap report (from analyst team)

    Identify and Manage Reputational Risk Impacts on Your Organization

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management

    Access to information about companies is more available to consumers than ever. Organizations must implement mechanisms to monitor and manage how information is perceived to avoid potentially disastrous consequences to their brand reputation.

    A negative event could impact your organization's reputation at any given time. Make sure you understand where such events may come from and have a plan to manage the inevitable consequences.

    Our Advice

    Critical Insight

    • Identifying and managing a vendor’s potential impact on your organization’s reputation requires efforts from multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how social media can affect your brand.
    • Organizational leadership is often caught unaware during crises, and their response plans lack the flexibility to adjust to significant market upheavals.

    Impact and Result

    • Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.
    • Prioritize and classify your vendors with quantifiable, standardized rankings.
    • Prioritize focus on your high-risk vendors.
    • Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your reputation and brand with our Reputational Risk Impact Tool.

    Identify and Manage Reputational Risk Impacts on Your Organization Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Identify and Manage Reputational Risk Impacts on Your Organization Deck – Use the research to better understand the negative impacts of vendor actions on your brand reputation.

    Use this research to identify and quantify the potential reputational impacts caused by vendors. Use Info-Tech's approach to look at the reputational impact from various perspectives to better prepare for issues that may arise.

    • Identify and Manage Reputational Risk Impacts on Your Organization Storyboard

    2. Reputational Risk Impact Tool – Use this tool to help identify and quantify the reputational impacts of negative vendor actions.

    By playing the “what if” game and asking probing questions to draw out – or eliminate - possible negative outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

    • Reputational Risk Impact Tool
    [infographic]

    Further reading

    Identify and Manage Reputational Risk Impacts on Your Organization

    Brand reputation is the most valuable asset an organization can protect.

    Analyst Perspective

    Organizations must diligently assess and protect their reputations, both in the market and internally.

    Social media, unprecedented access to good and bad information, and consumer reliance on others’ online opinions force organizations to dedicate more resources to protecting their brand reputation than ever before. Perceptions matter, and you should monitor and protect the perception of your organization with as much rigor as possible to ensure your brand remains recognizable and trusted.

    Photo of Frank Sewell, Research Director, Vendor Management, Info-Tech Research Group.

    Frank Sewell
    Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Access to information about companies is more available to consumers than ever. A negative event could impact your organizational reputation at any time. As a result, organizations must implement mechanisms to monitor and manage how information is perceived to avoid potentially disastrous consequences to their brand reputation.

    Make sure you understand where negative events may come from and have a plan to manage the inevitable consequences.

    		 Common Obstacles

    Identifying and managing a vendor’s potential impact on your organization’s reputation requires efforts from multiple people in the organization across several functions. Those people all need coaching on the potential changes in the market and how social media can affect your brand.

    Organizational leadership is often caught unaware during crises, and their response plans lack the flexibility to adjust to significant market upheavals.

    		 Info-Tech’s Approach

    Vendor management practices educate organizations on the different potential risks to vendors in your market and suggest creative and alternative ways to avoid and help manage them.

    Prioritize and classify your vendors with quantifiable, standardized rankings.

    Prioritize focus on your high-risk vendors.

    Standardize your processes for identifying and monitoring vendor risks to manage potential impacts on your reputation and brand with our Reputational Risk Impact Tool.

    Info-Tech Insight

    Organizations must evolve their risk assessments to be more adaptive to respond to rapid changes in online media. Ongoing monitoring of social media and the vendors tied to their company is imperative to achieving success and avoiding reputational disasters.

    Info-Tech’s multi-blueprint series on vendor risk assessment

    There are many individual components of vendor risk beyond cybersecurity.

    Cube with each multiple colors on each face, similar to a Rubix cube, and individual components of vendor risk branching off of it: 'Financial', 'Reputational', 'Operational', 'Strategic', 'Security', and 'Regulatory & Compliance'.

    This series will focus on the individual components of vendor risk and how vendor management practices can facilitate organizations’ understanding of those risks.

    Out of scope:
    This series will not tackle risk governance, determining overall risk tolerance and appetite, or quantifying inherent risk.

    Reputational risk impacts

    Potential losses to the organization due to risks to its reputation and brand

    In this blueprint, we’ll explore reputational risks (risks to the brand reputation of the organization) and their impacts.

    Identify potentially negative events to assess the overall impact on your organization and implement adaptive measures to respond and correct.

    Cube with each multiple colors on each face, similar to a Rubix cube, and the vendor risk component 'Reputational' highlighted.

    Protect your most valuable asset: your brand

    25%

    of a company’s market value is due to reputation (Transmission Private, 2021)

    94%

    of consumers say that a bad review has convinced them to avoid a business (ReviewTrackers, 2022)

    14 hours

    is the average time it takes for a false claim to be corrected on social media (Risk Analysis, 2018)
    Image of an umbrella covering the word 'BRAND' and three arrows approaching from above.

    What is brand recognition?

    And the cost of rebranding

    “Brand recognition is the ability of consumers to recognize an identifying characteristic of one company versus a competitor.” (Investopedia)

    “Most trademark valuation is based directly on its projected future earning power, based on income history. For a new brand with no history, evaluators must apply experience and common sense to predict the brand's earning potential. They can also use feedback from industry experts, market surveys, and other studies.” (UpCounsel)

    The cost of rebranding for small to medium businesses is about 10 to 20% of the recommended overall marketing budget and can take six to eight months (Ignyte).

    		 Stock image of a house with a money sign chimney.

    "All we are at our core is our reputation and our brand, and they are intertwined." (Phil Bode, Principal Research Director, Info-Tech Research Group)

    What your vendor associations say about you

    Arrows of multiple colors coalescing in an Earth labelled 'Your Brand', and then a red arrow that reads 'Reputation' points to the terms on the right.

    Bad Customer Reviews

    Breach of Data

    Poor Security Posture

    Negative News Articles

    Public Lawsuits

    Poor Performance

    How a major vendor protects its brand

    An ideal state
    • There is a dedicated brand protection department.
    • All employees are educated annually on brand protection policies and procedures.
    • Brand protection is tied to cybersecurity.
    • The organization actively monitors its brand and reputation through various media formats.
    • The organization has criteria for assessing x-party vendors and holds them accountable through ongoing monitoring and validation of their activities.

    Brand Protection
    Done Right

    Sticker for a '5 Star Rating'.

    Never underestimate the power of local media on your profits

    Info-Tech Insight

    Keep in mind that too much exposure to media can be a negative in that it heightens the awareness of your organization to outside actors. If you do go through a period of increased exposure, make sure to advance your monitoring practices and vigilance.

    Story: Restaurant data breach

    Losing customer faith

    A popular local restaurant’s point of service (POS) machines were breached and the credit card data of their customers over a two-week period was stolen. The restaurant did the right thing: they privately notified the affected people, helped them set up credit monitoring services, and replaced their compromised POS system.

    Unfortunately, the local newspaper got wind of the breach. It published the story, leaving out that the restaurant had already notified affected customers and had replaced their POS machines.

    In response, the restaurant launched a campaign in the local paper and on social media to repair their reputation in the community and reassure people that they could safely transact at their business.

    For at least a month, the restaurant experienced a drastic decrease in revenue as customers either refused to come in to eat or paid only in cash. During this same period the restaurant was spending outside their budget on the advertising.
    Broken trust.

    Story: Monitor your subcontractors

    Trust but verify

    A successful general contractor with a reputation for fairness in their dealings needed a specialist to perform some expert carpentry work for a few of their clients.

    The contractor gave the specialist the clients’ contact information and trusted them to arrange the work.

    Weeks later, the contractor checked in with the clients and received a ton of negative feedback:

    • The specialist called them once and never called back.
    • The specialist refused to do the work as described and wanted to charge extra.
    • The specialist performed work to “fix” the issue but cut corners to lessen their costs.

    As a result, the contractor took extreme measures to regain the clients’ confidence and trust and lost other opportunities in the process.

    		 Stock image of a sad construction site supervisor.

    You work hard for your reputation. Don’t let others ruin it.

    Don’t forget to look within as well as without

    Stock image of a frustrated desk worker.

    Story: Internal reputation is vital

    Trust works both ways

    An organization’s relatively new IT and InfoSec department leadership have been upgrading the organization's systems and policies as fast as resources allow when the organization encounters a major breach of security.

    Trust in the developing IT and InfoSec departments' leadership wanes throughout the organization as people search for the root cause and blame the systems. This degradation of trust limits the effectiveness of the newly implemented process, procedures, and tools of the departments.

    The new leaders' abilities are called into question, and they must now rigorously defend and justify their decisions and positions to the executives and board.

    It will be some time before the two departments gain their prior trust and respect, and the new leaders face some tough times ahead regaining the organization's confidence.

    How could the new leaders approach the situation to mend their reputations in the wake of this (perhaps unfair) reputational hit?

    It is not enough to identify the potential risks; there must also be adequate controls in place to monitor and manage them

    Stock image of a fingerprint on a computer chip under a blacklight.

    Identify, manage, and monitor reputational risks

    Global markets
    • Organizations need to learn how to assess the likelihood of potential risks in the changing global markets and recognize how their partnerships and subcontracts affect their brand.
    • Now more than ever, organizations need to be mindful of the larger global landscape and how their interactions within various regions can impact their reputation.
    Social media
    • Understanding how to monitor social media activity and online content will give you an edge in the current environment.
    • Changes in social media generally happen faster than companies can recognize them. If you are not actively monitoring those risks, the damage could set in before you even have a chance to respond.
    Global shortages
    • Organizations need to accept that shortages will recur periodically and that preparing for them will significantly increase the success potential of long-term plans.
    • Customers don’t always understand what is happening in the global supply chain and may blame you for poor service if you cannot meet demands as you have in the past.

    Which way is your reputation heading?

    • Do you understand and track items that might affect your reputation?
    • Do you understand the impact they may have on your business?

    Visualization of a Newton's Cradle perpetual motion device, aka clacky balls. The lifted ball is colored green with a smiley face and is labelled 'Your Brand Reputation'. The other four balls are red with a frowny face and are labelled 'Data Breach/ Lawsuit', 'Service Disruption', 'Customer Complaint', and 'Poor Delivery'.

    Identifying and understanding potential risks is essential to adapting to the ever-changing online landscape

    Info-Tech Insight

    Few organizations are good at identifying risks. As a result, almost none realistically plan to monitor, manage, and adapt their plans to mitigate those risks.

    Reputational risks

    Not protecting your brand can have disastrous consequences to your organization

    • Data breaches & lawsuits
    • Poor vendor performance
    • Service disruptions
    • Negative reviews

    Stock image of a smiling person on their phone rating something five stars.

    What to look for in vendors

    Identify potential reputational risk impacts
    • Check online reviews from both customers and employees.
    • Check news sites:
      • Has the vendor been affected by a breach?
      • Is the vendor frequently in the news – good or bad? Greater exposure can cause an uptick in hostile attacks, so make sure the vendor has adequate protections in line with its exposure.
    • Review its financials. Is it prime for an acquisition/bankruptcy or other significant change?
    • Review your contractual protections to ensure that you are made whole in the event something goes wrong. Has anything changed with the vendor that requires you to increase your protections?
    • Has anything changed in the vendor’s market? Is a competitor taking its business, or are its resources stretched on multiple projects due to increased demand?
    		 Illustration of business people in a city above various icons.

    Assessing Reputational Risk Impacts

    Zigzagging icons and numbers one through 7 alternating sides downward. Review Organizational Strategy
    Understand the organizational strategy to prepare for the “what if” game exercise.
    Identify & Understand Potential Risks
    Play the “what if” game with the right people at the table.
    Create a Risk Profile Packet for Leadership
    Pull all the information together in a presentation document.
    Validate the Risks
    Work with leadership to ensure that the proposed risks are in line with their thoughts.
    Plan to Manage the Risks
    Lower the overall risk potential by putting mitigations in place.
    Communicate the Plan
    It is important not only to have a plan but also to socialize it in the organization for awareness.
    Enact the Plan
    Once the plan is finalized and socialized put it in place with continued monitoring for success.
    (Adapted from Harvard Law School Forum on Corporate Governance)

    Insight Summary

    Reputational risk impacts are often unanticipated, causing catastrophic downstream effects. Continuously monitoring your vendors’ actions in the market can help organizations head off brand disasters before they occur.
    Insight 1

    Understanding how to monitor social media activity and online content will give you an edge in the current environment.

    Do you have dedicated individuals or teams to monitor your organization's online presence? Most organizations review and approve the online content, but many forget the need to have analysts reviewing what others are saying about them.

    Insight 2

    Organizations need to learn how to assess the likelihood of potential risks in the rapidly changing online environments and recognize how their partnerships and subcontractors’ actions can affect their brand.

    For example, do you understand how a simple news article raises your profile for short-term and long-term adverse events?

    Insight 3

    Socialize the risk management process throughout the organization to heighten awareness and enable employees to help protect the company’s reputation.

    Do you include a social media and brand protection policy in your annual education?

    Identify reputational risk

    Who should be included in the discussion?
    • While it is true that executive-level leadership defines the strategy for an organization, it is vital for those making decisions to make INFORMED decisions.
    • Getting input from your organization's marketing experts will enhance your brand's long-term protection.
    • Involving those who directly manage vendors and understand the market will aid in determining the forward path for relationships with your current vendors and identifying new emerging potential partners.
    • Organizations have a wealth of experience in their marketing departments that can help identify real-world negative scenarios.
    • Include vendor relationship managers to help track what is happening in the media for those vendors.
    		 Keep in mind: (R=L*I)
    Risk = Likelihood x Impact

    Impact tends to remain the same, while likelihood is a very flexible variable.

    Stock image of a flowchart asking 'Risk?', 'Yes', 'No'.

    Manage and monitor reputational risk impacts

    What can we realistically do about the risks?
    • Re-evaluate corporate policies frequently.
    • Ensure proper protections in contracts:
      • Limit the use of your brand name in the publicity and trademark clauses.
      • Make sure to include security protections for your data in the event of a breach; understand that reputation can rarely be made whole again once trust is breached.
    • Introduce continual risk assessment to monitor the relevant vendor markets.
    • Be adaptable and allow for innovations that arise from the current needs.
      • Capture lessons learned from prior incidents to improve over time and adjust your strategy based on the lessons.
    • Monitor your company’s and associated vendors’ online presence.
    • Track similar companies’ brand reputations to see how yours compares in the market.

    Social media is driving the need for perpetual diligence.

    Organizations need to monitor their brand reputation considering the pace of incidents in the modern age.

    Stock image of a person on a phone that is connected to other people.

    The “what if” game

    1-3 hours

    Input: List of identified potential risk scenarios scored by likelihood and financial impact, List of potential management of the scenarios to reduce the risk

    Output: Comprehensive reputational risk profile on the specific vendor solution

    Materials: Whiteboard/flip charts, Reputational Risk Impact Tool to help drive discussion

    Participants: Vendor Management Coordinator, Organizational Leadership, Operations Experts (SMEs), Legal/Compliance/Risk Manager, Marketing

    Vendor management professionals are in an excellent position to help senior leadership identify and pull together resources across the organization to determine potential risks. By playing the "what if" game and asking probing questions to draw out – or eliminate – possible negative outcomes, everyone involved adds their insight into parts of the organization to gather a comprehensive picture of potential impacts.

    1. Break into smaller groups (or if too small, continue as a single group).
    2. Use the Reputational Risk Impact Tool to prompt discussion on potential risks. Keep this discussion flowing organically to explore all potential risk but manage the overall process to keep the discussion on track.
    3. Collect the outputs and ask the subject matter experts for management options for each one in order to present a comprehensive risk strategy. You will use this to educate senior leadership so that they can make an informed decision to accept or reject the solution.

    Download the Reputational Risk Impact Tool

    Example: Low reputational risk

    We can see clearly in this example that the contractor suffered minimal impact from the specialist's behavior. Though they did take a hit to their overall reputation with a few customers, they should be able to course-correct with a minimal outlay of effort and almost no loss of revenue.

    		 Stock image of construction workers.

    Sample table of 'Sample Questions to Ask to Identify Reputational Impacts'. Column headers are 'Score', 'Weight', 'Question', and 'Comments or Notes'. At the bottom the 'Reputational Score' row has a low average score of '1.3' and '%100' total weight in their respective columns.

    Example: High reputational risk

    Note in the example how the tool can represent different weights for each of the criteria depending on your needs.

    		 Stock image of an older person looking out a window.

    Sample table of 'Sample Questions to Ask to Identify Reputational Impacts'. Column headers are 'Score', 'Weight', 'Question', and 'Comments or Notes'. At the bottom the 'Reputational Score' row has a high average score of '3.1' and '%100' total weight in their respective columns.

    Summary

    Be vigilant and adaptable to change
    • Organizations need to learn how to assess the likelihood of potential risks in the changing global markets and recognize how their partnerships and subcontracts affect their brand.
    • Understanding how to monitor social media activity and online content will give you an edge in the current environment.
    • Bring the right people to the table to outline potential risks to your organization’s brand reputation.
    • Socialize the risk management process throughout the organization to heighten awareness and enable employees to help protect the company’s reputation.
    • Incorporate lessons learned from incidents into your risk management process to build better plans for future issues.
    		 Stock image of a person's face overlaid with many different images.

    Organizations must evolve their risk assessments to be more adaptive to respond to global factors in the market.

    Ongoing monitoring of online media and the vendors tied to company visibility is imperative to avoiding disaster.

    Bibliography

    "The CEO Reputation Premium: Gaining Advantage in the Engagement Era." Weber Shandwick, March 2015. Accessed June 2022.

    Glidden, Donna. "Don't Underestimate the Need to Protect Your Brand in Publicity Clauses." Info-Tech Research Group, June 2022.

    Greenaway, Jordan. "Managing Reputation Risk: A start-to-finish guide." Transmission Private, July 2020. Accessed June 2022.

    Jagiello, Robert D., and Thomas T. Hills. “Bad News Has Wings: Dread Risk Mediates Social Amplification in Risk Communication.” Risk Analysis, vol. 38, no. 10, 2018, pp. 2193-2207.

    Kenton, Will. "Brand Recognition.” Investopedia, Aug. 2021. Accessed June 2022.

    Lischer, Brian. "How Much Does it Cost to Rebrand Your Company?" Ignyte, October 2017. Accessed June 2022.

    "Powerful Examples of How to Respond to Negative Reviews." ReviewTrackers, 16 Feb. 2022. Accessed June 2022.

    Tonello, Matteo. “Strategic Risk Management: A Primer for Directors.” Harvard Law School Forum on Corporate Governance, 23 Aug. 2012. Web.

    "Valuation of Trademarks: Everything You Need to Know." UpCounsel, 2022. Accessed June 2022.

    Related Info-Tech Research

    Sample of 'Assessing Financial Risk Management'. Identify and Manage Financial Risk Impacts on Your Organization
    • Identifying and managing a vendor’s potential financial impact requires multiple people in the organization across several functions – and those people all need educating on the potential risks.
    • Organizational leadership is often unaware of decisions on organizational risk appetite and tolerance, and they assume there are more protections in place against risk impact than there truly are.
    Sample of 'How to Assess Strategic Risk'. Identify and Manage Strategic Risk Impacts on Your Organization
    • Identifying and managing a vendor’s potential strategic impact requires multiple people in the organization across several functions – and those people all need coaching on the potential changes in the market and how these changes affect strategic plans.
    • Organizational leadership is often caught unaware during crises, and their plans lack the flexibility needed to adjust to significant market upheavals.
    Research coming soon. Jump Start Your Vendor Management Initiative
    • Vendor management is not “plug and play” – each organization’s vendor management initiative (VMI) needs to fit its culture, environment, and goals. The key is to adapt vendor management principles to fit your needs…not the other way around.
    • All vendors are not of equal importance to an organization. Classifying or segmenting your vendors allows you to focus your efforts on the most important vendors first, allowing your VMI to have the greatest impact possible.

    Research Contributors and Experts

    Frank Sewell

    Research Director
    Info-Tech Research Group

    		 Donna Glidden

    Research Director
    Info-Tech Research Group
    Steven Jeffery

    Principal Research Director
    Info-Tech Research Group

    		 Mark Roman

    Managing Partner
    Info-Tech Research Group
    Phil Bode

    Principal Research Director
    Info-Tech Research Group

    		 Sarah Pletcher

    Executive Advisor
    Info-Tech Research Group
    Scott Bickley

    Practice Lead
    Info-Tech Research Group

    Jump Start Your Vendor Management Initiative

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Each year, IT organizations spend more money “outsourcing” tasks, activities, applications, functions, and other items.
    • The increased spend and associated outsourcing leads to less control, and more risk for IT organizations. Managing this becomes a higher priority for IT, but many IT organizations are ill-equipped to do this proactively.

    Our Advice

    Critical Insight

    • Vendor management is not “plug and play” – each organization’s vendor management initiative (VMI) needs to fit its culture, environment, and goals. There are commonalites among vendor management initiatives, but the key is to adapt vendor management principles to fit your needs, not the other way around.
    • All vendors are not of equal importance to an organization. Internal resources are a scarce commodity and should be deployed so that they provide the best return on the organization’s investment. Classifying or segmenting your vendors allows you to focus your efforts on the most important vendors first, allowing your VMI to have the greatest impact possible.
    • Having a solid foundation is critical to the VMI’s ongoing success. Whether you will be creating a formal vendor management office or using vendor management techniques, tools, and templates “informally,” starting with the basics is essential. Make sure you understand why the VMI exists and what it hopes to achieve, what is in and out of scope for the VMI, what strengths the VMI can leverage and the obstacles it will have to address, and how it will work with other areas within your organization.

    Impact and Result

    • Build and implement a vendor management initiative tailored to your environment.
    • Create a solid foundation to sustain your vendor management initiative as it evolves and matures.
    • Leverage vendor management-specific tools and templates to manage vendors more proactively and improve communication.
    • Concentrate your vendor management resources on the right vendors.
    • Build a roadmap and project plan for your vendor management journey to ensure you reach your destination.
    • Build collaborative relationships with critical vendors.

    Jump Start Your Vendor Management Initiative Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should jump start a vendor management initiative, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Plan

    Organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI.

    • Jump Start Your Vendor Management Initiative – Phase 1: Plan
    • Jump – Phase 1 Tools and Templates Compendium

    2. Build

    Configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan.

    • Jump Start Your Vendor Management Initiative – Phase 2: Build
    • Jump – Phase 2 Tools and Templates Compendium
    • Jump – Phase 2 Vendor Classification Tool
    • Jump – Phase 2 Vendor Risk Assessment Tool

    3. Run

    Begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI.

    • Jump Start Your Vendor Management Initiative – Phase 3: Run

    4. Review

    Identify what the VMI should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    • Jump Start Your Vendor Management Initiative – Phase 4: Review

    Infographic

    Workshop: Jump Start Your Vendor Management Initiative

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Plan

    The Purpose

    Getting Organized

    Key Benefits Achieved

    Defined Roles and Goals for the VMI

    Activities

    1.1 Mission Statement and Goals

    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities – OIC Chart

    1.5 Process Mapping

    1.6 Vendor Inventory Tool (Overview)

    Outputs

    Completed Mission Statement and Goals

    List of Items In Scope and Out of Scope for the VMI

    List of Strengths and Obstacles for the VMI

    Completed OIC Chart

    Sample Process Map for One Process

    Begun Using Vendor Inventory Tool

    2 Plan/Build/Run

    The Purpose

    Build VMI Tools and Templates

    Key Benefits Achieved

    Configured Tools and Templates for the VMI Based on Its Roles and Goals

    Activities

    2.1 Maturity Assessment

    2.2 Structure and Job Descriptions

    2.3 Attributes of a Valuable Vendor

    2.4 Classification Model

    2.5 Risk Assessment Tool

    2.6 Scorecards and Feedback

    2.7 Business Alignment Meeting Agenda

    Outputs

    Completed Maturity Assessment.

    Sample Job Descriptions and Phrases.

    List of Attributes of a Valuable Vendor.

    Configured Classification Model.

    Configured Risk Assessment Tool.

    Configured Scorecard and Feedback Questions.

    Configured Business Alignment Meeting Agenda.

    3 Build/Run

    The Purpose

    Continue Building VMI Tools and Templates

    Key Benefits Achieved

    Configured Tools and Templates for the VMI Based on Its Roles and Goals

    Activities

    3.1 Relationship Alignment Document

    3.2 Vendor Orientation

    3.3 Policies and Procedures

    3.4 3-Year Roadmap

    3.5 90-Day Plan

    3.6 Quick Wins

    3.7 Reports

    3.8 Kickoff Meeting

    Outputs

    Relationship Alignment Document Sample and Checklist

    Vendor Orientation Checklist

    Policies and Procedures Checklist

    Completed 3-Year Roadmap

    Completed 90-Day Plan

    List of Quick Wins

    List of Reports

    4 Review

    The Purpose

    Review the Past 12 Months of VMI Operations and Improve

    Key Benefits Achieved

    Keeping the VMI Aligned With the Organization’s Goals and Ensuring the VMI Is Leveraging Leading Practices

    Activities

    4.1 Develop/Improve Vendor Relationships.

    4.2 Assess Compliance.

    4.3 Incorporate Leading Practices.

    4.4 Leverage Lessons Learned.

    4.5 Maintain Internal Alignment.

    4.6 Update Governances.

    Outputs

    Further reading

    Jump Start Your Vendor Management Initiative

    Create and implement a vendor management framework to begin obtaining measurable results in 90 days.

    EXECUTIVE BRIEF

    Analyst Perspective

    What is vendor management?

    When you read the phrase “vendor management,” what comes to mind? This isn’t a rhetorical question. Take your time … I’ll wait.

    Unfortunately, those words conjure up a lot of different meanings, and much of that depends on whom you ask. Those who work in the vendor management field will provide a variety of answers. To complicate matters, those who are vendor management “outsiders” will have a totally different view of what vendor management is. Why is this important? Because we need a common definition to communicate more effectively, even if the definition is broad.

    Let’s start creating a working definition that is not circular. Vendor management is not simply managing vendors. That expression basically reorders the words and does nothing to advance our cause; it only adds to the existing confusion surrounding the concept.

    Vendor management is best thought of as a spectrum or continuum with many points rather than a specific discipline like accounting or finance. There are many functions and activities that fall under the umbrella term of vendor management: some of them will be part of your vendor management initiative (VMI), some will not, and some will exist in your organization but be outside the VMI. This is the unique part of vendor management – the part that makes it fun, but also the part that leads to the confusion. For example, accounts payable sits within the accounting department almost exclusively, but contract management can sit within or outside the VMI. The beauty of vendor management is its flexibility; your VMI can be created to meet your specific needs and goals while leveraging common vendor management principles.

    Every conversation around vendor management needs to begin with “What do you mean by that?” Only then can we home in on the scope and nature of what people are discussing. “Managing vendors” is too narrow because it often ignores many of the reasons organizations create VMIs in the first place: to reduce costs, to improve performance, to improve processes, to improve relationships, to improve communication, and to manage risk better.

    Vendor management is a strategic initiative that takes the big picture into account … navigating the cradle to grave lifecycle to get the most out of your interactions and relationships with your vendors. It is flexible and customizable; it is not plug and play or overly prescriptive. Tools, principles, templates, and concepts are adapted rather than adopted as is. Ultimately, you define what vendor management is for your organization.

    We look forward to helping you on your vendor management journey no matter what it looks like. But first, let’s have a conversation about how you want to define vendor management in your environment.

    This is a picture of Phil Bode, Principal Research Director, Vendor Management at Info-Tech Research Group.

    Phil Bode
    Principal Research Director, Vendor Management
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    Each year, IT organizations “outsource” tasks, activities, functions, and other items. During 2021:

    • Spend on as-a-service providers increased 38% over 2020.*
    • Spend on managed service providers increased 16% over 2020.*
    • IT service providers increased their merger and acquisition numbers by 47% over 2020.*

    *Source: Information Services Group, Inc., 2022.

    This leads to more spend, less control, and more risk for IT organizations. Managing this becomes a higher priority for IT, but many IT organizations are ill-equipped to do this proactively.

    Common Obstacles

    As new contracts are negotiated and existing contracts are renegotiated or renewed, there is a perception that the contracts will yield certain results, output, performance, solutions, or outcomes. The hope is that these will provide a measurable expected value to IT and the organization. Oftentimes, much of the expected value is never realized. Many organizations don’t have a VMI to help:

    • Ensure at least the expected value is achieved.
    • Improve on the expected value through performance management.
    • Significantly increase the expected value through a proactive VMI.

    Info-Tech’s Approach

    Vendor management is a proactive, cross-functional lifecycle. It can be broken down into four phases:

    • Plan
    • Build
    • Run
    • Review

    The Info-Tech process addresses all four phases and provides a step-by-step approach to configure and operate your VMI. The content in this blueprint helps you quickly establish your VMI and set a solid foundation for its growth and maturity.

    Info-Tech Insight

    Vendor management is not a one-size-fits-all initiative. It must be configured:

    • For your environment, culture, and goals.
    • To leverage the strengths of your organization and personnel.
    • To focus your energy and resources on your critical vendors.

    Executive Summary

    Your Challenge

    Spend on managed service providers and as-a-service providers continues to increase. In addition, IT services vendors continue to be active in the mergers and acquisitions arena. This increases the need for a VMI to help with the changing IT vendor landscape. In 2021, there was increases of:

    38%

    Spend on As-a-Service Providers

    16%

    Spend on Managed Services Providers

    47%

    IT Services Merger & Acquisition Growth (Transactions)

    Source: Information Services Group, Inc., 2022.

    Executive Summary

    Common Obstacles

    When organizations execute, renew, or renegotiate a contract, there is an “expected value” associated with that contract. Without a robust VMI, most of the expected value will never be realized. With a robust VMI, the realized value significantly exceeds the expected value during the contract term.

    A contract’s realized value with and without a vendor management initiative

    Two bars are depicted, showing that vendor collaboration and vendor performance management exceed expected value with a VMI, but without VMI, 75% of a contract's expected value can disappear within 18 months.

    Source: Based on findings from Geller & Company, 2003.

    Executive Summary

    Info-Tech’s Approach

    A sound, cyclical approach to vendor management will help you create a VMI that meets your needs and stays in alignment with your organization as they both change (i.e. mature and grow).

    This is an image of Info-Tech's approach to VMI. It includes the following four steps: 01 - Plan; 02 - Build; 03 - Run; 04 - Review

    Info-Tech’s Methodology for Creating and Operating Your VMI

    Phase 1: Plan Phase 2: Build Phase 3: Run Phase 4: Review

    Phase Steps

    		 1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    Phase Outcomes

    		 This phase helps you organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI. This phase helps you configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan. This phase helps you begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI. This phase helps the VMI identify what it should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    Insight Summary

    Insight 1

    Vendor management is not “plug and play” – each organization’s vendor management initiative (VMI) needs to fit its culture, environment, and goals. While there are commonalities and leading practices associated with vendor management, your initiative won’t look exactly like another organization’s. The key is to adapt vendor management principles to fit your needs.

    Insight 2

    All vendors are not of equal importance to your organization. Internal resources are a scarce commodity and should be deployed so that they provide the best return on the organization’s investment. Classifying or segmenting your vendors allows you to focus your efforts on the most important vendors first, allowing your VMI to have the greatest impact possible.

    Insight 3

    Having a solid foundation is critical to the VMI’s ongoing success. Whether you will be creating a formal vendor management office or using vendor management techniques, tools, and templates “informally,” starting with the basics is essential. Make sure you understand why the VMI exists and what it hopes to achieve, what is in and out of scope for the VMI, what strengths the VMI can leverage and the obstacles it will have to address, and how it will work with other areas within your organization.

    Blueprint Deliverables

    The four phases of creating and running a vendor management initiative are supported with configurable tools, templates, and checklists to help you stay aligned internally and achieve your goals.

    VMI Tools and Templates

    This image contains two screenshots of Info-Tech's VMI Tools and Templates

    Build a solid foundation for your VMI and configure tools and templates to help you manage your vendor relationships.

    Key Deliverables:

    1. Jump – Phase 1 Tools and Templates Compendium
    2. Jump – Phase 2 Tools and Templates Compendium
    3. Jump – Phase 2 Vendor Classification Tool
    4. Jump – Phase 2 Vendor Risk Assessment Tool

    A suite of tools and templates to help you create and implement your vendor management initiative.

    Blueprint benefits

    IT Benefits

    • Identify and manage risk proactively.
    • Reduce costs and maximize value.
    • Increase visibility with your critical vendors.
    • Improve vendor performance.
    • Create a collaborative environment with key vendors.
    • Segment vendors to allocate resources more effectively and more efficiently.

    Business Benefits

    • Improve vendor accountability.
    • Increase collaboration between departments.
    • Improve working relationships with your vendors.
    • Create a feedback loop to address vendor or customer issues before they get out of hand or are more costly to resolve.
    • Increase access to meaningful data and information regarding important vendors.

    Establish Baseline Metrics

    Baseline metrics will be improved through:

    Using the Maturity Assessment and 90-Day Plan tools, track how well you are able to achieve your goals and objectives:

    • Did you meet the targeted maturity level for each maturity category as determined by the point system?
    • Did you finish each activity in the 90-Day Plan completely and on time?
    1-Year Maturity Roadmap(by Category) Target Maturity (Total Points) Actual Maturity (Total Points)
    Contracts 12 12
    Risk 8 7
    Vendor Selection 9 9
    Vendor Relationships 21 21
    VMI Operations 24 16
    90-Day Plan (by Activity) Activity Completed
    Finalize mission and goals; gain executive approval Yes
    Finalize OIC chart; gain buy-in from other departments Yes
    Classify top 40 vendors by spend Yes
    Create initial scorecard Yes
    Develop the business alignment meeting agenda Yes
    Conduct two business alignment meetings No
    Update job descriptions Yes
    Map two VMI processes No

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phases 2 & 3 Phase 4

    Call #1: Mission statement and goals, scope, and strengths and obstacles.

    Call #5: Classification model.

    Call #9: Policies and procedures and reports.

    Call #12: Assess compliance, incorporate leading practices, leverage lessons learned, maintain internal alignment, and update governances.

    Call #2: Roles and responsibilities and process mapping.

    Call #6: Risk assessment.

    Call #10: 3-year roadmap.

    Call #3: Charter and vendor inventory.

    Call #7: Scorecards and feedback and business alignment meetings.

    Call #11: 90-day plan and quick wins.

    Call #4: Maturity assessment and VMI structure.

    Call #8: Relationship alignment document, vendor orientation, and job descriptions.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Day 1 Day 2 Day 3 Day 4
    Plan Plan/Build/Run Build/Run Review

    Activities

    		 1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    Deliverables
    1. Completed Mission Statement and Goals
    2. List of Items In Scope and Out of Scope for the VMI
    3. List of Strengths and Obstacles for the VMI
    4. Completed OIC Chart
    5. Sample Process Map for One Process
    6. Vendor Inventory tab
    1. Completed Maturity Assessment
    2. Sample Job Descriptions and Phrases
    3. List of Attributes of a Valuable Vendor
    4. Configured Classification Model
    5. Configured Risk Assessment Tool
    6. Configured Scorecard and Feedback Questions
    7. Configured Business Alignment Meeting Agenda
    1. Relationship Alignment Document Sample and Checklist
    2. Vendor Orientation Checklist
    3. Policies and Procedures Checklist
    4. Completed 3-Year Roadmap
    5. Completed 90-Day Plan
    6. List of Quick Wins
    7. List of Reports

    Phase 1: Plan

    Get Organized

    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    Phase 1 Phase 2 Phase 3 Phase 4
    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Organize your VMI and document internal processes, relationships, roles, and responsibilities. The main outcomes from this phase are organizational documents, a baseline VMI maturity level, and a desired future state for the VMI.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Procurement/Sourcing
    • IT
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 1: Plan

    Get organized.

    Phase 1: Plan focuses on getting organized. Foundational elements (mission statement, goals, scope, strengths and obstacles, roles and responsibilities, and process mapping) will help you define your VMI. These and the other elements of this Phase will follow you throughout the process of standing up your VMI and running it.

    Spending time up front to ensure that everyone is on the same page will help avoid headaches down the road. The tendency is to skimp (or even skip) on these steps to get to “the good stuff.” To a certain extent, the process provided here is like building a house. You wouldn’t start building your dream home without having a solid blueprint. The same is true with vendor management. Leveraging vendor management tools and techniques without the proper foundation may provide some benefit in the short term, but in the long term it will ultimately be a house of cards waiting to collapse.

    Step 1.1: Mission statement and goals

    Identify why the VMI exists and what it will achieve.

    Whether you are starting your vendor management journey or are already down the path, it is important to know why the vendor management initiative exists and what it hopes to achieve. The easiest way to document this is with a written declaration in the form of a mission statement and goals. Although this is the easiest way to proceed, it is far from easy.

    The mission statement should identify at a high level the nature of the services provided by the VMI, who it will serve, and some of the expected outcomes or achievements. The mission statement should be no longer than one or two sentences.

    The complement to the mission statement is the list of goals for the VMI. Your goals should not be a reassertion of your mission statement in bullet format. At this stage it may not be possible to make them SMART (Specific, Measurable, Achievable/Attainable, Relevant, Time-Bound/Time-Based), but consider making them as SMART as possible. Without some of the SMART parameters attached, your goals are more like dreams and wishes. At a minimum, you should be able to determine the level of success achieved for each of the VMI goals.

    Although the VMI’s mission statement will stay static over time (other than for significant changes to the VMI or organization as a whole), the goals should be re-evaluated periodically using a SMART filter and adjusted as needed.

    1.1.1: Mission statement and goals

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the reasons why the VMI will exist.
    2. Review external mission statements for inspiration.
    3. Review internal mission statements from other areas to ensure consistency.
    4. Draft and document your mission statement in the Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals.
    5. Continue brainstorming and identify the high-level goals for the VMI.
    6. Review the list of goals and make them as SMART (Specific, Measurable, Achievable/Attainable, Relevant, Time-Bound/Time-Based) as possible.
    7. Document your goals in the Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals.
    8. Obtain sign-off on the mission statement and goals from stakeholders and executives as required.

    Input

    • Brainstorming results
    • Mission statements from other internal and external sources

    Output

    • Completed mission statement and goals

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.1 Mission Statement and Goals

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.2: Scope

    Determine what is in scope and out of scope for the VMI

    Regardless of where your VMI resides or how it operates, it will be working with other areas within your organization. Some of the activities performed by the VMI will be new and not currently handled by other groups or individuals internally; at the same time, some of the activities performed by the VMI may be currently handled by other groups or individuals internally. In addition, executives, stakeholders, and other internal personnel may have expectations or make assumptions about the VMI. As a result, there can be a lot of confusion about what the VMI does and doesn’t do, and the answers cannot always be found in the VMI’s mission statement and goals.

    One component of helping others understand the VMI landscape is formalizing the VMI scope. The scope will define boundaries for the VMI. The intent is not to fence itself off and keep others out but provide guidance on where the VMI’s territory begins and ends. Ultimately, this will help clarify the VMI’s roles and responsibilities, improve workflow, and reduce errant assumptions.

    When drafting your VMI scoping document, make sure you look at both sides of the equation (similar to what you would do when following best practices for a statement of work): Identify what is in scope and what is out of scope. Be specific when describing the individual components of the VMI scope, and make sure executives and stakeholders are on board with the final version.

    1.2.1: Scope

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the activities and functions in scope and out of scope for the VMI.
      1. Be specific to avoid ambiguity and improve clarity.
      2. Go back and forth between in scope and out of scope as needed; it is not necessary to list all of the in-scope items and then turn your attention to the out-of-scope items.
    2. Review the lists to make sure there is enough specificity. An item may be in scope or out of scope but not both.
    3. Use the Phase 1 Tools and Templates Compendium, Tab 1.2 Scope, to document the results.
    4. Obtain sign-off on the scope from stakeholders and executives as required.

    Input

    • Brainstorming
    • Mission statement and goals

    Output

    • Completed list of items in and out of scope for the VMI

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.2 Scope

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.3: Strengths and obstacles

    Pinpoint the VMI’s strengths and obstacles.

    A SWOT analysis (strengths, weaknesses, opportunities, and threats) is a valuable tool, but it is overkill for your VMI at this point. However, using a modified and simplified form of this tool (strengths and obstacles) will yield significant results and benefit the VMI as it grows and matures.

    Your output will be two lists: the strengths associated with the VMI and the obstacles facing the VMI. For example, strengths could include items such as smart people working within the VMI and executive support. Obstacles could include items such as limited headcount and training required for VMI staff.

    The goals are 1) to harness the strengths to help the VMI be successful and 2) to understand the impact of the obstacles and plan accordingly. The output can also be used to enlighten executives and stakeholders about the challenges associated with their directives or requests (e.g. human bandwidth may not be sufficient to accomplish some of the vendor management activities and there is a moratorium on hiring until the next budget year).

    For each strength identified, determine how you will or can leverage it when things are going well or when the VMI is in a bind. For each obstacle, list the potential impact on the VMI (e.g. scope, growth rate, and number of vendors that can actively be part of the VMI).

    As you do your brainstorming, be as specific as possible and validate your lists with stakeholders and executives as needed.

    1.3.1: Strengths and obstacles

    20-40 minutes

    1. Meet with the participants and use a brainstorming activity to list on a whiteboard or flip chart the VMI’s strengths and obstacles.
      1. Be specific to avoid ambiguity and improve clarity.
      2. Go back and forth between strengths and obstacles as needed; it is not necessary to list all of the strengths and then turn your attention to the obstacles.
      3. It is possible for an item to be a strength and an obstacle; when this happens, add details to distinguish the situations.
    2. Review the lists to make sure there is enough specificity.
    3. Determine how you will leverage each strength and how you will manage each obstacle.
    4. Use the Phase 1 Tools and Templates Compendium, Tab 1.3 Strengths and Obstacles, to document the results.
    5. Obtain sign-off on the strengths and obstacles from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Brainstorming
    • Mission statement and goals
    • Scope

    Output

    • Completed list of items impacting the VMI’s ability to be successful: strengths the VMI can leverage and obstacles the VMI must manage

    Materials

    • Whiteboard/Flip Charts
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.3 Strengths and Obstacles

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.4: Roles and responsibilities

    Obtain consensus on who is responsible for what.

    One crucial success factor for VMIs is gaining and maintaining internal alignment. There are many moving parts to an organization, and a VMI must be clear on the various roles and responsibilities related to the relevant processes. Some of this information can be found in the VMI’s scope, referenced in Step 1.2, but additional information is required to avoid stepping on each other’s toes since many of the processes require internal departments to work together. (For example, obtaining requirements for a request for proposal takes more than one person or one department to complete this process.) While it is not necessary to get too granular, it is imperative that you have a clear understanding of how the VMI activities will fit within the larger vendor management lifecycle (which is comprised of many sub processes) and who will be doing what.

    As we have learned through our workshops and guided implementations, a traditional RACI* or RASCI* chart does not work well for this purpose. These charts are not intuitive, and they lack the specificity required to be effective. For vendor management purposes, a higher-level view and a slightly different approach provide much better results.

    This step will lead your through the creation of an OIC* chart to determine vendor management lifecycle roles and responsibilities. Afterward, you’ll be able to say, “Oh, I see clearly who is involved in each part of the process and what their role is.”

    *RACI – Responsible, Accountable, Consulted, Informed
    *RASCI – Responsible, Accountable, Support, Consulted, Informed
    *OIC – Owner, Informed, Contributor

    This is an image of a table which shows an example of which role would be responsible for which step

    Step 1.4: Roles and responsibilities (cont.)

    Obtain consensus on who is responsible for what.

    To start, define the vendor management lifecycle steps or process applicable to your VMI. Next, determine who participates in the vendor management lifecycle. There is no need to get too granular – think along the lines of departments, subdepartments, divisions, agencies, or however you categorize internal operational units. Avoid naming individuals other than by title; this typically happens when a person oversees a large group (e.g. the CIO [chief information officer] or the CPO [chief procurement officer]). Be thorough, but the chart can get out of hand quickly. For each role and step of the lifecycle, ask whether the entry is necessary – does it add value to the clarity of understanding the responsibilities associated with the vendor management lifecycle? Consider two examples, one for roles and one for lifecycle steps: 1) Is IT sufficient or do you need IT Operations and IT Development? 2) Is “negotiate contract documents” sufficient or do you need “negotiate the contract” and “negotiate the renewal”? The answer will always depend on your culture and environment, but be wary of creating a spreadsheet that requires an 85-inch monitor to view it in its entirety.

    After defining the roles (departments, divisions, agencies) and the vendor management lifecycle steps or process, assign one of three letters to each box in your chart:

    • O – Owner – who owns the process; they may also contribute to it.
    • I – Informed – who is informed about the progress or results of the process.
    • C – Contributor – who contributes or works on the process; it can be tangible or intangible contributions.

    This activity can be started by the VMI or done as a group with representatives from each of the named roles. If the VMI starts the activity, the resulting chart should be validated by the each of the named roles.

    1.4.1: Roles and responsibilities

    1-6 hours

    1. Meet with the participants and configure the OIC Chart in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.4 OIC Chart.
      1. Review the steps or activities across the top of the chart and modify as needed.
      2. Review the roles listed along the left side of the chart and modify as needed.
    2. For each activity or step across the top of the chart, assign each role a letter – O for owner of that activity or step; I for informed; or C for contributor. Use only one letter per cell.
    3. Work your way across the chart. Every cell should have an entry or be left blank if it is not applicable.
    4. Review the results and validate that every activity or step has an O assigned to it; there must be an owner for every activity or step.
    5. Obtain sign-off on the OIC chart from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • A list of activities or steps to complete a project, starting with requirements gathering and ending with ongoing risk management
    • A list of internal areas (departments, divisions, agencies, etc.) and stakeholders that contribute to completing a project

    Output

    • Completed OCI chart indicating roles and responsibilities for the VMI and other internal areas

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.4 OIC Chart

    Participants

    • VMI team
    • Procurement/Sourcing
    • IT
    • Representatives from other areas as needed
    • Applicable stakeholders and executives as needed

    Step 1.5: Process mapping

    Diagram the workflow.

    Although policies and procedures are important, their nature can make it difficult to grasp how things work at a high level (or even at the detail level). To help bridge the gap, map the applicable processes (determined by how deep and wide you want to go) involving the VMI. To start, look at the OIC chart from Step 1.4. You can expand the breadth and depth of your mapping to include the VMI scope, the 3-year roadmap (see Step 2.9), and the processes driven by the day-to-day work within the VMI.

    Various mapping tools can be used. Three common approaches that can be mixed and matched are:

    • Traditional flowcharts.
    • Swimlane diagrams.
    • Work breakdown structures.
    This is an example of a Workflow Process Map

    Step 1.5: Process mapping (cont.)

    Diagram the workflow.

    Your goal is not to create an in-depth diagram for every step of the vendor management lifecycle. However, for steps owned by the VMI, the process map should include sufficient details for the owner and the contributors (see Step 1.4) to understand what is required of them to support that step in the lifecycle.

    For VMI processes that don’t interact with other departments, follow the same pattern as outlined above for steps owned by the VMI.

    Whatever methodology you use to create your process map, make sure it includes enough details so that readers and users can identify the following elements:

    • Input:
      • What are the inputs?
      • Where do the inputs originate or come from?
    • Process:
      • Who is involved/required for this step?
      • What happens to the inputs in this step?
      • What additional materials, tools, or resources are used or required during this step?
    • Output:
      • What are the outputs?
      • Where do the outputs go next?

    1.5.1: Process Mapping

    1-8 hours (or more)

    1. Meet with the participants and determine which processes you want to map.
      1. For processes owned by the VMI, map the entire process.
      2. For processes contributed to by the VMI, map the entire process at a high level and map the VMI portion of the process in greater detail.
    2. Select the right charts/diagrams for your output.
      1. Flowchart
      2. Swimlane diagram
      3. Modified SIPOC (Supplier, Input, Process, Output, Customer)
      4. WBS (work breakdown structure)
    3. Begin mapping the processes either in a tool or using sticky notes. You want to be able to move the steps and associated information easily; most people don’t map the entire process accurately or with sufficient detail the first time through. An iterative approach works best.
    4. Obtain signoff on the process maps from stakeholders and executives as required. A copy of the final output can be kept in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.5 Process Mapping, if desired.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Existing processes (formal, informal, documented, and undocumented)
    • OIC chart

    Output

    • Process maps for processes contributed to or owned by the VMI

    Materials

    • Sticky Notes
    • Flowchart/process mapping software or something similar
    • (Optional) Jump – Phase 1 Tools and Templates Compendium, Tab 1.5 Process Mapping

    Participants

    • VMI team
    • Procurement/Sourcing
    • IT
    • Representatives from other areas as needed
    • Applicable stakeholders and executives (as needed)

    Step 1.6: Charter

    Document how the VMI will operate.

    As you continue getting organized by working through steps 1.1-1.5, you may want to document your progress in a charter and add some elements. Basically, a charter is a written document laying out how the VMI will operate within the organization. It clearly states the VMI’s mission, goals, scope, roles and responsibilities, and vendor governance model. In addition, it can include a list of team members and sponsors.

    Whether you create a VMI charter will largely depend on:

    • Your organization’s culture.
    • Your organization’s formality.
    • The perceived value of creating a charter.

    If you decide to create a VMI charter, this is a good place in the process to create an initial draft. As you continue working through the blueprint and your VMI matures, update the VMI charter as needed.

    VMI Charter:

    • Purpose
    • Sponsors
    • Roles
    • Responsibilities
    • Governance

    1.6.1: Charter

    1-4 hours

    1. Meet with the participants and review the template in Jump – Phase 1 Tools and Templates Compendium, Tab 1.6 Charter.
    2. Determine whether the participants will use this template or add materials to your standard charter template.
    3. Complete as much of the charter as possible, knowing that some information may not be available until later.
    4. Return to the charter as needed until it is completed.
    5. Obtain sign-off on the charter from stakeholders and executives as required.

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Input

    • Mission statement and goals
    • Scope
    • Strengths and obstacles
    • OIC chart
    • List of stakeholders and executives and their VMI roles and responsibilities

    Output

    • Completed VMI charter

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.6 Charter
    • Your organization’s standard charter document

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.7: Vendor inventory

    Compile a list of vendors and relevant vendor information.

    As you prepare your VMI for being operational, it’s critical to identify all of your current vendors providing IT products or services to the organization. This can be tricky and may depend on how you view things internally. For example, you may have traditional IT vendors that are managed by IT, and you may have IT vendors that are managed by other internal departments (shadow IT or out-in-the-open IT). If it wasn’t determined with the help of stakeholders and executives before now, make sure you establish the purview of the VMI at this point. What types of vendors are included and excluded from the VMI?

    You may find that a vendor can be included and excluded based on the product or service they provide. A vendor may provide a service that is managed by IT and a service that is managed/controlled by another department. In this instance, a good working relationship and clearly defined roles and responsibilities between the VMI and the other department will be required. But, it all starts with compiling a list of vendors and validating the VMI’s purview (and any limitations) for the vendors with stakeholders and executives.

    Step 1.7: Vendor inventory (cont.)

    Compile a list of vendors and relevant vendor information.

    At a minimum, the VMI should be able to quickly retrieve key information about each of “its” vendors:

    • Vendor Name
    • Classification (see Steps 2.1 and 3.1)
    • Categories of Service
    • Names of Products and Services Provided
    • Brief Descriptions of Products and Services Provided
    • Annualized Vendor Spend
    • Vendor Contacts
    • Internal Vendor Relationship Owner

    Not all of this information will be available at this point, but you can begin designing or configuring your tool to meet your needs. As your VMI enters Phase 3: Run and continues to mature, you will return to this tool and update the information. For example, the vendor classification category won’t be known until Phase 3, and it can change over time.

    1.7.1: Vendor inventory

    1-10 hours

    Meet with the participants and review the Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory. Determine whether the VMI wants to collect and/or monitor additional information and make any necessary modifications to the tool.

    Enter the “Annual IT Vendor Spend” amount in the appropriate cell toward the top of the spreadsheet. This is for IT spend for vendor-related activities within the VMI’s scope; include shadow IT spend and “non-shadow” IT spend if those vendors will be included in the VMI’s scope.

    Populate the data fields for your top 50 vendors by annual spend; you may need multiple entries for the same vendor depending on the nature of the products and services they provide.

    Ignore the “Classification” column for now; you will return to this later when classification information is available.

    Ignore the “Percentage of IT Budget” column as well; it uses a formula to calculate this information.

    Input

    • Data from various internal and external sources such as accounts payable, contracts, and vendor websites

    Output

    • List of vendors with critical information required to manage relationships with key vendors

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory

    Participants

    • VMI team (directly)
    • Other internal and external personnel (indirectly)

    Download the Info-Tech Jump – Phase 1 Tools and Templates Compendium

    Step 1.8: Maturity assessment

    Establish a VMI maturity baseline and set an ideal future state.

    Knowing where you are and where you want to go are essential elements for any journey in the physical world, and the same holds true for your VMI journey. Start by assessing your current-state VMI maturity. This will provide you with a baseline to measure progress against. Next, using the same criteria, determine the level of VMI maturity you would like to achieve one year in the future. This will be your future-state VMI maturity. Lastly, identify the gaps and plot your course.

    The maturity assessment provides three main benefits:

    1. Focus – you’ll know what is important to you moving forward.
    2. 3-Year Roadmap (discussed more fully in Step 2.9) – you’ll have additional input for your short-term and long-term roadmap (1, 2, and 3 years out).
    3. Quantifiable Improvement – you’ll be able to measure your progress and make midcourse corrections when necessary.

    Step 1.8: Maturity assessment (cont.)

    Establish a VMI maturity baseline and set an ideal future state.

    The Info-Tech VMI Maturity Assessment tool evaluates your maturity across several criteria across multiple categories. Once completed, the assessment will specify:

    • A current-state score by category and overall.
    • A target-state score by category and overall.
    • A quantifiable gap for each criterion.
    • A priority assignment for each criterion.
    • A level of effort required by criterion to get from the current state to the target state.
    • A target due date by criterion for achieving the target state.
    • A rank order for each criterion (note: limit your ranking to your top 7 or 9).

    Many organizations will be tempted to mature too quickly. Resource constraints and other items from Step 1.3 (Strengths and Obstacles) will impact how quickly you can mature. Being aggressive is fine, but it must be tempered with a dose of reality. Otherwise, morale, perception, and results can suffer.

    1.8.1: Maturity assessment

    45-90 minutes

    1. Meet with the participants and use Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Input, to complete the first part of this activity. Provide the required information indicated below.
      1. Review each statement in column B and enter a value in the “Current” column using the drop-down menus based on how much you disagree or agree (0-4) with the statement. This establishes a baseline maturity.
      2. Repeat this process for the “Future” column using a target date of one year from now to achieve this level. This is your desired maturity.
      3. Enter information regarding priority, level of effort, and target due date in the applicable columns using the drop-down menus. (Priority levels are critical, high, medium, low, and maintain; Levels of Effort are high, medium, and low; Target Due Dates are broken into timelines: 1-3 months, 4-6 months, 7-9 months, and 10-12 months.)
    2. Review the information on Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Output; use the Distribution Tables to help you rank your top priorities. Enter a unique number into the Priority (Rank) column. Limit your ranking to the top 7 to 9 activities to provide focus.

    Input

    • Knowledge of current VMI practices and desired future states

    Output

    • VMI maturity baseline
    • Desired VMI target maturity state (in one year)
    • Prioritized areas to improve and due dates
    • Graphs and tables to identify maturity deltas and track progress

    Materials

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Input
    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.8 Maturity Assessment Output

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 1.9: Structure

    Determine the VMI’s organizational and reporting structure.

    There are two parts to the VMI structure:

    1. Organization Structure. Who owns the VMI – where does it fit on the organization chart?
    2. Reporting Structure. What is the reporting structure within the VMI – what are the job functions, titles, and solid and dotted lines of accountability?

    VMI Organization Structure

    The decision regarding who owns the VMI can follow one of two paths:

    1. The decision has already been made by the board of directors, executives, senior leadership, or stakeholders; OR
    2. The decision has not been made, and options will be reviewed and evaluated before it is implemented.

    Many organizations overlook the importance of this decision. The VMI’s position on the organization chart can aid or hinder its success. Whether the decision has already been made or not, this is the perfect time to evaluate the decision or options based on the following question: Why is the VMI being created and how will it operate? Review the documents you created during Steps 1.1-1.8 and other factors to answer this question.

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    Based on your work product from Steps 1.1-1.8 and other factors, select where the VMI will be best located from the following areas/offices or their equivalent:

    • Chief Compliance Officer (CCO)
    • Chief Information Officer (CIO)
    • Chief Financial Officer (CFO)
    • Chief Procurement Officer (CPO)
    • Chief Operating Officer (COO)
    • Other area

    Without the proper support and placement in the organization chart, the VMI can fail. It is important for the VMI to find a suitable home with a direct connection to one of the sponsors identified above and for the VMI lead to have significant stature (aka title) within the organization. For example, if the VMI lead is a “manager” level who is four reporting layers away from the chief officer/sponsor, the VMI will have an image issue within and outside of the sponsor’s organization (as well as within the vendor community). While this is not to say that the VMI lead should be a vice president* or senior director, our experience and research indicate that the VMI and the VMI lead will be taken more seriously when the VMI lead is at least a director level reporting directly to a CXO.

    *For purposes of the example above, the reporting structure hierarchy used is manager, senior manager, director, senior director, vice president, CXO.

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    VMI Reporting Structure

    As previously mentioned, the VMI reporting structure describes and identifies the job functions, titles, and lines of accountability. Whether you have a formal vendor management office or you are leveraging the principles of vendor management informally, your VMI reporting structure design will involve some solid lines and some dotted lines. In this instance, the dotted lines represent part-time participation or people/areas that will assist the VMI in some capacity. For example, if the VMI sits within IT, a dotted line to Procurement will show that a good working relationship is required for both parties to succeed; or a dotted line to Christina in Legal will indicate that Christina will be helping the VMI with legal issues.

    There is no one-size-fits-all reporting structure for VMIs, and your approach must leverage the materials from Steps 1.1-1.8, your culture, and your needs. By way of example, your VMI may include some or all of the following functions:

    • Contract Management
    • Relationship Management
    • Financial Management
    • Asset Management
    • Performance Management
    • Sourcing/Procurement
    • Risk Management

    Step 1.9: Structure (cont.)

    Determine the VMI’s organizational and reporting structure.

    Once you’ve identified the functional groups, you can assign titles, responsibilities, and reporting relationships. A good diagram goes a long way to helping others understand your organization. Traditional organization charts work well with VMIs, but a target diagram allows for rapid absorption of the dotted-line relationships. Review the two examples below and determine an approach that works best for you.

    An organizational Chart is depicted. At the top of the chart is: Office of the CIO. Below that is: VMI: Legal; Accounting & Finance; Corporate Procurement; below that are the following: Vendor Risk Management; Vendor Reporting and Analysis; Asset Management; Performance Management; Contract Management; IT Procurement Three concentric circles are depicted. In the inner circle is the term: VMI. In the middle circle are the terms: Reporting & Analysis; Asset Mgmt; Contract Mgmt; Performance Mgmt; It Proc; Vendor Risk. In the outer circle are the following terms: Compliance; Finance; HR; Accounting; Procurement; Business Units; Legal; IT

    1.9.1: Structure

    15-60 minutes

    1. Meet with the participants and review decisions that have been made or options that are available regarding the VMI’s placement in the organization chart.
      1. Common options include the Chief Information Officer (CIO), Chief Financial Officer (CFO), or Chief Procurement Officer (CPO).
      2. Less common but viable options include the Chief Compliance Officer (CCO), Chief Operating Officer (COO), or another area.
    2. Brainstorm and determine the job functions and titles
    3. Define the reporting structure within the VMI.
    4. Identify the “dotted line” relationships between the VMI and other internal areas.
    5. Using flowchart, org. chart, or other similar software, reduce your results to a graphic representation that indicates where the VMI resides, its reporting structure, and its dotted-line relationships.
    6. Obtain sign-off on the structure from stakeholders and executives as required. A copy of the final output can be kept in the Jump – Phase 1 Tools and Templates Compendium, Tab 1.9 Structure, if desired.

    Input

    • Mission statement and goals
    • Scope
    • Maturity assessment results (current and target state)
    • Existing org. charts
    • Brainstorming

    Output

    • Completed org. chart with job titles and reporting structure

    Materials

    • Whiteboard/flip chart
    • Sticky notes
    • Flowchart/org. chart software or something similar
    • (Optional) Jump – Phase 1 Tools and Templates Compendium, Tab 1.9 Structure

    Participants

    • VMI team
    • VMI sponsor
    • Stakeholders and executives

    Phase 2: Build

    Create and Configure Tools, Templates, and Processes

    Phase 1Phase 2Phase 3Phase 4
    1.1 Mission Statement and Goals


    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities

    1.5 Process Mapping

    1.6 Charter

    1.7 Vendor Inventory

    1.8 Maturity Assessment

    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Configure and create the tools and templates that will help you run the VMI. The main outcomes from this phase are a clear understanding of which vendors are important to you, the tools to manage the vendor relationships, and an implementation plan.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Human Resources
    • Legal
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 2: Build

    Create and configure tools, templates, and processes.

    Phase 2: Build focuses on creating and configuring the tools and templates that will help you run your VMI. Vendor management is not a plug-and-play environment, and unless noted otherwise, the tools and templates included with this blueprint require your input and thought. The tools and templates must work in concert with your culture, values, and goals. That will require teamwork, insights, contemplation, and deliberation.

    During this Phase, you’ll leverage the various templates and tools included with this blueprint and adapt them for your specific needs and use. In some instances, you’ll be starting with mostly a blank slate; while in others, only a small modification may be required to make it fit your circumstances. However, it is possible that a document or spreadsheet may need heavy customization to fit your situation. As you create your VMI, use the included materials for inspiration and guidance purposes rather than as absolute dictates.

    Step 2.1: Classification model

    Configure the COST Vendor Classification Tool.

    One of the functions of a VMI is to allocate the appropriate level of vendor management resources to each vendor since not all vendors are of equal importance to your organization. While some people may be able intuitively to sort their vendors into vendor management categories, a more objective, consistent, and reliable model works best. Info-Tech’s COST model helps you assign your vendors to the appropriate vendor management category so that you can focus your vendor management resources where they will do the most good.

    COST is an acronym for Commodity, Operational, Strategic, and Tactical. Your vendors will occupy one of these vendor management categories, and each category helps you determine the nature of the resources allocated to that vendor, the characteristics of the relationship desired by the VMI, and the governance level used.

    The easiest way to think of the COST model is as a 2x2 matrix or graph. The model should be configured for your environment so that the criteria used for determining a vendor’s classification align with what is important to you and your organization. However, at this point in your VMI’s maturation, a simple approach works best. The Classification Model included with this blueprint requires minimal configuration to get you started and that is discussed on the activity slide associated with this Step 2.1.

    ↑
    Speed
    ↑    		 Operational Strategic
    Commodity Tactical
    →→→
    Criticality and Risk to the Organization

    Step 2.1: Classification model (cont.)

    Configure the COST Vendor Classification Tool.

    Common Characteristics by Vendor Management Category

    Operational Strategic
    • Low to moderate risk and criticality; moderate to high spend and switching costs
    • Product or service used by more than one area
    • Price is a key negotiation point
    • Product or service is valued by the organization
    • Quality or the perception of quality is a differentiator (i.e. brand awareness)
    • Moderate to high risk and criticality; moderate to high spend and switching costs
    • Few competitors and differentiated products and services
    • Product or service significantly advances the organization’s vision, mission, and success
    • Well-established in their core industry
    Commodity Tactical
    • Low risk and criticality; low spend and switching costs
    • Product or service is readily available from many sources
    • Market has many competitors and options
    • Relationship is transactional
    • Price is the main differentiator
    • Moderate to high risk and criticality; low to moderate spend and switching costs
    • Vendor offerings align with or support one or more strategic objectives
    • Often IT vendors “outside” of IT (i.e. controlled and paid for by other areas)
    • Often niche or new vendors

    Source: Compiled in part from Stephen Guth, “Vendor Relationship Management Getting What You Paid for (And More)”

    2.1.1: Classification Model

    15-30 minutes

    1. Meet with the participants to configure the spend ranges in Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration, for your environment.
    2. Sort the data from Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory, by spend; if you used multiple line items for a vendor in the Vendor Inventory tab, you will have to aggregate the spend data for this activity.
    3. Update cells F14-J14 in the Classification Model based on your actual data.
      1. Cell F14 – set the boundary at a point between the spend for your 10th and 11th ranked vendors. For example, if the 10th vendor by spend is $1,009,850 and the 11th vendor by spend is $980,763, the range for F14 would be $1,000,00+.
      2. Cell G14 – set the bottom of the range at a point between the spend for your 30th and 31st ranked vendors; the top of the range will be $1 less than the bottom of the range specified in F14.
      3. Cell H14 – set the bottom of the range slightly below the spend for your 50th ranked vendor; the top of the range will be $1 less than the bottom of the range specified in G14.
      4. Cells I14 and J14 – divide the remaining range in half and split it between the two cells; for J14 the range will be $0 to $1 less than the bottom range in I14.
    4. Ignore the other variables at this time.

    Download the Info-Tech Jump – Phase 2 Vendor Risk Assessment Tool

    Input

    • Jump – Phase 1 Tools and Templates Compendium, Tab 1.7 Vendor Inventory

    Output

    • Configured Vendor Classification Tool

    Materials

    • Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration

    Participants

    • VMI team

    Step 2.2: Risk assessment tool

    Identify risks to measure, monitor, and report on.

    One of the typical drivers of a VMI is risk management. Organizations want to get a better handle on the various risks their vendors pose. Vendor risks originate from many areas: financial, performance, security, legal, and many others. However, security risk is the high-profile risk and the one organizations often focus on almost exclusively, which leaves the organization vulnerable in other areas.

    Risk management is a program, not a project – there is no completion date. A proactive approach works best and requires continual monitoring, identification, and assessment. Reacting to risks after they occur can be costly and can have other detrimental effects on the organization. Any risk that adversely affects IT will adversely affect the entire organization.

    While the VMI won’t necessarily be quantifying or calculating the risk directly, it generally is the aggregator of risk information across the risk categories, which it then includes in its reporting function. (See Steps 2.12 and 3.8.)

    At a minimum, your risk management strategy should involve:

    • Identifying the risks you want to measure and monitor.
    • Identifying your risk appetite (the amount of risk you are willing to live with).
    • Measuring, monitoring, and reporting on the applicable risks.
    • Developing and deploying a risk management plan to minimize potential risk impact.

    Vendor risk is a fact of life, but you do have options for how you handle it. Be proactive and thoughtful in your approach, and focus your resources on what is important.

    2.2.1: Risk assessment tool

    30-90 minutes

    1. Meet with the participants to configure the risk indicators in Jump – Phase 2 Vendor Risk Assessment Tool, Tab 1. Set Parameters, for your environment.
    2. Review the risk categories and determine which ones you will be measuring and monitoring.
    3. Review the risk indicators under each risk category and determine whether the indicator is acceptable as written, is acceptable with modifications, should be replaced, or should be deleted.
    4. Make the necessary changes to the risk indicators; these changes will cascade to each of the vendor tabs. Limit the number of risk indicators to no more than seven per risk category.
    5. Gain input and approval as needed from sponsors, stakeholders, and executives as required.

    Download the Info-Tech Jump – Phase 2 Vendor Risk Assessment Tool

    Input

    • Scope
    • OIC Chart
    • Process Maps
    • Brainstorming

    Output

    • Configured Vendor Classification Tool

    Materials

    • Jump – Phase 2 Vendor Classification Tool, Tab 1. Configuration

    Participants

    • VMI team

    Step 2.3: Scorecards and feedback

    Design a two-way feedback loop with your vendors.

    A vendor management scorecard is a great tool for measuring, monitoring, and improving relationship alignment. In addition, it is perfect for improving communication between you and the vendor.

    Conceptually, a scorecard is similar to a report card you received when you were in school. At the end of a learning cycle, you received feedback on how well you did in each of your classes. For vendor management, the scorecard is also used to provide periodic feedback, but there are some different nuances and some additional benefits and objectives when compared to a report card.

    Although scorecards can be used in a variety of ways, the main focus here will be on vendor management scorecards – contract management, project management, and other types of scorecards will not be included in the materials covered in this Step 2.3 or in Step 3.4.

    Category 1 Score
    Vendor Objective A 4 ↓
    Objective B 3 ↓
    Objective C 5 ↑
    Objective D 4 !

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Anatomy

    The Info-Tech Scorecard includes five areas:

    • Measurement Categories. Measurement categories help organize the scorecard. Limit the number of measurement categories to three to five; this allows the parties to stay focused on what’s important. Too many measurement categories make it difficult for the vendor to understand the expectations.
    • Criteria. The criteria describe what is being measured. Create criteria with sufficient detail to allow the reviewers to fully understand what is being measured and to evaluate it. Criteria can be objective or subjective. Use three to five criteria per measurement category.
    • Measurement Category Weights. Not all of your measurement categories may be of equal importance to you; this area allows you to give greater weight to a measurement category when compiling the overall score.
    • Rating. Reviewers will be asked to assign a score to each criteria using a 1 to 5 scale.
    • Comments. A good scorecard will include a place for reviewers to provide additional information regarding the rating or other items that are relevant to the scorecard.

    An overall score is calculated based on the rating for each criteria and the measurement category weights.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Goals and Objectives

    Scorecards can be used for a variety of reasons. Some of the common ones are listed below:

    • Improve vendor performance.
    • Convey expectations to the vendor.
    • Identify and recognize top vendors.
    • Increase alignment between the parties.
    • Improve communication with the vendor.
    • Compare vendors across the same criteria.
    • Measure items not included in contract metrics.
    • Identify vendors for “strategic alliance” consideration.
    • Help the organization achieve specific goals and objectives.
    • Identify and resolve issues before they impact performance or the relationship.

    Identifying your scorecard drivers first will help you craft a suitable scorecard.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Info-Tech recommends starting with simple scorecards to allow you and the vendors to acclimate to the new process and information. As you build your scorecards, keep in mind that internal personnel will be scoring the vendors and the vendors will be reviewing the scorecard. Make your scorecard easy for your personnel to fill out and composed of meaningful content to drive the vendor in the right direction. You can always make the scorecard more complex in the future.

    Our recommendation of five categories is provided below. Choose three to five categories to help you accomplish your scorecard goals and objectives:

    1. Timeliness – responses, resolutions, fixes, submissions, completions, milestones, deliverables, invoices, etc.
    2. Cost – total cost of ownership, value, price stability, price increases/decreases, pricing models, etc.
    3. Quality – accuracy, completeness, mean time to failure, bugs, number of failures, etc.
    4. Personnel – skilled, experienced, knowledgeable, certified, friendly, trustworthy, flexible, accommodating, etc.
    5. Risk – adequate contractual protections, security breaches, lawsuits, finances, audit findings, etc.

    Some criteria may be applicable in more than one category. The categories above should cover at least 80% of the items that are important to your organization. The general criteria listed for each category is not an exhaustive list, but most things break down into time, money, quality, people, and risk issues.

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Additional Considerations

    • Even a good rating system can be confusing. Make sure you provide some examples or a way for reviewers to discern the differences between 1, 2, 3, 4, and 5. Don’t assume your “Rating Key” will be intuitive.
    • When assigning weights, don’t go lower than 10% for any measurement category. If the weight is too low, it won’t be relevant enough to have an impact on the total score. If it doesn’t “move the needle,” don’t include it.
    • Final sign-off on the scorecard template should occur outside of the VMI. The heavy lifting can be done by the VMI to create it, but the scorecard is for the benefit of the organization overall and those impacted by the vendors specifically. You may end up playing arbiter or referee, but the scorecard is not the exclusive property of the VMI. Try to reach consensus on your final template whenever possible.
    • You should notice improved ratings and total scores over time for your vendors. One explanation for this is the Pygmalion Effect: “The Pygmalion [E]ffect describes situations where someone’s high expectations improves our behavior and therefore our performance in a given area. It suggests that we do better when more is expected of us.”* Convey your expectations and let the vendors’ competitive juices take over.
    • While you’re creating your scorecard and materials to explain the process to internal personnel, identify those pieces that will help you explain it to your vendors as part of your vendor orientation (see steps 2.6 and 3.4). Leveraging pre-existing materials is a great shortcut.

    *Source: The Decision Lab, 2020

    Step 2.3: Scorecards and feedback (cont.)

    Design a two-way feedback loop with your vendors.

    Vendor Feedback

    After you’ve built your scorecard, turn your attention to the second half of the equation – feedback from the vendor. A communication loop cannot be successful without the dialogue flowing both ways. While this can happen with just a scorecard, a mechanism specifically geared toward the vendor providing you with feedback improves communication, alignment, and satisfaction.

    You may be tempted to create a formal scorecard for the vendor to use. Our recommendation is to avoid that temptation until later in your maturity or development of the VMI. You’ll be implementing a lot of new processes, deploying new tools and templates, and getting people to work together in new ways. Work on those things first.

    For now, implement an informal process for obtaining information from the vendor. Start by identifying information that you will find useful, information that will allow you to improve overall, to reduce waste or time, to improve processes, to identify gaps in skills. Incorporate these items into your business alignment meetings (see Steps 2.4 and 3.5). Create three to five good questions to ask the vendor and include these in the business alignment meeting agenda. The goal is to get meaningful feedback, and that starts with asking good questions.

    Keep it simple at first. When the time is right, you can build a more formal feedback form or scorecard. Don’t be in a rush though. So long as the informal method works, keep using it.

    2.3.1: Scorecards and feedback

    30-60 minutes

    1. Meet with the participants and brainstorm ideas for your scorecard measurement categories:
      1. What makes a vendor valuable to your organization?
      2. What differentiates a “good” vendor from a “bad” vendor?
      3. What items would you like to measure and provide feedback to the vendor to improve performance, the relationship, risk, and other areas?
    2. Select three, but no more than five, of the following measure categories: timeliness, cost, quality, personnel, and risk.
    3. Within each measurement category, list two or three criteria that you want to measure and track for your vendors; choose items that are as universal as possible rather than being applicable to one vendor or one vendor type.
    4. Assign a weight to each measurement category, ensuring that the total weight is 100% for all measurement categories.
    5. Document your results as you go in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Scorecard.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Configured scorecard template

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Scorecard

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    2.3.2: Scorecards and feedback

    15-30 minutes

    1. Meet with the participants and brainstorm ideas for feedback to seek from your vendors during your business alignment meetings. During the brainstorming, identify questions to ask the vendor about your organization that will:
      1. Help you improve the relationship.
      2. Help you improve your processes or performance.
      3. Help you improve ongoing communication.
      4. Help you evaluate your personnel.
    2. Identify the top five questions you want to include in your business alignment meeting agenda. (Note: you may need to refine the actual questions from the brainstorming activity before they are ready to include in your business alignment meeting agenda.)
    3. Document both your brainstorming activity and your final results in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback. The brainstorming questions can be used in the future as your VMI matures and your feedback transforms from informal to formal. The final results will be used in Steps 2.4 and 3.5.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Feedback questions to include with the business alignment meeting agenda

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.4: Business alignment meeting agenda

    Craft an agenda that meets the needs of the VMI.

    A business alignment meeting (BAM) is a great, multi-faceted tool to ensure the customer and the vendor stay focused on what is important to the customer at a high level. BAMs are not traditional “operational” meetings where the parties get into the details of the contracts, deal with installation problems, address project management issues, or discuss specific cost overruns. The main focus of the BAM is the scorecard (see Step 2.3), but other topics are discussed and other purposes are served. For example, you can use the BAM to develop the relationship with the vendor’s leadership team so that if escalation is ever needed, your organization is more than just a name on a spreadsheet or customer list; you can learn about innovations the vendor is working on (without the meeting turning into a sales call); you can address high-level performance trends and request corrective action as needed; you can clarify your expectations; you can educate the vendor about your industry, culture, and organization; and you can learn more about the vendor.

    As you build your BAM agenda, someone in your organization may say, “Oh, that’s just a quarterly business review (QBR) or top-to-top meeting.” However, in most instances, an existing QBR or top-to-top meeting is not the same as a BAM. Using the term QBR or top-to-top meeting instead of BAM can lead to confusion internally. The VMI may say to the business unit, Procurement, or another department, “We’re going to start running some QBRs for our strategic vendors.” The typical response is, “There’s no need to do that. We already run QBRs/top-to-top meetings with our important vendors.” This may be accompanied by an invitation to join their meeting, where you may be an afterthought, have no influence, and get five minutes at the end to talk about your agenda items. Keep your BAM separate so that it meets your needs.

    Step 2.4: Business alignment meeting agenda (cont.)

    Craft an agenda that meets the needs of the VMI.

    As previously noted, using the term BAM more accurately depicts the nature of the VMI meeting and prevents confusion internally with other meetings already occurring. In addition, hosting the BAM yourself rather than piggybacking onto another meeting ensures that the VMI’s needs are met. The VMI will set and control the BAM agenda and determine the invite list for internal personnel and vendor personnel. As you may have figured out by now, having the right customer and vendor personnel attend will be essential.

    BAMs are conducted at the vendor level … not the contract level. As a result, the frequency of the BAMs will depend on the vendor’s classification category (see Steps 2.1 and 3.1). General frequency guidelines are provided below, but they can be modified to meet your goals:

    • Commodity Vendors – Not applicable
    • Operational Vendors – Biannually or annually
    • Strategic Vendors – Quarterly
    • Tactical Vendors – Quarterly or biannually

    BAMs can help you achieve some additional benefits not previously mentioned:

    • Foster a collaborative relationship with the vendor.
    • Avoid erroneous assumptions by the parties.
    • Capture and provide a record of the relationship (and other items) over time.

    Step 2.4: Business alignment meeting agenda (cont.)

    Craft an agenda that meets the needs of the VMI.

    As with any meeting, building the proper agenda will be one of the keys to an effective and efficient meeting. A high-level BAM agenda with sample topics is set out below:

    BAM Agenda

    • Opening Remarks
      • Welcome and introductions
      • Review of previous minutes
    • Active Discussion
      • Review of open issues
      • Scorecard and feedback
      • Current status of projects to ensure situational awareness by the vendor
      • Roadmap/strategy/future projects
      • Accomplishments
    • Closing Remarks
      • Reinforce positives (good behavior, results, and performance, value added, and expectations exceeded)
      • Recap
    • Adjourn

    2.4.1: Business alignment meeting agenda

    20-45 minutes

    1. Meet with the participants and review the sample agenda in Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda.
    2. Using the sample agenda as inspiration and brainstorming activities as needed, create a BAM agenda tailored to your needs.
      1. Select the items from the sample agenda applicable to your situation.
      2. Add any items required based on your brainstorming.
      3. Add the feedback questions identified during Activity 2.3.2 and documented in Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback.
    3. Gain input and approval from sponsors, stakeholders, and executives as required or appropriate.
    4. Document the final BAM agenda in Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.3 Feedback

    Output

    • Configured BAM agenda

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.4 BAM Agenda

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.5: Relationship alignment document

    Draft a document to convey important VMI information to your vendors.

    Throughout this blueprint, alignment is mentioned directly (e.g. business alignment meetings [Steps 2.4 and 3.5]) or indirectly implied. Ensuring you and your vendors are on the same page, have clear and transparent communication, and understand each other’s expectations is critical to fostering strong relationships. One component of gaining and maintaining alignment with your vendors is the relationship alignment document (RAD). Depending upon the scope of your VMI and what your organization already has in place, your RAD will fill in the gaps on various topics.

    Early in the VMI’s maturation, the easiest approach is to develop a short document (i.e. 1 page) or a pamphlet (i.e. the classic trifold) describing the rules of engagement when doing business with your organization. The RAD can convey expectations, policies, guidelines, and other items. The scope of the document will depend on 1) what you believe is important for the vendors to understand, and 2) any other similar information already provided to the vendors.

    The first step to drafting a RAD is to identify what information vendors need to know to stay on your good side. For example, you may want vendors to know about your gift policy (e.g. employees may not accept gifts from vendors above a nominal value such as a pen or mousepad). Next, compare your list of what vendors need to know and determine if the content is covered in other vendor-facing documents such as a vendor code of conduct or your website’s vendor portal. Lastly, create your RAD to bridge the gap between what you want and what is already in place. In some instances, you may want to include items from other documents to reemphasize them with the vendor community.

    Info-Tech Insight

    The RAD can be used with all vendors regardless of classification category. It can be sent directly to the vendors or given to them during vendor orientation (see Step 3.3)

    2.5.1: Relationship alignment document

    1-4 hours

    1. Meet with the participants and review the RAD sample and checklist in Jump – Phase 2 Tools and Templates Compendium, Tab 2.5 Relationship Alignment Doc.
    2. Determine:
      1. Whether you will create one RAD for all vendors or one RAD for strategic vendors and another RAD for tactical and operational vendors; whether you will create a RAD for commodity vendors.
      2. The concepts you want to include in your RAD(s).
      3. The format for your RAD(s) – traditional, pamphlet, or other.
      4. Whether signoff or acknowledgement will be required by the vendors.
    3. Draft your RAD(s) and work with other internal areas such as Marketing to create a consistent brand for the RADS and Legal to ensure consistent use and preservation of trademarks or other intellectual property rights and other legal issues.
    4. Review other vendor-facing documents (e.g. supplier code of conduct, onsite safety and security protocols) for consistencies between them and the RAD(s).
    5. Obtain signoff on the RAD(s) from stakeholders, sponsors, executives, Legal, Marketing, and others as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Vendor-facing documents, policies, and procedures

    Output

    • Completed relationship alignment document(s)

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.5 Relationship Alignment Doc

    Participants

    • VMI team
    • Marketing, as needed
    • Legal, as needed

    Step 2.6: Vendor orientation

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 01 - Orientation; 02 - Reorientation; 03 - Debrief

    Your organization is unique. It may have many similarities with other organizations, but your culture, risk tolerance, mission, vision, and goals, finances, employees, and “customers” (those that depend on you) make it different. The same is true of your VMI. It may have similar principles, objectives, and processes to other organizations’ VMIs, but yours is still unique. As a result, your vendors may not fully understand your organization and what vendor management means to you.

    Vendor orientation is another means to helping you gain and maintain alignment with your important vendors, educate them on what is important to you, and provide closure when/if the relationship with the vendor ends. Vendor orientation is comprised of three components, each with a different function:

    • Orientation
    • Reorientation
    • Debrief

    Vendor orientation focuses on the vendor management pieces of the puzzle (e.g. the scorecard process) rather than the operational pieces (e.g. setting up a new vendor in the system to ensure invoices are processed smoothly).

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 01 - Orientation

    Orientation

    Orientation is conceptually similar to new hire orientation for employees at your organization. Generally conducted as a meeting, orientation provides your vendors with the information they need to be successful when working with your organization. Sadly, this is often overlooked by customers; it can take months or years for vendors to figure it out by themselves. By controlling the narrative and condensing the timeline, vendor relationships and performance improve more rapidly.

    A partial list of topics for orientation is set out below:

    • Your organization’s structure
    • Your organization’s culture
    • Your relationship expectations
    • Your governances (VMI and other)
    • Their vendor classification designation (commodity, operational, strategic, or tactical)
    • The scorecard process
    • Business alignment meetings
    • Relationship alignment documents

    In short, this is the first step toward building (or continuing to build) a robust, collaborative, mutually beneficial relationship with your important vendors.

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 02 - Reorientation

    Reorientation

    Reorientation is either identical or similar to orientation, depending upon the circumstances. Reorientation occurs for a number of reasons, and each reason will impact the nature and detail of the reorientation content. Reorientation occurs whenever:

    • There is a significant change in the vendor’s products or services.
    • The vendor has been through a merger, acquisition, or divestiture.
    • A significant contract renewal/renegotiation has recently occurred.
    • Sufficient time has passed from orientation; commonly 2 to 3 years.
    • The vendor has been placed in a “performance improvement plan” or “relationship improvement plan” protocol.
    • Significant turnover has occurred within your organization (executives, key stakeholders, and/or VMI personnel).
    • Substantial turnover has occurred at the vendor at the executive or account management level.
    • The vendor has changed vendor classification categories after the most current classification.

    As the name implies, the goal is to refamiliarize the vendor with your current VMI situation, governances, protocols, and expectations. The drivers for reorientation will help you determine its scope, scale, and frequency.

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    Vendor Orientation: 03 - Debrief

    Debrief

    To continue the analogy from orientation, debrief is similar to an exit interview for an employee when their employment is terminated. In this case, debrief occurs when the vendor is no longer an active vendor with your organization – all contracts have terminated or expired, and no new business with the vendor is anticipated within the next three months.

    Similar to orientation and reorientation, debrief activities will be based on the vendor’s classification category within the COST model. Strategic vendors don’t go away very often; usually, they transition to operational or tactical vendors first. However, if a strategic vendor is no longer providing products or services to you, dig a little deeper into their experiences and allocate extra time for the debrief meeting.

    The debrief should provide you with feedback on the vendor’s experience with your organization and their participation in your VMI. In addition, it can provide closure for both parties since the relationship is ending. Be careful that the debrief does not turn into a finger-pointing meeting or therapy session for the vendor. It should be professional and productive; if it is going off the rails, terminate the meeting before more damage can occur.

    End the debrief on a high note if possible. Thank the vendor, highlight its key contributions, and single out any personnel who went above and beyond. You never know when you will be doing business with this vendor again – don’t burn bridges!

    Step 2.6: Vendor orientation (cont.)

    Create a VMI awareness process to build bridges with your vendors.

    • As you create your vendor orientation materials, focus on the message you want to convey.
    • For orientation and reorientation:
      • What is important to you that vendors need to know?
      • What will help the vendors understand more about your organization … your VMI?
      • What and how are you different from other organizations overall … in your “industry”?
      • What will help them understand your expectations?
      • What will help them be more successful?
      • What will help you build the relationship?
    • For debrief:
      • What information or feedback do you want to obtain?
      • What information or feedback to you want to give?
    • The level of detail you provide strategic vendors during orientation and reorientation may be different from the information you provide tactical and operational vendors. Commodity vendors are not typically involved in the vendor orientation process. The orientation meetings can be conducted on a one-to-one basis for strategic vendors and a one-to-many basis for operational and tactical vendors; reorientation and debrief are best conducted on a one-to-one basis. Lastly, face-to-face or video meetings work best for vendor orientation; voice-only meetings, recorded videos, or distributing only written materials seldom hit their mark or achieve the desired results.

    2.6.1: Vendor orientation

    1 to several hours

    1. Meet with the participants and review the Phase Tools and Templates Compendium, Tab 2.6 Vendor Orientation.
      1. Use the orientation checklist to identify the materials you want to create for your orientation meetings.
      2. Use the reorientation checklist to identify the materials you want to create for your reorientation meetings.
    2. The selections can be made by classification category (i.e. different items can apply to strategic, operational, and tactical vendors).
    3. Create the materials and seek input and/or approval from sponsors, stakeholders, and executives as needed.
    4. Use the debrief section of the tool to create an agenda, list the questions you want to ask vendors, and list information you want to provide to vendors. The agenda, questions, and information can be segregated by classification category.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming

    Output

    • Agendas and materials for orientation, reorientation, and debrief

    Materials

    • Phase Tools and Templates Compendium, Tab 2.6 Vendor Orientation

    Participants

    • VMI team

    Step 2.7: Job descriptions

    Ensure new and existing job descriptions are up to date.

    Based on your work product from Steps 1.1-1.9, it’s time to start drafting new or modifying existing job descriptions applicable to the VMI team members. Some of the VMI personnel may be dedicated full-time to the VMI, while others may be supporting the VMI on a part-time basis. At a minimum, create or modify your job descriptions based on the categories set out below. Remember to get the internal experts involved so that you stay true to your environment and culture.

    01 Title

    This should align overall with what the person will be doing and what the person will be responsible for. Your hands may be tied with respect to titles, but try to make them intuitively descriptive if possible.

    02 Duties

    This is the main portion of the job description. List the duties, responsibilities, tasks, activities, and results expected. Again, there may be some limitations imposed by your organization, but be as thorough as possible.

    03 Qualifications

    This tends to be a gray area for many organizations, with the qualifications, certifications, and experience desired expressed in “ranges” so that good candidates are not eliminated from consideration unnecessarily.

    2.7.1: Job descriptions

    1 to several hours

    1. Meet with the participants and review the VMI structure from Step 1.9.
      1. List the positions that require new job descriptions.
      2. List the positions that require updated job descriptions.
    2. Review the other Phase 1 work product and list the responsibilities, tasks, and functions that need to be incorporated into the new and updated job descriptions.
    3. Review the sample VMI job descriptions and sample VMI job description language in Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions, and identify language and concepts you want to include in the new and revised job descriptions.
    4. Using your template, draft the new job descriptions and modify the existing job descriptions to synchronize with the VMI structure. Work with other internal areas such as Human Resources to ensure cultural fit and compliance.
    5. Obtain input and signoff on the job descriptions from stakeholders, sponsors, executives, Human Resources, and others as needed.
    6. Document your final job descriptions in Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Existing job descriptions
    • Work product from Phase 1

    Output

    • Job descriptions for new positions
    • Updated job descriptions for existing positions

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.7 Job Descriptions

    Participants

    • VMI team
    • Human Resources (as needed)
    • Applicable stakeholders and executives (as needed)

    Step 2.8: Policies and procedures

    Prepare policies and procedures for VMI functions.

    Policies and procedures are often thought of as boring documents that are 1) tedious to create, 2) seldom read after creation, and 3) only used to punish people when they do something “wrong.” However, when done well, these documents:

    • Communicate expectations.
    • Capture institutional knowledge.
    • Provide guidance for decision making.
    • Help workers avoid errors and minimize risk.
    • Ensure regulatory and organizational compliance.
    • List the steps required to achieve consistent results.

    Definitions of Policies and Procedures

    Policies and procedures are essential, but they are often confused with each other. A policy is a rule, guideline, or framework for making decisions. For example, in the vendor management space, you may want a policy indicating your organization’s view on gifts from vendors. A procedure is a set of instructions for completing a task or activity. For example, staying in the vendor management space, you may want a procedure to outline the process for classifying vendors.

    Step 2.8: Policies and procedures (cont.)

    Prepare policies and procedures for VMI functions.

    Start With Your Policy/Procedure Template or Create One for Consistency

    When creating policies and procedures, follow your template. If you don’t have one (or want to see if anything is missing from your template) the following list of potential components for your governance documents is provided.* Not every concept is required. Use your judgment and err on the side of caution when drafting; balance readability and helpfulness against over documenting and over complicating.

    • Descriptive Title
    • Policy Number
    • Brief Overview
    • Purpose
    • Scope
    • The Policy or Procedure
    • Definitions
    • Revision Date
    • History
    • Related Documents
    • Keywords

    Step 2.8: Policies and procedures (cont.)

    Prepare policies and procedures for VMI functions.

    Although they are not ever going to be compared to page-turning novels, policies and procedures can be improved by following a few basic principles. By following the guidelines set out below, your VMI policies and procedures will contribute to the effectiveness of your initiative.*

    • Use short sentences.
    • Organize topics logically.
    • Use white space liberally.
    • Use mandatory language.
    • Use gender-neutral terms.
    • Write with an active voice.
    • Avoid jargon when possible.
    • Use a consistent “voice” and tone.
    • Use pictures or diagrams when they will help.
    • Write in the same tense throughout the document.
    • Use icons and colors to designate specific elements.
    • Make sure links to other policies and procedures work.
    • Define all acronyms and jargon (when it must be used).
    • Avoid a numbering scheme with more than three levels.

    *Adapted in part from smartsheet.com

    Info-Tech Insight

    Drafting policies and procedures is an iterative process that requires feedback from the organization’s leadership team.

    2.8.1: Policies and procedures

    Several hours

    1. Meet with the participants and review the sample policies and procedures topics in Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures.
    2. Determine:
      1. The concepts you want to include in your policies and procedures; brainstorm for any additional concepts you want to include.
      2. The format/template for your policies and procedures.
    3. Draft your policies and procedures based on the sample topics and your brainstorming activity. Work with other internal areas such as Legal and Human Resources to ensure cultural and environmental fit within your organization.
    4. Obtain input and signoff on the policies and procedures from stakeholders, sponsors, executives, Legal, Human Resources, and others as needed.
    5. Document your final policies and procedures in Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures.
    6. Publish your policies and procedures and conduct training sessions or awareness sessions as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Existing policies and procedures (if any)
    • Existing policies and procedures template (if any)
    • Scope
    • OIC chart
    • Process maps
    • Brainstorming

    Output

    • VMI policies and procedures

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.8 Policies and Procedures

    Participants

    • VMI team
    • Legal and Human Resources (as needed)
    • Applicable stakeholders and executives (as needed)

    Step 2.9: 3-year roadmap

    Plot your path at a high level.

    The VMI exists in many planes concurrently: 1) it operates both tactically and strategically, and 2) it focuses on different timelines or horizons (e.g. the past, the present, and the future). Creating a 3-year roadmap facilitates the VMI’s ability to function effectively across these multiple landscapes.

    The VMI roadmap will be influenced by many factors. The work product from Phase 1: Plan, input from executives, stakeholders, and internal clients, and the direction of the organization as a whole are great sources of information as you begin to build your roadmap.

    To start, identify what you would like to accomplish in Year 1. This is arguably the easiest year to complete: budgets are set (or you have a good idea what the budget will look like), personnel decisions have been made, resources have been allocated, and other issues impacting the VMI are known with a higher degree of certainty than any other year. This does not mean things won’t change during the first year of the VMI, but expectations are usually lower and the short event horizon makes things more predictable during the Year-1 ramp-up period.

    Years 2 and 3 are more tenuous, but the process is the same: identify what you would like to accomplish or roll out in each year. Typically, the VMI maintains the Year 1 plan into subsequent years and adds to the scope or maturity. For example, you may start Year 1 with BAMs and scorecards for three of your strategic vendors; during Year 2, you may increase that to five vendors; and during Year 3, you may increase that to nine vendors. Or, you may not conduct any market research during Year 1, waiting to add it to your roadmap in Year 2 or 3 as you mature.

    Breaking things down by year helps you identify what is important and the timing associated with your priorities. A conservative approach is recommended. It is easy to overcommit, but the results can be disastrous and painful.

    2.9.1: 3-year roadmap

    45-90 minutes

    1. Meet with the participants and decide how to coordinate Year 1 of your 3-year roadmap with your existing fiscal year or reporting year. Year 1 may be shorter or longer than a calendar year.
    2. Review the VMI activities listed in Jump – Phase 2 Tools and Templates Compendium, Tab 2.9 3-Year Roadmap. Use brainstorming and your prior work product from Phase 1 and Phase 2 to identify additional items for the roadmap and add them at the bottom of the spreadsheet.
    3. Starting with the first activity, determine when that activity will begin and put an X in the corresponding column; if the activity is not applicable, leave it blank or insert N/A.
    4. Go back to the top of the list and add information as needed.
      1. For any Year-1 or Year-2 activities, add an X in the corresponding columns if the activity will be expanded/continued in subsequent periods (e.g. if a Year 2 activity will continue in Year 3, put an X in Year 3 as well).
      2. Use the comments column to provide clarifying remarks or additional insights related to your plans or “X’s.” For example, “Scorecards begin in Year 1 with three vendors and will roll out to five vendors in Year 2 and nine vendors in Year 3.”
    5. Obtain signoff from stakeholders, sponsors, and executives as needed.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Phase 1 work product
    • Steps 2.1-2.8 work product
    • Brainstorming

    Output

    • High level 3-year roadmap for the VMI

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.9 3-Year Roadmap

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.10: 90-day plan

    Pave your short-term path with a series of detailed quarterly plans.

    Now that you have prepared a 3-year roadmap, it’s time to take the most significant elements from the first year and create action plans for each three-month period. Your first 90-day plan may be longer or shorter if you want to sync to your fiscal or calendar quarters. Aligning with your fiscal year can make it easier for tracking and reporting purposes; however, the more critical item is to make sure you have a rolling series of four 90-day plans to keep you focused on the important activities and tasks throughout the year.

    The 90-day plan is a simple project plan that will help you measure, monitor, and report your progress. Use the Info-Tech tool to help you track:

    • Activities
    • Tasks comprising each activity
    • Who will be performing the tasks
    • An estimate of the time required per person per task
    • An estimate of the total time to achieve the activity
    • A due date for the activity
    • A priority of the activity

    The first 90-day plan will have the greatest level of detail and should be as thorough as possible; the remaining three 90-day plans will each have less detail for now. As you approach the middle of the first 90-day plan, start adding details to the next 90-day plan; toward the end of the first quarter add a high-level 90-day plan to the end of the chain. Continue repeating this cycle each quarter and consult the 3-year roadmap and the leadership team as necessary.

    		90 Days

    2.10.1: 90-day plan

    45-90 minutes

    1. Meet with the participants and decide how to coordinate the first 90-day plan with your existing fiscal year or reporting cycles. Your first plan may be shorter or longer than 90 days.
    2. Looking at the Year 1 section of the 3-year roadmap, identify the activities that will be started during the next 90 days.
    3. Using the Jump – Phase 2 Tools and Templates Compendium, Tab 2.10 90-Day Plan, enter the following information into the spreadsheet for each activity to be accomplished during the next 90 days:
      1. Activity description
      2. Tasks required to complete the activity (be specific and descriptive)
      3. The people who will be performing each task
      4. The estimated number of hours required to complete each task
      5. The start date and due date for each task or the activity
    4. Validate the tasks are a complete list for each activity and the people performing the tasks have adequate time to complete the tasks by the due date(s).
    5. Assign a priority to each activity.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • 3-year roadmap
    • Phase 1 work product
    • Steps 2.1-2.9 work product
    • Brainstorming

    Output

    • Detailed plan for the VMI for the next quarter or 90 days

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.10 90-Day Plan

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Step 2.11: Quick wins

    Identify potential short-term successes to gain momentum and show value immediately.

    As the final step in the timeline trilogy, you are ready to identify some quick wins for the VMI. Using the first 90-day plan and a brainstorming activity, create a list of things you can do in 15 to 30 days that add value to your initiative and build momentum.

    As you evaluate your list of potential candidates, look for things that:

    • Are achievable within the stated timeline.
    • Don’t require a lot of effort.
    • Involve stopping a certain process, activity, or task; this is sometimes known as a “stop doing stupid stuff” approach.
    • Will reduce or eliminate inefficiencies; this is sometimes known as the war on waste.
    • Have a moderate to high impact or bolster the VMI’s reputation.

    As you look for quick wins, you may find that everything you identify does not meet the criteria. That’s ok … don’t force the issue. Return your focus to the 90-day plan and 3-year roadmap, and update those documents if the brainstorming activity associated with this Step 2.11 identified anything new.

    2.11.1: Quick wins

    15-30 minutes

    1. Meet with the participants and review the 3-year roadmap and 90-day plan. Determine if any item on either document can be completed:
      1. Quickly (30 days or less)
      2. With minimal effort
      3. To provide or show moderate to high levels of value or provide the VMI with momentum
    2. Brainstorm to identify any other items that meet the criteria in step 1 above.
    3. Compile a comprehensive list of these items and select up to five to pursue.
    4. Document the list in the Jump – Phase 2 Tools and Templates Compendium, Tab 2.11 Quick Wins.
    5. Manage the quick wins list and share the results with the VMI team and applicable stakeholders and executives.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • 3-year roadmap
    • 90-day plan
    • Brainstorming

    Output

    • A list of activities that require low levels of effort to achieve moderate to high levels of value in a short period

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.11 Quick Wins

    Participants

    • VMI team

    Step 2.12: Reports

    Construct your reports to resonate with your audience.

    Issuing reports is a critical piece of the VMI since the VMI is a conduit of information for the organization. It may be aggregating risk data from internal areas, conducting vendor research, compiling performance data, reviewing market intelligence, or obtaining relevant statistics, feedback, comments, facts, and figures from other sources. Holding onto this information minimizes the impact a VMI can have on the organization; however, the VMI’s internal clients, stakeholders, and executives can drown in raw data and ignore it completely if it is not transformed into meaningful, easily-digested information.

    Before building a report, think about your intended audience:

    • What information are they looking for … what will help them understand the big picture?
    • What level of detail is appropriate, keeping in mind the audience may not be like-minded?
    • What items are universal to all of the readers and what items are of interest to one or two readers?
    • How easy or hard will it be to collect the data … who will be providing it, how time consuming will it be?
    • How accurate, valid, and timely will the data be?
    • How frequently will each report need to be issued?

    Step 2.12: Reports (cont.)

    Construct your reports to resonate with your audience.

    Use the following guidelines to create reports that will resonate with your audience:

    • Value information over data, but sometimes data does have a place in your report.
    • Use pictures, graphics, and other representations more than words, but words are often necessary in small, concise doses.
    • Segregate your report by user; for example, general information up top, CIO information below that on the right, CFO information to the left of CIO information, etc.
    • Send a draft report to the internal audience and seek feedback, keeping in mind you won’t be able to cater to or please everyone.

    Step 2.12: Reports (cont.)

    Construct your reports to resonate with your audience.

    The report’s formatting and content display can make or break your reports.*

    • Make the report look inviting and easy to read. Use:
      • Short paragraphs and bullet points.
      • A simple layout and uncluttered, wide margins.
      • Minimal boldface, underline, or italics to attract the readers’ attention.
      • High contrast between text and background.
    • Charts, graphs, and infographics should be intuitive and tell the story on their own.
    • Make it easy to peruse the report for topics of interest.
      • Maintain consistent design features.
      • Use impactful, meaningful headings and subheadings.
      • Include callouts to draw attention to important high-level information.
    • Demonstrate the impact of the accomplishments or success stories when appropriate.
    • Finish with a simple concise summary when appropriate. Consider adding:
      • Key points for the reader to takeaway.
      • Action items or requests.
      • Plans for next reporting period.

    *Sources: Adapted and compiled in part from: designeclectic.com, ahrq.gov, and 60secondmarketer.com.

    2.12.1: Reports

    15-45 minutes

    1. Meet with the participants and review the applicable work product from Phases 1 and 2; identify qualitative and quantitative items the VMI measures, monitors, tracks, or aggregates.
    2. Determine which items will be reported and to whom (by category):
      1. Internally to personnel within the VMI
      2. Internally to personnel outside the VMI
      3. Externally to vendors
    3. Within each category above, determine your intended audiences/recipients. For example, you may have a different list of recipients for a risk report than you do a scorecard summary report. This will help you identify the number of reports required.
    4. Create a draft structure for each report based on the audience and the information being conveyed. Determine the frequency of each report and person responsible for creating for each report.
    5. Document your final choices in Jump – Phase 2 Tools and Templates Compendium, Tab 2.12 Reports.

    Download the Info-Tech Jump – Phase 2 Tools and Templates Compendium

    Input

    • Brainstorming
    • Phase 1 work product
    • Steps 2.1-2.11 work product

    Output

    • A list of reports used by the VMI
    • For each report:
    • The conceptual content
    • A list of who will receive or have access
    • A creation/distribution frequency

    Materials

    • Jump – Phase 2 Tools and Templates Compendium, Tab 2.12 Reports

    Participants

    • VMI team
    • Applicable stakeholders and executives (as needed)

    Phase 3: Run

    Implement Your Processes and Leverage Your Tools and Templates

    Phase 1 Phase 2 Phase 3 Phase 4
    1.1 Mission Statement and Goals
    1.2 Scope
    1.3 Strengths and Obstacles
    1.4 Roles and Responsibilities
    1.5 Process Mapping
    1.6 Charter
    1.7 Vendor Inventory
    1.8 Maturity Assessment
    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Begin operating the VMI. The main outcomes from this phase are guidance and the steps required to implement your VMI.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 3: Run

    Implement your processes and leverage your tools and templates.

    All of the hard work invested in Phase 1: Plan and Phase 2: Build begins to pay off in Phase 3: Run. It’s time to stand up your VMI and ensure that the proper level of resources is devoted to your vendors and the VMI itself. There’s more hard work ahead, but the foundational elements are in place. This doesn’t mean there won’t be adjustments and modifications along the way, but you are ready to use the tools and templates in the real world; you are ready to begin reaping the fruits of your labor.

    Phase 3: Run guides you through the process of collecting data, monitoring trends, issuing reports, and conducting effective meetings to:

    • Manage risk better.
    • Improve vendor performance.
    • Improve vendor relationships.
    • Identify areas where the parties can improve.
    • Improve communication between the parties.
    • Increase the value proposition with your vendors.

    Step 3.1: Classify vendors

    Begin classifying your top 25 vendors by spend.

    Step 3.1 sets the table for many of the subsequent steps in Phase 3: Run. The results of your classification process will determine: which vendors go through the scorecarding process (Step 3.4); which vendors participate in BAMs (Step 3.5); the nature and content of the vendor orientation activities (Step 3.3); which vendors will be part of the risk measurement and monitoring process (Step 3.8); which vendors will be included in the reports issued by the VMI (Step 3.9); and which vendors you will devote relationship-building resources to (Step 3.10).

    As you begin classifying your vendors, Info-Tech recommends using an iterative approach initially to validate the results from the classification model you configured in Step 2.1.

    1. Using the information from the Vendor Inventory tab (Step 1.7), identify your top 25 vendors by spend.
    2. Run your top 10 vendors by spend through the classification model and review the results.
      1. If the results are what you expected and do not contain any significant surprises, go to next page.
      2. If the results are not what you expected or contain significant surprises, look at the configuration page of the tool (Tab 1) and adjust the weights or the spend categories slightly. Be cautious in your evaluation of the results before modifying the configuration page – some legitimate results are unexpected or surprising based on bias. If you modify the weighting, review the new results and repeat your evaluation. If you modify the spend categories, review the answers on the vendor tabs to ensure that the answers are still accurate; review the new results and repeat your evaluation.

    Step 3.1: Classify vendors (cont.)

    Review your results and adjust the classification tool as needed.

    1. Run your top 11 through 25 vendors by spend through the classification model and review the results. Identify any unexpected results or surprises. Determine if further configuration makes sense and repeat the process outlined in 2.b, previous page, as necessary. If no further modifications are required, continue to 4, below.
    2. Share the preliminary results with the leadership team, executives, and stakeholders to obtain their approval or adjustments to the results.
      1. They may have questions and want to understand the process before approving the results.
      2. They may request that you move a vendor from one quadrant to another based on your organization’s roadmap, the vendor’s roadmap, or other information not available to you.
    3. Identify the vendors that will be part of the VMI at this stage – how many and which ones. Based on this number and the VMI’s scope (Step 1.2), make sure you have the resources necessary to accommodate the number of vendors participating in the VMI. Proceed cautiously and gradually increase the number of vendors participating in the VMI.

    Step 3.1: Classify vendors (cont.)

    Finalize the results and update VMI tools and templates.

    1. Update the Vendor Inventory tab (Step 1.7) to indicate the current classification status for the top 25 vendors by spend. Once your vendors have been classified, you can sort the Vendor Inventory tab by classification status to see all the vendors in that category at once.
    2. Review your 3-year roadmap (Step 2.9) and 90-day plans (Step 2.10) to determine if any modifications are needed to the activities and timelines.

    Additional classification considerations:

    • You should only have a few vendors that fit in the strategic category. As a rough guideline, no more than 5% to 10% of your IT vendors should end up in the strategic category. If you have a large number of vendors, even 5% may be too many. The classification model is an objective start to the classification process, but common sense must prevail over the “math” at the end of the day.
    • At this point, there is no need to go beyond the top 25 by spend. Most VMIs starting out can’t handle more than three to five strategic vendors initially. Allow the VMI to run a pilot program with a small sample size, work out any bugs, make adjustments, and then ramp up the VMI’s rollout in waves. Vendors can be added quarterly, biannually, or annually, depending upon the desired goals and available resources.

    Step 3.1: Classify vendors (cont.)

    Align your vendor strategy to your classification results.

    As your VMI matures, additional vendors will be part of the VMI. Review the table below and incorporate the applicable strategies into your deployment of vendor management principles over time. Stay true to your mission, goals, and scope, and remember that not all of your vendors are of equal importance.

    Operational Strategic
    • Focus on spend containment
    • Concentrate on lowering total cost of ownership
    • Invest moderately in cultivating the relationship
    • Conduct BAMs biannually or annually
    • Compile scorecards quarterly or biannually
    • Identify areas for performance and cost improvement
    • Focus on value, collaboration, and alignment
    • Review market intelligence for the vendor’s industry
    • Invest significantly in cultivating the relationship
    • Initiate executive-to-executive relationships
    • Conduct BAMs quarterly
    • Compile scorecards quarterly
    • Understand how the vendors view your organization

    Commodity

    Tactical
    • Investigate vendor rationalization and consolidation
    • Negotiate for the best-possible price
    • Leverage competition during negotiations
    • Streamline the purchasing and payment process
    • Allocate minimal VMI resources
    • Assign the lowest priority for vendor management metrics
    • Conduct risk assessments biannually or annually
    • Cultivate a collaborative relationship based on future growth plans or potential with the vendor
    • Conduct BAMs quarterly or biannually
    • Compile scorecards quarterly
    • Identify areas of performance improvement
    • Leverage innovation and creative problem solving

    Step 3.1: Classify vendors (cont.)

    Be careful when using the word “partner” with your strategic and other vendors.

    For decades, vendors have used the term “partner” to refer to the relationship they have with their clients and customers. In many regards, this is often an emotional ploy used by the vendors to get the upper hand. To fully understand the terms “partner” and “partnership” let’s evaluate them through two more-objective, less-cynical lenses.

    If you were to talk to your in-house or outside legal counsel, you may be told that partners share in profits and losses, and they have a fiduciary obligation to each other. Unless there is a joint venture between the parties, you are unlikely to have a partnership with a vendor from this perspective.

    What about a “business” partnership … one that doesn’t involve sharing profits and losses? What would that look like? Here are some indicators of a business partnership (or preferably a strategic alliance):

    • Trust and transparent communication exist.
    • You have input into the vendor’s roadmap for products and services.
    • The vendor is aligned with your desired outcomes and helps you achieve success.
    • You and the vendor are accountable for actions and inactions, with both parties being at risk.
    • There is parity in the peer-to-peer relationships between the organizations (e.g. C-Level to C-Level).
    • The vendor provides transparency in pricing models and proactively suggests ways for you to reduce costs.
    • You and the vendor work together to make each party better, providing constructive feedback on a regular basis.
    • The vendor provides innovative suggestions for you to improve your processes, performance, the bottom line, etc.
    • Negotiations are not one-sided; they are meaningful and productive, resulting in an equitable distribution of money and risk.

    Step 3.1: Classify vendors (cont.)

    Understand the implications and how to leverage the words “partner” and “partnership.”

    By now you might be thinking, “What’s all the fuss? Why does it matter?” At Info-Tech, we’ve seen firsthand how referring to the vendor as a partner can have the following impact:

    • Confidences are disclosed unnecessarily.
    • Negotiation opportunities and leverage are lost.
    • Vendors no longer have to earn the customer’s business.
    • Vendor accountability is missing due to shared responsibilities.
    • Competent skilled vendor resources are assigned to other accounts.
    • Value erodes over time since contracts are renewed without being competitively sourced.
    • One-sided relationships are established, and false assurances are provided at the highest levels within the customer organization.

    Proceed with caution when using partner or partnership with your vendors. Understand how your organization benefits from using these terms and mitigate the negatives outlined above by raising awareness internally to ensure people understand the psychology behind the terms. Finally, use the term to your advantage when warranted by referring to the vendor as a partner when you want or need something that the vendor is reluctant to provide. Bottom line: Be strategic in how you refer to vendors and know the risks.

    Step 3.2: Conduct internal “kickoff” meeting

    Raise awareness about the VMI and its mission, vision, and goals.

    To be effective, your VMI needs executive support, a clear vision, appropriate governances and tools, personnel with the right skills, and other items discussed in this blueprint. However, the VMI doesn’t exist in a vacuum … it can’t sit back and be reactive. As part of being proactive, the VMI must be aware of its brand and “market” its services. An effective way to market the VMI is to conduct an internal kickoff meeting. There are at least a couple of ways to do this:

    • Host a meeting for stakeholders, executives, and others who will be contributing to the VMI processes (but are not part of the VMI). The meeting can be part of a townhall or standalone meeting; it can be done live or via a recorded video.
    • Attend appropriate staff meetings and make your presentation.

    With either approach above or one of your choosing, keep in mind the following objectives for your kickoff meeting:

    • Make sure you provide a way for those in attendance to ask questions at that time and later. You want to create and foster a communication loop with the people who will be impacted by the VMI or participating with it.
    • Raise awareness of your existence and personnel. Tell the VMI’s story by sharing your mission statement, goals, and scope; this will help dispel (or confirm) rumors about the VMI that often lead to confusion and faulty assumptions.
    • As you share the VMI’s vision, connect the story to how the VMI will impact the organization and individuals and to how they can help. The VMI tends to be the least autonomous area within an organization; it needs the assistance of others to be successful. Convey an atmosphere of collaboration and appreciation for their help.

    Host a kickoff meeting annually to kickoff the new year. Remind people of your story, announce successes from the past year, and indicate what the future year holds. Keep it brief, make it personal for the audience, and help them connect the names of VMI personnel to faces.

    Step 3.3: Conduct vendor orientation

    Introduce your VMI to your top vendors.

    Based on the results from your vendor classification (Step 3.1) and your VMI deployment timeline, identify the vendors who will participate in the initial orientation meetings. Treat the orientation as a formal, required meeting for the vendors to attend. Determine the attendee list for your organization and the vendors, and send out invites. Ideally, you will want the account manager, a sales director or vice president, the “delivery” director or vice president, and an executive from the vendor in the meeting. From the customer side, you may need more than one or two people from the VMI to entice the vendor’s leadership team to attend; you may need attendance from your own leadership team to add weight or credibility to the meeting (unfortunately).

    Before going into the meeting, make sure everyone on your side knows their roles and responsibilities, and review the agenda. Control the agenda or the meeting is likely to get out of hand and turn into a sales call.

    Conduct orientation meetings even if the participating vendors have been doing business with you for several years. Don’t assume they know all about your organization and your VMI (even if their other clients have a VMI).

    Run two or three orientation meetings and then review the “results.” What needs to be modified? What lessons have you learned? Make any necessary adjustments and continue rolling out the orientation meetings.

    Early in the VMI’s deployment, reorientation and debrief may not be in play. As time passes, it is important to remember them! Use them when warranted to help with vendor alignment.

    Step 3.4: Compile scorecards

    Begin scoring your top vendors.

    The scorecard process typically is owned and operated by the VMI, but the actual rating of the criteria within the measurement categories is conducted by those with day-to-day interactions with the vendors, those using or impacted by the services and products provided by the vendors, and those with the skills to research other information on the scorecard (e.g. risk). Chances are one person will not be able to complete an entire scorecard by themselves. As a result, the scorecard process is a team sport comprising sub-teams where necessary.

    The VMI will compile the scores, calculate the final results, and aggregate all of the comments into one scorecard. There are two common ways to approach this task:

    1. Send out the scorecard template to those who will be scoring the vendor and ask them to return it when completed, providing them with a due date a few days before you actually need it; you’ll need time to compile, calculate, and aggregate.
    2. Invite those who will be scoring the vendor to a meeting and let the contributors use that time to score the vendors; make VMI team members available to answer questions and facilitate the process.

    Step 3.4: Compile scorecards (cont.)

    Gather input from stakeholders and others impacted by the vendors.

    Since multiple people will be involved in the scorecarding process or have information to contribute, the VMI will have to work with the reviewers to ensure that the right mix of data is provided. For example:

    • If you are tracking lawsuits filed by or against the vendor, one person from Legal may be able to provide that, but they may not be able to evaluate any other criteria on the scorecard.
    • If you are tracking salesperson competencies, multiple people from multiple areas may have valuable insights.
    • If you are tracking deliverable timeliness, several project managers may want to contribute across several projects.

    Where one person is contributing exclusively to limited criteria, make it easy for the person to identify the criteria they are to evaluate. When multiple people from the same functional area will provide insights, they can contribute individually (and the VMI will average their responses) or they can respond collectively after reaching consensus among themselves.

    After the VMI has compiled, calculated, and aggregated, share the results with executives, impacted stakeholders, and others who will be attending the BAM for that vendor. Depending upon the comments provided by internal personnel, you may need to create a sanitized version of the scorecard for the vendor.

    Make sure your process timeline has a buffer built in. You’ll be sending the final scorecard to the vendor three to five days before the BAM, and you’ll need some time to assemble the results. The scorecarding process can be perceived as a low-priority activity for people outside of the VMI, and other “priorities” will arise for them. Without a timeline buffer, the VMI may find itself behind schedule and unprepared due to things beyond its control.

    Step 3.5: Conduct business alignment meetings

    Determine which vendors will participate and how long the meetings will last.

    At their core, BAMs aren’t that different from any other meeting. The basics of running a meeting still apply, but there are a few nuances that apply to BAMs Set out below are leading practices for conducing your BAMs; adapt them to meet your needs and suit your environment.

    Who

    Initially, BAMs are conducted with the strategic vendors in your pilot program. Over time, you’ll add vendors until all of your strategic vendors are meeting with you quarterly. After that, roll out the BAMs to those tactical and operational vendors located close to the strategic quadrant in the classification model (Steps 2.1 and 3.1) and as VMI resources allow. It may take several years before you are holding regular BAMs with all of your strategic, tactical, and operational vendors.

    Duration

    Keep the length of your meetings reasonable. The first few with a vendor may need to be 60 to 90 minutes long. After that, you should be able to trim them to 45 to 60 minutes. The BAM does not have to fill the entire time. When you are done, you are done.

    Step 3.5: Conduct business alignment meetings (cont.)

    Identify who will be invited and send out invitations.

    Invitations

    Set up a recurring meeting whenever possible. Changes will be inevitable, but keeping the timeline regular works to your advantage. Also, the vendors included in your initial BAMs won’t change for twelve months. For the first BAM with a vendor, provide adequate notice; four weeks is sufficient in most instances, but calendars will fill up quickly for the main attendees from the vendor. Treat the meeting as significant and make sure your invitation reflects this. A simple meeting request will often be rejected, treated as optional, or ignored completely by the vendor’s leadership team (and maybe yours as well!).

    Invitees

    Internal invitees should include those with a vested interest in the vendor’s performance and the relationship. In addition, other functional areas may be invited based on need or interest. Be careful the attendee list doesn’t get too big. Based on this, internal BAM attendees often include representatives from IT, Sourcing/Procurement, and the applicable business units. At times, Finance and Legal are included.

    From the vendor’s side, strive to have decision makers and key leaders attend. The salesperson/account manager is often included for continuity, but a director or vice president of sales will have more insights and influence. The project manager is not needed at this meeting due to the nature of the meeting and its agenda; however, a director or vice president from the “product or service delivery” area is a good choice. Bottom line: get as high into the vendor’s organization as possible whenever possible; look at the types of contracts you have with that vendor to provide guidance on the type of people to invite.

    Step 3.5: Conduct business alignment meetings (cont.)

    Prepare for the meetings and maintain control.

    Preparation

    Send the scorecard and agenda to the vendor five days prior to the BAM. The vendor should provide you with any information you require for the meeting five days prior as well.

    Decide who will run the meeting. Some customers like to lead and others let the vendor present. How you craft the agenda and your preferences will dictate who runs the show.

    Make sure the vendor knows what materials it should bring to the meeting or have access to. This will relate to the agenda and any specific requests listed under the discussion points. You don’t want the vendor to be caught off guard and unable to discuss a matter of importance to you.

    Running the BAM

    Regardless of which party leads, make sure you manage the agenda to stay on topic. This is your meeting – not the vendor’s, not IT’s, not Procurement’s or Sourcing’s. Don’t let anyone hijack it.

    Make sure someone is taking notes. If you are running this virtually, consider recording the meeting. Check with your legal department first for any concerns, notices, or prohibitions that may impact your recording the session.

    As a reminder, this is not a sales call, and this is not a social activity. Innovation discussions are allowed and encouraged, but that can quickly devolve into a sales presentation. People can be friendly toward one another, but the relationship building should not overwhelm the other purposes.

    Step 3.5: Conduct business alignment meetings (cont.)

    Follow these additional guidelines to maximize your meetings.

    More Leading Practices

    • Remind everyone that the conversation may include items covered by various confidentiality provisions or agreements.
    • Publish the meeting minutes on a timely basis (within 48 hours).
    • Focus on the bigger picture by looking at trends over time; get into the details only when warranted.
    • Meet internally immediately beforehand to prepare – don’t go in cold; review the agenda and the roles and responsibilities for the attendees.
    • Physical meetings are better than virtual meetings, but travel constraints, budgets, and pandemics may not allow for physical meetings.

    Final Thoughts

    • When performance or the relationship is suffering, be constructive in your feedback and conversations rather than trying to assign blame; lead with the carrot rather than the stick.
    • Look for collaborative solutions whenever possible and avoid referencing the contract if possible. Communicate your willingness to help resolve outstanding issues.
    • Use inclusive language and avoid language that puts the vendor on the defensive.
    • Make sure that your meetings are not focused exclusively on the negative, but don’t paint a rosy picture where one doesn’t exist.
    • A vendor that is doing well should be commended. This is an important part of relationship building.

    Step 3.6: Work the 90-day plan

    Monitor your progress and share your results.

    Having a 90-day plan is a good start, but assuming the tasks on the plan will be accomplished magically or without any oversight can lead to failure. While it won’t take a lot of time to work the plan, following a few basic guidelines will help ensure the 90-day plan gets results and wasn’t created in vain.

    90-Day Plan: Activity 1; Activity 2; Activity 3; Activity 4; Activity 5
    1. Measure and track your progress against the initial/current 90-day plan at least weekly; with a short timeline, any delay can have a huge impact.
    2. If adjustments are needed to any elements of the plan, understand the cause and the impact of those adjustments before making them.
    3. Make adjustments ONLY when warranted. The temptation will be to push activities and tasks further out on the timeline (or to the next 90-day plan!) when there is any sort of “hiccup” along the way, especially when personnel outside the VMI are involved. Hold true to the timeline whenever possible; once you start slipping, it often becomes a habit.
    4. Report on progress every week and hold people accountable for their assignments and contributions.
    5. Take the 90-day plan seriously and treat it as you would any significant project – this is part of the VMI’s branding and image.

    Step 3.7: Manage the 3-year roadmap

    Keep an eye on the future since it will feed the present.

    The 3-year roadmap is a great planning tool, but it is not 100% reliable. There are inherent flaws and challenges. Essentially, the roadmap is a set of three “crystal balls” attempting to tell you what the future holds. The vision for Year 1 may be fairly clear, but for each subsequent year, the crystal ball becomes foggier. In addition, the timeline is constantly changing; before you know it, tomorrow becomes today and Year 2 becomes Year 1.

    To help navigate through the roadmap and maximize its potential, follow these principles:

    • Manage each year of the roadmap differently.
      • Review the Year 1 map each quarter to update your 90-day plans (See steps 2.10 and 3.6).
      • Review the Year 2 map every six months to determine if any changes are necessary. As you cycle through this, your vantage point of Year 2 will be 6 months or 12 months away from the beginning of Year 2, and time moves quickly.
      • Review the Year 3 map annually, and determine what needs to be added, changed, or deleted. Each time you review Year 3, it will be a “new” Year 3 that needs to be built.
    • Analyze the impact on the proposed modifications from two perspectives: 1) What is the impact if a requested modification is made? 2) What is the impact if a requested modification is not made?
    • Validate all modifications with leadership and stakeholders before updating the 3-year roadmap to ensure internal alignment.

    Step 3.8: Measure and monitor risk

    Understand and manage risk levels.

    Using the configured Vendor Risk Assessment Tool (Step 2.2), confirm which risks you will be measuring and monitoring and identify the vendors that will be part of the initial risk management process. Generally, organizations start measuring and monitoring risk in two to five risk categories for two or three strategic vendors. Over time, additional risk categories and/or vendors can be added in waves. Resist the temptation to add risk categories or vendors into the mix too quickly. Expanding requires resources inside and outside of the VMI.

    The VMI will rely heavily on other areas to provide input or the risk data, and the VMI needs to establish good working relationships with those areas. For example, if legal risk is something being measured and monitored, the VMI will need data from Legal on the number and nature of any lawsuits filed by or against the applicable vendors; the VMI will need data from Legal, Contract Management, or Procurement/Sourcing on the number and nature of any agreed upon deviations from your organization’s preferred contract terms that increase legal risk.

    With respect to risk, the VMI’s main role is threefold: 1) take the data obtained from others (or in some instances the VMI may have the data) and turn it into useful information, 2) monitor the risk categories over time and periodically issue reports, and 3) work with other areas to manage the risk.

    Step 3.9: Issue reports

    Inform internal personnel and vendors about trends, issues, progress, and results.

    Issuing the reports created in Step 2.12 is one of the main ways the VMI 1) will communicate with internal and external personnel and 2) track trends and information over time. Even with input from the potential reviewers of the reports, you’ll still want to seek their feedback and input periodically. It may take a few iterations until the reports are hitting their mark. You may find that a metric is no longer required, that a metric is missing completely or it is missing a component, or a formatting change would improve the report’s readability. Once a report has been “finalized,” try not to change it until you are engaged in Phase 4: Review activities. It can be unsettling for the reviewers when reports change constantly.

    Whenever possible, find ways to automate the reports. While issuing reports is critical, the function should not consume more time than necessary. Automation can remove some of the manual and repetitive tasks.

    Internal reports may need to be kept confidential. An automated dashboard or reporting tool can help lock down who has access to the information. At a minimum, the internal reports should contain a “Confidential” stamp, header, watermark, or other indicator that the materials are sensitive and should not be disclosed outside of your organization without approval.

    Reports for vendors may not need to be sent as often as reports are generated or prepared for internal personnel. Establish a cadence by classification model category and stick to it. Letting each vendor choose the frequency will make it more difficult for you to manage. The vendors can choose to ignore the report if they so choose.

    This is an image of an example of a bar graph showing ROI and Benchmark for Categories 1-6

    Step 3.10: Develop/improve vendor relationships

    Drive better performance through better relationships.

    One of the key components of a VMI is relationship management. Good relationships with your vendors provide many benefits for both parties, but they don’t happen by accident. Do not assume the relationship will be good or is good merely because your organization is buying products and services from a vendor.

    In many respects, the VMI should mirror a vendor’s sales organization by establishing relationships at multiple levels within the vendor organizations – not just with the salesperson or account manager. Building and maintaining relationships is hard work, but the return on investment makes it worthwhile.

    Business relationships are comprised of many components, not all of which have to be present to have a great relationship. However, there are some essential components. Whether you are trying to develop, improve, or maintain a relationship with a vendor, make sure you are conscious of the following:*

    • Focus your energies on strategic vendors first and then tactical and operational vendors.
    • Be transparent and honest in your communications.
    • Continue building trust by being responsive and honoring commitments (timely).
    • Create a collaborative environment and build upon common ground.
    • Thank the vendor when appropriate.
    • Resolve disputes early, avoid the “blame game,” and be objective when there are disagreements.

    Step 3.11: Contribute to other processes

    Continue assisting others and managing roles and responsibilities outside of the VMI.

    The VMI has processes that it owns and processes that it contributes to. Based on the VMI scope (Step 1.2), the OIC chart (Step 1.4), and the process mapping activities (Step 1.5), ensure that the VMI is honoring its contribution commitments. This is often easier said than done though. A number of factors can make it difficult to achieve the balance required to handle VMI processes and contribute to other processes associated with the VMI’s mission and vision. Understanding the issues is half the battle. If you see signs of these common “vampires,” take action quickly to address the situation.

    • The VMI’s first focus is often internal, and the tendency is to operate in a bubble. Classifying vendors, running BAMs, coordinating the risk process, and other inward-facing processes can consume all of the VMI’s energy. As a result, there is little time, effort, or let’s be honest, desire to participate in other processes outside of the VMI.
    • It is easy for VMI personnel to get dragged into processes and situations that are outside of its scope. This often happens when personnel join the VMI from other internal areas or departments and have good relationships with their former teammates. The relationships make it hard to say “No” when out-of-scope assistance is being requested.
    • The VMI may have “part-time” personnel who have responsibilities across internal departments, divisions, agencies, or teams. When the going gets tough and time is at a premium, people gravitate toward the easiest or most comfortable work. That work may not be VMI work.

    Phase 4: Review

    Keep Your VMI Up to Date and Running Smoothly

    Phase 1Phase 2Phase 3Phase 4
    1.1 Mission Statement and Goals


    1.2 Scope

    1.3 Strengths and Obstacles

    1.4 Roles and Responsibilities

    1.5 Process Mapping

    1.6 Charter

    1.7 Vendor Inventory

    1.8 Maturity Assessment

    1.9 Structure

    2.1 Classification Model
    2.2 Risk Assessment Tool
    2.3 Scorecards and Feedback
    2.4 Business Alignment Meeting Agenda
    2.5 Relationship Alignment Document
    2.6 Vendor Orientation
    2.7 Job Descriptions
    2.8 Policies and Procedures
    2.9 3-Year Roadmap
    2.10 90-Day Plan
    2.11 Quick Wins
    2.12 Reports

    3.1 Classify Vendors
    3.2 Conduct Internal “Kickoff” Meeting
    3.3 Conduct Vendor Orientation
    3.4 Compile Scorecards
    3.5 Conduct Business Alignment Meetings
    3.6 Work the 90-Day Plan
    3.7 Manage the 3-Year Roadmap
    3.8 Measure and Monitor Risk
    3.9 Issue Reports
    3.10 Develop/Improve Vendor Relationships
    3.11 Contribute to Other Processes

    4.1 Assess Compliance
    4.2 Incorporate Leading Practices
    4.3 Leverage Lessons Learned
    4.4 Maintain Internal Alignment
    4.5 Update Governances

    This phase will walk you through the following activities:

    Identify what the VMI should stop doing, start doing, and continue doing as it improves and matures. The main outcomes from this phase are ways to advance the VMI and maintain internal alignment.

    This phase involves the following participants:

    • VMI team
    • Applicable stakeholders and executives
    • Others as needed

    Jump Start Your Vendor Management Initiative

    Phase 4: Review

    Keep your VMI up to date and running smoothly.

    As the old adage says, “The only thing constant in life is change.” This is particularly true for your VMI. It will continue to mature; people inside and outside of the VMI will change; resources will expand or contract from year to year; your vendor base will change. As a result, your VMI needs the equivalent of a physical every year. In place of bloodwork, x-rays, and the other paces your physician may put you through, you’ll assess compliance with your policies and procedures, incorporate leading practices, leverage lessons learned, maintain internal alignment, and update governances.

    Be thorough in your actions during this Phase to get the most out of it. It requires more than the equivalent of gauging a person’s health by taking their temperature, measuring their blood pressure, and determining their body mass index. Keeping your VMI up to date and running smoothly takes hard work.

    Some of the items presented in this Phase require an annual review; others may require quarterly review or timely review (i.e. when things are top of mind and current). For example, collecting lessons learned should happen on a timely basis rather than annually, and classifying your vendors should occur annually rather than every time a new vendor enters the fold.

    Ultimately, the goal is to improve over time and stay aligned with other areas internally. This won’t happen by accident. Being proactive in the review of your VMI further reinforces the nature of the VMI itself – proactive vendor management, NOT reactive!

    Step 4.1: Assess compliance

    Determine what is functionally going well and not going well.

    Whether you have a robust set of vendor management-related policies and procedures or they are the bare minimum, gathering data each quarter and conducting an assessment each year will provide valuable feedback. The scope of your assessment should focus on two concepts: 1) are the policies and procedures being followed and 2) are the policies and procedures accurate and relevant. This approach requires parallel thinking, but it will help you understand the complete picture and minimize the amount of time required.

    Use the steps listed below (or modify them for your culture) to conduct your assessment:

    • Determine the type of assessment – formal or informal.
    • Determine the scale of the assessment – which policies and procedures will be reviewed and how many people will be interviewed.
    • Determine the compliance levels, and seek feedback on the policies and procedures – what is going well and what can be improved?
    • Review the compliance deviations.
    • Conduct a root cause analysis for the deviations.
    • Create a list of improvements and gain approval.
    • Create a plan for minimizing noncompliance in the future.
      • Improve/increase education and awareness.
      • Clarify/modify policies and procedures.
      • Add resources, tools, and people (as necessary and as allowed).

    Step 4.2: Incorporate leading practices

    Identify and evaluate what external VMIs are doing.

    The VMI’s world is constantly shifting and evolving. Some changes will take place slowly, while others will occur quickly. Think about how quickly the cloud environment has changed over the past five years versus the 15 years before that; or think about issues that have popped up and instantly altered the landscape (we’re looking at you COVID-19 and ransomware). As a result, the VMI needs to keep pace, and one of the best ways to do that is to incorporate leading practices.

    At a high level, a leading practice is a way of doing something that is better at producing a particular outcome or result or performing a task or activity than other ways of proceeding. The leading practice can be based on methodologies, tools, processes, procedures, and other items. Leading practices change periodically due to innovation, new ways of thinking, research, and other factors. Consequently, a leading practice is to identify and evaluate leading practices each year.

    Step 4.2: Incorporate leading practices (cont.)

    Update your VMI based on your research.

    • A simple approach for incorporating leading practices into your regular review process is set out below:
    • Research:
      • What other VMIs in your industry are doing.
      • What other VMIs outside your industry are doing.
      • Vendor management in general.
    • Based on your results, list specific leading practices others are doing that would improve your VMI (be specific – e.g. other VMIs are incorporating risk into their classification process).
    • Evaluate your list to determine which of these potential changes fit or could be modified to fit your culture and environment.
    • Recommend the proposed changes to leadership (with a short business case or explanation/justification, as needed) and gain approval.

    Remember: Leading practices or best practices may not be what is best for you. In some instances, you will have to modify them to fit your culture and environment; in other instances, you will elect not to implement them at all (in any form).

    Step 4.3: Leverage lessons learned

    Tap into the collective wisdom and experience of your team members.

    There are many ways to keep your VMI running smoothly, and creating a lessons learned library is a great complement to the other ways covered in this Phase 4: Review. By tapping into the collective wisdom of the team and creating a safe feedback loop, the VMI gains the following benefits:

    • Documented institutional wisdom and knowledge normally found only in the team members’ brains.
    • The ability for one team member to gain insights and avoid mistakes without having to duplicate the events leading to the insights or mistakes.
    • Improved methodologies, tools, processes, procedures, skills, and relationships.

    Many of the processes raised in this Phase can be performed annually, but a lessons learned library works best when the information is “deposited” in a timely manner. How you choose to set up your lessons learned process will depend on the tools you select and your culture. You may want to have regular “input” meetings to share the lessons as they are being deposited, or you may require team members to deposit lessons learned on a regular basis (within a week after they happen, monthly, or quarterly). Waiting too long can lead to vague or lost memories and specifics – timeliness of the deposits is a crucial element.

    Step 4.3: Leverage lessons learned (cont.)

    Create a library to share valuable information across the team.

    Lessons learned are not confined to identifying mistakes or dissecting bad outcomes. You want to reinforce good outcomes as well. When an opportunity for a lessons-learned deposit arises, identify the following basic elements:

    • A brief description of the situation and outcome.
    • What went well (if anything) and why did it go well?
    • What didn't go well (if anything) and why didn't it go well?
    • What would/could you do differently next time?
    • A synopsis of the lesson(s) learned.

    Info-Tech Insights

    The lessons learned library needs to be maintained. Irrelevant material needs to be culled periodically, and older or duplicate material may need to be archived.

    The lessons learned process should be blameless. The goal is to share insightful information … not to reward or punish people based on outcomes or results.

    Step 4.4: Maintain internal alignment

    Review the plans of other internal areas to stay in sync.

    Maintaining internal alignment is essential for the ongoing success of the VMI. Over time, it is easy to lose sight of the fact that the VMI does not operate in a vacuum; it is an integral component of a larger organization whose parts must work well together to function optimally. Focusing annually on the VMI’s alignment within the enterprise helps reduce any breakdowns that could derail the organization.

    To ensure internal alignment:

    • Review the key components of the applicable materials from Phase 1: Plan and Phase 2: Build with the appropriate members of the leadership team (e.g. executives, sponsors, and stakeholders). Not every item from those Phases and Steps needs to be reviewed, but err on the side of caution for the first set of alignment discussions, and be prepared to review each item. You can gauge the audience’s interest on each topic and move quickly when necessary or dive deeper when needed. Identify potential changes required to maintain alignment.
    • Review the strategic plans (e.g. 1-, 3-, and 5- year plans) for various portions of the organization if you have access to them or gather insights if you don’t have access.
      • If the VMI is under the IT umbrella, review the strategic plans for IT and its departments.
      • Review the strategic plans for the areas the VMI works with (e.g. Procurement, Business Units).
      • The organization itself.
    • Create and vet a list of modifications to the VMI and obtain approval.
    • Develop a plan for making the necessary changes.

    Step 4.5: Update governances

    Revise your protocols and return to the beginning of cyclical processes.

    You’re at the final Step and ready to update governances. This is comprised of two sequential paths.

    • First, use the information from Steps 4.1-4.4 to make any required modifications to the items in Phase 1: Plan, Phase 2: Build, and Phase 3: Run. For example, you may need to update your policies and procedures (Step 2.8) based on your findings in Step 4.1; or you may need to update the VMI’s scope (Step 1.2) to ensure internal alignment issues identified in Step 4.4. are accounted for.
    • Second, return to Phase 3: Run to perform the activities below; they tend to be performed annually, but use your discretion and perform them on an as-needed basis:
      • Reclassify vendors.
      • Complete a new maturity assessment.
      • Run reorientation sessions for vendors.
      • Conduct a kickoff meeting to update internal personnel.

    Other activities and tasks (e.g. scorecards and BAMs) may be impacted by the modifications made above, but the nature of their performance follows a shorter cadence. As a result, they are not specifically called out here in this Step 4.5 since they are performed on an ongoing basis. However, don’t overlook them as part of your update.

    Summary of Accomplishment

    Problem Solved

    Vendor management is a broad, often overwhelming, comprehensive spectrum that encompasses many disciplines. By now, you should have a great idea of what vendor management can or will look like in your organization. Focus on the basics first: Why does the VMI exist and what does it hope to achieve? What is its scope? What are the strengths you can leverage, and what obstacles must you manage? How will the VMI work with others? From there, the spectrum of vendor management will begin to clarify and narrow.

    Leverage the tools and templates from this blueprint and adapt them to your needs. They will help you concentrate your energies in the right areas and on the right vendors to maximize the return on your organization’s investment in the VMI of time, money, personnel, and other resources. You may have to lead by example internally and with your vendors at first, but they will eventually join you on your path if you stay true to your course.

    At the heart of a good VMI is the relationship component. Don’t overlook its value in helping you achieve your vendor management goals. The VMI does not operate in a vacuum, and relationships (internal and external) will be critical.

    Lastly, seek continual improvement from the VMI and from your vendors. Both parties should be held accountable, and both parties should work together to get better. Be proactive in your efforts, and you, the VMI, and the organization will be rewarded.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop

    Contact your account representative for more information

    workshops@infotech.com

    1-888-670-8889

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    Bibliography

    “Best Practices for Writing Corporate Policies and Procedures.” PowerDMS, 29 Dec. 2020. Accessed 11 January 2022.

    Duncan. “Top 10 Tips for Creating Compelling Reports.” Design Eclectic, 11 October 2019. Accessed 29 March 2022.

    Eby, Kate. “Master Writing Policies, Procedures, Processes, and Work Instructions.” 1 June 2018, updated 19 July 2021. Accessed 11 January 2022.

    “Enterprise Risk Management.” Protiviti, n.d. Accessed 16 Feb. 2017.

    Geller & Company. “World-Class Procurement — Increasing Profitability and Quality.” Spend Matters, 2003. Accessed 4 March 2019.

    Guth, Stephen. “Vendor Relationship Management Getting What You Paid for (And More).” Citizens, 26 Feb. 2015. Web.

    Guth, Stephen. The Vendor Management Office: Unleashing the Power of Strategic Sourcing. Lulu.com, 2007. Print.

    “ISG Index 4Q 2021.” Information Services Group, Inc., 2022. Web.

    “Six Tips for Making a Quality Report Appealing and Easy To Skim.” AHRQ, Oct. 2019. Accessed 29 March 2022.

    Tucker, Davis. “Marketing Reporting: Tips to Create Compelling Reports.” 60 Second Marketer, 28 March 2020. Accessed 29 March 2022.

    “Why Do We Perform Better When Someone Has High Expectations of Us?” The Decision Lab, 9 Sept. 2020. Accessed 31 January 2022.

    Design a Coordinated Vulnerability Disclosure Program

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    • member rating overall impact: 10.0/10 Overall Impact
    • member rating average dollars saved: $10,000 Average $ Saved
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    • Parent Category Name: Threat Intelligence & Incident Response
    • Parent Category Link: /threat-intelligence-incident-response
    • Businesses prioritize speed to market over secure coding and testing practices in the development lifecycle. As a result, vulnerabilities exist naturally in software.
    • To improve overall system security, organizations are leveraging external security researchers to identify and remedy vulnerabilities, so as to mitigate the overall security risk.
    • A primary challenge to developing a coordinated vulnerability disclosure (CVD) program is designing repeatable procedures and scoping the program to the organization’s technical capacity.

    Our Advice

    Critical Insight

    • Having a coordinated vulnerability disclosure program is likely to be tomorrow’s law. With pressures from federal government agencies and recommendations from best-practice frameworks, it is likely that a CVD will be mandated in the future to encourage organizations to be equipped and prepared to respond to externally disclosed vulnerabilities.
    • CVD programs such as bug bounty and vulnerability disclosure programs (VDPs) may reward differently, but they have the same underlying goals. As a result, you don't need dramatically different process documentation.

    Impact and Result

    • Design a coordinated vulnerability disclosure program that reflects business, customer, and regulatory obligations.
    • Develop a program that aligns your resources with the scale of the coordinated vulnerability disclosure program.
    • Follow Info-Tech’s vulnerability disclosure methodology by leveraging our policy, procedure, and workflow templates to get you started.

    Design a Coordinated Vulnerability Disclosure Program Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should design a coordinated vulnerability disclosure program, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess goals

    Define the business, customer, and compliance alignment for the coordinated vulnerability disclosure program.

    • Design a Coordinated Vulnerability Disclosure Program – Phase 1: Assess Goals
    • Information Security Requirements Gathering Tool

    2. Formalize the program

    Equip your organization for coordinated vulnerability disclosure with formal documentation of policies and processes.

    • Design a Coordinated Vulnerability Disclosure Program – Phase 2: Formalize the Program
    • Coordinated Vulnerability Disclosure Policy
    • Coordinated Vulnerability Disclosure Plan
    • Coordinated Vulnerability Disclosure Workflow (Visio)
    • Coordinated Vulnerability Disclosure Workflow (PDF)
    [infographic]

    Make Your IT Governance Adaptable

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    • Parent Category Name: IT Governance, Risk & Compliance
    • Parent Category Link: /it-governance-risk-and-compliance
    • People don’t understand the value of governance, seeing it as a hindrance to productivity and efficiency.
    • Governance is delegated to people and practices that don’t have the ability or authority to make these decisions.
    • Decisions are made within committees that don’t meet frequently enough to support business velocity.
    • It is difficult to allocate time and resources to build or execute governance effectively.

    Our Advice

    Critical Insight

    • IT governance applies not just to the IT department but to all uses of information and technology.
    • IT governance works against you if it no longer aligns with or supports your organizational direction, goals, and work practices.
    • Governance doesn’t have to be bureaucratic or control based.
    • Your governance model should be able to adapt to changes in the organization’s strategy and goals, your industry, and your ways of working.
    • Governance can be embedded and automated into your practices.

    Impact and Result

    • You will produce more value from IT by developing a governance framework optimized for your current needs and context, with the ability to adapt as your needs shift.
    • You will create the foundation and ability to delegate and empower governance to enable agile delivery.
    • You will identify areas where governance does not require manual oversight and can be embedded into the way you work.

    Make Your IT Governance Adaptable Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Make Your IT Governance Adaptable Deck – A document that walks you through how to design and implement governance that fits the context of your organization and can adapt to change.

    Our dynamic, flexible, and embedded approach to governance will help drive organizational success. The three-phase methodology will help you identify your governance needs, select and refine your governance model, and embed and automate governance decisions.

    • Make Your IT Governance Adaptable – Phases 1-3

    2. Adaptive and Controlled Governance Model Templates and Workbook – Documents that gather context information about your organization to identify the best approach for governance.

    Use these templates and workbook to identify the criteria and design factors for your organization and the design triggers to maintain fit. Upon completion this will be your new governance framework model.

    • Controlled Governance Models Template
    • IT Governance Program Overview
    • Governance Workbook

    3. Implementation Plan and Workbook – Tools that help you build and finalize your approach to implement your new or revised governance model.

    Upon completion you will have a finalized implementation plan and a visual roadmap.

    • Governance Implementation Plan
    • Governance Roadmap Workbook

    4. Governance Committee Charter Templates – Base charters that can be adapted for communication.

    Customize these templates to create the committee charters or terms of reference for the committees developed in your governance model.

    • IT PMO Committee Charter
    • IT Risk Committee Charter for Controlled Governance
    • IT Steering Committee Charter for Controlled Governance
    • Program Governance Committee Charter
    • Architecture Review Board Charter
    • Data Governance Committee Charter
    • Digital Governance Committee Charter

    5. Governance Automation Criteria Checklist and Worksheet – Tools that help you determine which governance decisions can be automated and work through the required logic and rules.

    The checklist is a starting point for confirming which activities and decisions should be considered for automation or embedding. Use the worksheet to develop decision logic by defining the steps and information inputs involved in making decisions.

    • Governance Automation Criteria Checklist
    • Governance Automation Worksheet

    Infographic

    Workshop: Make Your IT Governance Adaptable

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Develop Your Guiding Star

    The Purpose

    Establish the context for your governance model.

    Key Benefits Achieved

    Core understanding of the context that will enable us to build an optimal model

    Activities

    1.1 Confirm mission, vision, and goals.

    1.2 Define scope and principles.

    1.3 Adjust for culture and finalize context.

    Outputs

    Governance principles

    Governance context and goals

    2 Define the Governance Model

    The Purpose

    To select and adapt a governance model based on your context.

    Key Benefits Achieved

    A selected and optimized governance model

    Activities

    2.1 Select and refine governance model.

    2.2 Confirm and adjust the structure.

    2.3 Review and adapt governance responsibilities and activities.

    2.4 Validate governance mandates and membership.

    Outputs

    IT governance model and adjustment triggers

    IT governance structure, responsibilities, membership, and cadence

    Governance committee charters

    3 Build Governance Process and Policy

    The Purpose

    Refine your governance practices and associate policies properly.

    Key Benefits Achieved

    A completed governance model that can be implemented with clear update triggers and review timing

    Policy alignment with the right levels of authority

    Activities

    3.1 Update your governance process.

    3.2 Align policies to mandate.

    3.3 Adjust and confirm your model.

    3.4 Identify and document update triggers and embed into review cycle.

    Outputs

    IT governance process and information flow

    IT governance policies

    Finalized governance model

    4 Embed and Automate Governance

    The Purpose

    Identify options to automate and embed governance activities and decisions.

    Key Benefits Achieved

    Simply more consistent governance activities and automate them to enhance speed and support governance delegation and empowerment

    Activities

    4.1 Identify decisions and standards that can be automated. Develop decision logic.

    4.2 Plan verification and validation approach.

    4.3 Build implementation plan.

    4.4 Develop communication strategy and messaging.

    Outputs

    Selected automation options, decision logic, and business rules

    Implementation and communication plan

    Further reading

    Make Your IT Governance Adaptable

    Governance isn't optional, so keep it simple and make it flexible.

    Table of Contents

    4 Analyst Perspective

    5 Executive Summary

    13 Governance Stages

    14 Info-Tech’s IT Governance Thought Model

    19 Info-Tech’s Approach

    23 Insight Summary

    30 Phase 1: Identify Your Governance Needs

    54 Phase 2: Select and Refine Your Governance Model

    76 Phase 3: Embed and Automate

    94 Summary of Accomplishment

    95 Additional Support

    97 Contributors

    98 Bibliography

    Make Your IT Governance Adaptable

    Governance isn't optional, so keep it simple and make it flexible.

    EXECUTIVE BRIEF

    Analyst Perspective

    Governance will always be part of the fabric of your organization. Make it adaptable so it doesn’t constrain your success.

    Photo of Valence Howden, Principal Research Director, Info-Tech Research Group

    Far too often, the purpose of information and technology (I&T) governance is misunderstood. Instead of being seen as a way to align the organization’s vision to its investment in information and technology, it has become so synonymous with compliance and control that even mentioning the word “governance” elicits a negative reaction.

    Success in modern digital organizations depends on their ability to adjust for velocity and uncertainty, requiring a dynamic and responsive approach to governance – one that is embedded and automated in your organization to enable new ways of working, innovation, and change.

    Evolutionary theory describes adaptability as the way an organism adjusts to fit a new environment, or changes to its existing environment, to survive. Applied to organizations, adaptable governance is critical to the ability to survive and succeed.

    If your governance doesn’t adjust to enable your changing business environment and customer needs, it will quickly become misaligned with your goals and drive you to failure.

    It is critical that people build an approach to governance that is effective and relevant today while building in adaptability to keep it relevant tomorrow.

    Valence Howden
    Principal Research Director, Info-Tech Research Group

    Executive Summary

    Your Challenge

    • People don’t understand the value of governance, seeing it as a hindrance to productivity and efficiency.
    • Governance is delegated to people and practices that don’t have the ability or authority to make decisions.
    • Decisions are made within committees that don’t meet frequently enough to support business velocity.
    • It is difficult to allocate time and resources to build or execute governance effectively

    Common Obstacles

    • You are unable to clearly communicate how governance adds value to your organization.
    • Your IT governance approach no longer aligns with or supports your organizational direction, goals, and work practices.
    • Governance is seen and performed as a bureaucratic control-based exercise.
    • Governance activities are not transparent.
    • The governance committee gets too deeply involved with project deep dives and daily management, derailing its effectiveness and ability to produce value.

    Info-Tech’s Approach

    • Use Info-Tech’s IT governance models to identify a base model similar to the way you are organized. Confirm your current and future placement in governance execution.
    • Adjust the model based on industry needs, your principles, regulatory requirements, and your future direction.
    • Identify where to embed or automate decision making and compliance and what is required to do so effectively.
    • Implement your governance model for success.

    Info-Tech Insight

    IT governance must be embedded and automated, where possible, to effectively meet the needs and velocity of digital organizations and modern practices and to drive success and value.

    What is governance?

    IT governance is a critical and embedded practice that ensures that information and technology investments, risks, and resources are aligned in the best interests of the organization and produce business value.

    Effective governance ensures that the right technology investments are made at the right time to support and enable your organization’s mission, vision, and goals.

    5 KEY OUTCOMES OF GOOD GOVERNANCE
    STRATEGIC ALIGNMENT

    Technology investments and portfolios are aligned with the organization's strategic objectives.

    		RISK OPTIMIZATION

    Organizational risks are understood and addressed to minimize impact and optimize opportunities.

    		VALUE DELIVERY

    IT investments and initiatives deliver their expected benefits.

    		RESOURCE OPTIMIZATION

    Resources (people, finances, time) are appropriately allocated across the organization to optimal organizational benefit.

    		PERFORMANCE MEASUREMENT

    The performance of technology investments is monitored and used to determine future courses of action and to confirm achievement of success.

    ‹–EVALUATE–DIRECT–MONITOR–›

    Why is this necessary?

    • Governance is not simply a committee or an activity that you perform at a specific point in time; it is a critical and continuously active practice that drives the success of your organization. It is part of your organization’s DNA and is just as unique, with some attributes common to all (IT governance elements), some specific to your family (industry refinements), and some specific to you (individual organization).
    • Your approach to governance needs to change over time in order to remain relevant and continue to enable value and success, but organizations rarely want to change governance once it’s in place.
    • To meet the speed and flow of practices like Lean, DevOps, and Agile, your IT governance needs to be done differently and become embedded into the way your organization works. You must adjust your governance model based on key moments of change – organizational triggers – to maintain the effectiveness of your model.

    Info-Tech Insight

    Build an optimal model quickly and implement the core elements using an iterative approach to ensure the changes provide the most value.

    The Technology Value Trinity

    Delivery of Business Value & Strategic Needs

    • DIGITAL & TECHNOLOGY STRATEGY
      The identification of objectives and initiatives necessary to achieve business goals.
    • IT OPERATING MODEL
      The model for how IT is organized to deliver on business needs and strategies.
    • INFORMATION & TECHNOLOGY GOVERNANCE
      The governance to ensure the organization and its customers get maximum value from the use of information and technology.

    All three elements of the Technology Value Trinity work in harmony to deliver business value and meet strategic needs. As one changes, the others need to change as well.

    • Digital and IT Strategy tells you what you need to achieve to be successful.
    • IT Operating Model and Organizational Design is the alignment of resources to deliver on your strategy and priorities.
    • Information & Technology Governance is the confirmation that IT’s goals and strategy align with the business’ strategy. It is the mechanism by which you continuously prioritize work to ensure that what you deliver is in line with the strategy. This oversight involves evaluating, directing, and monitoring the delivery of outcomes to ensure that the use of resources results in achieving the organization’s goals.

    Too often strategy, operating model and organizational design, and governance are considered separate practices. As a result, “strategic documents” end up being wish lists, and projects continue to be prioritized based on who shouts the loudest rather than on what is in the best interest of the organization.

    Where information & technology governance fits within an organization

    An infographic illustrating where Governance fits within an organization. The main section is titled 'Enterprise Governance and Strategy' and contains 'Value Outcomes', 'Mission and Vision', 'Goals and Objectives', and 'Guiding Principles'. These all feed into the highlighted 'Information & Technology Governance', which then contributes to 'IT Strategy', which lies outside the main section.

    I&T governance hasn’t achieved its purpose

    Governance is the means by which IT ensures that information and technology delivery and spend is aligned to business goals and delivers business outcomes. However, most CEOs continue to perceive IT as being poorly aligned to the business’ strategic goals, which indicates that governance is not implemented or executed properly.

    For I&T governance to be effective you need a clear understanding of the things that drive your organization and its success. This understanding becomes your guiding star, which is critical for effective governance. It also requires participation by all parts of the organization, not just IT.

    Info-Tech CIO/CEO Alignment Diagnostics (N=124)

    43% of CEOs believe that business goals are going unsupported by IT.

    60% of CEOs believe that improvement is required around IT’s understanding of business goals.

    80% of CIOs/CEOs are misaligned on the target role for IT.

    30% of business stakeholders are supporters (N=32,536) of their IT departments

    Common causes of poor governance

    Key causes of poor or misaligned governance

    1. Governance and its value to your organization is not well understood, often being confused or integrated with more granular management activities.
    2. Business executives fail to understand that IT governance is a function of the business and not the IT department.
    3. Poor past experiences have made “governance” a bad word in the organization. People see it as a constraint and barrier that must be circumvented to get work done.
    4. There is misalignment between accountability and authority throughout the organization, and the wrong people are involved in governance practices.
    5. There is an unwillingness to change a governance approach that has served the organization well in the past, leading to challenges when the organization starts to change practices and speed of delivery.
    6. There is a lack of data and data-related capabilities required to support good decision making and the automation of governance decisions.
    7. The goals and strategy of the organization are not known or understood, leaving nothing for IT governance to orient around.

    Key symptoms of ineffective governance committees

    1. No actions or decisions are generated. The committee produces no value and makes no decisions after it meets. The lack of value output makes the usefulness of the committee questionable.
    2. Resources are overallocated. There is a lack of clear understanding of capacity and value in work to be done, leading to consistent underestimation of required resources and poor resource allocation.
    3. Decisions are changed outside of committee. Decisions made or initiatives approved by the committee are later changed when the proper decision makers are involved or the right information becomes available.
    4. Governance decisions conflict with organizational direction. This shows an obvious lack of alignment and behavioral disconnect that work against organizational success. It is often due to not accounting for where power really exists within the structure.
    5. Consistently poor outcomes are produced from governance direction. Committee members’ lack of business acumen, relevant data, or understanding of organizational goals results in decisions that fail to drive successful measured outcomes.

    Mature your governance by transitioning from ad hoc to automated

    Organizations should look to progress in their governance stages. Ad hoc and controlled governance practices tend to be more rigid, making these a poor fit for organizations requiring higher velocity delivery or using more agile and adaptive practices.

    The goal as you progress through these stages is to delegate governance and empower teams based on your fit and culture, enabling teams where needed to make optimal decisions in real time, ensuring that they are aligned with the best interests of the organization.

    Automate governance for optimal velocity while mitigating risks and driving value.

    This puts your organization in the best position to be adaptive, able to react effectively to volatility and uncertainty.

    A graph illustrating the transition from Ad Hoc to Automated. The y-axis is 'Process Integration' and x-axis is 'Trust & Empowerment'. 'Ad Hoc: Inconsistent Decision Making' lies close to the origin, ranking low on both axes' values. 'Controlled: Authoritarian, Highly Structured' ranks slightly higher on both axes. 'Agile: Distributed & Empowered' ranks 2nd highest on both axes. 'Automated: High Velocity, Embedded & Flexible' ranks highest on both axes.

    Stages of governance

    Adaptive
    Data-Centric

    ˆ


    ˆ


    ˆ


    ˆ


    ˆ
    Traditional
    (People- and Document-Centric)

    4

    		 Automated Governance
    • Entrenched into organizational processes and product/service design
    • Empowered and fully delegated to maintain fit and drive organizational success and survival

    3

    		 Agile Governance
    • Flexible enough to support different needs in the organization and respond quickly to change
    • Driven by principles and delegated throughout the company

    2

    		 Controlled Governance
    • Focused on compliance and hierarchy-based authority
    • Levels of authority defined and often driven by regulatory requirements

    1

    		 Ad Hoc Governance
    • Not well defined or understood within the organization
    • Occurs out of necessity but often not done by the right people or bodies

    Make Governance Adaptable and Automated to Drive Success and Value

    Governance adaptiveness ensures the success of digital organizations and modern practice implementation.

    THE PROBLEM

    • The wrong people are making decisions.
    • Organizations don't understand what governance is or why it's done.
    • Governance scope and design is a bad fit, damaging the organization.
    • People think governance is optional.

    THE SOLUTION

    ESTABLISH YOUR GUIDING PRINCIPLES

    Define and establish the guiding principle that drive your organization toward success.

    • Mission & Vision
    • Business Goals & Success Criteria
    • Operating Model & Work Practices
    • Governance Scope
    • Principles
    SELECT AND REFINE YOUR MODEL

    Use Info-Tech's IT Governance Models to identify a base model similar to the way you are organized. Confirm your current and future placement in governance execution.

    IDENTIFY MODEL UPDATE TRIGGERS

    Adjust the model based on industry needs, your principles, regulatory requirements, and future direction.

    • Principles
      Select principles that allow the organization to be adaptive while still ensuring the governance continues to stay on course with pursuing its guiding star.
    • Responsibilities
      Decide on the governance responsibilities related to Oversight Level, Strategic Alignment, Value Delivery, Risk Optimization, Resource Optimization, and Performance Management.
    • Structure
      Determine at which structured level governance is appropriate: Enterprise, Strategic, Tactical, or Operational.
    • Processes
      Establish processes that will enable governance to occur such as: Embed the processes required for successful governance.
    • Membership
      Identify the Responsibility & Accountability of those who should be involved in governance processes, policies, guidelines, and responsibilities.
    • Policies
      Confirm any governing policies that need to be adhered to and considered to manage risk.
    DETERMINE AUTOMATION OPTIONS AND DECISION RULES

    Identify where to embed or automate decision making and compliance and what is required to do so effectively.

    STAGES OF GOVERNANCE

      Traditional (People- and document-centric)
    1. AD HOC GOVERNANCE
      Governance that is not well defined or understood within the organization. It occurs out of necessity but often not by the right people or bodies.
    2. CONTROLLED GOVERNANCE
      Governance focused on compliance and hierarchy-based, authority-driven control of decisions. Levels of Authority are defined and often driven by regulatory requirements.
      3. Adaptive (Data Centric)
    3. AGILE GOVERNANCE
      Governance that is flexible to support different needs and quick responses in the organization. Driven by principles and delegated throughout the company.
    4. AUTOMATED GOVERNANCE
      Governance that is entrenched and automated into the organizational processes and product/service design. Empowered and fully delegated governance to maintain fit and drive organizational success and survival.

    KEY INSIGHT

    Governance must actively adapt to changes in your organization, environment, and practices or it will drive you to failure.

    Developing governance principles

    Governance principles support the move from controlled to automated governance by providing guardrails that guide your decisions. They provide the ethical boundaries and cultural perspectives that contextualize your decisions and keep you in line with organizational values. Determining principles are global in nature.

    CONTROLLED CHANGE ACTIONS AND RATIONALE AUTOMATED
    Disentangle governance and management Move from governance focused on evaluating, directing, and monitoring strategic decisions around information and technology toward defining and automating rules and principles for decision making into processes and practices, empowering the organization and driving adaptiveness. Delegate and empower
    Govern toward value Move from identifying the organization’s mission, goals, and key drivers toward orienting IT to align with those value outcomes and embedding value outcomes into design and delivery practices. Deliver to defined outcomes
    Make risk-informed decisions Move from governance bodies using risk information to manually make informed decisions based on their defined risk tolerance toward having risk information and attestation baked into decision making across all aspects and layers of the IT organization – from design to sustainment. Embed risk decision making into processes and practices
    Measure to drive improvement Move from static lagging metrics that validate that the work being done is meeting the organization’s needs and guide future decision making toward automated governance with more transparency driven by data-based decision making and real-time data insights. Trust through real-time reporting
    Enforce standards and behavior Move from enforcing standards and behavior and managing exceptions to ensure that there are consistent outcomes and quality toward automating standards and behavioral policies and embedding adherence and changes in behavior into the organization’s natural way of working. Automate standards through automated decision rules, verification, and validation

    Find your guiding star

    MISSION AND VISION –› GOALS AND OBJECTIVES –› GUIDING PRINCIPLES –›

    VALUE
    Why your organization exists and what value it aims to provide. The purpose you build a strategy to achieve. What your organization needs be successful at to fulfill its mission. Key propositions and guardrails that define and guide expected organizational behavior and beliefs.

    Your mission and vision define your goals and objectives. These are reinforced by your guiding principles, including ethical considerations, your culture, and expected behaviors. They provide the boundaries and guardrails for enabling adaptive governance, ensuring you continue to move in the right direction for organizational success.

    To paraphrase Lewis Carroll, “If you don't know where you want to get to, it doesn't much matter which way you go.” Once you know what matters, where value resides, and which considerations are necessary to make decisions, you have consistent directional alignment that allows you to delegate empowered governance throughout the organization, taking you to the places you want to go.

    Understand governance versus management

    Don’t blur the lines between governance and management; each has a unique role to play. Confusing them results in wasted time and confusion around ownership.

    Governance

    I&T governance defines WHAT should be done and sets direction through prioritization and decision making, monitoring overall IT performance.

    Governance aligns with the mission and vision of the organization to guide IT.

    		A cycle of processes split into two halves, 'Governance Processes' and 'Management Processes'. Beginning on the Management side, the processes are 'Plan', 'Build', 'Run', 'Monitor', then to the Governance side, 'Evaluate', 'Direct', 'Monitor', and back to the beginning.

    Management

    Management focuses on HOW to do things to achieve the WHAT. It is responsible for executing on, operating, and monitoring activities as determined by I&T governance.

    Management makes decisions for implementation based on governance direction.

    Data is critical to automating governance

    Documents and subjective/non-transparent decisions do not create sufficient structure to allow for the true automation of governance. Data related to decisions and aggregated risk allow you to define decision logic and rules and algorithmically embed them into your organization.

    People- and Document-Centric

    Governance drives activities through specific actors (individuals/committees) and unstructured data in processes and documents that are manually executed, assessed, and revised. There are often constraints caused by gaps or lack of adequate and integrated information in support of good decisions.

    Data-Centric

    Governance actors provide principles, parameters, and decision logic that enable the creation of code, rulesets, and algorithms that leverage organizational data. Attestation is automatic – validated and managed within the process, product, or service.

    Info-Tech’s Approach

    Define your context and build your model

    ESTABLISH YOUR GUIDING PRINCIPLES

    Define and establish the guiding principle that drive your organization toward success.

    • Mission & Vision
    • Business Goals & Success Criteria
    • Operating Model & Work Practices
    • Governance Scope
    • Principles
    SELECT AND REFINE YOUR MODEL

    Use Info-Tech's IT Governance Models to identify a base model similar to the way you are organized. Confirm your current and future placement in governance execution.

    MODEL UPDATE TRIGGERS

    Adjust the model based on industry needs, your principles, regulatory requirements, and future direction.

    • Principles
      Select principles that allow the organization to be adaptive while still ensuring the governance continues to stay on course with pursuing its guiding star.
    • Responsibilities
      Decide on the governance responsibilities related to Oversight Level, Strategic Alignment, Value Delivery, Risk Optimization, Resource Optimization, and Performance Management.
    • Structure
      Determine at which structured level governance is appropriate: Enterprise, Strategic, Tactical, or Operational.
    • Processes
      Establish processes that will enable governance to occur such as: Embed the processes required for successful governance.
    • Membership
      Identify the Responsibility & Accountability of those who should be involved in governance processes, policies, guidelines, and responsibilities.
    • Policies
      Confirm any governing policies that need to be adhered to and considered to manage risk.
    AUTOMATION OPTIONS AND DECISION RULES

    Identify where to embed or automate decision making and compliance and what is required to do so effectively.

    The Info-Tech Difference

    Define your context and build your model

    1. Quickly identify the organizational needs driving governance and your guiding star.
    2. Select and refine a base governance model based on our templates.
    3. Define and document the key changes in your organization that will trigger a need to update or revise your governance.
    4. Determine where you might be able to automate aspects of your governance.
    5. Design your decision rules where appropriate to support automated and adaptive governance.

    How to use this research

    Where are you in your governance optimization journey?

    MY GOVERNANCE IS AD HOC AND WE’RE STARTING FROM SCRATCH I NEED TO BUILD A NEW GOVERNANCE STRUCTURE OUR GOVERNANCE APPROACH IS INEFFECTIVE AND NEEDS IMPROVEMENT I NEED TO LOOK AT OPTIONS FOR AUTOMATING GOVERNANCE PRACTICES
    Step 1.1: Define Your Governance Context Step 1.2: Structure Your IT Governance Phase 2: Select and Refine Your Model Phase 3: Embed and Automate

    IT governance is about ensuring that the investment decisions made around information and technology drive the optimal organizational value, not about governing the IT department.

    In this section we will clarify your organizational context for governance and define your guiding star to orient your governance design and inform your structure.

    There is no need to start from scratch! Start with Info-Tech’s best-practice IT governance models and customize them based on your organizational context.

    The research in this section will help you to select the right base model to work from and provide guidance on how to refine it.

    Governance practices eventually stop being a good fit for a changing organization, and things that worked before become bottlenecks.

    Governing roles and committees don’t adjust well, don’t have consistent practices, and lack the right information to make good decisions.

    The research in this section will help you improve and realign your governance practices.

    Once your governance is controlled and optimized you are ready to investigate opportunities to automate.

    This phase of the blueprint will help you determine where it’s feasible to automate and embed governance, understand key governance automation practices, and develop governing business rules to move your journey forward.

    Related Research:

    If you are looking for details on specific associated practices, please see our related research:

    1. I need to establish data governance.
    2. I need to manage my project portfolio, from intake to confirmation of value.
    3. I need better risk information to support decision making.
    4. I need to ensure I am getting the expected outcomes and benefits from IT spend.
    5. I need to prioritize my product backlog or service portfolio.

    Info-Tech’s methodology for building and embedding adaptive governance

    1. Identify Your Governance Needs 2. Select and Refine Your Governance Model 3. Embed and Automate
    Phase Steps
    1. Confirm Mission, Vision, and Goals
    2. Define Scope and Principles
    3. Adjust for Culture and Finalize Context
    1. Select and Refine Your Governance Model
    2. Identify and Document Your Governance Triggers
    3. Build Your Implementation Plan
    1. Identify Decisions to Embed and Automate
    2. Plan Validation and Verification
    3. Update Implementation Plan
    Phase Outcomes
    • Governance context, guiding star, and principles
    • Completed governance model with associated decisions and policies
    • Implementation plan
    • List of automation options
    • Decision logic, rules, and rulesets
    • Validation and verification approach
    • Finalized implementation plan

    Insight summary

    Value

    To remain valuable, I&T governance must actively adapt to changes in your organization, environment, and practices, or it will drive you to failure instead of success.

    Focus

    I&T governance does not focus on the IT department. Rather, its intent is to ensure your organization makes sound decisions around investment in and use of information and technology.

    Maturity

    Your governance approach progresses in stages from ad hoc to automated as your organization matures. Your stage depends on your organizational needs and ways of working.

    Good governance

    Good governance does not equate to control and does not stifle innovation.

    Automation

    Automating governance must be done in stages, based on your capabilities, level of maturity, and amount of usable data.

    Strategy

    Establish the least amount of governance required to allow you to achieve your goals.

    Guiding star

    If you don’t establish a guiding star to align the different stakeholders in your organization, governance practices will create conflict and confusion.

    Blueprint deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Key Deliverable:
    Governance Framework Model

    The governance framework model provides the design of your new governance model and the organizational context to retain stakeholder alignment and organizational satisfaction with governance.

    The model includes the structures, practices, and responsibilities to drive effective governance in your organization.

    Sample of the key blueprint deliverable 'Governance Framework Model'.

    Governance Implementation Plan

    This roadmap lays out the changes required to implement the governance model, the cultural items that need to be addressed, and anticipated timing.

    Sample of the blueprint deliverable 'Governance Implementation Plan'.

    Governance Committee Charters

    Develop a detail governance charter or term of reference for each governing body. Outline the mandate, responsibilities, membership, process, and associated policies for each.

    Sample of the blueprint deliverable 'Governance Committee Charters'.

    Blueprint benefits

    IT Benefits

    • Stronger, traceable alignment of IT decisions and initiatives to business needs.
    • Improved ability for IT to meet the changing demands and velocity of the business.
    • Better support and enablement of innovation – removing constraints and barriers.
    • Optimized governance that supports and enables modern work practices.
    • Increased value generation from IT initiatives and optimal use of IT resources.
    • Designed adaptability to ensure you remain in alignment as your business and IT environments change.

    Business Benefits

    • Clear transparent focus of IT initiatives on generating strategic business value.
    • Improved ability to measure the value and contribution of IT to business goals.
    • Alignment and integration of business/IT strategy.
    • Optimized development and use of IT capabilities to meet business needs.
    • Improved integration with corporate/enterprise governance.

    Executive Brief Case Study

    INDUSTRY Manufacturing
    SOURCE Info-Tech analyst experience

    Improving the governance approach and delegating decision making to support a change in business operation

    Challenge

    The large, multi-national organization has locations across the world but has two primary headquarters, in Europe and the United States.

    Market shifts drove an organizational shift in strategy, leading to a change in operating models, a product focus, and new work approaches across the organization.

    Much of the implementation and execution was done in isolation, and effectiveness was slowed by poor integration and conflicting activities that worked against each other.

    The product owner role was not well defined.

    Solution

    After reviewing the organization’s challenges and governance approach, we redefined and realigned its organizational and regional goals and identified outcomes that needed to be driven into their strategies.

    We also reviewed their span of control and integration requirements and properly defined decisions that could be made regionally versus globally, so that decisions could be made to support new work practices.

    We defined the product and service owner roles and the decisions each needed to make.

    Results

    We saw an improvement in the alignment of organizational activities and the right people and bodies making decisions.

    Work and practices were aimed at the same key outcomes and alignment between teams toward organizational goal improved.

    Within one year, the success rate of the organization’s initiatives increased by 22%, and the percentage of product-related decisions made by product owners increased by 50%.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 5 and 8 calls over the course of 2 to 3 months.

    What does a typical GI on this topic look like?

      Phase 1: Identify Your Governance Needs

    • Call #1: Confirm your organization’s mission and vision and review your strategy and goals.
    • Call #2: Identify considerations and governance needs. Develop your guiding star and governing principles.

      • Phase 2: Select and Refine Your Model

    • Call #3: Select your base model and optimize it to meet your governance needs.
    • Call #4: Define your adjustment triggers and develop your implementation plan.

      • Phase 3: Embed and Automate

    • Call #5: Identify decisions and standards you can automate and where to embed them.
    • Call #6: Confirm levels of authority and data requirements. Establish your approach and update the implementation plan.

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Session 1 Session 2 Session 3 Session 4 Session 5
    Activities
    Develop Your Guiding Star

    1.1 Confirm mission, vision, and goals

    1.2 Define scope and principles

    1.3 Adjust for culture and finalize context

    Define the Governance Model

    2.1 Select and refine governance model

    2.2 Confirm and adjust the structure

    2.3 Review and adapt governance responsibilities and activities

    2.4 Validate governance mandates and membership

    Build Governance Process and Policy

    3.1 Update your governance process

    3.2 Align policies to mandate

    3.3 Adjust and confirm your governance model

    3.4 Identify and document your update triggers

    3.5 Embed triggers into review cycle

    Embed and Automate Governance

    4.1 Identify decisions and standards to automate

    4.2 Plan verification and validation approach

    4.3 Build implementation plan

    4.4 Develop communication strategy and messaging

    Next Steps and Wrap-Up

    5.1 Complete in-progress outputs from previous four sessions

    5.2 Set up review time for workshop outputs and to discuss next steps

    Outcomes
    1. Governance context and goals
    2. Governance principles
    1. IT governance model and adjustment triggers
    2. IT governance structure, responsibilities, membership, and cadence
    3. Governance committee charters
    1. IT governance process and information flow
    2. IT governance policies
    3. Finalized governance model
    1. Selected automation options, decision logic, and business rules
    2. Implementation and communication plan
    1. Governance context and principles
    2. Finalized governance model and charters
    3. Finalized implementation plan

    Make Your IT Governance Adaptable

    Phase 1

    Identify your Governance Needs

    Phase 1

    • 1.1 Define Your Guiding Star
    • 1.2 Define Scope and Principles
    • 1.3 Adjust for Culture and Finalize Context
      •

    Phase 2

    • 2.1 Choose and Adapt Your Model
    • 2.2. Identify and Document Your Governance Triggers
    • 2.3 Build Your Implementation Approach

    Phase 3

    • 3.1 Identify Decisions to Embed and Automate
    • 3.2 Plan Validation and Verification
    • 3.3 Update Implementation Plan

    This phase will walk you through the following activities:

    Identify the organization’s goals, mission, and vision that will guide governance.

    Define the scope of your governance model and the principles that will guide how it works.

    Account for organizational attitudes, behaviors, and culture related to governance and finalize your context.

    This phase involves the following participants:

    • Senior IT leadership
    • Governance leads

    Step 1.1

    Define Your Guiding Star

    Activities
    • 1.1.1 Document and interpret your strategy, mission, and vision
    • 1.1.2 Document and interpret the business and IT goals and outcomes
    • 1.1.3 Identify your operating model and work processes

    This step will walk you through the following activities:

    Review your business and IT strategy, mission, and vision to ensure understanding of organizational direction.

    Identify the business and IT goals that governance needs to align.

    Confirm your operating model and any work practices that need to be accounted for in your model.

    This step involves the following participants:

    • Senior IT leadership
    • Governance leads

    Outcomes of this step

    Identified guiding star outcomes to align governance outcomes with

    Defined operating model type and work style that impact governance design

    Identify Your Governance Needs

    Step 1.1 – Define your Guiding Star Step 1.2 – Define Scope and Principles Step 1.3 – Adjust for Culture and Finalize Context

    Govern by intent

    Find the balance for your designed governance approach

    Organic governance occurs during the formation of an organization and shifts with challenges, but it is rarely transparent and understood. It changes your culture in uncontrolled ways. Intentional governance is triggered by changes in organizational needs, working approaches, goals, and structures. It is deliberate and changes your culture to enable success.
    Stock photo of a weight scale.

    Info-Tech Insight

    Your approach to governance needs to be designed, even if your execution of governance is adaptable and delegated.

    What is your guiding star?

    Your guiding star is a combination of your organization’s mission, vision, and strategy and the goals that have been defined to meet them.

    It provides you with a consistent focal point around which I&T-related activities and projects orbit, like planets around a star.

    It generates the gravity that governance uses to keep things from straying too far away from the goal of achieving relevant value.

    1. Mission & Vision
    2. Business Goals & Success Criteria
    3. Operating Model & Work Practices
    4. Governance Scope
    5. Principles

    1.1.1 Document and interpret your strategy, mission, and vision

    30 minutes

    Input: Business strategy, IT strategy, Mission and vision statements

    Output: Updated Governance Workbook, Documented strategic outcomes and organizational aims that governance needs to achieve

    Materials: Whiteboard/flip charts, Governance Workbook

    Participants: IT senior leadership

    1. Gather your available business, digital, and IT strategy, mission, and vision information and document everything in your Governance Workbook. It’s ok if you don’t have all of it.
    2. Review and your mission and vision as a group. Discuss and document key points, including:
      • Which activities do you perform as an organization that embody your vision?
      • What key decisions and behaviors are required to ensure that your mission and vision are achievable?
      • What do you require from leadership to enable you to govern effectively?
      • What are the implications of the mission and vision on how the organization needs to work? What are the implications on decisions around opportunities and risks?

    Download the Governance Workbook

    1.1.2 Document and interpret the business and IT goals and outcomes

    60 minutes

    Input: Business strategy, Business and IT goals and related initiatives

    Output: Required success outcomes for goals, Links between IT and business goals that governance needs to align

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Document the business and IT goals that have been created to achieve the mission and vision.
    2. Discuss if there are any gaps between the goals and the mission and vision. Ask yourself – if we accomplish these goals will we have successfully achieved the mission?
    3. For each goal, define what successful achievement of the goal looks like. Starting with one goal or objective, ask:
      • How would I know I am on the right path and how will I know I have gotten there?
      • How would I know if I am not on the right path and what does a bad result look like?
      4. Document your success criteria.
    4. Brainstorm some examples of decisions that support or constrain the achievement of your goals.
    5. Repeat this exercise for your remaining goals.
    6. As a group, map IT goals to business goals.

    What is your operating model and why is it important?

    An IT operating model is a visual representation of the way your IT organization needs to be designed and the capabilities it requires to deliver on the business mission, strategic objectives, and technological ambitions.

    The model is critical in the optimization and alignment of the IT organization’s structure in order to deliver the capabilities required to achieve business goals. It is a key determinant of how governance needs to be designed and where it is implemented.

    Little visualizations of different operating models: 'Centralized', 'Decentralized', and 'Hybrid'.

    1.1.3 Identify your operating model and work practices

    60 minutes

    Input: Organizational structure, Operating model (if available)

    Output: Confirmed operating approach, Defined work practices

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Identify the way your organization functions:
      • How do we currently operate? Are we centralized, decentralized or a hybrid? Are we focused on delivering products and services? Do we provide service ourselves or do we use vendors for delivery?
      • Can we achieve our mission, goals, and strategies, if we continue to operate this way? What would we have to change in how we operate to be successful in the future?
    2. Identify your governance needs. Do we need to be more structured or more flexible to support our future ways of working?
      • If you operate in a more traditional way, consider whether you are implementing or moving toward more modern practices (e.g. Agile, DevOps, enterprise service management). Do you need to make more frequent but lower-risk decisions?
      • Is your organization ready to delegate governance culturally and in terms of business understanding? Is there enough available information to support adaptive decisions and actions?
    3. Document your operating style, expected changes in work style, and cultural readiness. You will need to consider the implications on design.

    Step 1.2

    Define Scope and Principles

    Activities
    • 1.2.1 Determine the proper scope for your governance
    • 1.2.2 Confirm your determining governing principles
    • 1.2.3 Develop your specific governing principles

    This step will walk you through the following activities:

    Identify what is included and excluded within the scope of your governance.

    Develop the determining and specific principles that provide guardrails for governance activities and decisions.

    This step involves the following participants:

    • Senior IT leadership
    • Governance leads

    Outcomes of this step

    Documented governance scope and principles to apply

    Identify Your Governance Needs

    Step 1.1 – Define your Guiding Star Step 1.2 – Define Scope and Principles Step 1.3 – Adjust for Culture and Finalize Context

    Define the context for governance

    Based on the goals and principles you defined and the operating model you selected, confirm where oversight will be necessary and at what level. Focus on the necessity to expedite and clear barriers to the achievement of goals and on the ownership of risks and compliance. Some key considerations:

    • Where in the organization will you need to decide on work that needs to be done?
    • What type of work will you need to do?
    • In what areas could there be conflicts in prioritization/resource allocation to address?
    • Who is accountable for risks to the organization and its objectives?
    • Where are your regional or business-unit-specific concerns that require focused local attention?
    • Are we using more agile, rapid delivery methods to produce work?

    Understand your governance scope

    Your governance scope helps you define the boundaries of what your governance model and practices will cover. This includes key characteristics of your organization that impact what governance needs to address.

    Sample Considerations

    • Organizational Span
      • The geographical area the organization operates within. Regional laws and requirements will affect governance delegation and standards/policy development.
    • Level of Regulation
      • Higher levels of regulation create more standards and controls for risk and compliance, impacting how authority can be delegated or automated.
    • Sourcing Model
      • Changing technology sourcing introduces additional vendor governance requirements and may impact compliance and audit.
    • Risk Posture
      • The appetite for risk organizationally, and in pockets, impacts the level of uncertainty you are willing to work within and impact decision-making authority positioning.
    • Size
      • The size of your organization impacts the approach to governance, practice implementation, and delegation of authority.
    • What Is Working Today?
      • Which elements of your current governance approach should be retained, and what are the biggest pain points that need to be addressed?
    (Source: COBIT 2019)

    1.2.1 Determine the proper scope for your governance

    60 minutes

    Input: Context information from Activity 1.1, Scoping areas

    Output: Defined scope and span of control

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Determine the scope/span of control required for your governance by:
      • Reviewing your key IT capabilities. Identify the ones where the responsibilities and decisions require oversight to ensure they meet the needs of the organization.
      • Identify what works well or poorly in your current governance approach.
      • Discuss and document the level and type of knowledge and business understanding required.
      • Identify and document any regulations, standards, or laws that apply to your organization/industry and how broadly they have to be applied.
      • Identify the organization’s risk appetite, where known, and areas where acceptable thresholds of risk have been defined. Where are key risk and opportunity decisions made? Who owns risk in your organization?
      • Identify and document the perceived role of the IT group in your organization (e.g. support, innovator, partner) and sourcing model (e.g. insource, outsource).
      • Is there sufficient information and data available in your organization to support effective decision making?

    How should your governance be structured?

    Organizations often have too many governance bodies, creating friction without value. Where that isn’t the case, the bodies are often inefficient, with gaps or overlaps in accountability and authority. Structure your governance to optimize its effectiveness, designing with the intent to have the fewest number of governing bodies to be effective, but no less than is necessary.

    Start with your operating model.

    • Understand what’s different about your governance based on whether your organization in centralized, distributed, or a different model (e.g. hybrid, product).
    • Identify and include governance structures that are mandatory due to regulation or industry.
    • Based on your context, identify how many of your governance activities should be performed together.

    Determine whether your governance should be controlled or adaptive.

    • Do you have the capability to distribute governance and is your organization empowered enough culturally?
    • Do you have sufficient standards and data to leverage? Do you have the tools and capabilities?
    • Identify governance structures that are required due to regulation or industry.

    Info-Tech Insight

    Your approach to governance needs to be designed and structured, even if your execution of governance is adaptable and delegated.

    Identify and Refine your Principles

    Confirm your defining principles based on your selection of controlled or adaptive governance. Create specific principles to clarify boundaries or provide specific guidance for teams within the organization.

    Controlled Adaptive
    Disentangle governance and management Delegate and empower
    Govern toward value Deliver to defined outcomes
    Make risk-informed decisions Embed risk into decision making
    Measure to drive improvement Trust though real-time reporting
    Enforce standards and behavior Automate decision making though established standards

    Determining Principle: Delegate and empower.

    Specific Principle: Decisions should be made at the lowest reasonable level of the organization with clarity.

    Rationale: To govern effectively with the velocity required to address business needs, governance needs to be executed deeper into the organization and organizational goals need to be clearly understood everywhere.

    Implication: Decision making needs to be delegated throughout the organization, so information and data requirements need to be identified, decision-making approach and principles need to be shared, and authority needs to be delegated clearly.

    1.2.2 Confirm your determining governance principles

    30-45 minutes

    Input: Governance Framework Model– Governance Principles

    Output: Governance workbook - Finalized list of determining principles

    Materials: Whiteboard/flip charts, Governance Workbook

    Participants: IT senior leadership

    1. Review the IT governance principles in your Governance Workbook.
    2. Within your IT senior leadership team (or IT governance working group) assign one or two principles to teams of two to three participants. Have each team identify what this would mean for your organization. Answering the questions:
      • In what ways do our current governance practices support this?
      • What are some examples of changes that would need to be made to make this a reality?
      • How would applying this principle improve your governance?
    3. Have each team present their results and compile the findings and implications in the Governance Workbook to use for future communication of the change.

    Specific governing principles

    Specific governing principles are refined principles derived from a determining principle, when additional specificity and detail is necessary. It allows you to define an approach for specific behaviors and activities. Multiple specific principles may underpin the determining one.

    A visualization of a staircase with stairs labelled, bottom to top, 'Determining Principle', 'Rationale', 'Implications', 'Specific Principles'.

    Specific Principles – Related principles that may be required to ensure the implications of the determining principal are addressed within the organization. They may be specific to individual areas and may be addressed in policies.

    Implications – The implications of this principle on the organization, specific to how and where governance is executed and the level of information and authority that would be necessary.

    Rationale – The reason(s) driving the determining principle.

    Determining Principle – A core overarching principle – a defining aspect of your governance model.

    1.2.3 Develop your specific governing principles

    30 minutes

    Input: Updated determining principles

    Output: List of specific principles linked to determining principles

    Materials: Whiteboard/flip charts, Governance Workbook

    Participants: IT senior leadership

    1. Confirm the determining principles for your governance model based on your previous discussions.
    2. Identify where to apply the principles. This is based on:
      1. Your governance scope (how much is within your span of control)
      2. The amount of data you have available
      3. Your cultural readiness for delegation
    3. Create specific principles to support the determining principles:
      1. Document the rationale driving the determining principles.
      2. Identify the implications.
      3. Create specific principles that will support the success in achieving the goals of each determining principle.
    4. Document all information on the “Governance guiding star” slide in the Governance Workbook.

    Download the Governance Workbook

    Step 1.3

    Adjust for Culture and Finalize Context

    Activities
    • 1.3.1 Identify and address the impact of attitude, behavior, and culture
    • 1.3.2 Finalize your context

    This step will walk you through the following activities:

    Identify your organizational attitude, behavior, and culture related to governance.

    Identify positives that can be leveraged and develop means to address negatives.

    Finalize the context that your model will leverage and align to.

    This step involves the following participants:

    • Senior IT leadership
    • Governance leads

    Outcomes of this step

    Downloaded tool ready to select the base governance model for your organization

    Identify Your Governance Needs

    Step 1.1 – Define your Guiding Star Step 1.2 – Define Scope and Principles Step 1.3 – Adjust for Culture and Finalize Context

    Understanding attitude, behavior, and culture

    A

    		 ttitude

    What people think and feel. It can be seen in their demeanor and how they react to change initiatives, colleagues, and users. This manifests in the belief that governance is a constraint that needs to be avoided or ignored – often with unintended consequences.

    A stock photo of a lightbulb over a person's head and a blackboard behind them reading 'New Mindset - data-verified= New Results'.">

    Any form of organizational change involves adjusting people’s attitudes to create buy-in and commitment.

    You need to identify and address attitudes that can lead to negative behaviors and actions or that are counter-productive.

    Understanding attitude, behavior, and culture

    B

    		 ehavior

    What people do. This is influenced by attitude and the culture of the organization. In governance, this manifests as people’s willingness to be governed, who pushes back, and who tries to bypass it.

    A stock photo of someone walking up a set of stairs into the distant sunlight.

    To implement change within IT, especially at a tactical and strategic level, organizational behavior needs to change.

    This is relevant because people gravitate toward stability and will resist change in an active or passive way unless you can sell the need, value, and benefit of changing their behavior and way of working.

    Understanding attitude, behavior, and culture

    C

    		 ulture

    The accepted and understood ways of working in an organization. The values and standards that people find normal and what would be tacitly identified to new resources. In governance terms, this is how decisions are really made and where responsibility really exists rather than what is identified formally.

    A stock photo of a compass pointing to 'VALUES'.

    The impact of the organizational or corporate “attitude” on employee behavior and attitude is often not fully understood.

    Culture is an invisible element, which makes it difficult to identify, but it has a strong impact and must be addressed to successfully embed governance models. In the case of automating governance, cultural readiness for automation is a critical success factor.

    1.3.1 Identify and address the impact of attitude, behavior, and culture

    45 minutes

    Input: Senior leadership knowledge

    Output: Updated Governance Workbook

    Materials: Governance Workbook

    Participants: IT senior leadership

    1. Break into three groups. Each group will discuss and document the positive and negative aspects of one of attitude, behavior, or culture related to governance in your organization.
    2. Each group will present and explain their list to the group.
    3. Add any additional suggestions in each area that are identified by the other groups.
    4. Identify the positive elements of attitude, behavior, and culture that would help with changing or implementing your updated governance model.
    5. Identify any challenges that will need to be addressed for the change to be successful.
    6. As a group, brainstorm some mitigations or solutions to these challenges. Document them in the Governance Workbook to be incorporated into the implementation plan.

    Download the Governance Workbook

    Attitude, behavior, and culture

    Evaluate the organization across the three contexts. The positive items represent opportunities for leveraging these characteristics with the implementation of the governance model, while the negative items must be considered and/or mitigated.

    Attitude Behavior Culture
    Positive
    Negative
    Mitigation

    1.3.2 Finalize your governance context

    30 minutes

    Input: Documented governance principles and scope from previous exercises

    Output: Finalized governance context in the Governance Workbook

    Materials: Whiteboard/flip charts, Governance Workbook

    Participants: IT senior leadership

    1. Use the information that has been gathered throughout this section to update and finalize your IT governance context.
    2. Document it in your Governance Workbook.

    Download the Governance Workbook

    Make Your IT Governance Adaptable

    Phase 2

    Select and Refine Your Governance Model

    Phase 1

    • 1.1 Define Your Guiding Star
    • 1.2 Define Scope and Principles
    • 1.3 Adjust for Culture and Finalize Context

    Phase 2

    • 2.1 Choose and Adapt Your Model
    • 2.2. Identify and Document Your Governance Triggers
    • 2.3 Build Your Implementation Approach
      •

    Phase 3

    • 3.1 Identify Decisions to Embed and Automate
    • 3.2 Plan Validation and Verification
    • 3.3 Update Implementation Plan

    This phase will walk you through the following activities:

    Select a base governance model and refine it to suit your organization.

    Identify scenarios and changes that will trigger updates to your governance model.

    Build your implementation plan.

    This phase involves the following participants:

    • Senior IT leadership
    • Governance resources

    Step 2.1

    Choose and Adapt Your Model

    Activities
    • 2.1.1 Choose your base governance model
    • 2.1.2 Confirm and adjust the structure of your model
    • 2.1.3 Define the governance responsibilities
    • 2.1.4 Validate the governance mandates and membership
    • 2.1.5 Update your committee processes
    • 2.1.6 Adjust your associated policies
    • 2.1.7 Adjust and confirm your governance model

    This step will walk you through the following activities:

    Review and selecting your base governance model.

    Adjust the structure, responsibilities, policies, mandate, and membership to best support your organization.

    This step involves the following participants:

    • Senior IT leadership
    • Governance leads

    Outcomes of this step

    Downloaded tool ready to select the base governance model for your organization

    Select and Refine Your Governance Model

    Step 2.1 – Choose and Adapt Your Model Step 2.2 – Identify and Document Your Governance Triggers Step 2.3 – Build Implementation Approach

    Your governance framework has six key components

    GOVERNANCE FRAMEWORK

    • GUIDELINES
      The key behavioral factors that ground your governance framework
    • MEMBERSHIP
      Formalization of who has authority and accountability to make specific governance decisions
    • RESPONSIBILITIES
      The definition of which decisions and outcomes your governance structure and each governance body is accountable for
    • STRUCTURE
      Which governance bodies and roles are in place to articulate where decisions are made in the organization
    • PROCESS
      Identification of the how your governance will be executed, how decisions are made, and the inputs, outputs, and connections to related processes
    • POLICY
      Set of principles established to address risk and drive expected and required behavior

    4 layers of governance bodies

    There are traditionally 4 layers of governance in an enterprise, and organizations have governing bodies or individuals at each level

    RESPONSIBILITIES AND TYPICAL MEMBERSHIP
    ENTERPRISE Defines organizational goals. Directs or regulates the performance and behavior of the enterprise, ensuring it has the structure and capabilities to achieve its goals.

    Membership: Business executives, Board

    STRATEGIC Ensures IT initiatives, products, and services are aligned to organizational goals and strategy and provide expected value. Ensure adherence to key principles.

    Membership: Business executives, CIO, CDO

    TACTICAL Ensures key activities and planning are in place to execute strategic initiatives.

    Membership: Authorized division leadership, related IT leadership

    OPERATIONAL Ensures effective execution of day-to-day functions and practices to meet their key objectives.

    Membership: Service/product owners, process owners, architecture leadership, directors, managers

    2.1.1 Choose your base governance model

    30 minutes

    Input: Governance models templates

    Output: Selected governance model

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Download Info-Tech’s base governance models (Controlled Governance Models Template and IT Governance Program Overview) and review them to find a template that most closely matches your context from Phase 1. You can start with a centralized, decentralized, or product/service hybrid IT organization. Remove unneeded models.
    2. If you do not have documented governance today, start with a controlled model as your foundation. Continue working through this phase if you have a documented governance framework you wish to optimize using our best practices or move to Phase 3 if you are looking to automate or embed your governance activities.

    Controlled Governance Models Template

    Adaptive Governance Models Template

    2.1.2 Confirm and adjust the structure of your model

    30-45 minutes

    Input: Selected base governance model, Governance context/scope

    Output: Updated governance bodies and relationships

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Validate your selected governance body structural model.
      • Are there any governing bodies you must maintain that should replace the ones listed? In part or in full?
      • Are there any missing bodies? Look at alternative committees for examples.
      • Document the adjustments.
    2. Are there any governing bodies that are not required?
      • Based on your size and needs, can they be done within one committee?
      • Is the capability or data not in place to perform the work?
      • Document the required changes.

    There are five key areas of governance responsibility

    A cyclical visualization of the five keys areas of governance responsibility, 'Strategic Alignment', 'Value Delivery', 'Risk Management', 'Resource Management', and 'Performance Measurement'.

    STRATEGIC ALIGNMENT
    Ensures that technology investments and portfolios are aligned with the organization’s needs.

    VALUE DELIVERY
    Reviews the outcomes of technology investments and portfolios to ensure benefits realization.

    RISK MANAGEMENT
    Defines and owns the risk thresholds and register to ensure that decisions made are in line with the posture of the organization.

    RESOURCE MANAGEMENT
    Ensures that people, financial knowledge, and technology resources are appropriately allocated across the organization.

    PERFORMANCE MEASUREMENT
    Monitors and directs the performance or technology investments to determine corrective actions and understand successes.

    2.1.3 Define the governance responsibilities

    Ensure you have the right responsibilities in the right place

    45-60 minutes

    Input: Selected governance base model, Governance context

    Output: Updated responsibilities and activities, Updated activities for selected governance bodies, New or removed governing bodies

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Based on your context and model, review the responsibilities identified for each committee and confirm that they align with the mandate and the stated outcome.
    2. Identify and highlight any responsibilities and activities that would not be involved in informing and enabling the mandate of the committee.
    3. Adjust the wording of confirmed responsibilities and activities to reflect your organizational language.
    4. Review each highlighted “bad fit” activity and move it to a committee whose mandate it would support or remove it if it’s not performed in your organization.
    5. If an additional committee is required, define the mandate and scope, then include any additional responsibilities that might have been a bad fit elsewhere

    2.1.4 Validate the governance mandates and membership

    30 minutes

    Input: Selected governance base model, Updated structure and responsibilities

    Output: Adjusted mandates and refined committee membership

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Review the mandate and membership slides in your selected governance model.
    2. Adjust the mandate to ensure that it aligns to and conveys:
      1. The outcome that the committee is meant to generate for the organization.
      2. Its scope/span of control.
    3. Discuss the type of information members would require for the committee to be successful in achieving its mandate.
    4. Document the member knowledge requirement in the mandate slide of the model template.

    Determine the right membership for your governance

    One of the biggest benefits of governance committees is the perspective provided by people from various parts of the organization, which helps to ensure technology investments are aligned with strategic goals. However, having too many people – or the wrong people – involved prevents the committee from being effective. Avoid this by following these principles.

    Three principles for selecting committee membership

    1. Determine membership based on responsibilities and required knowledge.
      Organizations often make the mistake of creating committees and selecting members before defining what they will do. This results in poor governance because members don’t have the knowledge required to make decisions. Define the mandate of the committee to determine which members are the right fit.
    2. Ensure members are accountable and authorized to make the decisions.
      Effective governance requires the members to have the authority and accountability to make decisions. This ensures meetings achieve their outcome and produce value, which improves the committee’s chances of survival.
    3. Select leaders who see the big picture.
      Often committee decisions and responsibilities become tangled in the web of organizational politics. Include people, often C-level, whose attendance is critical and who have the requisite knowledge, mindset, and understanding to put business needs ahead of their own.

    2.1.5 Update your committee processes

    20 minutes

    Input: Selected governance base model, Updated structure and responsibilities

    Output: Updated committee processes

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Review the committee details based on the changes you have made in goals, mandate, and responsibilities.
    2. Identify and document changes required to the committee outputs (outcomes) and adjust the consumer of the outputs to match.
    3. Review the high-level process steps required to get to the modified output. Add required activities or remove unnecessary ones. Review the process flow. Does it make sense? Are there unnecessary steps?
    4. Review and update inputs required for the process steps and update the information/data sources.
    5. Adjust the detailed process steps to reflect the work that needs to be done to support each high-level process step that changed.

    2.1.6 Adjust your associated policies

    20 minutes

    Input: Selected governance base model, Updated structure and responsibilities

    Output: Adjusted mandates and refined committee membership

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Review the policies associated with the governing bodies in your base model. Identify the policies that apply to your organization, those that are missing, and those that are not necessary.
    2. Confirm the policies that you require.
    3. Make sure the policies and policy purposes (or risks and related behaviors the policy addresses) are matched to the governance committee that has responsibilities in that area. Move policies to the right committee.

    2.1.7 Adjust and confirm your governance model

    1. Confirm the adjustment of governance bodies, structure, and input/output linkages.
    2. Confirm revisions to decisions and responsibilities.
    3. Confirm policy and regulation/standards associations.
    4. Select related governance committee charters from the provided set and revise the charters to reflect the elements defined in your updated model.
    5. Finalize your governance model.

    Samples of slides related to adjusting and confirming governance models in the Governance Workbook.

    Step 2.2

    Identify and Document Your Governance Triggers

    Activities
    • 2.2.1 Identify and document update triggers
    • 2.2.2 Embed triggers into the review cycle

    This step will walk you through the following activities:

    Identify scenarios that will create a need to review or change your governance model.

    Update your review/update approach to receiving trigger notifications.

    This step involves the following participants:

    • Senior IT leadership
    • Governance leads

    Outcomes of this step

    Downloaded tool ready to select the base governance model for your organization

    Select and Refine Your Governance Model

    Step 2.1 – Choose and Adapt Your Model Step 2.2 – Identify and Document Your Governance Triggers Step 2.3 – Build Implementation Approach

    What are governance triggers

    Governance triggers are organizational or environmental changes within or around an organization that are inflection points that start the review and revision of governance models to maintain their fit with the organization. This is the key to adaptive governance design.

    A target with five arrows sticking out of the bullseye, 'Operating Model', 'Business Strategy', 'Mandate Change', 'Management Practices', and 'Digital Transformation'.

    2.2.1 Identify and document update triggers

    30 minutes

    Input: Governance Workbook

    Output: Updated workbook with defined and documented governance triggers, points of origin, and integration

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Open the Governance Workbook to the “Triggers” slides.
    2. Review the list of governance triggers. Retain the ones that apply to your organization, remove those you feel are unnecessary, and add any change scenarios you feel should be included.
    3. Identify where you would receive notifications of these changes and the related processes or activities that would generate these notifications, if applicable.
    4. Document any points of integration required between governance processes and the source process. Highlight any where the integration is not currently in place.

    Sample of the 'Triggers' slide in the Governance Workbook.

    2.2.2 Embed triggers into the review cycle

    30 minutes

    Input: Governance model

    Output: Review cycle update

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. Identify which triggers impact the entire governance model and which impact specific committees.
    2. Add an activity for triggered review of the impacted governance model into your governance committee process.

    Step 2.3

    Build Your Implementation Approach

    Activities
    • 2.3.1 Identify and document your implementation plan
    • 2.3.2 Build your roadmap
    • 2.3.3 Build your sunshine diagram

    This step will walk you through the following activities:

    Transfer changes to the Governance Implementation Plan Template.

    Determine the timing for the implementation phases.

    This step involves the following participants:

    • Senior IT leadership
    • Governance process owner

    Outcomes of this step

    Implementation plan for adaptive governance framework model

    Select and Refine Your Governance Model
    Step 2.1 – Choose and Adapt Your Model Step 2.2 – Identify and Document Your Governance Triggers Step 2.3 – Build Implementation Approach

    2.3.1 Identify and document your implementation plan

    60 minutes

    Input: Governance model, Guiding principles, Update triggers, Cultural factors and mitigations

    Output: Implementation roadmap

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. As a group, discuss the changes required to implement the governance model, the cultural items that need to be addressed, and the anticipated timing.
    2. Document the implementation activities and consolidate them into groupings/themes based on similarities or shared outcomes.
    3. Name the grouped themes for clarity and identify key dependencies between activities in each area and across themes.
    4. Identify and document your approach (e.g. continuous, phased) and high-level timeline for implementation.
    5. Document the themes and initiatives in the Governance Implementation Plan.

    Download the Governance Implementation Plan

    Illustrate the implementation plan using roadmaps

    Info-Tech recommends two different methods to roadmap the initiatives in your Governance Implementation Plan.

    Gantt Chart
    Sample of a Gantt Chart.

    This type of roadmap depicts themes, related initiatives, the associated goals, and exact start and end dates for each initiative. This diagram is useful for outlining a larger number of activities and initiatives and has an easily digestible and repeatable format.

    		Sunshine Diagram
    Sample of a Sunshine Diagram.

    This type of roadmap depicts themes and their associated initiatives. The start and end dates for the initiatives are approximated based on years or phases. This diagram is useful for highlighting key initiatives on one page.

    2.3.2 Build your roadmap

    30 minutes

    Input: Governance themes and initiatives

    Output: roadmap visual

    Materials: Governance Roadmap Workbook, Governance Workbook

    Participants: CIO, IT senior leadership

    1. Open the Governance Implementation Plan and review themes and initiatives.
    2. Open the Governance Roadmap Workbook.
    3. Discuss whether the implementation roadmap should be developed as a Gantt chart, a sunshine diagram, or both.
      For the Gantt chart:
      • Input the roadmap start year and date.
      • Change the months and year in the Gantt chart to reflect the same roadmap start year.
      • Input and populate the planned start and end dates for the list of high-priority initiatives.

    Develop your Gantt chart in the Governance Roadmap Workbook

    2.3.3 Build your sunshine diagram

    30 minutes

    Input: Governance themes and initiatives

    Output: Sunshine diagram visual

    Materials: Whiteboard/flip charts, Markers, Governance Implementation Plan

    Participants: CIO, IT senior leadership

    1. Review your list of themes and initiatives.
    2. Build a model with “rays” radiating out from a central theme or objective.
    3. Using curved arcs, break the grid into timeline periods or phases.
    4. Complete your sunshine diagram in the Governance Implementation Plan.

    Customize your sunshine diagram in the Governance Implementation Plan

    Make Your IT Governance Adaptable

    Phase 3

    Embed and Automate

    Phase 1

    • 1.1 Define Your Guiding Star
    • 1.2 Define Scope and Principles
    • 1.3 Adjust for Culture and Finalize Context

    Phase 2

    • 2.1 Choose and Adapt Your Model
    • 2.2. Identify and Document Your Governance Triggers
    • 2.3 Build Your Implementation Approach

    Phase 3

    • 3.1 Identify Decisions to Embed and Automate
    • 3.2 Plan Validation and Verification
    • 3.3 Update Implementation Plan
      •

    This phase will walk you through the following activities:

    Identify which decisions you are ready to automate.

    Identify standards and policies that can be embedded and automated.

    Identify integration points.

    Confirm data requirements to enable success.

    This phase involves the following participants:

    • IT senior leadership
    • Governance process owner
    • Product and service owners
    • Policy owners

    Step 3.1

    Identify Decisions to Embed and Automate

    Activities
    • 3.1.1 Review governance decisions and standards and the required level of authority
    • 3.1.2 Build your decision logic
    • 3.1.3 identify constraints and mitigation approaches
    • 3.1.4 Develop decision rules and principles

    This step will walk you through the following activities:

    Identify your key decisions.

    Develop your decision logic.

    Confirm decisions that could be automated.

    Identify and address constraints.

    Develop decision rules and principles.

    This step involves the following participants:

    • IT senior leadership

    Outcomes of this step

    Developed decision rules, rulesets, and principles that can be leveraged to automate governance

    Defined integration points

    Embed and Automate

    Step 3.1 – Identify Decisions to Embed and Automate Step 3.2 – Plan Validation and Verification Step 3.3 – Update Implementation Plan

    What is decision automation?

    Decision automation is the codifying of rules that connect the logic of how decisions are made with the data required to make those decisions. This is then embedded and automated into processes and the design of products and services.

    • It is well suited to governance where the same types of decisions are made on a recurring basis, using the same set of data. It requires clean, high-quality data to be effective.
    • Improvements in artificial intelligence (AI) and machine learning (ML) have allowed the creation of scenarios where a hybrid of rules and learning can improve decision outcomes.

    Key Considerations

    • Data Availability
    • Legality
    • Contingencies
    • Decision Transparency
    • Data Quality
    • Auditability

    How complexity impacts decisions

    Decision complexity impacts the type of rule(s) you create and the amount of data required. It also helps define where or if decisions can be automated.

    1. SIMPLE
      Known and repeatable with consistent and familiar outcomes – structured, causal, and easy to standardize and automate.
    2. COMPLICATED
      Less known and outcomes are not consistently repeatable. Expertise can drive standards and guidelines that can be used to automate decisions.
    3. COMPLEX
      Unknown and new, highly uncertain in terms of outcomes, impact, and data. Requires more exploration and data. Difficult to automate but can be built into the design of products and services.
    4. CHAOTIC
      Unstructured and unknown situation. Requires adaptive and immediate action without active data – requires retained human governance
      5. (Based on Dave Snowden’s Cynefin framework)

    Governance Automation Criteria Checklist

    The Governance Automation Criteria Checklist provides a view of key considerations for determining whether a governing activity or decision is a good candidate for automation.

    The criteria identify key qualifiers/disqualifiers to make it easier to identify eligibility.

    Sample of the Governance Automation Criteria Checklist.

    Download the Governance Automation Criteria Checklist

    Governance Automation Worksheet

    Sample of the Governance Automation Worksheet.

    The Governance Automation Worksheet provides a way to document your governance and systematically identify information about the decisions to help determine if automation is possible.

    From there, decision rules, logic, and rulesets can be designed in support of building a structure flow to allow for automation.

    Download the Governance Automation Worksheet

    3.1.1 Review governance decisions and standards and the required level of authority

    30 minutes

    Input: Automation Criteria Checklist, Governance Automation Worksheet, Updated governance model

    Output: Documented decisions and related authority, Selected options for automation, Updated Governance Automation Worksheet

    Materials: Whiteboard/flip charts, Governance Automation Worksheet

    Participants: IT senior leadership

    1. Identify the decisions that are made within each committee in your updated governance model and document them in the Governance Automation Worksheet.
    2. Confirm the level of authority required to make each decision.
    3. Review the automation checklist to confirm whether each decision is positioned well for automation.
    4. Select and document the decisions that are the strongest options for automation/embedding and document them in the Governance Automation Worksheet.

    What are decision rules?

    Decision rules provide specific instructions and constraints that must be considered in making decisions and are critical for automating governance.

    They provide the logical path to assess governance inputs to make effective decisions with positive business outputs.

    Inputs would include key information such as known risks, your defined prioritization matrix, portfolio value scoring, and compliance controls.

    Individual rules can be leveraged in different places.

    Some decision rule types are listed here.

    1. Statement Rules
      Natural expression of logical progression, written through logical elements
    2. Decision Tree Rules
      Decision tree with two axes that overlap to generate a decision
    3. Sequential Rules
      A sequence of decisions that move from one step to the next
    4. Expression Rule
      A particular set of rules triggered by a particular rule condition being met
    5. Truth table rules
      Combines many decision factors into one place; produces different outputs

    What are decision rulesets

    Rulesets are created to make complex decisions. Individual rule types are combined to create rulesets that are applied together to generate effective decisions. One rule will provide contextual information required for additional rules to execute in a Rule-Result-Rule-Result-Rule-Decision flow.

    A visualization of two separate rulesets made up of the decision rules on the previous slide. 'Ruleset 1' contains '1) Statement Rules', '2) Decision Tree Rules', and 5) Truth Table Rules'. 'Ruleset 2' contains '3) Sequential Rules' and '4) Expression Rule'.

    3.1.2 Build your decision logic

    30 minutes

    Input: Governance Automation Worksheet

    Output: Documented decision logic to support selected decision types and data requirements

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    1. For each selected decision, identify the principles that drive the considerations around the decision.
    2. For each decision, develop the decision logic by defining the steps and information inputs involved in making the decision and documenting the flow from beginning to end.
    3. Determine whether this is one specific decision or a combination of different decisions (in sequence or based on decisions).
    4. Name your decision rule.

    Sample of the Governance Automation Worksheet.

    3.1.3 Identify constraints and mitigation approaches

    60 minutes
    1. Document constraints to automation of decisions related to:
      • Availability of decision automation tools
      • Decision authority change requirements
      • Data constraints
      • Knowledge requirements
      • Process adjustment requirements
      • Product/service design levels
    2. Brainstorm and identify approaches to mitigate constraints and score based on likelihood of success.
    3. Identify mitigation owners and initial timeline expectations.
    4. Document the constraints and mitigations in the Governance Workbook on the constraints and mitigations slide.

    Sample of the 'Constraints and mitigations' slide of the 'Governance Workbook'.

    3.1.4 Develop decision rules and principles

    1.5-2 hours

    Input: Governance Automation Worksheet

    Output: Defined decision integration points, Confirmed data availability sets, Decision rules, rulesets, and principles with control indicators

    Materials: Whiteboard/flip charts, Governance Automation Worksheet

    Participants: IT senior leadership

    1. Review the decision logic for those decisions that you have confirmed for automation. Identify the processes where the decision should be executed.
    2. Associate each decision with specific process steps or stages or how it would be included in software/product design.
    3. For each selected decision, identify the availability of data required to support the decision logic and the level of complexity and apply governing principles.
    4. Create the decision rules and identify data gaps.
    5. Define the decision flow and create rulesets as needed.
    6. Confirm automation requirements and define control indicators.

    Step 3.2

    Plan Validation and Verification

    Activities
    • 3.2.1 Define verification approach for embedded and automated governance
    • 3.2.2 Define validation approach for embedded and automated governance

    This step will walk you through the following activities:

    Define how decision outcomes will be measured.

    Determine how the effectiveness of automated governance will be reported.

    This step involves the following participants:

    • IT senior leadership

    Outcomes of this step

    Tested and verified automation of decisions

    Embed and Automate

    Step 3.1 – Identify Decisions to Embed and Automate Step 3.2 – Plan Validation and Verification Step 3.3 – Update Implementation Plan

    Decision rule relationship through to verification

    1. Rules

    Focus on clear decision logic

    Often represented in simple statement types and supported by data:

    IF – THEN

    IF – AND – THEN

    IF – AND NOT – THEN

    		2. Rulesets

    Aggregate rules for more complex decisions

    Integrated flows between different required rules:
    Rule 1:
    (Output 1) – Rule 2
    (Output 2) – Rule 6
    Rule 6: (Output 1) – Rule 7     		3. Rule Attestation

    Verify success of automated decisions

    Attestation of embedded and automated rules with key control indicators embedded within process and products.

    Principles embedded into automated software controls.

    3.2.1 Define verification approach for embedded and automated governance

    60 minutes

    Input: Governance rules and rulesets as defined in the Governance Automation Worksheet, Defined decision outcomes

    Output: A defined measurement of effective decision outcomes, Approach to automate and/or report the effectiveness of automated governance

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    Verify

    1. Confirm expected outcome of rules.
    2. Select a sampling of new required decisions or recently performed decisions related to areas of automation.
    3. Run the decisions through the decision rules or rule groupings that were developed and compare to parallel decisions made using the traditional approach. (These must be segregated activities.)
    4. Review the outcome of the rules and adjust based on the output. Identify areas of adjustment. Confirm that the automation meets your requirements.

    3.2.2 Define validation approach for embedded and automated governance

    60 minutes

    Input: Governance rules and rulesets as defined in the Governance Automation Worksheet, Defined decision outcomes

    Output: Defined assurance and attestation requirements, Key control indicators that can be automated

    Materials: Whiteboard/flip charts

    Participants: IT senior leadership

    Validate

    1. Develop an approach to measure automated decisions. Align success criteria to current governance KPIs and metrics.
    2. If no such metrics exist, define expected outcome. Define key risk indicators based on the expected points of automation.
    3. Establish quality assurance checkpoints within the delivery lifecycles to adjust for variance.
    4. Create triggers back to rule owners to drive changes and improvements to rules and rule groupings.

    Step 3.3

    Update Implementation Plan

    Activities
    • 3.3.1 Finalize the implementation plan

    This step will walk you through the following activities:

    Review implications and mitigations to make sure all have been considered.

    Finalize the implementation plan and roadmap.

    This step involves the following participants:

    • Senior IT leadership

    Outcomes of this step

    Completed Governance implementation plan and roadmap

    Embed and Automate

    Step 3.1 – Identify Decisions to Embed and Automate Step 3.2 – Plan Validation and Verification Step 3.3 – Update Implementation Plan

    3.3.1 Finalize the implementation plan

    30 minutes

    Input: Governance workbook, Updated governance model, Draft implementation plan and roadmap

    Output: Finalized implementation plan and roadmap

    Materials: Whiteboard/flip charts, Governance Implementation Plan

    Participants: IT senior leadership

    1. Document automation activities within phases in a governance automation theme in the Governance Implementation Plan.
    2. Review timelines in the implementation plan and where automation fits within the roadmap.
    3. Updated the implementation plan and roadmap.

    Governance Implementation Plan

    Summary of Accomplishment

    Problem Solved

    Through this project we have:

    • Improved your governance model to ensure a better fit for your organization, while creating adaptivity for the future.
    • Ensured your governance operates as an enabler of success with the proper bodies and levels of authority established.
    • Established triggers to ensure your governance model is actively adjusted to maintain its fit.
    • Developed a plan to embed and automate governance.
    • Created decision rules and principles and identified where to embed them within your practices.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    Additional Support

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Photo of Valence Howden.

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

    Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.

    Related Info-Tech Research

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    Maximize Business Value From IT Through Benefits Realization

    Embed value and alignment confirmation into your governance to ensure you optimize IT value achievement for resource spend.

    Build a Better Product Owner

    Strengthen the product/service owner role in your organization by focusing on core capabilities and proper alignment.

    Research contributors and experts

    Photo of Sidney Hodgson, Senior Director, Industry, Info-Tech Research Group. Sidney Hodgson
    Senior Director, Industry
    Info-Tech Research Group
    • Sidney has over 30 years of experience in IT leadership roles as CIO of three organizations in Canada and the US as well as international consulting experience in the US and Asia.
    • Sid has a breadth of knowledge in IT governance, project management, strategic and operational planning, enterprise architecture, business process re-engineering, IT cost reduction, and IT turnaround management.
    		 Photo of David Tomljenovic, Principal Research Advisor, Industry, Info-Tech Research Group. David Tomljenovic
    Principal Research Advisor, Industry
    Info-Tech Research Group
    • David brings extensive experience from the Financial Services sector, having worked 25 years on Bay Street. Most recently he was a Corporate Finance and Strategy Advisor for Infiniti Labs (Toronto/Hong Kong), Automotive, and Smart City Accelerator, where he provided financial and mergers & acquisitions advisory services to accelerator participants with a focus on early-stage fundraising activities.

    Research contributors and experts

    Photo of Cole Cioran, Practice Lead, Applications and Agile Development, Info-Tech Research Group. Cole Cioran
    Practice Lead, Applications and Agile Development
    Info-Tech Research Group
    • Over the past 25 years, Cole has developed software; designed data, infrastructure, and software solutions; defined systems and enterprise architectures; delivered enterprise-wide programs; and managed software development, infrastructure, and business systems analysis practices.
    		 Photo of Crystal Singh, Research Director, Applications – Data and Information Management, Info-Tech Research Group. Crystal Singh
    Research Director, Applications – Data and Information Management
    Info-Tech Research Group
    • Crystal brings a diverse and global perspective to her role, drawing from her professional experiences in various industries and locations. Prior to joining Info-Tech, Crystal led the Enterprise Data Services function at Rogers Communications, one of Canada’s leading telecommunications companies.

    Research contributors and experts

    Photo of Carlene McCubbin, Practice Lead, CIO, Info-Tech Research Group. Carlene McCubbin
    Practice Lead, CIO
    Info-Tech Research Group
    • Carlene covers key topics in organization and leadership and specializes in governance, organizational design, relationship management, and human capital development. She led the development of Info-Tech’s Organization and Leadership practice.
    		 Photo of Denis Goulet, Senior Workshop Director, Info-Tech Research Group. Denis Goulet
    Senior Workshop Director
    Info-Tech Research Group
    • Denis is a transformational leader and experienced strategist who focuses on helping clients communicate, relate, and adapt for success. Having developed Governance Model and IT strategies in organizations ranging from small to billion-dollar multi-nationals, he firmly believes in a collaborative value-driven approach to work.

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    Reimagine Learning in the Face of Crisis

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    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Train & Develop
    • Parent Category Link: /train-and-develop
    • As organizations re-evaluate their priorities and shift to new ways of working, leaders and employees are challenged to navigate unchartered territory and to adjust quickly to ever-evolving priorities.
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    Our Advice

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    Impact and Result

    • L&D teams should focus on how to support employees and managers to develop the critical competencies they need to successfully perform through the crisis, enabling organizations to survive and thrive during and beyond the crisis.
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    Reimagine Learning in the Face of Crisis Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Prioritize

    Involve key stakeholders, identify immediate priorities, and conduct high-level triage of L&D.

    • Reimagine Learning in the Face of Crisis Storyboard
    • Reimagine Learning in the Face of Crisis Workbook

    2. Reimagine

    Determine learning needs and ability to realistically deliver learning. Leverage existing or curate learning content that can support learning needs.

    3. Transform

    Identify technical requirements for the chosen delivery method and draft a four- to six-week action plan.

    • How to Curate Guide
    • Tips for Building an Online Learning Community
    • Ten Tips for Adapting In-Person Training During a Crisis
    • Tips for Remote Learning in the Face of Crisis
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    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
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    • Parent Category Name: Strategy and Organizational Design
    • Parent Category Link: /strategy-and-organizational-design

    If you have a Domino/Notes footprint that is embedded within your business units and business processes and is taxing your support organization, you may have met resistance from the business and been asked to help the organization migrate away from the Lotus Notes platform. The Lotus Notes platform was long used by technology and businesses and a multipurpose solution that, over the years, became embedded within core business applications and processes.

    Our Advice

    Critical Insight

    For organizations that are struggling to understand their options for the Domino platform, the depth of business process usage is typically the biggest operational obstacle. Migrating off the Domino platform is a difficult option for most organizations due to business process and application complexity. In addition, migrating clients have to resolve the challenges with more than one replaceable solution.

    Impact and Result

    The most common tactic is for the organization to better understand their Domino migration options and adopt an application rationalization strategy for the Domino applications entrenched within the business. Options include retiring, replatforming, migrating, or staying with your Domino platform.

    Domino – Maintain, Commit to, or Vacate? Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Domino – Maintain, Commit to, or Vacate? – A brief deck that outlines key migration options for HCL Domino platforms.

    This blueprint will help you assess the fit, purpose, and price of Domino options; develop strategies for overcoming potential challenges; and determine the future of Domino for your organization.

    • Domino – Maintain, Commit to, or Vacate? Storyboard

    2. Application Rationalization Tool – A tool to understand your business-developed applications, their importance to business process, and the potential underlying financial impact.

    Use this tool to input the outcomes of your various application assessments.

    • Application Rationalization Tool
    [infographic]

    Further reading

    Domino – Maintain, Commit to, or Vacate?

    Lotus Domino still lives, and you have options for migrating away from or remaining with the platform.

    Executive Summary

    Info-Tech Insight

    “HCL announced that they have somewhere in the region of 15,000 Domino customers worldwide, and also claimed that that number is growing. They also said that 42% of their customers are already on v11 of Domino, and that in the year or so since that version was released, it’s been downloaded 78,000 times. All of which suggests that the Domino platform is, in fact, alive and well.”
    – Nigel Cheshire in Team Studio

    Your Challenge

    You have a Domino/Notes footprint embedded within your business units and business processes. This is taxing your support organization; you are meeting resistance from the business, and you are now asked to help the organization migrate away from the Lotus Notes platform. The Lotus Notes platform was long used by technology and businesses as a multipurpose solution that, over the years, became embedded within core business applications and processes.

    Common Obstacles

    For organizations that are struggling to understand their options for the Domino platform, the depth of business process usage is typically the biggest operational obstacle. Migrating off the Domino platform is a difficult option for most organizations due to business process and application complexity. In addition, migrating clients have to resolve the challenges with more than one replaceable solution.

    Info-Tech Approach

    The most common tactic is for the organization to better understand their Domino migration options and adopt an application rationalization strategy for the Domino applications entrenched within the business. Options include retiring, replatforming, migrating, or staying with your Domino platform.

    Review

    Is “Lotus” Domino still alive?

    Problem statement

    The number of member engagements with customers regarding the Domino platform has, as you might imagine, dwindled in the past couple of years. While many members have exited the platform, there are still many members and organizations that have entered a long exit program, but with how embedded Domino is in business processes, the migration has slowed and been met with resistance. Some organizations had replatformed the applications but found that the replacement target state was inadequate and introduced friction because the new solution was not a low-code/business-user-driven environment. This resulted in returning the Domino platform to production and working through a strategy to maintain the environment.

    This research is designed for:

    • IT strategic direction decision-makers
    • IT managers responsible for an existing Domino platform
    • Organizations evaluating migration options for mission-critical applications running on Domino

    This research will help you:

    1. Evaluate migration options.
    2. Assess the fit and purpose.
    3. Consider strategies for overcoming potential challenges.
    4. Determine the future of this platform for your organization.

    The “everything may work” scenario

    Adopt and expand

    Believe it or not, Domino and Notes are still options to consider when determining a migration strategy. With HCL still committed to the platform, there are options organizations should seek to better understand rather than assuming SharePoint will solve all. In our research, we consider:

    Importance to current business processes

    • Importance of use
    • Complexity in migrations
    • Choosing a new platform

    Available tools to facilitate

    • Talent/access to skills
    • Economies of scale/lower cost at scale
    • Access to technology

    Info-Tech Insight

    With multiple options to consider, take the time to clearly understand the application rationalization process within your decision making.

    • Archive/retire
    • Application migration
    • Application replatform
    • Stay right where you are

    Eliminate your bias – consider the advantages

    “There is a lot of bias toward Domino; decisions are being made by individuals who know very little about Domino and more importantly, they do not know how it impacts business environment.”

    – Rob Salerno, Founder & CTO, Rivet Technology Partners

    Domino advantages include:

    Modern Cloud & Application

    • No-code/low-code technology

    Business-Managed Application

    • Business written and supported
    • Embrace the business support model
    • Enterprise class application

    Leverage the Application Taxonomy & Build

    • A rapid application development platform
    • Develop skill with HCL training

    HCL Domino is a supported and developed platform

    Why consider HCL?

    • Consider scheduling a Roadmap Session with HCL. This is an opportunity to leverage any value in the mission and brand of your organization to gain insights or support from HCL.
    • Existing Domino customers are not the only entities seeking certainty with the platform. Software solution providers that support enterprise IT infrastructure ecosystems (backup, for example) will also be seeking clarity for the future of the platform. HCL will be managing these relationships through the channel/partner management programs, but our observations indicate that Domino integrations are scarce.
    • HCL Domino should be well positioned feature-wise to support low-code/NoSQL demands for enterprises and citizen developers.

    Visualize Your Application Roadmap

    1. Focus on the application portfolio and crafting a roadmap for rationalization.
      • The process is intended to help you determine each application’s functional and technical adequacy for the business process that it supports.
    2. Document your findings on respective application capability heatmaps.
      • This drives your organization to a determination of application dispositions and provides a tool to output various dispositions for you as a roadmap.
    3. Sort the application portfolio into a disposition status (keep, replatform, retire, consolidate, etc.)
      • This information will be an input into any cloud migration or modernization as well as consolidation of the infrastructure, licenses, and support for them.

    Our external support perspective

    by Darin Stahl

    Member Feedback

    • Some members who have remaining Domino applications in production – while the retire, replatform, consolidate, or stay strategy is playing out – have concerns about the challenges with ongoing support and resources required for the platform. In those cases, some have engaged external services providers to augment staff or take over as managed services.
    • While there could be existing support resources (in house or on retainer), the member might consider approaching an external provider who could help backstop the single resource or even provide some help with the exit strategies. At this point, the conversation would be helpful in any case. One of our members engaged an external provider in a Statement of Work for IBM Domino Administration focused on one-time events, Tier 1/Tier 2 support, and custom ad hoc requests.
    • The augmentation with the managed services enabled the member to shift key internal resources to a focus on executing the exit strategies (replatform, retire, consolidate), since the business knowledge was key to that success.
    • The member also very aggressively governed the Domino environment support needs to truly technical issues/maintenance of known and supported functionality rather than coding new features (and increasing risk and cost in a migration down the road) – in short, freezing new features and functionality unless required for legal compliance or health and safety.
    • There obviously are other providers, but at this point Info-Tech no longer maintains a market view or scan of those related to Domino due to low member demand.

    Domino database assessments

    Consider the database.

    • Domino database assessments should be informed through the lens of a multi-value database, like jBase, or an object system.
    • The assessment of the databases, often led by relational database subject matter experts grounded in normalized databases, can be a struggle since Notes databases must be denormalized.
    Key/Value Column

    Use case: Heavily accessed, rarely updated, large amounts of data
    Data Model: Values are stored in a hash table of keys.
    Fast access to small data values, but querying is slow
    Processor friendly
    Based on amazon's Dynamo paper
    Example: Project Voldemort used by LinkedIn

    		 this is a Key/Value example

    Use case: High availability, multiple data centers
    Data Model: Storage blocks of data are contained in columns
    Handles size well
    Based on Google's BigTable
    Example: Hadoop/Hbase used by Facebook and Yahoo

    		 This is a Column Example
    Document Graph

    Use case: Rapid development, Web and programmer friendly
    Data Model: Stores documents made up of tagged elements. Uses Key/Value collections
    Better query abilities than Key/Value databases.
    Inspired by Lotus Notes.
    Example: CouchDB used by BBC

    		 This is a Document Example

    Use case: Best at dealing with complexity and relationships/networks
    Data model: Nodes and relationships.
    Data is processed quickly
    Inspired by Euler and graph theory
    Can easily evolve schemas
    Example: Neo4j

    		 This is a Graph Example

    Understand your options

    Archive/Retire

    Store the application data in a long-term repository with the means to locate and read it for regulatory and compliance purposes.

    Migrate

    Migrate to a new version of the application, facilitating the process of moving software applications from one computing environment to another.

    Replatform

    Replatforming is an option for transitioning an existing Domino application to a new modern platform (i.e. cloud) to leverage the benefits of a modern deployment model.

    Stay

    Review the current Domino platform roadmap and understand HCL’s support model. Keep the application within the Domino platform.

    Archive/retire

    Retire the application, storing the application data in a long-term repository.

    Abstract

    The most common approach is to build the required functionality in whatever new application/solution is selected, then archive the old data in PDFs and documents.

    Typically this involves archiving the data and leveraging Microsoft SharePoint and the new collaborative solutions, likely in conjunction with other software-as-a-service (SaaS) solutions.

    Advantages

    • Reduce support cost.
    • Consolidate applications.
    • Reduce risk.
    • Reduce compliance and security concerns.
    • Improve business processes.

    Considerations

    • Application transformation
    • eDiscovery costs
    • Legal implications
    • Compliance implications
    • Business process dependencies

    Info-Tech Insights

    Be aware of the costs associated with archiving. The more you archive, the more it will cost you.

    Application migration

    Migrate to a new version of the application

    Abstract

    An application migration is the managed process of migrating or moving applications (software) from one infrastructure environment to another.

    This can include migrating applications from one data center to another data center, from a data center to a cloud provider, or from a company’s on-premises system to a cloud provider’s infrastructure.

    Advantages

    • Reduce hardware costs.
    • Leverage cloud technologies.
    • Improve scalability.
    • Improve disaster recovery.
    • Improve application security.

    Considerations

    • Data extraction, starting from the document databases in NSF format and including security settings about users and groups granted to read and write single documents, which is a powerful feature of Lotus Domino documents.
    • File extraction, starting from the document databases in NSF format, which can contain attachments and RTF documents and embedded files.
    • Design of the final relational database structure; this activity should be carried out without taking into account the original structure of the data in Domino files or the data conversion and loading, from the extracted format to the final model.
    • Design and development of the target-state custom applications based on the new data model and the new selected development platform.

    Application replatform

    Transition an existing Domino application to a new modern platform

    Abstract

    This type of arrangement is typically part of an application migration or transformation. In this model, client can “replatform” the application into an off-premises hosted provider platform. This would yield many benefits of cloud but in a different scaling capacity as experienced with commodity workloads (e.g. Windows, Linux) and the associated application.

    Two challenges are particularly significant when migrating or replatforming Domino applications:

    • The application functionality/value must be reproduced/replaced with not one but many applications, either through custom coding or a commercial-off-the-shelf/SaaS solution.
    • Notes “databases” are not relational databases and will not migrate simply to an SQL database while retaining the same business value. Notes databases are essentially NoSQL repositories and are difficult to normalize.

    Advantages

    • Leverage cloud technologies.
    • Improve scalability.
    • Align to a SharePoint platform.
    • Improve disaster recovery.
    • Improve application security.

    Considerations

    • Application replatform resource effort
    • Network bandwidth
    • New platform terms and conditions
    • Secure connectivity and communication
    • New platform security and compliance
    • Degree of complexity

    Info-Tech Insights

    There is a difference between a migration and a replatform application strategy. Determine which solution aligns to the application requirements.

    Stay with HCL

    Stay with HCL, understanding its future commitment to the platform.

    Abstract

    Following the announced acquisition of IBM Domino and up until around December 2019, HCL had published no future roadmap for the platform. The public-facing information/website at the time stated that HCL acquired “the product family and key lab services to deliver professional services.” Again, there was no mention or emphasis on upcoming new features for the platform. The product offering on their website at the time stated that HCL would leverage its services expertise to advise clients and push applications into four buckets:

    1. Replatform
    2. Retire
    3. Move to cloud
    4. Modernize

    That public-facing messaging changed with release 11.0, which had references to IBM rebranded to HCL for the Notes and Domino product – along with fixes already inflight. More information can be found on HCL’s FAQ page.

    Advantages

    • Known environment
    • Domino is a supported platform
    • Domino is a developed platform
    • No-code/low-code optimization
    • Business developed applications
    • Rapid application framework

    This is the HCL Domino Logo

    Understand your tools

    Many tools are available to help evaluate or migrate your Domino Platform. Here are a few common tools for you to consider.

    Notes Archiving & Notes to SharePoint

    Summary of Vendor

    “SWING Software delivers content transformation and archiving software to over 1,000 organizations worldwide. Our solutions uniquely combine key collaborative platforms and standard document formats, making document production, publishing, and archiving processes more efficient.”*

    Tools

    Lotus Notes Data Migration and Archiving: Preserve historical data outside of Notes and Domino

    Lotus Note Migration: Replacing Lotus Notes. Boost your migration by detaching historical data from Lotus Notes and Domino.

    Headquarters

    Croatia

    Best fit

    • Application archive and retire
    • Migration to SharePoint

    This is an image of the SwingSoftware Logo

    * swingsoftware.com

    Domino Migration to SharePoint

    Summary of Vendor

    “Providing leading solutions, resources, and expertise to help your organization transform its collaborative environment.”*

    Tools

    Notes Domino Migration Solutions: Rivit’s industry-leading solutions and hardened migration practice will help you eliminate Notes Domino once and for all.

    Rivive Me: Migrate Notes Domino applications to an enterprise web application

    Headquarters

    Canada

    Best fit

    • Application Archive & Retire
    • Migration to SharePoint

    This is an image of the RiVit Logo

    * rivit.ca

    Lotus Notes to M365

    Summary of Vendor

    “More than 300 organizations across 40+ countries trust skybow to build no-code/no-compromise business applications & processes, and skybow’s community of customers, partners, and experts grows every day.”*

    Tools

    SkyBow Studio: The low-code platform fully integrated into Microsoft 365

    Headquarters:

    Switzerland

    Best fit

    • Application Archive & Retire
    • Migration to SharePoint

    This is an image of the SkyBow Logo

    * skybow.com | About skybow

    Notes to SharePoint Migration

    Summary of Vendor

    “CIMtrek is a global software company headquartered in the UK. Our mission is to develop user-friendly, cost-effective technology solutions and services to help companies modernize their HCL Domino/Notes® application landscape and support their legacy COBOL applications.”*

    Tools

    CIMtrek SharePoint Migrator: Reduce the time and cost of migrating your IBM® Lotus Notes® applications to Office 365, SharePoint online, and SharePoint on premises.

    Headquarters

    United Kingdom

    Best fit

    • Application replatform
    • Migration to SharePoint

    This is an image of the CIMtrek Logo

    * cimtrek.com | About CIMtrek

    Domino replatform/Rapid application selection framework

    Summary of Vendor

    “4WS.Platform is a rapid application development tool used to quickly create multi-channel applications including web and mobile applications.”*

    Tools

    4WS.Platform is available in two editions: Community and Enterprise.
    The Platform Enterprise Edition, allows access with an optional support pack.

    4WS.Platform’s technical support provides support services to the users through support contracts and agreements.

    The platform is a subscription support services for companies using the product which will allow customers to benefit from the knowledge of 4WS.Platform’s technical experts.

    Headquarters

    Italy

    Best fit

    • Application replatform

    This is an image of the 4WS PLATFORM Logo

    * 4wsplatform.org

    Activity

    Understand your Domino options

    Application Rationalization Exercise

    Info-Tech Insight

    Application rationalization is the perfect exercise to fully understand your business-developed applications, their importance to business process, and the potential underlying financial impact.

    This activity involves the following participants:

    • IT strategic direction decision-makers.
    • IT managers responsible for an existing Domino platform
    • Organizations evaluating platforms for mission-critical applications.

    Outcomes of this step:

    • Completed Application Rationalization Tool

    Application rationalization exercise

    Use this Application Rationalization Tool to input the outcomes of your various application assessments

    In the Application Entry tab:

    • Input your application inventory or subset of apps you intend to rationalize, along with some basic information for your apps.

    In the Business Value & TCO Comparison tab, determine rationalization priorities.

    • Input your business value scores and total cost of ownership (TCO) of applications.
    • Review the results of this analysis to determine which apps should require additional analysis and which dispositions should be prioritized.

    In the Disposition Selection tab:

    • Add to or adapt our list of dispositions as appropriate.

    In the Rationalization Inputs tab:

    • Add or adapt the disposition criteria of your application rationalization framework as appropriate.
    • Input the results of your various assessments for each application.

    In the Disposition Settings tab:

    • Add or adapt settings that generate recommended dispositions based on your rationalization inputs.

    In the Disposition Recommendations tab:

    • Review and compare the rationalization results and confirm if dispositions are appropriate for your strategy.

    In the Timeline Considerations tab:

    • Enter the estimated timeline for when you execute your dispositions.

    In the Portfolio Roadmap tab:

    • Review and present your roadmap and rationalization results.

    Follow the instructions to generate recommended dispositions and populate an application portfolio roadmap.

    This image depicts a scatter plot graph where the X axis is labeled Business Value, and the Y Axis is labeled Cost. On the graph, the following datapoints are displayed: SF; HRIS; ERP; ALM; B; A; C; ODP; SAS

    Info-Tech Insight

    Watch out for misleading scores that result from poorly designed criteria weightings.

    Related Info-Tech Research

    Build an Application Rationalization Framework

    Manage your application portfolio to minimize risk and maximize value.

    Embrace Business-Managed Applications

    Empower the business to implement their own applications with a trusted business-IT relationship.

    Satisfy Digital End Users With Low- and No-Code

    Extend IT, automation, and digital capabilities to the business with the right tools, good governance, and trusted organizational relationships.

    Maximize the Benefits from Enterprise Applications with a Center of Excellence

    Optimize your organization’s enterprise application capabilities with a refined and scalable methodology.

    Drive Successful Sourcing Outcomes With a Robust RFP Process

    Leverage your vendor sourcing process to get better results.

    Research Authors

    Darin Stahl, Principal Research Advisor, Info-Tech Research Group

    Darin Stahl, Principal Research Advisor,
    Info-Tech Research Group

    Darin is a Principal Research Advisor within the Infrastructure practice, leveraging 38+ years of experience. His areas of focus include IT operations management, service desk, infrastructure outsourcing, managed services, cloud infrastructure, DRP/BCP, printer management, managed print services, application performance monitoring, managed FTP, and non-commodity servers (zSeries, mainframe, IBM i, AIX, Power PC).

    Troy Cheeseman, Practice Lead, Info-Tech Research Group

    Troy Cheeseman, Practice Lead,
    Info-Tech Research Group

    Troy has over 24 years of experience and has championed large enterprise-wide technology transformation programs, remote/home office collaboration and remote work strategies, BCP, IT DRP, IT operations and expense management programs, international right placement initiatives, and large technology transformation initiatives (M&A). Additionally, he has deep experience working with IT solution providers and technology (cloud) startups.

    Research Contributors

    Rob Salerno, Founder & CTO, Rivit Technology Partners

    Rob Salerno, Founder & CTO, Rivit Technology Partners

    Rob is the Founder and Chief Technology Strategist for Rivit Technology Partners. Rivit is a system integrator that delivers unique IT solutions. Rivit is known for its REVIVE migration strategy which helps companies leave legacy platforms (such as Domino) or move between versions of software. Rivit is the developer of the DCOM Application Archiving solution.

    Bibliography

    Cheshire, Nigel. “Domino v12 Launch Keeps HCL Product Strategy On Track.” Team Studio, 19 July 2021. Web.

    “Is LowCode/NoCode the best platform for you?” Rivit Technology Partners, 15 July 2021. Web.

    McCracken, Harry. “Lotus: Farewell to a Once-Great Tech Brand.” TIME, 20 Nov. 2012. Web.

    Sharwood, Simon. “Lotus Notes refuses to die, again, as HCL debuts Domino 12.” The Register, 8 June 2021. Web.

    Woodie, Alex. “Domino 12 Comes to IBM i.” IT Jungle, 16 Aug. 2021. Web.

    Identify and Reduce Agile Contract Risk

    • Buy Link or Shortcode: {j2store}232|cart{/j2store}
    • member rating overall impact: 8.0/10 Overall Impact
    • member rating average dollars saved: $10,000 Average $ Saved
    • member rating average days saved: 20 Average Days Saved
    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Customer maturity levels with Agile are low, with 67% of organizations using Agile for less than five years.
    • Customer competency levels with Agile are also low, with 84% of organizations stating they are below a high level of competency.
    • Contract disputes are the number one or two types of disputes faced by organizations across all industries.

    Our Advice

    Critical Insight

    • Agile contracts require different wording and protections than traditional or waterfall contracts.
    • Agile buzzwords by themselves do not create an Agile contract.
    • There is a delicate balance between being overly prescriptive in an Agile contract and too lax.

    Impact and Result

    • Identify options for Agile contract provisions.
    • Manage Agile contract risk by selecting the appropriate level of protections for an Agile project.
    • Harness the power of Agile development and collaboration with the vendor while preserving contractual flexibility.
    • Focus on the correct contract clauses to manage Agile risk.

    Identify and Reduce Agile Contract Risk Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should treat Agile contracts differently from traditional or waterfall contracts, and review Info-Tech’s methodology, and understand the twelve contract clauses that are different for Agile contracts.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Identify and evaluate options

    Use the information in this blueprint and Info-Tech’s Agile Contract Playbook-Checklist to review and assess your Agile contracts, ensuring that the provisions and protections are suitable for Agile contracts specifically.

    • Agile Contracts Playbook-Checklist
    [infographic]

    Workshop: Identify and Reduce Agile Contract Risk

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify and Evaluate Options

    The Purpose

    To understand Agile-specific contract clauses, to improve risk identification, and to be more effective at negotiating Agile contract terms.

    Key Benefits Achieved

    Increased awareness of how Agile contract provisions are different from traditional or waterfall contracts in 12 key areas.

    Understanding available options.

    Understanding the impact of being too prescriptive.

    Activities

    1.1 Review the Agile Contract Playbook-Checklist.

    1.2 Review 12 contract provisions and reinforce key learnings with exercises.

    Outputs

    Configured Playbook-Checklist as applicable

    Exercise results and debrief

    Implement an IT Chargeback System

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    • member rating overall impact: 8.0/10 Overall Impact
    • member rating average dollars saved: After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.
    • member rating average days saved: Read what our members are saying
    • Parent Category Name: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management
    • Business units voraciously consume IT services and don’t understand the actual costs of IT. This is due to lack of IT cost transparency and business stakeholder accountability for consumption of IT services.
    • Business units perceive IT costs as uncompetitive, resulting in shadow IT and a negative perception of IT.
    • Business executives have decided to implement an IT chargeback program and IT must ensure the program succeeds.

    Our Advice

    Critical Insight

    Price IT services so that business consumers find them meaningful, measurable, and manageable:

    • The business must understand what they are being charged for. If they can’t understand the value, you’ve chosen the wrong basis for charge.
    • Business units must be able to control and track their consumption levels, or they will feel powerless to control costs and you’ll never attain real buy-in.

    Impact and Result

    • Explain IT costs in ways that matter to the business. Instead of focusing on what IT pays for, discuss the value that IT brings to the business by defining IT services and how they serve business users.
    • Develop a chargeback model that brings transparency to the flow of IT costs through to business value. Demonstrate how a good chargeback model can bring about fair “pay-for-value” and “pay-for-what-you-use” pricing.
    • Communicate IT chargeback openly and manage change effectively. Business owners will want to know how their profit and loss statements will be affected by the new pricing model.

    Implement an IT Chargeback System Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement an IT chargeback program, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Launch

    Make the case for IT chargeback, then assess the financial maturity of the organization and identify a pathway to success. Create a chargeback governance model.

    • Implement IT Chargeback – Phase 1: Launch
    • IT Chargeback Kick-Off Presentation

    2. Define

    Develop a chargeback model, including identifying user-facing IT services, allocating IT costs to services, and setting up the chargeback program.

    • Implement IT Chargeback – Phase 2: Define
    • IT Chargeback Program Development & Management Tool

    3. Implement

    Communicate the rollout of the IT chargeback model and establish a process for recovering IT services costs from business units.

    • Implement IT Chargeback – Phase 3: Implement
    • IT Chargeback Communication Plan
    • IT Chargeback Rollout Presentation
    • IT Chargeback Financial Presentation

    4. Revise

    Gather and analyze feedback from business owners, making necessary modifications to the chargeback model and communicating the implications.

    • Implement IT Chargeback – Phase 4: Revise
    • IT Chargeback Change Communication Template
    [infographic]

    Workshop: Implement an IT Chargeback System

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Kick-Off IT Chargeback

    The Purpose

    Make the case for IT chargeback.

    Identify the current and target state of chargeback maturity.

    Establish a chargeback governance model.

    Key Benefits Achieved

    Investigated the benefits and challenges of implementing IT chargeback.

    Understanding of the reasons why traditional chargeback approaches fail.

    Identified the specific pathway to chargeback success.

    Activities

    1.1 Investigate the benefits and challenges of implementing IT chargeback

    1.2 Educate business owners and executives on IT chargeback

    1.3 Identify the current and target state of chargeback maturity

    1.4 Establish chargeback governance

    Outputs

    Defined IT chargeback mandate

    IT chargeback kick-off presentation

    Chargeback maturity assessment

    IT chargeback governance model

    2 Develop the Chargeback Model

    The Purpose

    Develop a chargeback model.

    Identify the customers and user-facing services.

    Allocate IT costs.

    Determine chargeable service units.

    Key Benefits Achieved

    Identified IT customers.

    Identified user-facing services and generated descriptions for them.

    Allocated IT costs to IT services.

    Identified meaningful, measurable, and manageable chargeback service units.

    Activities

    2.1 Identify user-facing services and generate descriptions

    2.2 Allocate costs to user-facing services

    2.3 Determine chargeable service units and pricing

    2.4 Track consumption

    2.5 Determine service charges

    Outputs

    High-level service catalog

    Chargeback model

    3 Communicate IT Chargeback

    The Purpose

    Communicate the implementation of IT chargeback.

    Establish a process for recovering the costs of IT services from business units.

    Share the financial results of the charge cycle with business owners.

    Key Benefits Achieved

    Managed the transition to charging and recovering the costs of IT services from business units.

    Communicated the implementation of IT chargeback and shared the financial results with business owners.

    Activities

    3.1 Create a communication plan

    3.2 Deliver a chargeback rollout presentation

    3.3 Establish a process for recovering IT costs from business units

    3.4 Share the financial results from the charge cycle with business owners

    Outputs

    IT chargeback communication plan

    IT chargeback rollout presentation

    IT service cost recovery process

    IT chargeback financial presentation

    4 Review the Chargeback Model

    The Purpose

    Gather and analyze feedback from business owners on the chargeback model.

    Make necessary modifications to the chargeback model and communicate implications.

    Key Benefits Achieved

    Gathered business stakeholder feedback on the chargeback model.

    Made necessary modifications to the chargeback model to increase satisfaction and accuracy.

    Managed changes by communicating the implications to business owners in a structured manner.

    Activities

    4.1 Address stakeholder pain points and highly disputed costs

    4.2 Update the chargeback model

    4.3 Communicate the chargeback model changes and implications to business units

    Outputs

    Revised chargeback model with business feedback, change log, and modifications

    Chargeback change communication

    Safety as a secondary consideration

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    This is a story that should make you perk up.

    I know of a department that was eager to launch their new product. The strain was severe. The board was breathing down their necks. Rivals were catching up (or so they thought).

    What did they do?

    "Let's get this thing live, prove the market wants it, then we'll circle back and handle all the security and stability backlog items." For the product owner, at the time, that seemed the right thing to do.

    They were hacked 48 hours after going live.

    Customer information was stolen. The brand's reputation suffered. The decision led to a months-long legal nightmare. And they still had to completely rebuild the system. Making stability and security bolt-on items is never a good idea.

    The true price of "fix it later"

    See, I understand. When the product owner is pressing for user experience enhancements and you're running out of time for launch, it's easy to overlook those "non-functional requirements." Yet, we should avoid blaming the product owner. The PO is under pressure from many stakeholders, and a delayed launch may also come with significant costs.

    Load balancing isn't visible to customers, after all. Penetration testing doesn't excite them. Failure mechanisms don't matter to them. This statement is true until a malfunction impacts a client. Then it suddenly becomes the most important thing in the world.

    However, I know that ignoring non-functional requirements (NFRs) can lead to failed businesses (or business lines). This elevates these issues beyond mere technical inconveniences. NFRs are designed with the client in mind.

    Look at it this way. When your system crashes during periods of high traffic, how does the user experience change? How satisfied are customers when their personal information is stolen? When it takes 30 seconds for your website to load, how does that conversion rate look?

    Let me expose you to some consultant figures. The average cost of IT outages is $5,600 per minute, according to a 2014 Gartner study. That figure can rise to $300,000 per hour for larger businesses. The reality is that in your department, you will rarely reach these numbers. When we look at current (2020-2025) and expected (2026) trends, the typical operational loss numbers in international commercial banking or insurance are closer to 100K for high-impact incidents that are handled within 2–3 hours.

    Obviously, your numbers will vary. And if you don't know what your costs are, now would be a good time to discover that. This does not imply that you should simply accept the risks associated with such situations. You must fix or mitigate such opportunities for hackers to get in. Do so at the appropriate cost for your business.

    Data breaches are a unique phenomenon. According to IBM's Cost of a Data Breach Report 2025, a data breach typically costs $4.44 million, and detecting and containing it takes an average of 241 days. Some preview data from the 2025 report include that 97% of organizations that reported on the study indicated that they lacked access controls for their AI systems. That means that many companies don't even have the basics in order. And AI-related breaches are just going to accelerate. AI security defenses will help lower the cost of such breaches.

    Despite the decreasing cost of these breaches, I anticipate an increase in their frequency in the upcoming years.

    This means that non-functional requirements in terms of security and resilience should take a more prominent place in the prioritizations. Your client depends on your systems being safe, resilient, and performant.

    The blind spot in leadership

    And yet, this is where some leaders make mistakes. I have the impression they believe that client-focused design means more functionality and elegant interfaces. They prioritize user experience enhancements over system reliability.

    I want to share a key fact that distinguishes successful businesses: customers desire more than just a good product. It must always function for them. And that means following certain procedures. They are not there to hamper you; they are there to retain customers.

    88% of online shoppers are less likely to visit a website again after a negative experience, according to research from Forrester. Amazon found that they lose 1% of sales for every 100 ms of latency. That 100 milliseconds adds up to millions of lost profits when billions of dollars are at stake.

    You run the risk of more than just technical difficulties when you deprioritize safety. Customer trust, revenue stability, competitive advantage, adherence to the law, costs, and team morale are all at stake.

    The "happy flow" trap is costing you revenue.

    Allow me to illustrate what I see happening during development cycles.

    The team tests the happy flow. The user successfully logs in. The user navigates with ease. The user makes the purchase without any problems. The user logs off without incident.

    "Excellent! Publish it!"

    However, what occurs if 1000 users attempt to log in at once? What occurs if an attempt is made to insert malicious code into your contact form? During a transaction, what happens if your database connection fails?

    These are not extreme situations. These are real-life occurrences.

    Fifty percent of data center managers and operators reported having an impactful outage in the previous three years, according to the Uptime Institute's 2025 Global Data Center Survey. Note that this is at the infra level. The biggest contributor is power outages. What role does power play in ensuring a smooth flow? Power will not always flow as you want it, so plan for lack of power and for spikes.

    With regard to software failures, the spread of possible causes widens. AI is a big contributor. AI is typically brought in to accelerate development and assist in coding. But it tends to introduce subtle bugs and vulnerabilities that a seasoned developer has to review and solve.

    Another upcoming article will discuss how faster release cycles often lead to a rush in testing. This should not be the case; by spending some time automating your (non-)regression test bank, you will gain speed. But you have to invest time in building the test suite.

    Can your system handle success? This question should keep every executive awake at night.

    I've witnessed businesses invest millions in advertising campaigns to drive traffic to systems that fail due to their success. Consider describing to your board how your greatest marketing victory became your worst operational mishap.

    Managing traffic spikes is only one aspect of load balancing. It is about ensuring that your business can handle opportunities without being overwhelmed.

    The mindset that transforms everything

    Let's now address the most pressing issue: security.

    The majority of leaders consider security to be like insurance, something you hope you never need. The fact that security is more than just protection, however, will alter the way you approach every project. It's approval to develop.

    According to the Ponemon Institute's 2025 Cost of Insider Threats Global Report, the average annualized cost of insider threats, defined as employee negligence, criminal insiders, and credential thieves, has risen to $17.4 million per incident, up from $15.4 million in 2022. The number of discovered and analyzed incidents increased from 3,269 in 2018 to 7,868 in 2025 research studies. 

    Cybersecurity Ventures predicts that cybercrime will cost the global economy $10.5 trillion annually by 2025.

    The most fascinating thing, though, is that companies that invest in proactive security see measurable outcomes. Organizations that allocate over 10% of their IT budget to cybersecurity have a 2.5-fold higher chance of experiencing no security incidents than those that allocate less than 1%, per Deloitte's Future of Cyber Survey.

    By hardening your systems against common attack vectors, you can scale quickly without worrying about the future. You can handle sensitive data with confidence, enter new markets without fear, establish partnerships that require trust, and focus on innovation instead of crisis management.

    The non-functional needs that genuinely generate income

    Allow me to explain this in a way that will satisfy your CFO.

    Retention is equal to reliability. Customers return when a system functions reliably (given you sell items they want). The Harvard Business Review claims that a 5% increase in customer retention rates boosts profits by 25% to 95%. It is five to twenty-five times less expensive to retain customers than to acquire new ones.

    Scalability is equal to security. Secure systems can handle larger client volumes, more sensitive data, and higher-value transactions. 69% of board members and C-suite executives think that privacy and cyber risks could affect their company's ability to grow, according to PwC.

    Profit is equal to performance. You lose conversions for every second of load time. Google discovered that the likelihood of a bounce rises by 32% as page load time increases from 1 to 3 seconds. It increases by 90% from 1 second to 5 seconds. Walmart discovered that every second improvement in page load time led to a 2% increase in conversions.

    Reputation is equal to resilience. Guess which company benefits when your system works while your competitors' systems fail? Failures reduce trust. 71% of consumers will actively advocate against companies they don't trust, and 67% of consumers will stop purchasing from them, according to Edelman's 2023 Trust Barometer. While the 2025 report does not present comparative numbers, distrust impacting consumer behavior is likely to be even more prevalent. 

    The structure that reverses the script

    Reframe this discussion with your executives and team

    • The question we should not ask is, "Can we afford to build this right?" but rather, "Can we afford not to?" This consideration is crucial because we risk losing customers at every obstacle they encounter. 
    • Non-functional requirements should be viewed as competitive advantages rather than obstructions. If it suddenly does not work, the customer walks away.
    • Consider viewing system reliability as a profit center instead of a cost center. When a customer knows it will work, they will order again and refer a friend.

    The numbers support this point. Businesses that invest in operational resilience see three times higher profit margins and 2.5 times higher revenue growth than their counterparts, according to McKinsey's 2023 State of Organizations report. In 2025 we see a focus on AI, but the point remains.

    These metrics will grab the attention when you're presenting them.

    Although the average cost of downtime varies by industry, it is always high. 

    The impact of a security breach on customer lifetime value is equally uncomfortable. Following a data breach, 78% of consumers will cease interacting with a brand online, and 36% will never do so again, according to Ping Identity's 2023 Consumer Identity Breach Report.

    Every second that the system is unavailable results in a rapidly mounting loss of money. That's about $3,170 per minute of full downtime for a business that makes $100 million a year. We're talking about $31,700 per minute for billion-dollar businesses. Again, your experience may differ, but it's important to note that this cost is often unseen yet undeniable. If you want to calculate this more granularly, then I have a calculation method for you that is easy to implement.

    There is a discernible trend in the cost of rebuilding versus building correctly the first time. Resolving a problem in production can cost four to five times as much as fixing it during design, and it can cost up to 100 times as much as fixing it during the requirements and design phase, according to IBM's Systems Sciences Institute.

    The plan of action that truly works

    This is what you should do right away.

    Please begin by reviewing your current primary systems. When they're under stress, what happens? What occurs if they are attacked? What occurs if they don't work? 40% of businesses that suffer a significant system failure never reopen, although only 23% of organizations have tested their disaster recovery plans in the previous year, according to Gartner. Companies we work with test their systems at least once per year. If the results are unsatisfactory, we conduct a retest to ensure they meet our standards.

    Next, please determine the actual cost of addressing issues at a later stage. Add in the costs of customer attrition, security breaches, downtime, and reconstruction. To lend credibility to your calculations, try to work out exact numbers for your company. Industry standards (like in this article) will give you indicators, but you need to know your figures.

    Third, recast your non-functional needs as business needs. Consider focusing on strategies for managing success rather than solely discussing load balancing. Instead of discussing security testing, focus on revenue protection.

    Fourth, consider safety when defining "done." Until a feature is dependable, secure, and scalable, it isn't considered complete. Projects that incorporate non-functional requirements from the outset have a threefold higher chance of success, per the Standish Group's 2023 Chaos Report.

    Fifth, use system dependability as a differentiator in the marketplace. You're up when your rivals are down. You're safe when they're compromised.

    The bottom line

    I understand that resilience isn't sexy. I am aware that UI enhancements are more exciting than infrastructure resilience.

    And yet, I know that businesses that prioritize safety will survive and lead after seeing others thrive and fail based on this one choice. Customers trust them. They are capable of scaling without breaking. Because they are confident that their systems can manage whatever comes next, they are the ones who get a good night's sleep.

    Resilient organizations are twice as likely to surpass customer satisfaction goals and are 2.5 times more likely to achieve revenue growth of 10% or more.

    Resilience represents the most significant competitive advantage. You have a choice. Just keep in mind that your clients are depending on you to do the job correctly.

    Always happy to engage in a conversation.

    Mergers & Acquisitions: The Buy Blueprint

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    There are four key scenarios or entry points for IT as the acquiring organization in M&As:

    • IT can suggest an acquisition to meet the business objectives of the organization.
    • IT is brought in to strategy plan the acquisition from both the business’ and IT’s perspectives.
    • IT participates in due diligence activities and valuates the organization potentially being acquired.
    • IT needs to reactively prepare its environment to enable the integration.

    Consider the ideal scenario for your IT organization.

    Our Advice

    Critical Insight

    Acquisitions are inevitable in modern business, and IT’s involvement in the process should be too. This progression is inspired by:

    • The growing trend for organizations to increase, decrease, or evolve through these types of transactions.
    • A maturing business perspective of IT, preventing the difficulty that IT is faced with when invited into the transaction process late.
    • Transactions that are driven by digital motivations, requiring IT’s expertise.
    • There never being such a thing as a true merger, making the majority of M&A activity either acquisitions or divestitures.

    Impact and Result

    Prepare for a growth/integration transaction by:

    • Recognizing the trend for organizations to engage in M&A activity and the increased likelihood that, as an IT leader, you will be involved in a transaction in your career.
    • Creating a standard strategy that will enable strong program management.
    • Properly considering all the critical components of the transaction and integration by prioritizing tasks that will reduce risk, deliver value, and meet stakeholder expectations.

    Mergers & Acquisitions: The Buy Blueprint Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how your organization can excel its growth strategy by engaging in M&A transactions. Review Info-Tech’s methodology and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Proactive Phase

    Be an innovative IT leader by suggesting how and why the business should engage in an acquisition or divestiture.

    • One-Pager: M&A Proactive
    • Case Study: M&A Proactive
    • Information Asset Audit Tool
    • Data Valuation Tool
    • Enterprise Integration Process Mapping Tool
    • Risk Register Tool
    • Security M&A Due Diligence Tool

    2. Discovery & Strategy

    Create a standardized approach for how your IT organization should address acquisitions.

    • One-Pager: M&A Discovery & Strategy – Buy
    • Case Study: M&A Discovery & Strategy – Buy

    3. Due Diligence & Preparation

    Evaluate the target organizations to minimize risk and have an established integration project plan.

    • One-Pager: M&A Due Diligence & Preparation – Buy
    • Case Study: M&A Due Diligence & Preparation – Buy
    • IT Due Diligence Charter
    • Technical Debt Business Impact Analysis Tool
    • IT Culture Diagnostic
    • M&A Integration Project Management Tool (SharePoint)
    • SharePoint Template: Step-by-Step Deployment Guide
    • M&A Integration Project Management Tool (Excel)
    • Resource Management Supply-Demand Calculator

    4. Execution & Value Realization

    Deliver on the integration project plan successfully and communicate IT’s transaction value to the business.

    • One-Pager: M&A Execution & Value Realization – Buy
    • Case Study: M&A Execution & Value Realization – Buy

    Infographic

    Workshop: Mergers & Acquisitions: The Buy Blueprint

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Pre-Transaction Discovery & Strategy

    The Purpose

    Establish the transaction foundation.

    Discover the motivation for acquiring.

    Formalize the program plan.

    Create the valuation framework.

    Strategize the transaction and finalize the M&A strategy and approach.

    Key Benefits Achieved

    All major stakeholders are on the same page.

    Set up crucial elements to facilitate the success of the transaction.

    Have a repeatable transaction strategy that can be reused for multiple organizations.

    Activities

    1.1 Conduct the CIO Business Vision and CEO-CIO Alignment Diagnostics.

    1.2 Identify key stakeholders and outline their relationship to the M&A process.

    1.3 Identify the rationale for the company's decision to pursue an acquisition.

    1.4 Assess the IT/digital strategy.

    1.5 Identify pain points and opportunities tied to the acquisition.

    1.6 Create the IT vision and mission statements and identify IT guiding principles and the transition team.

    1.7 Document the M&A governance.

    1.8 Establish program metrics.

    1.9 Create the valuation framework.

    1.10 Establish the integration strategy.

    1.11 Conduct a RACI.

    1.12 Create the communication plan.

    1.13 Prepare to assess target organization(s).

    Outputs

    Business perspectives of IT

    Stakeholder network map for M&A transactions

    Business context implications for IT

    IT’s acquiring strategic direction

    Governance structure

    M&A program metrics

    IT valuation framework

    Integration strategy

    RACI

    Communication plan

    Prepared to assess target organization(s)

    2 Mid-Transaction Due Diligence & Preparation

    The Purpose

    Establish the transaction foundation.

    Discover the motivation for integration.

    Assess the target organization(s).

    Create the valuation framework.

    Plan the integration roadmap.

    Key Benefits Achieved

    All major stakeholders are on the same page.

    Methodology identified to assess organizations during due diligence.

    Methodology can be reused for multiple organizations.

    Integration activities are planned and assigned.

    Activities

    2.1 Gather and evaluate the stakeholders involved, M&A strategy, future-state operating model, and governance.

    2.2 Review the business rationale for the acquisition.

    2.3 Establish the integration strategy.

    2.4 Create the due diligence charter.

    2.5 Create a list of IT artifacts to be reviewed in the data room.

    2.6 Conduct a technical debt assessment.

    2.7 Assess the current culture and identify the goal culture.

    2.8 Identify the needed workforce supply.

    2.9 Create the valuation framework.

    2.10 Establish the integration roadmap.

    2.11 Establish and align project metrics with identified tasks.

    2.12 Estimate integration costs.

    Outputs

    Stakeholder map

    IT strategy assessment

    IT operating model and IT governance structure defined

    Business context implications for IT

    Integration strategy

    Due diligence charter

    Data room artifacts

    Technical debt assessment

    Culture assessment

    Workforce supply identified

    IT valuation framework

    Integration roadmap and associated resourcing

    3 Post-Transaction Execution & Value Realization

    The Purpose

    Establish the transaction foundation.

    Discover the motivation for integration.

    Plan the integration roadmap.

    Prepare employees for the transition.

    Engage in integration.

    Assess the transaction outcomes.

    Key Benefits Achieved

    All major stakeholders are on the same page.

    Integration activities are planned and assigned.

    Employees are set up for a smooth and successful transition.

    Integration strategy and roadmap executed to benefit the organization.

    Review what went well and identify improvements to be made in future transactions.

    Activities

    3.1 Identify key stakeholders and determine IT transaction team.

    3.2 Gather and evaluate the M&A strategy, future-state operating model, and governance.

    3.3 Review the business rationale for the acquisition.

    3.4 Establish the integration strategy.

    3.5 Prioritize integration tasks.

    3.6 Establish the integration roadmap.

    3.7 Establish and align project metrics with identified tasks.

    3.8 Estimate integration costs.

    3.9 Assess the current culture and identify the goal culture.

    3.10 Identify the needed workforce supply.

    3.11 Create an employee transition plan.

    3.12 Create functional workplans for employees.

    3.13 Complete the integration by regularly updating the project plan.

    3.14 Begin to rationalize the IT environment where possible and necessary.

    3.15 Confirm integration costs.

    3.16 Review IT’s transaction value.

    3.17 Conduct a transaction and integration SWOT.

    3.18 Review the playbook and prepare for future transactions.

    Outputs

    M&A transaction team

    Stakeholder map

    IT strategy assessed

    IT operating model and IT governance structure defined

    Business context implications for IT

    Integration strategy

    Integration roadmap and associated resourcing

    Culture assessment

    Workforce supply identified

    Employee transition plan

    Employee functional workplans

    Updated integration project plan

    Rationalized IT environment

    SWOT of transaction

    M&A Buy Playbook refined for future transactions

    Further reading

    Mergers & Acquisitions: The Buy Blueprint

    For IT leaders who want to have a role in the transaction process when their business is engaging in an M&A purchase.

    EXECUTIVE BRIEF

    Analyst Perspective

    Don’t wait to be invited to the M&A table, make it.

    Photo of Brittany Lutes, Research Analyst, CIO Practice, Info-Tech Research Group.
    Brittany Lutes
    Research Analyst,
    CIO Practice
    Info-Tech Research Group
    Photo of Ibrahim Abdel-Kader, Research Analyst, CIO Practice, Info-Tech Research Group.
    Ibrahim Abdel-Kader
    Research Analyst,
    CIO Practice
    Info-Tech Research Group

    IT has always been an afterthought in the M&A process, often brought in last minute once the deal is nearly, if not completely, solidified. This is a mistake. When IT is brought into the process late, the business misses opportunities to generate value related to the transaction and has less awareness of critical risks or inaccuracies.

    To prevent this mistake, IT leadership needs to develop strong business relationships and gain respect for their innovative suggestions. In fact, when it comes to modern M&A activity, IT should be the ones suggesting potential transactions to meet business needs, specifically when it comes to modernizing the business or adopting digital capabilities.

    IT needs to stop waiting to be invited to the acquisition or divestiture table. IT needs to suggest that the table be constructed and actively work toward achieving the strategic objectives of the business.

    Executive Summary

    Your Challenge

    There are four key scenarios or entry points for IT as the acquiring organization in M&As:

    • IT can suggest an acquisition to meet the business objectives of the organization.
    • IT is brought in to strategy plan the acquisition from both the business’ and IT’s perspectives.
    • IT participates in due diligence activities and valuates the organization potentially being acquired.
    • IT needs to reactively prepare its environment to enable the integration.

    Consider the ideal scenario for your IT organization.

    Common Obstacles

    Some of the obstacles IT faces include:

    • IT is often told about the transaction once the deal has already been solidified and is now forced to meet unrealistic business demands.
    • The business does not trust IT and therefore does not approach IT to define value or reduce risks to the transaction process.
    • The people and culture element are forgotten or not given adequate priority.

    These obstacles often arise when IT waits to be invited into the transaction process and misses critical opportunities.

    Info-Tech's Approach

    Prepare for a growth/integration transaction by:

    • Recognizing the trend for organizations to engage in M&A activity and the increased likelihood that, as an IT leader, you will be involved in a transaction in your career.
    • Creating a standard strategy that will enable strong program management.
    • Properly considering all the critical components of the transaction and integration by prioritizing tasks that will reduce risk, deliver value, and meet stakeholder expectations.

    Info-Tech Insight

    As the number of merger, acquisition, and divestiture transactions continues to increase, so too does IT’s opportunity to leverage the growing digital nature of these transactions and get involved at the onset.

    The changing M&A landscape

    Businesses will embrace more digital M&A transactions in the post-pandemic world

    • When the pandemic occurred, businesses reacted by either pausing (61%) or completely cancelling (46%) deals that were in the mid-transaction state (Deloitte, 2020). The uncertainty made many organizations consider whether the risks would be worth the potential benefits.
    • However, many organizations quickly realized the pandemic is not a hindrance to M&A transactions but an opportunity. Over 16,000 American companies were involved in M&A transactions in the first six months of 2021 (The Economist). For reference, this had been averaging around 10,000 per six months from 2016 to 2020.
    • In addition to this transaction growth, organizations have increasingly been embracing digital. These trends increase the likelihood that, as an IT leader, you will engage in an M&A transaction. However, it is up to you when you get involved in the transactions.

    The total value of transactions in the year after the pandemic started was $1.3 billion – a 93% increase in value compared to before the pandemic. (Nasdaq)

    Virtual deal-making will be the preferred method of 55% of organizations in the post-pandemic world. (Wall Street Journal, 2020)

    Your challenge

    IT is often not involved in the M&A transaction process. When it is, it’s often too late.

    • The most important driver of an acquisition is the ability to access new technology (DLA Piper), and yet 50% of the time, IT isn’t involved in the M&A transaction at all (IMAA Institute, 2017).
    • Additionally, IT’s lack of involvement in the process negatively impacts the business:
      • Most organizations (60%) do not have a standardized approach to integration (Steeves and Associates).
      • Weak integration teams contribute to the failure of 70% of M&A integrations (The Wall Street Journal, 2019).
      • Less than half (47%) of organizations actually experience the positive results sought by the M&A transaction (Steeves and Associates).
    • Organizations pursuing M&A and not involving IT are setting themselves up for failure.

    Only half of M&A deals involve IT (Source: IMAA Institute, 2017)

    Common Obstacles

    These barriers make this challenge difficult to address for many organizations:

    • IT is rarely afforded the opportunity to participate in the transaction deal. When IT is invited, this often happens later in the process where integration will be critical to business continuity.
    • IT has not had the opportunity to demonstrate that it is a valuable business partner in other business initiatives.
    • One of the most critical elements that IT often doesn’t take the time or doesn’t have the time to focus on is the people and leadership component.
    • IT waits to be invited to the process rather then actively involving themselves and suggesting how value can be added to the process.

    In hindsight, it’s clear to see: Involving IT is just good business.

    47% of senior leaders wish they would have spent more time on IT due diligence to prevent value erosion. (Source: IMAA Institute, 2017)

    “40% of acquiring businesses discovered a cybersecurity problem at an acquisition.” (Source: Okta)

    Info-Tech's approach

    Acquisitions & Divestitures Framework

    Acquisitions and divestitures are inevitable in modern business, and IT’s involvement in the process should be too. This progression is inspired by:

    1. The growing trend for organizations to increase, decrease, or evolve through these types of transactions.
    2. Transactions that are driven by digital motivations, requiring IT’s expertise.
    3. A maturing business perspective of IT, preventing the difficulty that IT is faced with when invited into the transaction process late.
    4. There never being such a thing as a true merger, making the majority of M&A activity either acquisitions or divestitures.
    A diagram highlighting the 'IT Executives' Role in Acquisitions and Divestitures' when they are integrated at different points in the 'Core Business Timeline'. There are four main entry points 'Proactive', 'Discovery and Strategy', 'Due Diligence and Preparation', and 'Execution and Value Realized'. It is highlighted that IT can and should start at 'Proactive', but most organizations start at 'Execution and Value Realized'. 'Proactive': suggest opportunities to evolve the organization; prove IT's value and engage in growth opportunities early. Innovators start here. Steps of the business timeline in 'Proactive' are 'Organization strategies are defined' and 'M and A is considered to enable strategy'. After a buy or sell transaction is initiated is 'Discovery and Strategy': pre-transaction state. If it is a Buy transaction, 'Establish IT's involvement and approach'. If it is a Sell transaction, 'Prepare to engage in negotiations'. Business Partners start here. Steps of the business timeline in 'Discovery and Strategy' are 'Searching criteria is set', 'Potential candidates are considered', and 'LOI is sent/received'. 'Due Diligence and Preparation': mid-transaction state. If it is a Buy transaction, 'Identify potential transaction benefits and risks'. If it is a Sell transaction, 'Comply, communicate, and collaborate in transaction'. Trusted Operators start here. Steps of the business timeline in 'Due Diligence and Preparation' are 'Due diligence engagement occurs', 'Final agreement is reached', and 'Preparation for transaction execution occurs'. 'Execution and Value Realization': post-transaction state. If it is a Buy transaction, 'Integrate the IT environments and achieve business value'. If it is a Sell transaction, 'Separate the IT environment and deliver on transaction terms'. Firefighters start here. Steps of the business timeline in 'Execution and Value Realization' are 'Staff and operations are addressed appropriately', 'Day 1 of implementation and integration activities occurs', '1st 100 days of new entity state occur' and 'Ongoing risk mitigating and value creating activities occur'.

    The business’ view of IT will impact how soon IT can get involved

    There are four key entry points for IT

    A colorful visualization of the four key entry points for IT and a fifth not-so-key entry point. Starting from the top: 'Innovator', Information and Technology as a Competitive Advantage, 90% Satisfaction; 'Business Partner', Effective Delivery of Strategic Business Projects, 80% Satisfaction; 'Trusted Operator', Enablement of Business Through Application and Work Orders, 70% Satisfaction; 'Firefighter', Reliable Infrastructure and IT Service Desk, 60% Satisfaction; and then 'Unstable', Inability to Consistently Deliver Basic Services, <60% Satisfaction.
    1. Innovator: IT suggests an acquisition to meet the business objectives of the organization.
    2. Business Partner: IT is brought in to strategy plan the acquisition from both the business’ and IT’s perspective.
    3. Trusted Operator: IT participates in due diligence activities and valuates the organization potentially being acquired.
    4. Firefighter: IT reactively engages in the integration with little time to prepare.

    Merger, acquisition, and divestiture defined

    Merger

    A merger looks at the equal combination of two entities or organizations. Mergers are rare in the M&A space, as the organizations will combine assets and services in a completely equal 50/50 split. Two organizations may also choose to divest business entities and merge as a new company.

    Acquisition

    The most common transaction in the M&A space, where an organization will acquire or purchase another organization or entities of another organization. This type of transaction has a clear owner who will be able to make legal decisions regarding the acquired organization.

    Divestiture

    An organization may decide to sell partial elements of a business to an acquiring organization. They will separate this business entity from the rest of the organization and continue to operate the other components of the business.

    Info-Tech Insight

    A true merger does not exist, as there is always someone initiating the discussion. As a result, most M&A activity falls into acquisition or divestiture categories.

    Buying vs. selling

    The M&A process approach differs depending on whether you are the executive IT leader on the buy side or sell side

    This blueprint is only focused on the buy side:

    • More than two organizations could be involved in a transaction.
    • Examples of buy-related scenarios include:
      • Your organization is buying another organization with the intent of having the purchased organization keep its regular staff, operations, and location. This could mean minimal integration is required.
      • Your organization is buying another organization in its entirety with the intent of integrating it into your original company.
      • Your organization is buying components of another organization with the intent of integrating them into your original company.
    • As the purchasing organization, you will probably be initiating the purchase and thus will be valuating the selling organization during due diligence and leading the execution plan.

    The sell side is focused on:

    • Examples of sell-related scenarios include:
      • Your organization is selling to another organization with the intent of keeping its regular staff, operations, and location. This could mean minimal separation is required.
      • Your organization is selling to another organization with the intent of separating to be a part of the purchasing organization.
      • Your organization is engaging in a divestiture with the intent of:
        • Separating components to be part of the purchasing organization permanently.
        • Separating components to be part of a spinoff and establish a unit as a standalone new company.
    • As the selling organization, you could proactively seek out suitors to purchase all or components of your organization, or you could be approached by an organization.

    For more information on divestitures or selling your entire organization, check out Info-Tech’s Mergers & Acquisitions: The Sell Blueprint.

    Core business timeline

    For IT to be valuable in M&As, you need to align your deliverables and your support to the key activities the business and investors are working on.

    Info-Tech’s methodology for Buying Organizations in Mergers, Acquisitions, or Divestitures

    1. Proactive

    2. Discovery & Strategy

    3. Due Diligence & Preparation

    4. Execution & Value Realization

    Phase Steps
    1. Identify Stakeholders and Their Perspective of IT
    2. Assess IT’s Current Value and Future State
    3. Drive Innovation and Suggest Growth Opportunities
    1. Establish the M&A Program Plan
    2. Prepare IT to Engage in the Acquisition
    1. Assess the Target Organization
    2. Prepare to Integrate
    1. Execute the Transaction
    2. Reflection and Value Realization

    Phase Outcomes

    Be an innovative IT leader by suggesting how and why the business should engage in an acquisition or divestiture.

    Create a standardized approach for how your IT organization should address acquisitions.

    Evaluate the target organizations successfully and establish an integration project plan.

    Deliver on the integration project plan successfully and communicate IT’s transaction value to the business.

    Potential metrics for each phase

    1. Proactive

    2. Discovery & Strategy

    3. Due Diligence & Preparation

    4. Execution & Value Realization

    • % Share of business innovation spend from overall IT budget
    • % Critical processes with approved performance goals and metrics
    • % IT initiatives that meet or exceed value expectation defined in business case
    • % IT initiatives aligned with organizational strategic direction
    • % Satisfaction with IT's strategic decision-making abilities
    • $ Estimated business value added through IT-enabled innovation
    • % Overall stakeholder satisfaction with IT
    • % Percent of business leaders that view IT as an Innovator
    • % IT budget as a percent of revenue
    • % Assets that are not allocated
    • % Unallocated software licenses
    • # Obsolete assets
    • % IT spend that can be attributed to the business (chargeback or showback)
    • % Share of CapEx of overall IT budget
    • % Prospective organizations that meet the search criteria
    • $ Total IT cost of ownership (before and after M&A, before and after rationalization)
    • % Business leaders that view IT as a Business Partner
    • % Defects discovered in production
    • $ Cost per user for enterprise applications
    • % In-house-built applications vs. enterprise applications
    • % Owners identified for all data domains
    • # IT staff asked to participate in due diligence
    • Change to due diligence
    • IT budget variance
    • Synergy target
    • % Satisfaction with the effectiveness of IT capabilities
    • % Overall end-customer satisfaction
    • $ Impact of vendor SLA breaches
    • $ Savings through cost-optimization efforts
    • $ Savings through application rationalization and technology standardization
    • # Key positions empty
    • % Frequency of staff turnover
    • % Emergency changes
    • # Hours of unplanned downtime
    • % Releases that cause downtime
    • % Incidents with identified problem record
    • % Problems with identified root cause
    • # Days from problem identification to root cause fix
    • % Projects that consider IT risk
    • % Incidents due to issues not addressed in the security plan
    • # Average vulnerability remediation time
    • % Application budget spent on new build/buy vs. maintenance (deferred feature implementation, enhancements, bug fixes)
    • # Time (days) to value realization
    • % Projects that realized planned benefits
    • $ IT operational savings and cost reductions that are related to synergies/divestitures
    • % IT staff–related expenses/redundancies
    • # Days spent on IT integration
    • $ Accurate IT budget estimates
    • % Revenue growth directly tied to IT delivery
    • % Profit margin growth

    The IT executive’s role in the buying transaction is critical

    And IT leaders have a greater likelihood than ever of needing to support a merger, acquisition, or divestiture.

    1. Reduced Risk

      IT can identify risks that may go unnoticed when IT is not involved.

    2. Increased Accuracy

      The business can make accurate predictions around the costs, timelines, and needs of IT.

    3. Faster Integration

      Faster integration means faster value realization for the business.

    4. Informed Decision Making

      IT leaders hold critical information that can support the business in moving the transaction forward.

    5. Innovation

      IT can suggest new opportunities to generate revenue, optimize processes, or reduce inefficiencies.

    The IT executive’s critical role is demonstrated by:

    • Reduced Risk

      47% of senior leaders wish they would have spent more time on IT due diligence to prevent value erosion (IMAA Institute, 2017).

    • Increased Accuracy

      87% of respondents to a Deloitte survey effectively conducted a virtual deal, with a focus on cybersecurity and integration (Deloitte, 2020).

    • Faster Integration

      Integration costs range from as low as $4 million to as high as $3.8 billion, making the process an investment for the organization (CIO Dive).

    • Informed Decision Making

      Only 38% of corporate and 22% of private equity firms include IT as a significant aspect in their transaction approach (IMAA Institute, 2017).

    • Innovation

      Successful CIOs involved in M&As can spend 70% of their time on aspects outside of IT and 30% of their time on technology and delivery (CIO).

    Playbook benefits

    IT Benefits

    • IT will be seen as an innovative partner to the business, and its suggestions and involvement in the organization will lead to benefits, not hindrances.
    • Develop a streamlined method to valuate the potential organization being purchased and ensure risk management concerns are brought to the business’ attention immediately.
    • Create a comprehensive list of items that IT needs to do during the integration that can be prioritized and actioned.

    Business Benefits

    • The business will get accurate and relevant information about the organization being acquired, ensuring that the anticipated value of the transaction is correctly planned for.
    • Fewer business interruptions will happen, because IT can accurately plan for and execute the high-priority integration tasks.
    • The business can make a fair offer to the purchased organization, having properly valuated all aspects being bought, including the IT environment.

    Insight summary

    Overarching Insight

    As an IT executive, take control of when you get involved in a growth transaction. Do this by proactively identifying acquisition targets, demonstrating the value of IT, and ensuring that integration of IT environments does not lead to unnecessary and costly decisions.

    Proactive Insight

    CIOs on the forefront of digital transformation need to actively look for and suggest opportunities to acquire or partner on new digital capabilities to respond to rapidly changing business needs.

    Discovery & Strategy Insight

    IT organizations that have an effective M&A program plan are more prepared for the buying transaction, enabling a successful outcome. A structured strategy is particularly necessary for organizations expected to deliver M&As rapidly and frequently.

    Due Diligence & Preparation Insight

    Most IT synergies can be realized in due diligence. It is more impactful to consider IT processes and practices (e.g. contracts and culture) in due diligence rather than later in the integration.

    Execution & Value Realization Insight

    IT needs to realize synergies within the first 100 days of integration. The most successful transactions are when IT continuously realizes synergies a year after the transaction and beyond.

    Blueprint deliverables

    Key Deliverable: M&A Buy Playbook

    The M&A Buy Playbook should be a reusable document that enables your IT organization to successfully deliver on any acquisition transaction.

    Screenshots of the 'M and A Buy Playbook' deliverable.

    M&A Buy One-Pager

    See a one-page overview of each phase of the transaction.

    Screenshots of the 'M and A Buy One-Pagers' deliverable.

    M&A Buy Case Studies

    Read a one-page case study for each phase of the transaction.

    Screenshots of the 'M and A Buy Case Studies' deliverable.

    M&A Integration Project Management Tool (SharePoint)

    Manage the integration process of the acquisition using this SharePoint template.

    Screenshots of the 'M and A Integration Project Management Tool (SharePoint)' deliverable.

    M&A Integration Project Management Tool (Excel)

    Manage the integration process of the acquisition using this Excel tool if you can’t or don’t want to use SharePoint.

    Screenshots of the 'M and A Integration Project Management Tool (Excel)' deliverable.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    What does a typical GI on this topic look like?

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 6 to 10 calls over the course of 2 to 4 months.

      Proactive Phase

    • Call #1: Scope requirements, objectives, and your specific challenges.

      • Discovery & Strategy Phase

    • Call #2: Determine stakeholders and their perspectives of IT.
    • Call #3: Identify how M&A could support business strategy and how to communicate.

      • Due Diligence & Preparation Phase

    • Call #4: Establish a transaction team and acquisition strategic direction.
    • Call #5: Create program metrics and identify a standard integration strategy.
    • Call #6: Assess the potential organization(s).
    • Call #7: Identify the integration program plan.

      • Execution & Value Realization Phase

    • Call #8: Establish employee transitions to retain key staff.
    • Call #9: Assess IT’s ability to deliver on the acquisition transaction.

    The Buy Blueprint

    Phase 1

    Proactive

    Phase 1

    		 Phase 2 Phase 3 Phase 4
    • 1.1 Identify Stakeholders and Their Perspective of IT
    • 1.2 Assess IT’s Current Value and Future State
    • 1.3 Drive Innovation and Suggest Growth Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Acquisition
    • 3.1 Assess the Target Organization
    • 3.2 Prepare to Integrate
    • 4.1 Execute the Transaction
    • 4.2 Reflection and Value Realization

    This phase will walk you through the following activities:

    • Conduct the CEO-CIO Alignment diagnostic
    • Conduct the CIO Business Vision diagnostic
    • Visualize relationships among stakeholders to identify key influencers
    • Group stakeholders into categories
    • Prioritize your stakeholders
    • Plan to communicate
    • Valuate IT
    • Assess the IT/digital strategy
    • Determine pain points and opportunities
    • Align goals to opportunities
    • Recommend growth opportunities

    This phase involves the following participants:

    • IT and business leadership

    What is the Proactive phase?

    Embracing the digital drivers

    As the number of merger, acquisition, or divestiture transactions driven by digital means continues to increase, IT has an opportunity to not just be involved in a transaction but actively seek out potential deals.

    In the Proactive phase, the business is not currently considering a transaction. However, the business could consider one to reach its strategic goals. IT organizations that have developed respected relationships with the business leaders can suggest these potential transactions.

    Understand the business’ perspective of IT, determine who the critical M&A stakeholders are, valuate the IT environment, and examine how it supports the business goals in order to suggest an M&A transaction.

    In doing so, IT isn’t waiting to be invited to the transaction table – it’s creating it.

    Goal: To support the organization in reaching its strategic goals by suggesting M&A activities that will enable the organization to reach its objectives faster and with greater-value outcomes.

    Proactive Prerequisite Checklist

    Before coming into the Proactive phase, you should have addressed the following:

    • Understand what mergers, acquisitions, and divestitures are.
    • Understand what mergers, acquisitions, and divestitures mean for the business.
    • Understand what mergers, acquisitions, and divestitures mean for IT.

    Review the Executive Brief for more information on mergers, acquisitions, and divestitures for purchasing organizations.

    Proactive

    Step 1.1

    Identify M&A Stakeholders and Their Perspective of IT

    Activities

    • 1.1.1 Conduct the CEO-CIO Alignment diagnostic
    • 1.1.2 Conduct the CIO Business Vision diagnostic
    • 1.1.3 Visualize relationships among stakeholders to identify key influencers
    • 1.1.4 Group stakeholders into categories
    • 1.1.5 Prioritize your stakeholders
    • 1.16 Plan to communicate

    This step involves the following participants:

    • IT executive leader
    • IT leadership
    • Critical M&A stakeholders

    Outcomes of Step

    Understand how the business perceives IT and establish strong relationships with critical M&A stakeholders.

    Business executives' perspectives of IT

    Leverage diagnostics and gain alignment on IT’s role in the organization

    • To suggest or get involved with a merger, acquisition, or divestiture, the IT executive leader needs to be well respected by other members of the executive leadership team and the business.
    • Specifically, the Proactive phase relies on the IT organization being viewed as an Innovator within the business.
    • Identify how the CEO/business executive currently views IT and where they would like IT to move within the Maturity Ladder.
    • Additionally, understand how other critical department leaders view IT and how they view the partnership with IT.
    A colorful visualization titled 'Maturity Ladder' detailing levels of IT function that a business may choose from based on the business executives' perspectives of IT. Starting from the bottom: 'Struggle', Does not embarrass, Does not crash; 'Support', Keeps business happy, Keeps costs low; 'Optimize', Increases efficiency, Decreases costs; 'Expand', Extends into new business, Generates revenue; 'Transform', Creates new industry.

    Misalignment in target state requires further communication between the CIO and CEO to ensure IT is striving toward an agreed-upon direction.

    Info-Tech’s CIO Business Vision (CIO BV) diagnostic measures a variety of high-value metrics to provide a well-rounded understanding of stakeholder satisfaction with IT.

    Sample of Info-Tech's CIO Business Vision diagnostic measuring percentages of high-value metrics like 'IT Satisfaction' and 'IT Value' regarding business leader satisfaction. A note for these two reads 'Evaluate business leader satisfaction with IT this year and last year'. A section titled 'Relationship' has metrics such as 'Understands Needs' and 'Trains Effectively'. A note for this section reads 'Examine indicators of the relationship between IT and the business'. A section titled 'Security Friction' has metrics such as 'Regulatory Compliance-Driven' and 'Office/Desktop Security'.

    Business Satisfaction and Importance for Core Services

    The core services of IT are important when determining what IT should focus on. The most important services with the lowest satisfaction offer the largest area of improvement for IT to drive business value.

    Sample of Info-Tech's CIO Business Vision diagnostic specifically comparing the business satisfaction of 12 core services with their importance. Services listed include 'Service Desk', 'IT Security', 'Requirements Gathering', 'Business Apps', 'Data Quality', and more. There is a short description of the services, a percentage for the business satisfaction with the service, a percentage comparing it to last year, and a numbered ranking of importance for each service. A note reads 'Assess satisfaction and importance across 12 core IT capabilities'.

    1.1.1 Conduct the CEO-CIO Alignment diagnostic

    2 weeks

    Input: IT organization expertise and the CEO-CIO Alignment diagnostic

    Output: An understanding of an executive business stakeholder’s perception of IT

    Materials: CEO-CIO Alignment diagnostic, M&A Buy Playbook

    Participants: IT executive/CIO, Business executive/CEO

    1. The CEO-CIO Alignment diagnostic can be a powerful input. Speak with your Info-Tech account representative to conduct the diagnostic. Use the results to inform current IT capabilities.
    2. You may choose to debrief the results of your diagnostic with an Info-Tech analyst. We recommend this to help your team understand how to interpret and draw conclusions from the results.
    3. Examine the results of the survey and note where there might be specific capabilities that could be improved.
    4. Determine whether there are any areas of significant disagreement between the you and the CEO. Mark down those areas for further conversations. Additionally, take note of areas that could be leveraged to support growth transactions or support your rationale in recommending growth transactions.

    Download the sample report.

    Record the results in the M&A Buy Playbook.

    1.1.2 Conduct the CIO Business Vision diagnostic

    2 weeks

    Input: IT organization expertise, CIO BV diagnostic

    Output: An understanding of business stakeholder perception of certain IT capabilities and services

    Materials: CIO Business Vision diagnostic, Computer, Whiteboard and markers, M&A Buy Playbook

    Participants: IT executive/CIO, Senior business leaders

    1. The CIO Business Vision (CIO BV) diagnostic can be a powerful tool for identifying IT capability focus areas. Speak with your account representative to conduct the CIO BV diagnostic. Use the results to inform current IT capabilities.
    2. You may choose to debrief the results of your diagnostic with an Info-Tech analyst. We recommend this to help your team understand how to interpret the results and draw conclusions from the diagnostic.
    3. Examine the results of the survey and take note of any IT services that have low scores.
    4. Read through the diagnostic comments and note any common themes. Especially note which stakeholders identified they have a favorable relationship with IT and which stakeholders identified they have an unfavorable relationship. For those who have an unfavorable relationship, identify if they will have a critical role in a growth transaction.

    Download the sample report.

    Record the results in the M&A Buy Playbook.

    Create a stakeholder network map for M&A transactions

    Follow the trail of breadcrumbs from your direct stakeholders to their influencers to uncover hidden stakeholders.

    Example:

    Diagram of stakeholders and their relationships with other stakeholders, such as 'Board Members', 'CFO/Finance', 'Compliance', etc. with 'CIO/IT Leader' highlighted in the middle. There are unidirectional black arrows and bi-directional green arrows indicating each connection.

      Legend
    • Black arrows indicate the direction of professional influence
    • Dashed green arrows indicate bidirectional, informal influence relationships

    Info-Tech Insight

    Your stakeholder map defines the influence landscape that the M&A transaction will occur within. This will identify who holds various levels of accountability and decision-making authority when a transaction does take place.

    Use connectors to determine who may be influencing your direct stakeholders. They may not have any formal authority within the organization, but they may have informal yet substantial relationships with your stakeholders.

    1.1.3 Visualize relationships among stakeholders to identify key influencers

    1-3 hours

    Input: List of M&A stakeholders

    Output: Relationships among M&A stakeholders and influencers

    Materials: M&A Buy Playbook

    Participants: IT executive leadership

    1. The purpose of this activity is to list all the stakeholders within your organization that will have a direct or indirect impact on the M&A transaction.
    2. Determine the critical stakeholders, and then determine the stakeholders of your stakeholders and consider adding each of them to the stakeholder list.
    3. Assess who has either formal or informal influence over your stakeholders; add these influencers to your stakeholder list.
    4. Construct a diagram linking stakeholders and their influencers together.
      • Use black arrows to indicate the direction of professional influence.
      • Use dashed green arrows to indicate bidirectional, informal influence relationships.

    Record the results in the M&A Buy Playbook.

    Categorize your stakeholders with a prioritization map

    A stakeholder prioritization map helps IT leaders categorize their stakeholders by their level of influence and ownership in the merger, acquisition, or divestiture process.

    A prioritization map of stakeholder categories split into four quadrants. The vertical axis is 'Influence', from low on the bottom to high on top. The horizontal axis is 'Ownership/Interest', from low on the left to high on the right. 'Spectators' are low influence, low ownership/interest. 'Mediators' are high influence, low ownership/interest. 'Noisemakers' are low influence, high ownership/interest. 'Players' are high influence, high ownership/interest.

    There are four areas in the map, and the stakeholders within each area should be treated differently.

    Players – players have a high interest in the initiative and the influence to effect change over the initiative. Their support is critical, and a lack of support can cause significant impediment to the objectives.

    Mediators – mediators have a low interest but significant influence over the initiative. They can help to provide balance and objective opinions to issues that arise.

    Noisemakers – noisemakers have low influence but high interest. They tend to be very vocal and engaged, either positively or negatively, but have little ability to enact their wishes.

    Spectators – generally, spectators are apathetic and have little influence over or interest in the initiative.

    1.1.4 Group stakeholders into categories

    30 minutes

    Input: Stakeholder map, Stakeholder list

    Output: Categorization of stakeholders and influencers

    Materials: Flip charts, Markers, Sticky notes, M&A Buy Playbook

    Participants: IT executive leadership, Stakeholders

    1. Identify your stakeholders’ interest in and influence on the M&A process as high, medium, or low by rating the attributes below.
    2. Map your results to the model to the right to determine each stakeholder’s category.

    Same prioritization map of stakeholder categories as before. This one has specific stakeholders mapped onto it. 'CFO' is mapped as low interest and middling influence, between 'Mediator' and 'Spectator'. 'CIO' is mapped as higher than average interest and high influence, a 'Player'. 'Board Member' is mapped as high interest and high influence, a 'Player'.

    Level of Influence
    • Power: Ability of a stakeholder to effect change.
    • Urgency: Degree of immediacy demanded.
    • Legitimacy: Perceived validity of stakeholder’s claim.
    • Volume: How loud their “voice” is or could become.
    • Contribution: What they have that is of value to you.
    Level of Interest

    How much are the stakeholder’s individual performance and goals directly tied to the success or failure of the product?

    Record the results in the M&A Buy Playbook.

    Prioritize your stakeholders

    There may be too many stakeholders to be able to manage them all. Focus your attention on the stakeholders that matter most.

    Level of Support

    Supporter

    Evangelist

    Neutral

    Blocker
    Stakeholder Category Player Critical High High Critical
    Mediator Medium Low Low Medium
    Noisemaker High Medium Medium High
    Spectator Low Irrelevant Irrelevant Low

    Consider the three dimensions for stakeholder prioritization: influence, interest, and support. Support can be determined by answering the following question: How significant is that stakeholder to the M&A or divestiture process?

    These parameters are used to prioritize which stakeholders are most important and should receive your focused attention.

    1.1.5 Prioritize your stakeholders

    30 minutes

    Input: Stakeholder matrix

    Output: Stakeholder and influencer prioritization

    Materials: Flip charts, Markers, Sticky notes, M&A Buy Playbook

    Participants: IT executive leadership, M&A/divestiture stakeholders

    1. Identify the level of support of each stakeholder by answering the following question: How significant is that stakeholder to the M&A transaction process?
    2. Prioritize your stakeholders using the prioritization scheme on the previous slide.

    Stakeholder

    Category

    Level of Support

    Prioritization
    CMO Spectator Neutral Irrelevant
    CIO Player Supporter Critical

    Record the results in the M&A Buy Playbook.

    Define strategies for engaging stakeholders by type

    A revisit to the map of stakeholder categories, but with strategies listed for each one, and arrows on the side instead of an axis. The vertical arrow is 'Authority', which increases upward, and the horizontal axis is Ownership/Interest which increases as it moves to the right. The strategy for 'Players' is 'Engage', for 'Mediators' is 'Satisfy', for 'Noisemakers' is 'Inform', and for 'Spectators' is 'Monitor'.

    Type

    Quadrant

    Actions
    Players High influence, high interest – actively engage Keep them updated on the progress of the project. Continuously involve Players in the process and maintain their engagement and interest by demonstrating their value to its success.
    Mediators High influence, low interest – keep satisfied They can be the game changers in groups of stakeholders. Turn them into supporters by gaining their confidence and trust and including them in important decision-making steps. In turn, they can help you influence other stakeholders.
    Noisemakers Low influence, high interest – keep informed Try to increase their influence (or decrease it if they are detractors) by providing them with key information, supporting them in meetings, and using Mediators to help them.
    Spectators Low influence, low interest – monitor They are followers. Keep them in the loop by providing clarity on objectives and status updates.

    Info-Tech Insight

    Each group of stakeholders draws attention and resources away from critical tasks. By properly identifying stakeholder groups, the IT executive leader can develop corresponding actions to manage stakeholders in each group. This can dramatically reduce wasted effort trying to satisfy Spectators and Noisemakers while ensuring the needs of Mediators and Players are met.

    1.1.6 Plan to communicate

    30 minutes

    Input: Stakeholder priority, Stakeholder categorization, Stakeholder influence

    Output: Stakeholder communication plan

    Materials: Flip charts, Markers, Sticky notes, M&A Buy Playbook

    Participants: IT executive leadership, M&A/divestiture stakeholders

    The purpose of this activity is to make a communication plan for each of the stakeholders identified in the previous activities, especially those who will have a critical role in the M&A transaction process.

    1. In the M&A Buy Playbook, input the type of influence each stakeholder has on IT, how they would be categorized in the M&A process, and their level of priority. Use this information to create a communication plan.
    2. Determine the methods and frequency of communication to keep the necessary stakeholder satisfied and maintain or enhance IT’s profile within the organization.

    Record the results in the M&A Buy Playbook.

    Proactive

    Step 1.2

    Assess IT’s Current Value and Method to Achieve a Future State

    Activities

    • 1.2.1 Valuate IT
    • 1.2.2 Assess the IT/digital strategy

    This step involves the following participants:

    • IT executive leader
    • IT leadership
    • Critical stakeholders to M&A

    Outcomes of Step

    Identify critical opportunities to optimize IT and meet strategic business goals through a merger, acquisition, or divestiture.

    How to valuate your IT environment

    And why it matters so much

    • Valuating your current organization’s IT environment is a critical step that all IT organizations should take, whether involved in an M&A or not, to fully understand what it might be worth.
    • The business investments in IT can be directly translated into a value amount. For every $1 invested in IT, the business might be gaining $100 in value back or possibly even loosing $100.
    • Determining, documenting, and communicating this information ensures that the business takes IT’s suggestions seriously and recognizes why investing in IT is so critical.
    • There are three ways a business or asset can be valuated:
      • Cost Approach: Look at the costs associated with building, purchasing, replacing, and maintaining a given aspect of the business.
      • Market Approach: Look at the relative value of a particular aspect of the business. Relative value can fluctuate and depends on what the markets and consequently society believe that particular element is worth.
      • Discounted Cash Flow Approach: Focus on what the potential value of the business could be or the intrinsic value anticipated due to future profitability.
      • (Source: “Valuation Methods,” Corporate Finance Institute)

    Four ways to create value through digital

    1. Reduced costs
    2. Improved customer experience
    3. New revenue sources
    4. Better decision making
      5. (Source: McKinsey & Company)

    1.2.1 Valuate IT

    1 day

    Input: Valuation of data, Valuation of applications, Valuation of infrastructure and operations, Valuation of security and risk

    Output: Valuation of IT

    Materials: Relevant templates/tools listed on the following slides, Capital budget, Operating budget, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership

    The purpose of this activity is to demonstrate that IT is not simply an operational functional area that diminishes business resources. Rather, IT contributes significant value to the business.

    1. Review each of the following slides to valuate IT’s data, applications, infrastructure and operations, and security and risk. These valuations consider several tangible and intangible factors and result in a final dollar amount.
    2. Input the financial amounts identified for each critical area into a summary slide. Use this information to determine where IT is delivering value to the organization.

    Info-Tech Insight

    Consistency is key when valuating your IT organization as well as other IT organizations throughout the transaction process.

    Record the results in the M&A Buy Playbook.

    Data valuation

    Data valuation identifies how you monetize the information that your organization owns.

    Create a data value chain for your organization

    When valuating the information and data that exists in an organization, there are many things to consider.

    Info-Tech has two tools that can support this process:

    1. Information Asset Audit Tool: Use this tool first to take inventory of the different information assets that exist in your organization.
    2. Data Valuation Tool: Once information assets have been accounted for, valuate the data that exists within those information assets.

    Data Collection

    Insight Creation

    Value Creation

    Data Valuation
    01 Data Source
    02 Data Collection Method
    03 Data     		04 Data Analysis
    05 Insight
    06 Insight Delivery     		07 Consumer
    08 Value in Data     		09 Value Dimension
    10 Value Metrics Group
    11 Value Metrics
    Screenshots of Tab 2 of Info-Tech's Data Valuation Tool.

    Instructions

    1. Using the Data Valuation Tool, start gathering information based on the eight steps above to understand your organization’s journey from data to value.
    2. Identify the data value spectrum. (For example: customer sales service, citizen licensing service, etc.)
    3. Fill out the columns for data sources, data collection, and data first.
    4. Capture data analysis and related information.
    5. Then capture the value in data.
    6. Add value dimensions such as usage, quality, and economic dimensions.
      • Remember that economic value is not the only dimension, and usage/quality has a significant impact on economic value.
    7. Collect evidence to justify your data valuation calculator (market research, internal metrics, etc.).
    8. Finally, calculate the value that has a direct correlation with underlying value metrics.

    Application valuation

    Calculate the value of your IT applications

    When valuating the applications and their users in an organization, consider using a business process map. This shows how business is transacted in the company by identifying which IT applications support these processes and which business groups have access to them. Info-Tech has a business process mapping tool that can support this process:

    • Enterprise Integration Process Mapping Tool: Complete this tool first to map the different business processes to the supporting applications in your organization.

    Instructions

    1. Start by calculating user costs. This is the product of the (# of users) × (% of time spent using IT) × (fully burdened salary).
    2. Identify the revenue per employee and divide that by the average cost per employee to calculate the derived productivity ratio (DPR).
    3. Once you have calculated the user costs and DPR, multiply those total values together to get the application value.

      4. User Costs

      Total User Costs

      Derived Productivity Ratio (DPR)

      Total DPR

      Application Value
      # of users % time spent using IT Fully burdened salary Multiply values from the 3 user costs columns Revenue per employee Average cost per employee (Revenue P.E) ÷ (Average cost P.E) (User costs) X (DPR)

    4. Once the total application value is established, calculate the combined IT and business costs of delivering that value. IT and business costs include inflexibility (application maintenance), unavailability (downtime costs, including disaster exposure), IT costs (common costs statistically allocated to applications), and fully loaded cost of active (full-time equivalent [FTE]) users.
    5. Calculate the net value of applications by subtracting the total IT and business costs from the total application value calculated in step 3.

      6. IT and Business Costs

      Total IT and Business Costs

      Net Value of Applications
      Application maintenance Downtime costs (include disaster exposure) Common costs allocated to applications Fully loaded costs of active (FTE) users Sum of values from the four IT and business costs columns (Application value) – (IT and business costs)

    (Source: CSO)

    Infrastructure valuation

    Assess the foundational elements of the business’ information technology

    The purpose of this exercise is to provide a high-level infrastructure valuation that will contribute to valuating your IT environment.

    Calculating the value of the infrastructure will require different methods depending on the environment. For example, a fully cloud-hosted organization will have different costs than a fully on-premises IT environment.

    Instructions:

    1. Start by listing all of the infrastructure-related items that are relevant to your organization.
    2. Once you have finalized your items column, identify the total costs/value of each item.
      • For example, total software costs would include servers and storage.
    3. Calculate the total cost/value of your IT infrastructure by adding all of values in the right column.

    Item

    Costs/Value
    Hardware Assets Total Value +$3.2 million
    Hardware Leased/Service Agreement -$
    Software Purchased +$
    Software Leased/Service Agreement -$
    Operational Tools
    Network
    Disaster Recovery
    Antivirus
    Data Centers
    Service Desk
    Other Licenses
    Total:

    For additional support, download the M&A Runbook for Infrastructure and Operations.

    Risk and security

    Assess risk responses and calculate residual risk

    The purpose of this exercise is to provide a high-level risk assessment that will contribute to valuating your IT environment. For a more in-depth risk assessment, please refer to the Info-Tech tools below:

    1. Risk Register Tool
    2. Security M&A Due Diligence Tool
      3.

    Instructions

    1. Review the probability and impact scales below and ensure you have the appropriate criteria that align to your organization before you conduct a risk assessment.
    2. Identify the probability of occurrence and estimated financial impact for each risk category detail and fill out the table on the right. Customize the table as needed so it aligns to your organization.

      3. Probability of Risk Occurrence

      Occurrence Criteria
      (Classification; Probability of Risk Event Within One Year)

      Negligible Very Unlikely; ‹20%
      Very Low Unlikely; 20 to 40%
      Low Possible; 40 to 60%
      Moderately Low Likely; 60 to 80%
      Moderate Almost Certain; ›80%

    Note: If needed, you can customize this scale with the severity designations that you prefer. However, make sure you are always consistent with it when conducting a risk assessment.

    Financial & Reputational Impact

    Budgetary and Reputational Implications
    (Financial Impact; Reputational Impact)
    Negligible (‹$10,000; Internal IT stakeholders aware of risk event occurrence)
    Very Low ($10,000 to $25,000; Business customers aware of risk event occurrence)
    Low ($25,000 to $50,000; Board of directors aware of risk event occurrence)
    Moderately Low ($50,000 to $100,000; External customers aware of risk event occurrence)
    Moderate (›$100,000; Media coverage or regulatory body aware of risk event occurrence)

    Risk Category Details

    Probability of Occurrence

    Estimated Financial Impact

    Estimated Severity (Probability X Impact)
    Capacity Planning
    Enterprise Architecture
    Externally Originated Attack
    Hardware Configuration Errors
    Hardware Performance
    Internally Originated Attack
    IT Staffing
    Project Scoping
    Software Implementation Errors
    Technology Evaluation and Selection
    Physical Threats
    Resource Threats
    Personnel Threats
    Technical Threats
    Total:

    1.2.2 Assess the IT/digital strategy

    4 hours

    Input: IT strategy, Digital strategy, Business strategy

    Output: An understanding of an executive business stakeholder’s perception of IT, Alignment of IT/digital strategy and overall organization strategy

    Materials: Computer, Whiteboard and markers, M&A Buy Playbook

    Participants: IT executive/CIO, Business executive/CEO

    The purpose of this activity is to review the business and IT strategies that exist to determine if there are critical capabilities that are not being supported.

    Ideally, the IT and digital strategies would have been created following development of the business strategy. However, sometimes the business strategy does not directly call out the capabilities it requires IT to support.

    1. On the left half of the corresponding slide in the M&A Buy Playbook, document the business goals, initiatives, and capabilities. Input this information from the business or digital strategies. (If more space for goals, initiatives, or capabilities is needed, duplicate the slide).
    2. On the other half of the slide, document the IT goals, initiatives, and capabilities. Input this information from the IT strategy and digital strategy.

    For additional support, see Build a Business-Aligned IT Strategy.

    Record the results in the M&A Buy Playbook.

    Proactive

    Step 1.3

    Drive Innovation and Suggest Growth Opportunities

    Activities

    • 1.3.1 Determine pain points and opportunities
    • 1.3.2 Align goals with opportunities
    • 1.3.3 Recommend growth opportunities

    This step involves the following participants:

    • IT executive leader
    • IT leadership
    • Critical M&A stakeholders

    Outcomes of Step

    Establish strong relationships with critical M&A stakeholders and position IT as an innovative business partner that can suggest growth opportunities.

    1.3.1 Determine pain points and opportunities

    1-2 hours

    Input: CEO-CIO Alignment diagnostic, CIO Business Vision diagnostic, Valuation of IT environment, IT-business goals cascade

    Output: List of pain points or opportunities that IT can address

    Materials: Computer, Whiteboard and markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Business stakeholders

    The purpose of this activity is to determine the pain points and opportunities that exist for the organization. These can be external or internal to the organization.

    1. Identify what opportunities exist for your organization. Opportunities are the potential positives that the organization would want to leverage.
    2. Next, identify pain points, which are the potential negatives that the organization would want to alleviate.
    3. Spend time considering all the options that might exist, and keep in mind what has been identified previously.

    Opportunities and pain points can be trends, other departments’ initiatives, business perspectives of IT, etc.

    Record the results in the M&A Buy Playbook.

    1.3.2 Align goals with opportunities

    1-2 hours

    Input: CEO-CIO Alignment diagnostic, CIO Business Vision diagnostic, Valuation of IT environment, IT-business goals cascade, List of pain points and opportunities

    Output: An understanding of an executive business stakeholder’s perception of IT, Foundations for growth strategy

    Materials: Computer, Whiteboard and markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Business stakeholders

    The purpose of this activity is to determine whether a growth or separation strategy might be a good suggestion to the business in order to meet its business objectives.

    1. For the top three to five business goals, consider:
      1. Underlying drivers
      2. Digital opportunities
      3. Whether a growth or reduction strategy is the solution
    2. Just because a growth or reduction strategy is a solution for a business goal does not necessarily indicate M&A is the way to go. However, it is important to consider before you pursue suggesting M&A.

    Record the results in the M&A Buy Playbook.

    1.3.3 Recommend growth opportunities

    1-2 hours

    Input: Growth or separation strategy opportunities to support business goals, Stakeholder communication plan, Rationale for the suggestion

    Output: M&A transaction opportunities suggested

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO, Business executive/CEO

    The purpose of this activity is to recommend a merger, acquisition, or divestiture to the business.

    1. Identify which of the business goals the transaction would help solve and why IT is the one to suggest such a goal.
    2. Leverage the stakeholder communication plan identified previously to give insight into stakeholders who would have a significant level of interest, influence, or support in the process.

    Info-Tech Insight

    With technology and digital driving many transactions, leverage this opening and begin the discussions with your business on how and why an acquisition would be a great opportunity.

    Record the results in the M&A Buy Playbook.

    By the end of this Proactive phase, you should:

    Be prepared to suggest M&A opportunities to support your company’s goals through growth or acquisition transactions

    Key outcome from the Proactive phase

    Develop progressive relationships and strong communication with key stakeholders to suggest or be aware of transformational opportunities that can be achieved through growth or reduction strategies such as mergers, acquisitions, or divestitures.

    Key deliverables from the Proactive phase
    • Business perspective of IT examined
    • Key stakeholders identified and relationship to the M&A process outlined
    • Ability to valuate the IT environment and communicate IT’s value to the business
    • Assessment of the business, digital, and IT strategies and how M&As could support those strategies
    • Pain points and opportunities that could be alleviated or supported through an M&A transaction
    • Acquisition or buying recommendations

    The Buy Blueprint

    Phase 2

    Discovery & Strategy

    Phase 1

    Phase 2

    		Phase 3Phase 4
    • 1.1 Identify Stakeholders and Their Perspective of IT
    • 1.2 Assess IT’s Current Value and Future State
    • 1.3 Drive Innovation and Suggest Growth Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Acquisition
    • 3.1 Assess the Target Organization
    • 3.2 Prepare to Integrate
    • 4.1 Execute the Transaction
    • 4.2 Reflection and Value Realization

    This phase will walk you through the following activities:

    • Create the mission and vision
    • Identify the guiding principles
    • Create the future-state operating model
    • Determine the transition team
    • Document the M&A governance
    • Create program metrics
    • Establish the integration strategy
    • Conduct a RACI
    • Create the communication plan
    • Assess the potential organization(s)

    This phase involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Company M&A team

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Pre-Work

    Day 1

    Day 2

    Day 3

    Day 4

    Day 5

    Establish the Transaction FoundationDiscover the Motivation for AcquiringFormalize the Program PlanCreate the Valuation FrameworkStrategize the TransactionNext Steps and Wrap-Up (offsite)

    Activities

    • 0.1 Conduct the CIO Business Vision and CEO-CIO Alignment diagnostics
    • 0.2 Identify key stakeholders and outline their relationship to the M&A process
    • 0.3 Identify the rationale for the company's decisions to pursue an acquisition
    • 1.1 Review the business rationale for the acquisition
    • 1.2 Assess the IT/digital strategy
    • 1.3 Identify pain points and opportunities tied to the acquisition
    • 1.4 Create the IT vision statement, create the IT mission statement, and identify IT guiding principles
    • 2.1 Create the future-state operating model
    • 2.2 Determine the transition team
    • 2.3 Document the M&A governance
    • 2.4 Establish program metrics
    • 3.1 Valuate your data
    • 3.2 Valuate your applications
    • 3.3 Valuate your infrastructure
    • 3.4 Valuate your risk and security
    • 3.5 Combine individual valuations to make a single framework
    • 4.1 Establish the integration strategy
    • 4.2 Conduct a RACI
    • 4.3 Review best practices for assessing target organizations
    • 4.4 Create the communication plan
    • 5.1 Complete in-progress deliverables from previous four days
    • 5.2 Set up review time for workshop deliverables and to discuss next steps

    Deliverables

    1. Business perspectives of IT
    2. Stakeholder network map for M&A transactions
    1. Business context implications for IT
    2. IT’s acquisition strategic direction
    1. Operating model for future state
    2. Transition team
    3. Governance structure
    4. M&A program metrics
    1. IT valuation framework
    1. Integration strategy
    2. RACI
    3. Communication plan
    1. Completed M&A program plan and strategy
    2. Prepared to assess target organization(s)

    What is the Discovery & Strategy phase?

    Pre-transaction state

    The Discovery & Strategy phase during an acquisition is a unique opportunity for many IT organizations. IT organizations that can participate in the acquisition transaction at this stage are likely considered a strategic partner of the business.

    For one-off acquisitions, IT being invited during this stage of the process is rare. However, for organizations that are preparing to engage in many acquisitions over the coming years, this type of strategy will greatly benefit from IT involvement. Again, the likelihood of participating in an M&A transaction is increasing, making it a smart IT leadership decision to, at the very least, loosely prepare a program plan that can act as a strategic pillar throughout the transaction.

    During this phase of the pre-transaction state, IT will also be asked to participate in ensuring that the potential organization being sought will be able to meet any IT-specific search criteria that was set when the transaction was put into motion.

    Goal: To identify a repeatable program plan that IT can leverage when acquiring all or parts of another organization’s IT environment, ensuring customer satisfaction and business continuity

    Discovery & Strategy Prerequisite Checklist

    Before coming into the Discovery & Strategy phase, you should have addressed the following:

    • Understand the business perspective of IT.
    • Know the key stakeholders and have outlined their relationships to the M&A process.
    • Be able to valuate the IT environment and communicate IT's value to the business.
    • Understand the rationale for the company's decisions to pursue an acquisition and the opportunities or pain points the acquisition should address.

    Discovery & Strategy

    Step 2.1

    Establish the M&A Program Plan

    Activities

    • 2.1.1 Create the mission and vision
    • 2.1.2 Identify the guiding principles
    • 2.1.3 Create the future-state operating model
    • 2.1.4 Determine the transition team
    • 2.1.5 Document the M&A governance
    • 2.1.6 Create program metrics

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Company M&A team

    Outcomes of Step

    Establish an M&A program plan that can be repeated across acquisitions.

    The vision and mission statements clearly articulate IT’s aspirations and purpose

    The IT vision statement communicates a desired future state of the IT organization, whereas the IT mission statement portrays the organization’s reason for being. While each serves its own purpose, they should both be derived from the business context implications for IT.

    Vision Statements

    Mission Statements

    Characteristics
    • Describe a desired future
    • Focus on ends, not means
    • Concise
    • Aspirational
    • Memorable
    • Articulate a reason for existence
    • Focus on how to achieve the vision
    • Concise
    • Easy to grasp
    • Sharply focused
    • Inspirational

    Samples

    		 To be a trusted advisor and partner in enabling business innovation and growth through an engaged IT workforce. (Source: Business News Daily) IT is a cohesive, proactive, and disciplined team that delivers innovative technology solutions while demonstrating a strong customer-oriented mindset. (Source: Forbes, 2013)

    2.1.1 Create the mission and vision statements

    2 hours

    Input: Business objectives, IT capabilities, Rationale for the transaction

    Output: IT’s mission and vision statements for growth strategies tied to mergers, acquisitions, and divestitures

    Materials: Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to create mission and vision statements that reflect IT’s intent and method to support the organization as it pursues a growth strategy.

    1. Review the definitions and characteristics of mission and vision statements.
    2. Brainstorm different versions of the mission and vision statements.
    3. Edit the statements until you get to a single version of each that accurately reflects IT’s role in the growth process.

    Record the results in the M&A Buy Playbook.

    Guiding principles provide a sense of direction

    IT guiding principles are shared, long-lasting beliefs that guide the use of IT in constructing, transforming, and operating the enterprise by informing and restricting IT investment portfolio management, solution development, and procurement decisions.

    A diagram illustrating the place of 'IT guiding principles' in the process of making 'Decisions on the use of IT'. There are four main items, connecting lines naming the type of process in getting from one step to the next, and a line underneath clarifying the questions asked at each step. On the far left, over the question 'What decisions should be made?', is 'Business context and IT implications'. This flows forward to 'IT guiding principles', and they are connected by 'Influence'. Next, over the question 'How should decisions be made?', is the main highlighted section. 'IT guiding principles' flows forward to 'Decisions on the use of IT', and they are connected by 'Guide and inform'. On the far right, over the question 'Who has the accountability and authority to make decisions?', is 'IT policies'. This flows back to 'Decisions on the use of IT', and they are connected by 'Direct and control'.

    IT principles must be carefully constructed to make sure they are adhered to and relevant

    Info-Tech has identified a set of characteristics that IT principles should possess. These characteristics ensure the IT principles are relevant and followed in the organization.

    Approach focused. IT principles should be focused on the approach – how the organization is built, transformed, and operated – as opposed to what needs to be built, which is defined by both functional and non-functional requirements.

    Business relevant. Create IT principles that are specific to the organization. Tie IT principles to the organization’s priorities and strategic aspirations.

    Long lasting. Build IT principles that will withstand the test of time.

    Prescriptive. Inform and direct decision making with actionable IT principles. Avoid truisms, general statements, and observations.

    Verifiable. If compliance can’t be verified, people are less likely to follow the principle.

    Easily Digestible. IT principles must be clearly understood by everyone in IT and by business stakeholders. IT principles aren’t a secret manuscript of the IT team. IT principles should be succinct; wordy principles are hard to understand and remember.

    Followed. Successful IT principles represent a collection of beliefs shared among enterprise stakeholders. IT principles must be continuously communicated to all stakeholders to achieve and maintain buy-in.

    In organizations where formal policy enforcement works well, IT principles should be enforced through appropriate governance processes.

    Consider the example principles below

    IT Principle Name

    IT Principle Statement
    1. Risk Management We will ensure that the organization’s IT Risk Management Register is properly updated to reflect all potential risks and that a plan of action against those risks has been identified.
    2. Transparent Communication We will ensure employees are spoken to with respect and transparency throughout the transaction process.
    3. Integration for Success We will create an integration strategy that enables the organization and clearly communicates the resources required to succeed.
    4. Managed Data We will handle data creation, modification, integration, and use across the enterprise in compliance with our data governance policy.
    5. Establish a single IT Environment We will identify, prioritize, and manage the applications and services that IT provides in order to eliminate redundant technology and maximize the value that users and customers experience.
    6. Compliance With Laws and Regulations We will operate in compliance with all applicable laws and regulations for both our organization and the potentially purchased organization.
    7. Defined Value We will create a plan of action that aligns with the organization’s defined value expectations.
    8. Network Readiness We will ensure that employees and customers have immediate access to the network with minimal or no outages.
    9. Operating to Succeed We will bring all of IT into a central operating model within two years of the transaction.

    2.1.2 Identify the guiding principles

    2 hours

    Input: Business objectives, IT capabilities, Rationale for the transaction, Mission and vision statements

    Output: IT’s guiding principles for growth strategies tied to mergers, acquisitions, and divestitures

    Materials: Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to create the guiding principles that will direct the IT organization throughout the growth strategy process.

    1. Review the role of guiding principles and the examples of guiding principles that organizations have used.
    2. Brainstorm different versions of the guiding principles. Each guiding principle should start with the phrase “We will…”
    3. Edit and consolidate the statements until you have a list of approximately eight to ten statements that accurately reflect IT’s role in the growth process.
    4. Review the guiding principles every six months to ensure they continue to support the delivery of the business’ growth strategy goals.

    Record the results in the M&A Buy Playbook.

    Create two IT teams to support the transaction

    IT M&A Transaction Team

    • The IT M&A Transaction Team should consist of the strongest members of the IT team who can be expected to deliver on unusual or additional tasks not asked of them in normal day-to-day operations.
    • The roles selected for this team will have very specific skills sets or deliver on critical integration capabilities, making their involvement in the combination of two or more IT environments paramount.
    • These individuals need to have a history of proving themselves very trustworthy, as they will likely be required to sign an NDA as well.
    • Expect to have to certain duplicate capabilities or roles across the M&A transaction team and operational team.

    IT Operational Team

    • This group is responsible for ensuring the business operations continue.
    • These employees might be those who are newer to the organization but can be counted on to deliver consistent IT services and products.
    • The roles of this team should ensure that end users or external customers remain satisfied.

    Key capabilities to support M&A

    Consider the following capabilities when looking at who should be a part of the M&A transaction team.

    Employees who have a significant role in ensuring that these capabilities are being delivered will be a top priority.

    Infrastructure

    • Systems Integration
    • Data Management

    Business Focus

    • Service-Level Management
    • Enterprise Architecture
    • Stakeholder Management
    • Project Management

    Risk & Security

    • Privacy Management
    • Security Management
    • Risk & Compliance Management

    Build a lasting and scalable operating model

    An operating model is an abstract visualization, used like an architect’s blueprint, that depicts how structures and resources are aligned and integrated to deliver on the organization’s strategy.

    It ensures consistency of all elements in the organizational structure through a clear and coherent blueprint before embarking on detailed organizational design.

    The visual should highlight which capabilities are critical to attaining strategic goals and clearly show the flow of work so that key stakeholders can understand where inputs flow in and outputs flow out of the IT organization.

    As you assess the current operating model, consider the following:

    • Does the operating model contain all the necessary capabilities your IT organization requires to be successful?
    • What capabilities should be duplicated?
    • Are there individuals with the skill set to support those roles? If not, is there a plan to acquire or develop those skills?
    • A dedicated project team strictly focused on M&A is great. However, is it feasible for your organization? If not, what blockers exist?
    A diagram with 'Initiatives' and 'Solutions' on the left and right of an area chart, 'Customer' at the top, the area between them labelled 'Functional Area n', and six horizontal bars labelled 'IT Capability' stacked on top of each other. The 'IT Capability' bars are slightly skewed to the 'Solutions' side of the chart.

    Info-Tech Insight

    Investing time up-front getting the operating model right is critical. This will give you a framework to rationalize future organizational changes, allowing you to be more iterative and allowing your model to change as the business changes.

    2.1.3 Create the future-state operating model

    4 hours

    Input: Current operating model, IT strategy, IT capabilities, M&A-specific IT capabilities, Business objectives, Rationale for the transaction, Mission and vision statements

    Output: Future-state operating model

    Materials: Operating model, Capability overlay, Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to establish what the future-state operating model will be if your organization needs to adjust to support a growth transaction.

    1. Ensuring that all the IT capabilities are identified by the business and IT strategy, document your organization’s current operating model.
    2. Identify what core capabilities would be critical to the buying transaction process and integration. Highlight and make copies of those capabilities in the M&A Buy Playbook.
    3. Arrange the capabilities to clearly show the flow of inputs and outputs. Identify critical stakeholders of the process (such as customers or end users) if that will help the flow.
    4. Ensure the capabilities that will be decentralized are clearly identified. Decentralized capabilities do not exist within the central IT organization but rather in specific lines of businesses or products to better understand needs and deliver on the capability.

    An example operating model is included in the M&A Buy Playbook. This process benefits from strong reference architecture and capability mapping ahead of time.

    Record the results in the M&A Buy Playbook.

    2.1.4 Determine the transition team

    3 hours

    Input: IT capabilities, Future-state operating model, M&A-specific IT capabilities, Business objectives, Rationale for the transaction, Mission and vision statements

    Output: Transition team

    Materials: Reference architecture, Organizational structure, Flip charts/whiteboard, Markers

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to create a team that will support your IT organization throughout the transaction. Determining which capabilities and therefore which roles will be required ensures that the business will continue to get the operational support it needs.

    1. Based on the outcome of activity 2.1.3, review the capabilities that your organization will require on the transition team. Group capabilities into functional groups containing capabilities that are aligned well with one another because they have similar responsibilities and functionalities.
    2. Replace the capabilities with roles. For example, stakeholder management, requirements gathering, and project management might be one functional group. Project management and stakeholder management might combine to create a project manager role.
    3. Review the examples in the M&A Buy Playbook and identify which roles will be a part of the transition team.

    For more information, see Redesign Your Organizational Structure

    What is governance?

    And why does it matter so much to IT and the M&A process?

    • Governance is the method in which decisions get made, specifically as they impact various resources (time, money, and people).
    • Because M&A is such a highly governed transaction, it is important to document the governance bodies that exist in your organization.
    • This will give insight into what types of governing bodies there are, what decisions they make, and how that will impact IT.
    • For example, funds to support integration need to be discussed, approved, and supplied to IT from a governing body overseeing the acquisition.
    • A highly mature IT organization will have automated governance, while a seemingly non-existent governance process will be considered ad hoc.
    A pyramid with four levels representing the types of governing bodies that are available with differing levels of IT maturity. An arrow beside the pyramid points upward. The bottom of the arrow is labelled 'Traditional (People and document centric)' and the top is labelled 'Adaptive (Data centric)'. Starting at the bottom of the pyramid is level 1 'Ad Hoc Governance', 'Governance that is not well defined or understood within the organization. It occurs out of necessity but often not by the right people'. Level 2 is 'Controlled Governance', 'Governance focused on compliance and decisions driven by hierarchical authority. Levels of authority are defined and often driven by regulatory'. Level 3 is 'Agile Governance', 'Governance that is flexible to support different needs and quick response in the organization. Driven by principles and delegated throughout the company'. At the top of the pyramid is level 4 'Automated Governance', 'Governance that is entrenched and automated into organizational processes and product/service design. Empowered and fully delegated governance to maintain fit and drive organizational success and survival'.

    2.1.5 Document M&A governance

    1-2 hours

    Input: List of governing bodies, Governing body committee profiles, Governance structure

    Output: Documented method on how decisions are made as it relates to the M&A transaction

    Materials: Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to determine the method in which decisions are made throughout the M&A transaction as it relates to IT. This will require understanding both governing bodies internal to IT and those external to IT.

    1. First, determine the other governance structures within the organization that will impact the decisions made about M&A. List out these bodies or committees.
    2. Create a profile for each committee that looks at the membership, purpose of the committee, decision areas (authority), and the process of inputs and outputs. Ensure IT committees that will have a role in this process are also documented. Consider the benefits realized, risks, and resources required for each.
    3. Organize the committees into a structure, identifying the committees that have a role in defining the strategy, designing and building, and running.

    Record the results in the M&A Buy Playbook.

    Current-state structure map – definitions of tiers

    Strategy: These groups will focus on decisions that directly connect to the strategic direction of the organization.

    Design & Build: The second tier of groups will oversee prioritization of a certain area of governance as well as design and build decisions that feed into strategic decisions.

    Run: The lowest level of governance will be oversight of more-specific initiatives and capabilities within IT.

    Expect tier overlap. Some committees will operate in areas that cover two or three of these governance tiers.

    Measure the IT program’s success in terms of its ability to support the business’ M&A goals

    Upper management will measure IT’s success based on your ability to support the underlying reasons for the M&A. Using business metrics will help assure business stakeholders that IT understands their needs and is working with the business to achieve them.

    Business-Specific Metrics

    • Revenue Growth: Increase in the top line as seen by market expansion, product expansion, etc. by percentage/time.
    • Synergy Extraction: Reduction in costs as determined by the ability to identify and eliminate redundancies over time.
    • Profit Margin Growth: Increase in the bottom line as a result of increased revenue growth and/or decreased costs over time.

    IT-Specific Metrics

    • IT operational savings and cost reductions due to synergies: Operating expenses, capital expenditures, licenses, contracts, applications, infrastructure over time.
    • Reduction in IT staff expense and headcount: Decreased budget allocated to IT staff, and ability to identify and remove redundancies in staff.
    • Meeting or improving on IT budget estimates: Delivering successful IT integration on a budget that is the same or lower than the budget estimated during due diligence.
    • Meeting or improving on IT time-to-integration estimates: Delivering successful IT integration on a timeline that is the same or shorter than the timeline estimated during due diligence.
    • Business capability support: Delivering the end state of IT that supports the expected business capabilities and growth.

    Establish your own metrics to gauge the success of IT

    Establish SMART M&A Success Metrics

    S pecific Make sure the objective is clear and detailed.
    M easurable Objectives are measurable if there are specific metrics assigned to measure success. Metrics should be objective.
    A ctionable Objectives become actionable when specific initiatives designed to achieve the objective are identified.
    R ealistic Objectives must be achievable given your current resources or known available resources.
    T ime-Bound An objective without a timeline can be put off indefinitely. Furthermore, measuring success is challenging without a timeline.
    • What should IT consider when looking to identify potential additions, deletions, or modifications that will either add value to the organization or reduce costs/risks?
    • Provide a definition of synergies.
    • IT operational savings and cost reductions due to synergies: Operating expenses, capital expenditures, licenses, contracts, applications, infrastructure.
    • Reduction in IT staff expense and headcount: Decreased budget allocated to IT staff, and ability to identify and remove redundancies in staff.
    • Meeting or improving on IT budget estimates: Delivering successful IT integration on a budget that is the same or lower than the budget estimated during due diligence.
    • Meeting or improving on IT time-to-integration estimates: Delivering successful IT integration on a timeline that is the same or shorter than the timeline estimated during due diligence.
    • Revenue growth: Increase in the top line as a result, as seen by market expansion, product expansion, etc.
    • Synergy extraction: Reduction in costs, as determined by the ability to identify and eliminate redundancies.
    • Profit margin growth: Increase in the bottom line as a result of increased revenue growth and/or decreased costs.

    Metrics for each phase

    1. Proactive

    2. Discovery & Strategy

    3. Valuation & Due Diligence

    4. Execution & Value Realization

    • % Share of business innovation spend from overall IT budget
    • % Critical processes with approved performance goals and metrics
    • % IT initiatives that meet or exceed value expectation defined in business case
    • % IT initiatives aligned with organizational strategic direction
    • % Satisfaction with IT's strategic decision-making abilities
    • $ Estimated business value added through IT-enabled innovation
    • % Overall stakeholder satisfaction with IT
    • % Percent of business leaders that view IT as an Innovator
    • % IT budget as a percent of revenue
    • % Assets that are not allocated
    • % Unallocated software licenses
    • # Obsolete assets
    • % IT spend that can be attributed to the business (chargeback or showback)
    • % Share of CapEx of overall IT budget
    • % Prospective organizations that meet the search criteria
    • $ Total IT cost of ownership (before and after M&A, before and after rationalization)
    • % Business leaders that view IT as a Business Partner
    • % Defects discovered in production
    • $ Cost per user for enterprise applications
    • % In-house-built applications vs. enterprise applications
    • % Owners identified for all data domains
    • # IT staff asked to participate in due diligence
    • Change to due diligence
    • IT budget variance
    • Synergy target
    • % Satisfaction with the effectiveness of IT capabilities
    • % Overall end-customer satisfaction
    • $ Impact of vendor SLA breaches
    • $ Savings through cost-optimization efforts
    • $ Savings through application rationalization and technology standardization
    • # Key positions empty
    • % Frequency of staff turnover
    • % Emergency changes
    • # Hours of unplanned downtime
    • % Releases that cause downtime
    • % Incidents with identified problem record
    • % Problems with identified root cause
    • # Days from problem identification to root cause fix
    • % Projects that consider IT risk
    • % Incidents due to issues not addressed in the security plan
    • # Average vulnerability remediation time
    • % Application budget spent on new build/buy vs. maintenance (deferred feature implementation, enhancements, bug fixes)
    • # Time (days) to value realization
    • % Projects that realized planned benefits
    • $ IT operational savings and cost reductions that are related to synergies/divestitures
    • % IT staff–related expenses/redundancies
    • # Days spent on IT integration
    • $ Accurate IT budget estimates
    • % Revenue growth directly tied to IT delivery
    • % Profit margin growth

    2.1.6 Create program metrics

    1-2 hours

    Input: IT capabilities, Mission, vision, and guiding principles, Rationale for the acquisition

    Output: Program metrics to support IT throughout the M&A process

    Materials: Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to determine how IT’s success throughout a growth transaction will be measured and determined.

    1. Document a list of appropriate metrics on the whiteboard. Remember to include metrics that demonstrate the business impact. You can use the sample metrics listed on the previous slide as a starting point.
    2. Set a target and deadline for each metric. This will help the group determine when it is time to evaluate progression.
    3. Establish a baseline for each metric based on information collected within your organization.
    4. Assign an owner for tracking each metric as well as someone to be accountable for performance.

    Record the results in the M&A Buy Playbook.

    Discovery & Strategy

    Step 2.2

    Prepare IT to Engage in the Acquisition

    Activities

    • 2.2.1 Establish the integration strategy
    • 2.2.2 Conduct a RACI
    • 2.2.3 Create the communication plan
    • 2.2.4 Assess the potential organization(s)

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Company M&A team

    Outcomes of Step

    Identify IT’s plan of action when it comes to the acquisition and align IT’s integration strategy with the business’ M&A strategy.

    Integration strategies

    There are several IT integration strategies that will help you achieve your target technology environment.

    IT Integration Strategies
    • Absorption. Convert the target organization’s strategy, structure, processes, and/or systems to that of the acquiring organization.
    • Best-of-Breed. Pick and choose the most effective people, processes, and technologies to form an efficient operating model.
    • Transformation Retire systems from both organizations and use collective capabilities, data, and processes to create something entirely new.
    • Preservation Retain individual business units that will operate within their own capability. People, processes, and technologies are unchanged.

    The approach IT takes will depend on the business objectives for the M&A.

    • Generally speaking, the integration strategy is well understood and influenced by the frequency of and rationale for acquiring.
    • Based on the initiatives generated by each business process owner, you need to determine the IT integration strategy that will best support the desired target technology environment.

    Key considerations when choosing an IT integration strategy include:

    • What are the main business objectives of the M&A?
    • What are the key synergies expected from the transaction?
    • What IT integration best helps obtain these benefits?
    • What opportunities exist to position the business for sustainable growth?

    Absorption and best-of-breed

    Review highlights and drawbacks of absorption and best-of-breed integration strategies

    Absorption
      Highlights
    • Recommended for businesses striving to reduce costs and drive efficiency gains.
    • Economies of scale realized through consolidation and elimination of redundant applications.
    • Quickest path to a single company operation and systems as well as lower overall IT cost.
      Drawbacks
    • Potential for disruption of the target company’s business operations.
    • Requires significant business process changes.
    • Disregarding the target offerings altogether may lead to inferior system decisions that do not yield sustainable results.
    Best-of-Breed
      Highlights
    • Recommended for businesses looking to expand their market presence or acquire new products. Essentially aligning the two organizations in the same market.
    • Each side has a unique offering but complementing capabilities.
    • Potential for better buy-in from the target because some of their systems are kept, resulting in willingness to
      Drawbacks
    • May take longer to integrate because it tends to present increased complexity that results in higher costs and risks.
    • Requires major integration efforts from both sides of the company. If the target organization is uncooperative, creating the desired technology environment will be difficult.

    Transformation and preservation

    Review highlights and drawbacks of transformation and preservation integration strategies

    Transformation
      Highlights
    • This is the most customized approach, although it is rarely used.
    • It is essential to have an established long-term vision of business capabilities when choosing this path.
    • When executed correctly, this approach presents potential for significant upside and creation of sustainable competitive advantages.
      Drawbacks
    • This approach requires extensive time to implement, and the cost of integration work may be significant.
    • If a new system is created without strategic capabilities, the organizations will not realize long-term benefits.
    • The cost of correcting complexities at later stages in the integration effort may be drastic.
    Preservation
      Highlights
    • This approach is appropriate if the merging organizations will remain fairly independent, if there will be limited or no communication between companies, and if the companies’ market strategies, products, and channels are entirely distinct.
    • Environment can be accomplished quickly and at a low cost.
      Drawbacks
    • Impact to each business is minimal, but there is potential for lost synergies and higher operational costs. This may be uncontrollable if the natures of the two businesses are too different to integrate.
    • Reduced benefits and limited opportunities for IT integration.

    2.2.1 Establish the integration strategy

    1-2 hours

    Input: Business integration strategy, Guiding principles, M&A governance

    Output: IT’s integration strategy

    Materials: Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to determine IT’s approach to integration. The approach might differ slightly from transaction to transaction. However, the business’ approach to transactions should give insight into the general integration strategy IT should adopt.

    1. Make sure you have clearly articulated the business objectives for the M&A, the technology end state for IT, and the magnitude of the overall integration.
    2. Review and discuss the highlights and drawbacks of each type of integration.
    3. Use Info-Tech’s Integration Posture Selection Framework on the next slide to select the integration posture that will appropriately enable the business. Consider these questions during your discussion:
      1. What are the main business objectives of the M&A? What key IT capabilities will need to support business objectives?
      2. What key synergies are expected from the transaction? What opportunities exist to position the business for sustainable growth?
      3. What IT integration best helps obtain these benefits?

    Record the results in the M&A Buy Playbook.

    Integration Posture Selection Framework

    Business M&A Strategy

    Resultant Technology Strategy

    M&A Magnitude (% of Acquirer Assets, Income, or Market Value)

    IT Integration Posture
    A. Horizontal Adopt One Model ‹10% Absorption
    10 to 75% Absorption or Best-of-Breed
    ›75% Best-of-Breed
    B. Vertical Create Links Between Critical Systems Any
    • Preservation (Differentiated Functions)
    • Absorption or Best-of-Breed (Non-Differentiated Functions)
    C. Conglomerate Independent Model Any Preservation
    D. Hybrid: Horizontal & Conglomerate Independent Model Any Preservation

    2.2.2 Conduct a RACI

    1-2 hours

    Input: IT capabilities, Transition team, Integration strategy

    Output: Completed RACI for transition team

    Materials: Reference architecture, Organizational structure, Flip charts/whiteboard, Markers, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to identify the core accountabilities and responsibilities for the roles identified as critical to your transition team. While there might be slight variation from transaction to transaction, ideally each role should be performing certain tasks.

    1. First, identify a list of critical tasks that need to be completed to support the purchase or acquisition. For example:
      • Communicate with the company M&A team.
      • Identify critical IT risks that could impact the organization after the transaction.
      • Identify key artifacts to collect and review during due diligence.
    2. Next, identify at the activity level which role is accountable or responsible for each activity. Enter an A for accountable, R for responsible, or A/R for both.

    Record the results in the M&A Buy Playbook.

    Communication and change

    Prepare key stakeholders for the potential changes

    • Anytime you are starting a project or program that will depend on users and stakeholders to give up their old way of doing things, change will force people to become novices again, leading to lost productivity and added stress.
    • Change management can improve outcomes for any project where you need people to adopt new tools and procedures, comply with new policies, learn new skills and behaviors, or understand and support new processes.
    • M&As move very quickly, and it can be very difficult to keep track of which stakeholders you need to be communicating with and what you should be communicating.
    • Not all organizations embrace or resist change in the same ways. Base your change communications on your organization’s cultural appetite for change in general.
      • Organizations with a low appetite for change will require more direct, assertive communications.
      • Organizations with a high appetite for change are more suited to more open, participatory approaches.

    Three key dimensions determine the appetite for cultural change:

    • Power Distance. Refers to the acceptance that power is distributed unequally throughout the organization.
      In organizations with a high power distance, the unequal power distribution is accepted by the less powerful employees.
    • Individualism. Organizations that score high in individualism have employees who are more independent. Those who score low in individualism fall into the collectivism side, where employees are strongly tied to one another or their groups.
    • Uncertainty Avoidance. Describes the level of acceptance that an organization has toward uncertainty. Those who score high in this area find that their employees do not favor uncertain situations, while those that score low in this area find that their employees are comfortable with change and uncertainty.

    2.2.3 Create the communication plan

    1-2 hours

    Input: IT’s M&A mission, vision, and guiding principles, M&A transition team, IT integration strategy, RACI

    Output: IT’s M&A communication plan

    Materials: Flip charts/whiteboard, Markers, RACI, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to create a communication plan that IT can leverage throughout the initiative.

    1. Create a structured communication plan that allows for continuous communication with the integration management office, senior management, and the business functional heads.
    2. Outline key topics of communication, with stakeholders, inputs, and outputs for each topic.
    3. Review Info-Tech’s example communication plan in the M&A Buy Playbook and update it with relevant information.
    4. Does this communication plan make sense for your organization? What doesn’t make sense? Adjust the communication guide to suit your organization.

    Record the results in the M&A Buy Playbook.

    Assessing potential organizations

    As soon as you have identified organizations to consider, it’s imperative to assess critical risks. Most IT leaders can attest that they will receive little to no notice when they have to assess the IT organization of a potential purchase. As a result, having a standardized template to quickly gauge the value of the business can be critical.

    Ways to Assess

    1. News: Assess what sort of news has been announced in relation to the organization. Have they had any risk incidents? Has a critical vendor announced working with them?
    2. LinkedIn: Scan through the LinkedIn profiles of employees. This will give you a sense of what platforms they have based on their employees.
    3. Trends: Some industries will have specific solutions that are relevant and popular. Assess what the key players are (if you don’t already know) to determine the solution.
    4. Business Architecture: While this assessment won’t perfect, try to understand the business’ value streams and the critical business and IT capabilities that would be needed to support them.

    2.2.4 Assess the potential organization(s)

    1-2 hours

    Input: Publicized historical risk events, Solutions and vendor contracts likely in the works, Trends

    Output: IT’s valuation of the potential organization(s) for acquisition

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO

    The purpose of this activity is to assess the organization(s) that your organization is considering purchasing.

    1. Complete the Historical Valuation Worksheet in the M&A Buy Playbook to understand the type of IT organization that your company may inherit and need to integrate with.
      • The business likely isn’t looking for in-depth details at this time. However, as the IT leader, it is your responsibility to ensure critical risks are identified and communicated to the business.
    2. Use the information identified to help the business narrow down which organizations should be targeted for the acquisition.

    Record the results in the M&A Buy Playbook.

    By the end of this pre-transaction phase you should:

    Have a program plan for M&As and a repeatable M&A strategy for IT when engaging in growth transactions

    Key outcomes from the Discovery & Strategy phase
    • Be prepared to analyze and recommend potential organizations that the business can acquire or merge with, using a strong program plan that can be repeated across transactions.
    • Create a M&A strategy that accounts for all the necessary elements of a transaction and ensures sufficient governance, capabilities, and metrics exist.
    Key deliverables from the Discovery & Strategy phase
    • Create vision and mission statements
    • Establish guiding principles
    • Create a future-state operating model
    • Identify the key roles for the transaction team
    • Identify and communicate the M&A governance
    • Determine target metrics
    • Identify the M&A operating model
    • Select the integration strategy framework
    • Conduct a RACI for key transaction tasks for the transaction team
    • Document the communication plan

    M&A Buy Blueprint

    Phase 3

    Due Diligence & Preparation

    Phase 1Phase 2

    Phase 3

    		Phase 4
    • 1.1 Identify Stakeholders and Their Perspective of IT
    • 1.2 Assess IT’s Current Value and Future State
    • 1.3 Drive Innovation and Suggest Growth Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Acquisition
    • 3.1 Assess the Target Organization
    • 3.2 Prepare to Integrate
    • 4.1 Execute the Transaction
    • 4.2 Reflection and Value Realization

    This phase will walk you through the following activities:

    • Drive value with a due diligence charter
    • Identify data room artifacts
    • Assess technical debt
    • Valuate the target IT organization
    • Assess culture
    • Prioritize integration tasks
    • Establish the integration roadmap
    • Identify the needed workforce supply
    • Estimate integration costs
    • Create an employee transition plan
    • Create functional workplans for employees
    • Align project metrics with identified tasks

    This phase involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Company M&A team
    • Business leaders
    • Prospective IT organization
    • Transition team

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Pre-Work

    Day 1

    Day 2

    Day 3

    Day 4

    Day 5

    Establish the Transaction FoundationDiscover the Motivation for IntegrationAssess the Target Organization(s)Create the Valuation FrameworkPlan the Integration RoadmapNext Steps and Wrap-Up (offsite)

    Activities

    • 0.1 Identify the rationale for the company's decisions to pursue an acquisition.
    • 0.2 Identify key stakeholders and determine the IT transaction team.
    • 0.3 Gather and evaluate the M&A strategy, future-state operating model, and governance.
    • 1.1 Review the business rationale for the acquisition.
    • 1.2 Identify pain points and opportunities tied to the acquisition.
    • 1.3 Establish the integration strategy.
    • 1.4 Create the due diligence charter.
    • 2.1 Create a list of IT artifacts to be reviewed in the data room.
    • 2.2 Conduct a technical debt assessment.
    • 2.3 Assess the current culture and identify the goal culture.
    • 2.4 Identify the needed workforce supply.
    • 3.1 Valuate the target organization’s data.
    • 3.2 Valuate the target organization’s applications.
    • 3.3 Valuate the target organization’s infrastructure.
    • 3.4 Valuate the target organization’s risk and security.
    • 3.5 Combine individual valuations to make a single framework.
    • 4.1 Prioritize integration tasks.
    • 4.2 Establish the integration roadmap.
    • 4.3 Establish and align project metrics with identified tasks.
    • 4.4 Estimate integration costs.
    • 5.1 Complete in-progress deliverables from previous four days.
    • 5.2 Set up review time for workshop deliverables and to discuss next steps.

    Deliverables

    1. IT strategy
    2. IT operating model
    3. IT governance structure
    4. M&A transaction team
    1. Business context implications for IT
    2. Integration strategy
    3. Due diligence charter
    1. Data room artifacts
    2. Technical debt assessment
    3. Culture assessment
    4. Workforce supply identified
    1. IT valuation framework to assess target organization(s)
    1. Integration roadmap and associated resourcing
    1. Acquisition integration strategy for IT

    What is the Due Diligence & Preparation phase?

    Mid-transaction state

    The Due Diligence & Preparation phase during an acquisition is a critical time for IT. If IT fails to proactively participate in this phase, IT will have to merely react to integration expectations set by the business.

    While not all IT organizations are able to participate in this phase, the evolving nature of M&As to be driven by digital and technological capabilities increases the rationale for IT being at the table. Identifying critical IT risks, which will inevitably be business risks, begins during the due diligence phase.

    This is also the opportunity for IT to plan how it will execute the planned integration strategy. Having access to critical information only available in data rooms will further enable IT to successfully plan and execute the acquisition to deliver the value the business is seeking through a growth transaction.

    Goal: To thoroughly evaluate all potential risks associated with the organization(s) being pursued and create a detailed plan for integrating the IT environments

    Due Diligence Prerequisite Checklist

    Before coming into the Due Diligence & Preparation phase, you must have addressed the following:

    • Understand the rationale for the company's decisions to pursue an acquisition and what opportunities or pain points the acquisition should alleviate.
    • Identify the key roles for the transaction team.
    • Identify the M&A governance.
    • Determine target metrics.
    • Select an integration strategy framework.
    • Conduct a RACI for key transaction tasks for the transaction team.

    Before coming into the Due Diligence & Preparation phase, we recommend addressing the following:

    • Create vision and mission statements.
    • Establish guiding principles.
    • Create a future-state operating model.
    • Identify the M&A operating model.
    • Document the communication plan.
    • Examine the business perspective of IT.
    • Identify key stakeholders and outline their relationship to the M&A process.
    • Be able to valuate the IT environment and communicate IT’s value to the business.

    The Technology Value Trinity

    Delivery of Business Value & Strategic Needs

    • Digital & Technology Strategy
      The identification of objectives and initiatives necessary to achieve business goals.
    • IT Operating Model
      The model for how IT is organized to deliver on business needs and strategies.
    • Information & Technology Governance
      The governance to ensure the organization and its customers get maximum value from the use of information and technology.

    All three elements of the Technology Value Trinity work in harmony to deliver business value and achieve strategic needs. As one changes, the others need to change as well.

    • Digital and IT Strategy tells you what you need to achieve to be successful.
    • IT Operating Model and Organizational Design is the alignment of resources to deliver on your strategy and priorities.
    • Information & Technology Governance is the confirmation of IT’s goals and strategy, which ensures the alignment of IT and business strategy. It’s the mechanism by which you continuously prioritize work to ensure that what is delivered is in line with the strategy. This oversight evaluates, directs, and monitors the delivery of outcomes to ensure that the use of resources results in the achieving the organization’s goals.

    Too often strategy, operating model and organizational design, and governance are considered separate practices. As a result, “strategic documents” end up being wish lists, and projects continue to be prioritized based on who shouts the loudest – not based on what is in the best interest of the organization.

    Due Diligence & Preparation

    Step 3.1

    Assess the Target Organization

    Activities

    • 3.1.1 Drive value with a due diligence charter
    • 3.1.2 Identify data room artifacts
    • 3.1.3 Assess technical debt
    • 3.1.4 Valuate the target IT organization
    • 3.1.5 Assess culture

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Company M&A team
    • Business leaders
    • Prospective IT organization
    • Transition team

    Outcomes of Step

    This step of the process is when IT should actively evaluate the target organization being pursued for acquisition.

    3.1.1 Drive value with a due diligence charter

    1-2 hours

    Input: Key roles for the transaction team, M&A governance, Target metrics, Selected integration strategy framework, RACI of key transaction tasks for the transaction team

    Output: IT Due Diligence Charter

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to create a charter leveraging the items completed in the previous phase, as listed on the Due Diligence Prerequisite Checklist slide, to gain executive sign-off.

    1. In the IT Due Diligence Charter in the M&A Buy Playbook, complete the aspects of the charter that are relevant for you and your organization.
    2. We recommend including these items in the charter:
      • Communication plan
      • Transition team roles
      • Goals and metrics for the transaction
      • Integration strategy
      • Acquisition RACI
    3. Once the charter has been completed, ensure that business executives agree to the charter and sign off on the plan of action.

    Record the results in the M&A Buy Playbook.

    3.1.2 Identify data room artifacts

    4 hours

    Input: Future-state operating model, M&A governance, Target metrics, Selected integration strategy framework, RACI of key transaction tasks for the transaction team

    Output: List of items to acquire and review in the data room

    Materials: Critical domain lists on following slides, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Transition team

    The purpose of this activity is to create a list of the key artifacts that should be asked for and reviewed during the due diligence process.

    1. Review the lists on the following pages as a starting point. Identify which domains, stakeholders, artifacts, and information should be requested for the data room. This information should be directed to the target organization.
    2. IT leadership may or may not be asked to enter the data room directly. Therefore, it’s important that you clearly identify these artifacts.
    3. List each question or concern, select the associated workstream in the M&A Buy Playbook, and update the status of the information retrieval.
    4. Use the comments section to document your discoveries or concerns.

    Record the results in the M&A Buy Playbook.

    Critical domains

    Understand the key stakeholders and outputs for each domain

    Each critical domain will likely have different stakeholders who know that domain best. Communicate with these stakeholders throughout the M&A process to make sure you are getting accurate information and interpreting it correctly.

    Domain

    Stakeholders

    Key Artifacts

    Key Information to request
    Business
    • Enterprise Architecture
    • Business Relationship Manager
    • Business Process Owners
    • Business capability map
    • Capability map (the M&A team should be taking care of this, but make sure it exists)
    • Business satisfaction with various IT systems and services
    Leadership/IT Executive
    • CIO
    • CTO
    • CISO
    • IT budgets
    • IT capital and operating budgets (from current year and previous year)
    Data & Analytics
    • Chief Data Officer
    • Data Architect
    • Enterprise Architect
    • Master data domains, system of record for each
    • Unstructured data retention requirements
    • Data architecture
    • Master data domains, sources, and storage
    • Data retention requirements
    Applications
    • Applications Manager
    • Application Portfolio Manager
    • Application Architect
    • Applications map
    • Applications inventory
    • Applications architecture
    • Copy of all software license agreements
    • Copy of all software maintenance agreements
    Infrastructure
    • Head of Infrastructure
    • Enterprise Architect
    • Infrastructure Architect
    • Infrastructure Manager
    • Infrastructure map
    • Infrastructure inventory
    • Network architecture (including which data centers host which infrastructure and applications)
    • Inventory (including integration capabilities of vendors, versions, switches, and routers)
    • Copy of all hardware lease or purchase agreements
    • Copy of all hardware maintenance agreements
    • Copy of all outsourcing/external service provider agreements
    • Copy of all service-level agreements for centrally provided, shared services and systems
    Products and Services
    • Product Manager
    • Head of Customer Interactions
    • Product lifecycle
    • Product inventory
    • Customer market strategy

    Critical domains (continued)

    Understand the key stakeholders and outputs for each domain

    Domain

    Stakeholders

    Key Artifacts

    Key Information to request

    Operations
    • Head of Operations
    • Service catalog
    • Service overview
    • Service owners
    • Access policies and procedures
    • Availability and service levels
    • Support policies and procedures
    • Costs and approvals (internal and customer costs)
    IT Processes
    • CIO
    • IT Management
    • VP of IT Governance
    • VP of IT Strategy
    • IT process flow diagram
    • Processes in place and productivity levels (capacity)
    • Critical processes/processes the organization feels they do particularly well
    IT People
    • CIO
    • VP of Human Resources
    • IT organizational chart
    • Competency & capacity assessment
    • IT organizational structure (including resources from external service providers such as contractors) with appropriate job descriptions or roles and responsibilities
    • IT headcount and location
    Security
    • CISO
    • Security Architect
    • Security posture
    • Information security staff
    • Information security service providers
    • Information security tools
    • In-flight information security projects
    Projects
    • Head of Projects
    • Project portfolio
    • List of all future, ongoing, and recently completed projects
    Vendors
    • Head of Vendor Management
    • License inventory
    • Inventory (including what will and will not be transitioning, vendors, versions, number of licenses)

    Assess the target organization’s technical debt

    The other organization could be costly to purchase if not yet modernizing.

    • Consider the potential costs that your business will have to spend to get the other IT organization modernized or even digital.
    • This will be highly affected by your planned integration strategy.
    • A best-of-breed strategy might simply mean there's little to bring over from the other organization’s environment.
    • It’s often challenging to identify a direct financial cost for technical debt. Consider direct costs but also assess categories of impact that can have a long-term effect on your business: lost customer, staff, or business partner goodwill; limited flexibility and resilience; and health, safety, and compliance impacts.
    • Use more objective measures to track subjective impact. For example, consider the number of customers who could be significantly affected by each tech debt in the next quarter.

    Focus on solving the problems you need to address.

    Analyzing technical debt has value in that the analysis can help your organization make better risk management and resource allocation decisions.

    Review these examples of technical debt

    Do you have any of these challenges?

    Applications
    • Inefficient or incomplete code
    • Fragile or obsolete systems of record that limit the implementation of new functionality
    • Out-of-date IDEs or compilers
    • Unsupported applications
    Data & Analytics
    • Data presented via API that does not conform to chosen standards (EDI, NRF-ARTS, etc.)
    • Poor data governance
    • No transformation between OLTP and the data warehouse
    • Heavy use of OLTP for reporting
    • Lack of AI model and decision governance, maintenance
    End-User Computing
    • Aging and slow equipment
    • No configuration management
    • No MDM/UEM
    Security
    • Unpatched/unpatchable systems
    • Legacy firewalls
    • No data classification system
    • “Perimeter” security architecture
    • No documented security incident response
    • No policies, or unenforced policies
    Operations
    • Incomplete, ineffective, or undocumented business continuity and disaster recovery plans
    • Insufficient backups or archiving
    • Inefficient MACD processes
    • Application sprawl with no record of installed applications or licenses
    • No ticketing or ITSM system
    • No change management process
    • No problem management process
    • No event/alert management
    Infrastructure
    • End-of-life/unsupported equipment
    • Aging power or cooling systems
    • Water- or halon-based data center fire suppression systems
    • Out-of-date firmware
    • No DR site
    • Damaged or messy cabling
    • Lack of system redundancy
    • Integrated computers on business equipment (e.g. shop floor equipment, medical equipment) running out-of-date OS/software
    Project & Portfolio Management
    • No project closure process
    • Ineffective project intake process
    • No resource management practices

    “This isn’t a philosophical exercise. Knowing what you want to get out of this analysis informs the type of technical debt you will calculate and the approach you will take.” (Scott Buchholz, CTO, Deloitte Government & Public Services Practice, The Wall Street Journal, 2015)

    3.1.3 Assess technical debt

    1-2 hours

    Input: Participant views on organizational tech debt, Five to ten key technical debts, Business impact scoring scales, Reasonable next-quarter scenarios for each technical debt, Technical debt business impact analysis

    Output: Initial list of tech debt for the target organization

    Materials: Whiteboard, Sticky notes, Technical Debt Business Impact Analysis Tool, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Business leaders, Transition team

    The purpose of this activity is to assess the technical debt of the other IT organization. Taking on unnecessary technical debt is one of the biggest risks to the IT environment

    1. This activity can be completed by leveraging the blueprint Manage Your Technical Debt, specifically the Technical Debt Business Impact Analysis Tool. Complete the following activities in the blueprint:
      • 1.2.1 Identify your technical debt
      • 1.2.2 Select tech debt for your impact analysis
      • 2.2.2 Estimate tech debt impact
      • 2.2.3 Identify the most-critical technical debts
    2. Review examples of technical debt in the previous slide to assist you with this activity.
    3. Document the results from tab 3, Impact Analysis, in the M&A Buy Playbook if you are trying to record all artifacts related to the transaction in one place.

    Record the results in the M&A Buy Playbook.

    How to valuate an IT environment

    And why it matters so much

    • Valuating the target organization’s IT environment is a critical step to fully understand what it might be worth. Business partners are often not in the position to valuate the IT aspects to the degree that you would be.
    • The business investments in IT can be directly translated to a value amount. Meaning for every $1 invested in IT, the business might be gaining $100 in value back or possibly even loosing $100.
    • Determining, documenting, and communicating this information ensures that the business takes IT’s suggestions seriously and recognizes why investing in IT can be so critical.
    • There are three ways a business or asset can be valuated:
      • Cost Approach: Look at the costs associated with building, purchasing, replacing, and maintaining a given aspect of the business.
      • Market Approach: Look at the relative value of a particular aspect of the business. Relative value can fluctuate and depends on what the markets and consequently society believe that particular element is worth.
      • Discounted Cash Flow Approach: Focus on what the potential value of the business could be or the intrinsic value anticipated due to future profitability.

    The IT valuation conducted during due diligence can have a significant impact on the final financials of the transaction for the business.

    3.1.4 Valuate the target IT organization

    1 day

    Input: Valuation of data, Valuation of applications, Valuation of infrastructure and operations, Valuation of security and risk

    Output: Valuation of target organization’s IT

    Materials: Relevant templates/tools, Capital budget, Operating budget, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Prospective IT organization

    The purpose of this activity is to valuate the other IT organization.

    1. Review each of slides 42 to 45 to generate a valuation of IT’s data, applications, infrastructure, and security and risk. These valuations consider several tangible and intangible factors and result in a final dollar amount. For more information on this activity, review Activity 1.2.1 from the Proactive phase.
    2. Identify financial amounts for each critical area and add the financial output to the summary slide in the M&A Buy Playbook.
    3. Compare this information against your own IT organization’s valuation.
      1. Does it add value to your IT organization?
      2. Is there too much risk to accept if this transaction goes through?

    Info-Tech Insight

    Consistency is key when valuating your IT organization as well as other IT organizations throughout the transaction process.

    Record the results in the M&A Buy Playbook.

    Culture should not be overlooked, especially as it relates to the integration of IT environments

    • There are three types of culture that need to be considered.
    • Most importantly, this transition is an opportunity to change the culture that might exist in your organization’s IT environment.
    • Make a decision on which type of culture you’d like IT to have post-transition.

    Target Organization’s Culture

    The culture that the target organization is currently embracing. Their established and undefined governance practices will lend insight into this.

    Your Organization’s Culture

    The culture that your organization is currently embracing. Examine people’s attitudes and behaviors within IT toward their jobs and the organization.

    Ideal Culture

    What will the future culture of the IT organization be once integration is complete? Are there aspects that your current organization and the target organization embrace that are worth considering?

    Culture categories

    Map the results of the IT Culture Diagnostic to an existing framework

    Competitive
    • Autonomy
    • Confront conflict directly
    • Decisive
    • Competitive
    • Achievement oriented
    • Results oriented
    • High performance expectations
    • Aggressive
    • High pay for good performance
    • Working long hours
    • Having a good reputation
    • Being distinctive/different
    Innovative
    • Adaptable
    • Innovative
    • Quick to take advantage of opportunities
    • Risk taking
    • Opportunities for professional growth
    • Not constrained by rules
    • Tolerant
    • Informal
    • Enthusiastic
    Traditional
    • Stability
    • Reflective
    • Rule oriented
    • Analytical
    • High attention to detail
    • Organized
    • Clear guiding philosophy
    • Security of employment
    • Emphasis on quality
    • Focus on safety
    Cooperative
    • Team oriented
    • Fair
    • Praise for good performance
    • Supportive
    • Calm
    • Developing friends at work
    • Socially responsible

    Culture Considerations

    • What culture category was dominant for each IT organization?
    • Do you share the same dominant category?
    • Is your current dominant culture category the most ideal to have post-integration?

    3.1.5 Assess Culture

    3-4 hours

    Input: Cultural assessments for current IT organization, Cultural assessment for target IT organization

    Output: Goal for IT culture

    Materials: IT Culture Diagnostic, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, IT employees of current organization, IT employees of target organization, Company M&A team

    The purpose of this activity is to assess the different cultures that might exist within the IT environments of both organizations. More importantly, your IT organization can select its desired IT culture for the long term if it does not already exist.

    1. Complete this activity by leveraging the blueprint Fix Your IT Culture, specifically the IT Culture Diagnostic. Fill out the diagnostic for the IT department in your organization:
      1. Answer the 16 questions in tab 2, Diagnostic.
      2. Find out your dominant culture and review recommendations in tab 3, Results.
    2. Document the results from tab 3, Results, in the M&A Buy Playbook if you are trying to record all artifacts related to the transaction in one place.
    3. Repeat the activity for the target organization.
    4. Leverage the information to determine what the goal for the culture of IT will be post-integration if it will differ from the current culture.

    Record the results in the M&A Buy Playbook.

    Due Diligence & Preparation

    Step 3.2

    Prepare to Integrate

    Activities

    • 3.2.1 Prioritize integration tasks
    • 3.2.2 Establish the integration roadmap
    • 3.2.3 Identify the needed workforce supply
    • 3.2.4 Estimate integration costs
    • 3.2.5 Create an employee transition plan
    • 3.2.6 Create functional workplans for employees
    • 3.2.7 Align project metrics with identified tasks

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Transition team
    • Company M&A team

    Outcomes of Step

    Have an established plan of action toward integration across all domains and a strategy toward resources.

    Don’t underestimate the importance of integration preparation

    Integration is the process of combining the various components of one or more organizations into a single organization.

    80% of integration should happen within the first two years. (Source: CIO Dive)

    70% of M&A IT integrations fail due to components that could and should be addressed at the beginning. (Source: The Wall Street Journal, 2019)

    Info-Tech Insight

    Integration is not rationalization. Once the organization has integrated, it can prepare to rationalize the IT environment.

    Integration needs

    Identify your domain needs to support the target technology environment

    Set up a meeting with your IT due diligence team to:

    • Address data, applications, infrastructure, and other domain gaps.
    • Discuss the people and processes necessary to achieve the target technology environment and support M&A business objectives.

    Use this opportunity to:

    • Identify data and application complexities between your organization and the target organization.
    • Identify the IT people and process gaps, redundancies, and initiatives.
    • Determine your infrastructure needs and identify redundancies.
      • Does IT have the infrastructure to support the applications and business capabilities of the resultant enterprise?
      • Identify any gaps between the current infrastructure in both organizations and the infrastructure required in the resultant enterprise.
      • Identify any redundancies.
      • Determine the appropriate IT integration strategies.
    • Document your gaps, redundancies, initiatives, and assumptions to help you track and justify the initiatives that must be undertaken and help estimate the cost of integration.

    Integration implications

    Understand the implications for integration with respect to each target technology environment

    Domain

    Independent Models

    Create Links Between Critical Systems

    Move Key Capabilities to Common Systems

    Adopt One Model

    Data & Analytics

    • Consider data sources that might need to be combined (e.g. financials, email lists, internet).
    • Understand where each organization will warehouse its data and how it will be managed in a cost-effective manner.
    • Consider your reporting and transactional needs. Initially systems may remain separate, but eventually they will need to be merged.
    • Analyze whether or not the data types are compatible between companies.
    • Understand the critical data needs and the complexity of integration activities.
    • Consider your reporting and transactional needs. Initially systems may remain separate, but eventually they will need to be merged.
    • Focus on the master data domains that represent the core of your business.
    • Assess the value, size, location, and cleanliness of the target organization’s data sets.
    • Determine the data sets that will be migrated to capture expected synergies and drive core capabilities while addressing how other data sets will be maintained and managed.
    • Decide which applications to keep and which to terminate. This includes setting timelines for application retirement.
    • Establish interim linkages and common interfaces for applications while major migrations occur.

    Applications

    • Establish whether or not there are certain critical applications that still need to be linked (e.g. email, financials).
    • Leverage the unique strengths and functionalities provided by the applications used by each organization.
    • Confirm that adequate documentation and licensing exists.
    • Decide which critical applications need to be linked versus which need to be kept separate to drive synergies. For example, financial, email, and CRM may need to be linked, while certain applications may remain distinct.
    • Pay particular attention to the extent to which systems relating to customers, products, orders, and shipments need to be integrated.
    • Determine the key capabilities that require support from the applications identified by business process owners.
    • Assess which major applications need to be adopted by both organizations, based on the M&A goals.
    • Establish interim linkages and common interfaces for applications while major migrations occur.
    • Decide which applications to keep and which to terminate. This includes setting timelines for application retirement.
    • Establish interim linkages and common interfaces for applications while major migrations occur.

    Integration implications (continued)

    Understand the implications for integration with respect to each target technology environment

    Domain

    Independent Models

    Create Links Between Critical Systems

    Move Key Capabilities to Common Systems

    Adopt One Model

    Infrastructure

    • Assess the infrastructure demands created by retaining separate models (e.g. separate domains, voice, network integration).
    • Evaluate whether or not there are redundant data centers that could be consolidated to reduce costs.
    • Assess the infrastructure demands created by retaining separate models (e.g. separate domains, voice, network integration).
    • Evaluate whether or not there are redundant data centers that could be consolidated to reduce costs.
    • Evaluate whether certain infrastructure components, such as data centers, can be consolidated to support the new model while also eliminating redundancies. This will help reduce costs.
    • Assess which infrastructure components need to be kept versus which need to be terminated to support the new application portfolio. Keep in mind that increasing the transaction volume on a particular application increases the infrastructure capacity that is required for that application.
    • Extend the network to integrate additional locations.

    IT People & Processes

    • Retain workers from each IT department who possess knowledge of key products, services, and legacy systems.
    • Consider whether there are redundancies in staffing that could be eliminated.
    • The IT processes of each organization will most likely remain separate.
    • Consider the impact of the target organization on your IT processes.
    • Retain workers from each IT department who possess knowledge of key products, services, and legacy systems.
    • Consider whether there are redundancies in staffing that could be eliminated.
    • Consider how critical IT processes of the target organization fit with your current IT processes.
    • Identify which redundant staff members should be terminated by focusing on the key skills that will be necessary to support the common systems.
    • If there is overlap with the IT processes in both organizations, you may wish to map out both processes to get a sense for how they might work together.
    • Assess what processes will be prioritized to support IT strategies.
    • Identify which redundant staff members should be terminated by focusing on the key skills that will be necessary to support the prioritized IT processes.

    Integration implications (continued)

    Understand the implications for integration with respect to each target technology environment

    Domain

    Independent Models

    Create Links Between Critical Systems

    Move Key Capabilities to Common Systems

    Adopt One Model

    Leadership/IT Executive

    • Have insight into the goals and direction of the organization’s leadership. Make sure that a communication path has been established to receive information and provide feedback.
    • The decentralized model will require some form of centralization and strong governance processes to enable informed decisions.
    • Ensure that each area can deliver on its needs while not overstepping the goals and direction of the organization.
    • This will help with integration in the sense that front-line employees can see a single organization beginning to form.
    • In this model, there is the opportunity to select elements of each leadership style and strategy that will work for the larger organization.
    • Leadership can provide a single and unified approach to how the strategic goals will be executed.
    • More often than not, this would be the acquiring organization’s strategic direction.

    Vendors

    • Determine which contracts the target organization currently has in place.
    • Having different vendors in place will not be a bad model if it makes sense.
    • Spend time reviewing the contracts and ensuring that each organization has the right contracts to succeed.
    • Identify what redundancies might exist (ERPs, for example) and determine if the vendor would be willing to terminate one contract or another.
    • Through integration, it might be possible to engage in one set of contract negotiations for a single application or technology.
    • Identify whether there are opportunities to combine contracts or if they must remain completely separated until the end of the term.
    • In an effort to capitalize on the contracts working well, reduce the contracts that might be hindering the organization.
    • Speak to the vendor offering the contract.
    • Going forward, ensure the contracts are negotiated to include clauses to allow for easier and more cost-effective integration.

    Integration implications (continued)

    Understand the implications for integration with respect to each target technology environment

    Domain

    Independent Models

    Create Links Between Critical Systems

    Move Key Capabilities to Common Systems

    Adopt One Model

    Security

    • Both organizations would need to have a process for securing their organization.
    • Sharing and accessing information might be more difficult, as each organization would need to keep the other organization separate to ensure the organization remains secure.
    • Creating standard policies and procedures that each organization must adhere to would be critical here (for example, multifactor authentication).
    • Establish a single path of communication between the two organizations, ensuring reliable and secure data and information sharing.
    • Leverage the same solutions to protect the business as a whole from internal and external threats.
    • Identify opportunities where there might be user points of failure that could be addressed early in the process.
    • Determine what method of threat detection and response will best support the business and select that method to apply to the entire organization, both original and newly acquired.

    Projects

    • Projects remain ongoing as they were prior to the integration.
    • Some projects might be made redundant after the initial integration is over.
    • Re-evaluate the projects after integration to ensure they continue to deliver on the business’ strategic direction.
    • Determine which projects are similar to one another and identify opportunities to leverage business needs and solutions for each organization where possible.
    • Review project histories to determine the rationale for and success of projects that could be reused in either organization going forward.
    • Determine which projects should remain ongoing and which projects could wait to be implemented or could be completely stopped.
    • There might be certain modernization projects ongoing that cannot be stopped.
    • However, for all other projects, embrace a single portfolio.
    • Completely reduce or remove all ongoing projects from the one organization and continue with only the projects of the other organization.
    • Add in new projects when they arise as needed.

    3.2.1 Prioritize integration tasks

    2 hours

    Input: Integration tasks, Transition team, M&A RACI

    Output: Prioritized integration list

    Materials: Integration task checklist, Integration roadmap

    Participants: IT executive/CIO, IT senior leadership, Company M&A team

    The purpose of this activity is to prioritize the different integration tasks that your organization has identified as necessary to this transaction. Some tasks might not be relevant for this particular transaction, and others might be critical.

    1. Download the SharePoint or Excel version of the M&A Integration Project Management Tool. Identify which integration tasks you want as part of your project plan. Alter or remove any tasks that are irrelevant to your organization. Add in tasks you think are missing.
    2. When deciding criticality of the task, consider the effect on stakeholders, those who are impacted or influenced in the process of the task, and dependencies (e.g. data strategy needs to be addressed first before you can tackle its dependencies, like data quality).
    3. Feel free to edit the way you measure criticality. The standard tool leverages a three-point scale. At the end, you should have a list of tasks in priority order based on criticality.

    Record the updates in the M&A Integration Project Management Tool (SharePoint).

    Record the updates in the M&A Integration Project Management Tool (Excel).

    Integration checklists

    Prerequisite Checklist
    • Build the project plan for integration and prioritize activities
      • Plan first day
      • Plan first 30/100 days
      • Plan first year
    • Create an organization-aligned IT strategy
    • Identify critical stakeholders
    • Create a communication strategy
    • Understand the rationale for the acquisition or purchase
    • Develop IT's purchasing strategy
    • Determine goal opportunities
    • Create the mission and vision statements
    • Create the guiding principles
    • Create program metrics
    • Consolidate reports from due diligence/data room
    • Conduct culture assessment
    • Create a transaction team
    • Assess workforce demand and supply
    • Plan and communicate potential layoffs
    • Create an employee transition plan
    • Identify the IT investment
    Business
    • Design an enterprise architecture
    • Document your business architecture
    • Identify and assess all of IT's risks
    Leadership/IT Executive
    • Build an IT budget
    • Structure operating budget
    • Structure capital budget
    • Identify the needed workforce demand vs. capacity
    • Establish and monitor key metrics
    • Communicate value realized/cost savings
    Data
    • Confirm data strategy
    • Confirm data governance
    • Data architecture
    • Data sources
    • Data storage (on-premises vs. cloud)
    • Enterprise content management
    • Compatibility of data types between organizations
    • Cleanliness/usability of target organization data sets
    • Identify data sets that need to be combined to capture synergies/drive core capabilities
    • Reporting and analytics capabilities
    Applications
    • Prioritize and address critical applications
      • ERP
      • CRM
      • Email
      • HRIS
      • Financial
      • Sales
      • Risk
      • Security
    • Leverage application rationalization framework to determine applications to keep, terminate, or create
    • Develop method of integrating applications
    • Model critical applications that have dependencies on one another
    • Identify the infrastructure capacity required to support critical applications
    Operations
    • Communicate helpdesk/service desk information
    • Manage sales access to customer data
    • Determine locations and hours of operation
    • Consolidate phone lists and extensions
    • Synchronize email address books

    Integration checklists (continued)

    Infrastructure
    • Determine single network access
    • Manage organization domains
    • Consolidate data centers
    • Compile inventory of vendors, versions, switches, and routers
    • Review hardware lease or purchase agreements
    • Review outsourcing/service provider agreements
    • Review service-level agreements
    • Assess connectivity linkages between locations
    • Plan to migrate to a single email system if necessary
    Vendors
    • Establish a sustainable vendor management office
    • Review vendor landscape
    • Identify warranty options
    • Rationalize vendor services and solutions
    • Identify opportunities to mature the security architecture
    People
    • Design an IT operating model
    • Redesign your IT organizational structure
    • Conduct a RACI
    • Conduct a culture assessment and identify goal IT culture
    • Build an IT employee engagement program
    • Determine critical roles and systems/process/products they support
    • Create a list of employees to be terminated
    • Create employee transition plans
    • Create functional workplans
    Projects
    • Stop duplicate or unnecessary target organization projects
    • Communicate project intake process
    • Prioritize projects
    Products & Services
    • Ensure customer services requirements are met
    • Ensure customer interaction requirements are met
    • Select a solution for product lifecycle management
    Security
    • Conduct a security assessment of target organization
    • Develop accessibility prioritization and schedule
    • Establish an information security strategy
    • Develop a security awareness and training program
    • Develop and manage security governance, risk, and compliance
    • Identify security budget
    • Build a data privacy and classification program
    IT Processes
    • Evaluate current process models
    • Determine productivity/capacity levels of processes
    • Identify processes to be terminated
    • Identify process expectations from target organization
    • Establish a communication plan
    • Develop a change management process
    • Establish/review IT policies

    3.2.2 Establish the integration roadmap

    2 hours

    Input: Prioritized integration tasks, Employee transition plan, Integration RACI, Costs for activities, Activity owners

    Output: Integration roadmap

    Materials: M&A Integration Project Plan Tool (SharePoint), M&A Integration Project Plan Tool (Excel)

    Participants: IT executive/CIO, IT senior leadership, Transition team, Company M&A team

    The purpose of this activity is to create a roadmap to support IT throughout the integration process. Using the information gathered in previous activities, you can create a roadmap that will ensure a smooth integration.

    1. Leverage our M&A Integration Project Management Tool to track critical elements of the integration project. There are a few options available:
      1. Follow the instructions on the next slide if you are looking to upload our SharePoint project template.
      2. If you cannot or do not want to use SharePoint as your project management solution, download our Excel version of the tool.
        **Remember that this your tool, so customize to your liking.
    2. Identify who will own or be accountable for each of the integration tasks and establish the time frame for when each project should begin and end. This will confirm which tasks should be prioritized.

    Record the updates in the M&A Integration Project Management Tool (SharePoint).

    Record the updates in the M&A Integration Project Management Tool (Excel).

    Integration Project Management Tool (SharePoint Template)

    Follow these instructions to upload our template to your SharePoint environment

    1. Create or use an existing SP site.
    2. Download the M&A Integration Project Plan Tool (SharePoint) .wsp file from the Mergers & Acquisitions: The Buy Blueprint landing page.
    3. To import a template into your SharePoint environment, do the following:
      1. Open PowerShell.
      2. Connect-SPO Service (need to install PowerShell module).
      3. Enter in your tenant admin URL.
      4. Enter in your admin credentials.
      5. Set-SPO Site https://YourDomain.sharepoint.com/sites/YourSiteHe... -DenyAddAndCustomizePages 0
      OR
      1. Turn on both custom script features to allow users to run custom
      4. Screenshot of the 'Custom Script' option for importing a template into your SharePoint environment. Feature description reads 'Control whether users can run custom script on personal sites and self-service created sites. Note: changes to this setting might take up to 24 hours to take effect. For more information, see http://go.microsoft.com/fwlink/?LinkIn=397546'. There are options to prevent or allow users from running custom script on personal/self-service created sites.
    4. Enable the SharePoint Server Standard Site Collection features.
    5. Upload the .wsp file in Solutions Gallery.
    6. Deploy by creating a subsite and select from custom options.
      • Allow or prevent custom script
      • Security considerations of allowing custom script
      • Save, download, and upload a SharePoint site as a template
      7. Refer to Microsoft documentation to understand security considerations and what is and isn’t supported:

    For more information, check out the SharePoint Template: Step-by-Step Deployment Guide.

    Participate in active workforce planning to transition employees

    The chosen IT operating model, primary M&A goals, and any planned changes to business strategy will dramatically impact IT staffing and workforce planning efforts.

    Visualization of the three aspects of 'IT workforce planning', as listed below.

    IT workforce planning

    • Primary M&A goals
      If the goal of the M&A is cost cutting, then workforce planning will be necessary to identify labor redundancies.
    • Changes to business strategy
      If business strategy will change after the merger, then workforce planning will typically be more involved than if business strategy will not change.
    • Integration strategy
      For independent models, workforce planning will typically be unnecessary.
      For connection of essential systems or absorption, workforce planning will likely be an involved, time-consuming process.
    1. Estimate the headcount you will need through the end of the M&A transition period.
    2. Outline the process you will use to assess staff for roles that have more than one candidate.
    3. Review employees in each department to determine the best fit for each role.
    4. Determine whether terminations will happen all together or in waves.

    Info-Tech Insight

    Don’t be a short-term thinker when it comes to workforce planning! IT teams that only consider the headcount needed on day one of the new entity will end up scrambling to find skilled resources to fill workforce gaps later in the transition period.

    3.2.3 Identify the needed workforce supply

    3-4 hours

    Input: IT strategy, Prioritized integration tasks

    Output: A clear indication of how many resources are required for each role and the number of resources that the organization actually has

    Materials: Resource Management Supply-Demand Calculator

    Participants: IT executive/CIO, IT senior leadership, Target organization employees, Company M&A team, Transition team

    The purpose of this activity is to determine the anticipated amount of work that will be required to support projects (like integration), administrative, and keep-the-lights-on activities.

    1. Download the Resource Management Supply-Demand Calculator.
    2. The calculator requires minimal up-front staff participation: You can obtain meaningful results with participation from as few as one person with insight on the distribution of your resources and their average work week or month.
    3. The calculator will yield a report that shows a breakdown of your annual resource supply and demand, as well as the gap between the supply and demand. Further insight on project and non-project supply and demand are provided.
    4. Repeat the tool several times to identify the needs of your IT environment for day one, day 30/100, and year one. Anticipate that these will change over time. Also, do not forget to obtain this information from the target organization. Given that you will be integrating, it’s important to know how many staff they have in which roles.
      5. **For additional information, please review slides starting from slide 44 in Establish Realistic IT Resource Management Practices to see how to use the tool.

    Record the results in the Resource Management Supply-Demand Calculator.

    Resource Supply-Demand Calculator Output Example

    Example of a 'Resource Management Supply-Demand Analysis Report' with charts and tables measuring Annualized Resource Supply and Demand, Resource Capacity Confidence, Project Capacity, and combinations of those metrics.

    Resource Capacity Confidence. This figure is based on your confidence in supply confidence, demand stability, and the supply-demand ratio.

    Importance of estimating integration costs

    Change is the key driver of integration costs

    Integration costs are dependent on the following:
    • Meeting synergy targets – whether that be cost saving or growth related.
      • Employee-related costs, licensing, and reconfiguration fees play a huge part in meeting synergy targets.
    • Adjustments related to compliance or regulations – especially if there are changes to legal entities, reporting requirements, or risk-mitigation standards.
    • Governance or third party–related support required to ensure timelines are met and the integration is a success.
    Integration costs vary by industry type.
    • Certain industries may have integration costs made up of mostly one type, differing from other industries, due to the complexity and different demands of the transaction. For example:
      • Healthcare integration costs are mostly driven by regulatory, safety, and quality standards, as well as consolidation of the research and development function.
      • Energy and Utilities tend to have the lowest integration costs due to most transactions occurring within the same sector rather than as a cross-sector investment. For example, oil and gas acquisitions tend to be for oil fields and rigs (strategic fixed assets), which can easily be added to the buyer’s portfolio.

    Integration costs are more related to the degree of change required than the size of the transaction.

    3.2.4 Estimate integration costs

    3-4 hours

    Input: Integration tasks, Transition team, Valuation of current IT environment, Valuation of target IT environment, Outputs from data room, Technical debt, Employees

    Output: List of anticipated costs required to support IT integration

    Materials: Integration task checklist, Integration roadmap, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Transition team

    The purpose of this activity is to estimate the costs that will be associated with the integration. It’s important to ensure a realistic figure is identified and communicated to the larger M&A team within your company as early in the process as possible. This ensures that the funding required for the transaction is secured and budgeted for in the overarching transaction.

    1. On the associated slide in the M&A Buy Playbook, input:
      • Task
      • Domain
      • Cost type
      • Total cost amount
      • Level of certainty around the cost
    2. Provide a copy of the estimated costs to the company’s M&A team. Also provide any additional information identified earlier to help them understand the importance of those costs.

    Record the results in the M&A Buy Playbook.

    Employee transition planning

    Considering employee impact will be a huge component to ensure successful integration

    • Meet With Leadership
    • Plan Individual and Department Redeployment
    • Plan Individual and Department Layoffs
    • Monitor and Manage Departmental Effectiveness
    • For employees, the transition could mean:
      • Changing from their current role to a new role to meet requirements and expectations throughout the transition.
      • Being laid off because the role they are currently occupying has been made redundant.
    • It is important to plan for what the M&A integration needs will be and what the IT operational needs will be.
    • A lack of foresight into this long-term plan could lead to undue costs and headaches trying to retain critical staff, rehiring positions that were already let go, and keeping redundant employees longer then necessary.

    Info-Tech Insight

    Being transparent throughout the process is critical. Do not hesitate to tell employees the likelihood that their job may be made redundant. This will ensure a high level of trust and credibility for those who remain with the organization after the transaction.

    3.2.5 Create an employee transition plan

    3-4 hours

    Input: IT strategy, IT organizational design, Resource Supply-Demand Calculator output

    Output: Employee transition plans

    Materials: M&A Buy Playbook, Whiteboard, Sticky notes, Markers

    Participants: IT executive/CIO, IT senior leadership, Company M&A team, Transition team

    The purpose of this activity is to create a transition plan for employees.

    1. Transition planning can be done at specific individual levels or more broadly to reflect a single role. Consider these four items in the transition plan:
      • Understand the direction of the employee transitions.
      • Identify employees that will be involved in the transition (moved or laid off).
      • Prepare to meet with employees.
      • Meet with employees.
    2. For each employee that will be facing some sort of change in their regular role, permanent or temporary, create a transition plan.
    3. For additional information on transitioning employees, review the blueprint Streamline Your Workforce During a Pandemic.

    **Note that if someone’s future role is a layoff, then there is no need to record anything for skills needed or method for skill development.

    Record the results in the M&A Buy Playbook.

    3.2.6 Create functional workplans for employees

    3-4 hours

    Input: Prioritized integration tasks, Employee transition plan, Integration RACI, Costs for activities, Activity owners

    Output: Employee functional workplans

    Materials: M&A Buy Playbook, Learning and development tools

    Participants: IT executive/CIO, IT senior leadership, IT management team, Company M&A team, Transition team

    The purpose of this activity is to create a functional workplan for the different employees so that they know what their key role and responsibilities are once the transaction occurs.

    1. First complete the transition plan from the previous activity (3.2.5) and the separation roadmap. Have these documents ready to review throughout this process.
    2. Identify the employees who will be transitioning to a new role permanently or temporarily. Creating a functional workplan is especially important for these employees.
    3. Identify the skills these employees need to have to support the separation. Record this in the corresponding slide in the M&A Buy Playbook.
    4. For each employee, identify someone who will be a point of contact for them throughout the transition.

    It is recommended that each employee have a functional workplan. Leverage the IT managers to support this task.

    Record the results in the M&A Buy Playbook.

    Metrics for integration

    Valuation & Due Diligence

    • % Defects discovered in production
    • $ Cost per user for enterprise applications
    • % In-house-built applications vs. enterprise applications
    • % Owners identified for all data domains
    • # IT staff asked to participate in due diligence
    • Change to due diligence
    • IT budget variance
    • Synergy target

    Execution & Value Realization

    • % Satisfaction with the effectiveness of IT capabilities
    • % Overall end-customer satisfaction
    • $ Impact of vendor SLA breaches
    • $ Savings through cost-optimization efforts
    • $ Savings through application rationalization and technology standardization
    • # Key positions empty
    • % Frequency of staff turnover
    • % Emergency changes
    • # Hours of unplanned downtime
    • % Releases that cause downtime
    • % Incidents with identified problem record
    • % Problems with identified root cause
    • # Days from problem identification to root cause fix
    • % Projects that consider IT risk
    • % Incidents due to issues not addressed in the security plan
    • # Average vulnerability remediation time
    • % Application budget spent on new build/buy vs. maintenance (deferred feature implementation, enhancements, bug fixes)
    • # Time (days) to value realization
    • % Projects that realized planned benefits
    • $ IT operational savings and cost reductions that are related to synergies/divestitures
    • % IT staff–related expenses/redundancies
    • # Days spent on IT integration
    • $ Accurate IT budget estimates
    • % Revenue growth directly tied to IT delivery
    • % Profit margin growth

    3.2.7 Align project metrics with identified tasks

    3-4 hours

    Input: Prioritized integration tasks, Employee transition plan, Integration RACI, Costs for activities, Activity owners, M&A goals

    Output: Integration-specific metrics to measure success

    Materials: Roadmap template, M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Transition team

    The purpose of this activity is to understand how to measure the success of the integration project by aligning metrics to each identified task.

    1. Review the M&A goals identified by the business. Your metrics will need to tie back to those business goals.
    2. Identify metrics that align to identified tasks and measure achievement of those goals. For each metric you consider, ask the following questions:
      • What is the main goal or objective that this metric is trying to solve?
      • What does success look like?
      • Does the metric promote the right behavior?
      • Is the metric actionable? What is the story you are trying to tell with this metric?
      • How often will this get measured?
      • Are there any metrics it supports or is supported by?

    Record the results in the M&A Buy Playbook.

    By the end of this mid-transaction phase you should:

    Have successfully evaluated the target organization’s IT environment, escalated the acquisition risks and benefits, and prepared IT for integration.

    Key outcomes from the Due Diligence & Preparation phase
    • Participate in due diligence activities to accurately valuate the target organization(s) and determine if there are critical risks or benefits the current organization should be aware of.
    • Create an integration roadmap that considers the tasks that will need to be completed and the resources required to support integration.
    Key deliverables from the Due Diligence & Preparation phase
    • Establish a due diligence charter
    • Create a list of data room artifacts and engage in due diligence
    • Assess the target organization’s technical debt
    • Valuate the target IT organization
    • Assess and plan for culture
    • Prioritize integration tasks
    • Establish the integration roadmap
    • Identify the needed workforce supply
    • Estimate integration costs
    • Create employee transition plans
    • Create functional workplans for employees
    • Align project metrics with identified tasks

    M&A Buy Blueprint

    Phase 4

    Execution & Value Realization

    Phase 1Phase 2Phase 3

    Phase 4

    • 1.1 Identify Stakeholders and Their Perspective of IT
    • 1.2 Assess IT’s Current Value and Future State
    • 1.3 Drive Innovation and Suggest Growth Opportunities
    • 2.1 Establish the M&A Program Plan
    • 2.2 Prepare IT to Engage in the Acquisition
    • 3.1 Assess the Target Organization
    • 3.2 Prepare to Integrate
    • 4.1 Execute the Transaction
    • 4.2 Reflection and Value Realization

    This phase will walk you through the following activities:

    • Rationalize the IT environment
    • Continually update the project plan
    • Confirm integration costs
    • Review IT’s transaction value
    • Conduct a transaction and integration SWOT
    • Review the playbook and prepare for future transactions

    This phase involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Vendor management team
    • IT transaction team
    • Company M&A team

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com 1-888-670-8889

    Pre-Work

    Day 1

    Day 2

    Day 3

    Engage in Integration

    Day 4

    Establish the Transaction FoundationDiscover the Motivation for IntegrationPlan the Integration RoadmapPrepare Employees for the TransitionEngage in IntegrationAssess the Transaction Outcomes (Must be within 30 days of transaction date)

    Activities

    • 0.1 Understand the rationale for the company's decisions to pursue an acquisition.
    • 0.2 Identify key stakeholders and determine the IT transaction team.
    • 0.3 Gather and evaluate the M&A strategy, future-state operating model, and governance.
    • 1.1 Review the business rationale for the acquisition.
    • 1.2 Identify pain points and opportunities tied to the acquisition.
    • 1.3 Establish the integration strategy.
    • 1.4 Prioritize Integration tasks.
    • 2.1 Establish the integration roadmap.
    • 2.2 Establish and align project metrics with identified tasks.
    • 2.3 Estimate integration costs.
    • 3.1 Assess the current culture and identify the goal culture.
    • 3.2 Identify the needed workforce supply.
    • 3.3 Create an employee transition plan.
    • 3.4 Create functional workplans for employees.
    • I.1 Complete the integration by regularly updating the project plan.
    • I.2 Begin to rationalize the IT environment where possible and necessary.
    • 4.1 Confirm integration costs.
    • 4.2 Review IT’s transaction value.
    • 4.3 Conduct a transaction and integration SWOT.
    • 4.4 Review the playbook and prepare for future transactions.

    Deliverables

    1. IT strategy
    2. IT operating model
    3. IT governance structure
    4. M&A transaction team
    1. Business context implications for IT
    2. Integration strategy
    1. Integration roadmap and associated resourcing
    1. Culture assessment
    2. Workforce supply identified
    3. Employee transition plan
    1. Rationalized IT environment
    2. Updated integration project plan
    1. SWOT of transaction
    2. M&A Buy Playbook refined for future transactions

    What is the Execution & Value Realization phase?

    Post-transaction state

    Once the transaction comes to a close, it’s time for IT to deliver on the critical integration tasks. Set the organization up for success by having an integration roadmap. Retaining critical IT staff throughout this process will also be imperative to the overall transaction success.

    Throughout the integration process, roadblocks will arise and need to be addressed. However, by ensuring that employees, technology, and processes are planned for ahead of the transaction, you as IT will be able to weather those unexpected concerns with greater ease.

    Now that you as an IT leader have engaged in an acquisition, demonstrating the value IT was able to provide to the process is critical to establishing a positive and respected relationship with other senior leaders in the business. Be prepared to identify the positives and communicate this value to advance the business’ perception of IT.

    Goal: To carry out the planned integration activities and deliver the intended value to the business

    Execution Prerequisite Checklist

    Before coming into the Execution & Value Realization phase, you must have addressed the following:

    • Understand the rationale for the company's decisions to pursue an acquisition and what opportunities or pain points the acquisition should alleviate.
    • Identify the key roles for the transaction team.
    • Identify the M&A governance.
    • Determine target metrics and align to project tasks.
    • Select an integration strategy framework.
    • Conduct a RACI for key transaction tasks for the transaction team.
    • Create a list of data room artifacts and engage in due diligence (directly or indirectly).
    • Prioritize integration tasks.
    • Establish the integration roadmap.
    • Identify the needed workforce supply.
    • Create employee transition plans.

    Before coming into the Execution & Value Realization phase, we recommend addressing the following:

    • Create vision and mission statements.
    • Establish guiding principles.
    • Create a future-state operating model.
    • Identify the M&A operating model.
    • Document the communication plan.
    • Examine the business perspective of IT.
    • Identify key stakeholders and outline their relationship to the M&A process.
    • Be able to valuate the IT environment and communicate IT's value to the business.
    • Establish a due diligence charter.
    • Assess the target organization’s technical debt.
    • Valuate the target IT organization.
    • Assess and plan for culture.
    • Estimate integration costs.
    • Create functional workplans for employees.

    Integration checklists

    Prerequisite Checklist
    • Build the project plan for integration and prioritize activities
      • Plan first day
      • Plan first 30/100 days
      • Plan first year
    • Create an organization-aligned IT strategy
    • Identify critical stakeholders
    • Create a communication strategy
    • Understand the rationale for the acquisition or purchase
    • Develop IT's purchasing strategy
    • Determine goal opportunities
    • Create the mission and vision statements
    • Create the guiding principles
    • Create program metrics
    • Consolidate reports from due diligence/data room
    • Conduct culture assessment
    • Create a transaction team
    • Assess workforce demand and supply
    • Plan and communicate potential layoffs
    • Create an employee transition plan
    • Identify the IT investment
    Business
    • Design an enterprise architecture
    • Document your business architecture
    • Identify and assess all of IT's risks
    Leadership/IT Executive
    • Build an IT budget
    • Structure operating budget
    • Structure capital budget
    • Identify the needed workforce demand vs. capacity
    • Establish and monitor key metrics
    • Communicate value realized/cost savings
    Data
    • Confirm data strategy
    • Confirm data governance
    • Data architecture
    • Data sources
    • Data storage (on-premises vs. cloud)
    • Enterprise content management
    • Compatibility of data types between organizations
    • Cleanliness/usability of target organization data sets
    • Identify data sets that need to be combined to capture synergies/drive core capabilities
    • Reporting and analytics capabilities
    Applications
    • Prioritize and address critical applications
      • ERP
      • CRM
      • Email
      • HRIS
      • Financial
      • Sales
      • Risk
      • Security
    • Leverage application rationalization framework to determine applications to keep, terminate, or create
    • Develop method of integrating applications
    • Model critical applications that have dependencies on one another
    • Identify the infrastructure capacity required to support critical applications
    Operations
    • Communicate helpdesk/service desk information
    • Manage sales access to customer data
    • Determine locations and hours of operation
    • Consolidate phone lists and extensions
    • Synchronize email address books

    Integration checklists (continued)

    Infrastructure
    • Determine single network access
    • Manage organization domains
    • Consolidate data centers
    • Compile inventory of vendors, versions, switches, and routers
    • Review hardware lease or purchase agreements
    • Review outsourcing/service provider agreements
    • Review service-level agreements
    • Assess connectivity linkages between locations
    • Plan to migrate to a single email system if necessary
    Vendors
    • Establish a sustainable vendor management office
    • Review vendor landscape
    • Identify warranty options
    • Rationalize vendor services and solutions
    • Identify opportunities to mature the security architecture
    People
    • Design an IT operating model
    • Redesign your IT organizational structure
    • Conduct a RACI
    • Conduct a culture assessment and identify goal IT culture
    • Build an IT employee engagement program
    • Determine critical roles and systems/process/products they support
    • Create a list of employees to be terminated
    • Create employee transition plans
    • Create functional workplans
    Projects
    • Stop duplicate or unnecessary target organization projects
    • Communicate project intake process
    • Prioritize projects
    Products & Services
    • Ensure customer services requirements are met
    • Ensure customer interaction requirements are met
    • Select a solution for product lifecycle management
    Security
    • Conduct a security assessment of target organization
    • Develop accessibility prioritization and schedule
    • Establish an information security strategy
    • Develop a security awareness and training program
    • Develop and manage security governance, risk, and compliance
    • Identify security budget
    • Build a data privacy and classification program
    IT Processes
    • Evaluate current process models
    • Determine productivity/capacity levels of processes
    • Identify processes to be terminated
    • Identify process expectations from target organization
    • Establish a communication plan
    • Develop a change management process
    • Establish/review IT policies

    Execution & Value Realization

    Step 4.1

    Execute the Transaction

    Activities

    • 4.1.1 Rationalize the IT environment
    • 4.1.2 Continually update the project plan

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Vendor management team
    • IT transaction team
    • Company M&A team

    Outcomes of Step

    Successfully execute on the integration and strategize how to rationalize the two (or more) IT environments and update the project plan, strategizing against any roadblocks as they might come.

    Compile –› Assess –› Rationalize

    Access to critical information often does not happen until day one

    • As the transaction comes to a close and the target organization becomes the acquired organization, it’s important to start working on the rationalization of your organization.
    • One of the most important elements will be to have a complete understanding of the acquired organization’s IT environment. Specifically, assess the technology, people, and processes that might exist.
    • This rationalization will be heavily dependent on your planned integration strategy determined in the Discovery & Strategy phase of the process.
    • If your IT organization was not involved until after that phase, then determine whether your organization plans on remaining in its original state, taking on the acquired organization’s state, or forming a best-of-breed state by combining elements.
    • To execute on this, however, a holistic understanding of the new IT environment is required.

    Some Info-Tech resources to support this initiative:

    • Reduce and Manage Your Organization’s Insider Threat Risk
    • Build an Application Rationalization Framework
    • Rationalize Your Collaboration Tools
    • Consolidate IT Asset Management
    • Build Effective Enterprise Integration on the Back of Business Process
    • Consolidate Your Data Centers

    4.1.1 Rationalize the IT environment

    6-12 months

    Input: RACI chart, List of critical applications, List of vendor contracts, List of infrastructure assets, List of data assets

    Output: Rationalized IT environment

    Materials: Software Terms & Conditions Evaluation Tool

    Participants: IT executive/CIO, IT senior leadership, Vendor management

    The purpose of this activity is to rationalize the IT environment to reduce and eliminate redundant technology.

    1. Compile a list of the various applications and vendor contracts from the acquired organization and the original organization.
    2. Determine where there is repetition. Have a member of the vendor management team review those contracts and identify cost-saving opportunities.

    This will not be a quick and easy activity to complete. It will require strong negotiation on the behalf of the vendor management team.

    For additional information and support for this activity, see the blueprint Master Contract Review and Negotiations for Software Agreements.

    4.1.2 Continually update the project plan

    Reoccurring basis following transition

    Input: Prioritized integration tasks, Integration RACI, Activity owners

    Output: Updated integration project plan

    Materials: M&A Integration Project Management Tool

    Participants: IT executive/CIO, IT senior leadership, IT transaction team, Company M&A team

    The purpose of this activity is to ensure that the project plan is continuously updated as your transaction team continues to execute on the various components outlined in the project plan.

    1. Set a regular cadence for the transaction team to meet, update and review the status of the various integration task items, and strategize how to overcome any roadblocks.
    2. Employ governance best practices in these meetings to ensure decisions can be made effectively and resources allocated strategically.

    Record the updates in the M&A Integration Project Management Tool (SharePoint).

    Record the updates in the M&A Integration Project Management Tool (Excel).

    Execution & Value Realization

    Step 4.2

    Reflection and Value Realization

    Activities

    • 4.2.1 Confirm integration costs
    • 4.2.2 Review IT’s transaction value
    • 4.2.3 Conduct a transaction and integration SWOT
    • 4.2.4 Review the playbook and prepare for future transactions

    This step involves the following participants:

    • IT executive/CIO
    • IT senior leadership
    • Transition team
    • Company M&A team

    Outcomes of Step

    Review the value that IT was able to generate around the transaction and strategize on how to improve future acquisition transactions.

    4.2.1 Confirm integration costs

    3-4 hours

    Input: Integration tasks, Transition team, Previous RACI, Estimated costs

    Output: Actual integration costs

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, IT transaction team, Company M&A team

    The purpose of this activity is to confirm the associated costs around integration. While the integration costs would have been estimated previously, it’s important to confirm the costs that were associated with the integration in order to provide an accurate and up-to-date report to the company’s M&A team.

    1. Taking all the original items identified previously in activity 3.2.4, identify if there were changes in the estimated costs. This can be an increase or a decrease.
    2. Ensure that each cost has a justification for why the cost changed from the original estimation.

    Record the results in the M&A Buy Playbook.

    Track synergy capture through the IT integration

    The ultimate goal of the M&A is to achieve and deliver deal objectives. Early in the M&A, IT must identify, prioritize, and execute upon synergies that deliver value to the business and its shareholders. Continue to measure IT’s contribution toward achieving the organization’s M&A goals throughout the integration by keeping track of cost savings and synergies that have been achieved. When these achievements happen, communicate them and celebrate success.

    1. Define Synergy Metrics: Select metrics to track synergies through the integration.
      1. You can track value by looking at percentages of improvement in process-level metrics depending on the synergies being pursued.
      2. For example, if the synergy being pursued is increasing asset utilization, metrics could range from capacity to revenue generated through increased capacity.
    2. Prioritize Synergistic Initiatives: Estimate the cost and benefit of each initiative's implementation to compare the amount of business value to the cost. The benefits and costs should be illustrated at a high level. Estimating the exact dollar value of fulfilling a synergy can be difficult and misleading.
        Steps
      • Determine the benefits that each initiative is expected to deliver.
      • Determine the high-level costs of implementation (capacity, time, resources, effort).
    3. Track Synergy Captures: Develop a detailed workplan to resource the roadmap and track synergy captures as the initiatives are undertaken.

    Once 80% of the necessary synergies are realized, executive pressure will diminish. However, IT must continue to work toward the technology end state to avoid delayed progression.

    4.2.2 Review IT’s transaction value

    3-4 hours

    Input: Prioritized integration tasks, Integration RACI, Activity owners, M&A company goals

    Output: Transaction value

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO, IT senior leadership, Company's M&A team

    The purpose of this activity is to track how your IT organization performed against the originally identified metrics.

    1. If your organization did not have the opportunity to identify metrics earlier, determine from the company M&A team what those metrics might be. Review activity 3.2.7 for more information on metrics.
    2. Identify whether the metric (which should be used to support a goal) was at, below, or above the original target metric. This is a very critical task for IT to complete because it allows IT to confirm that they were successful engaging in the transaction and that the business can count on them in future transactions.
    3. Be sure to record accurate and relevant information on why the outcomes (good or bad) are supporting the M&A goals that were set out by the business.

    Record the results in the M&A Buy Playbook.

    4.2.3 Conduct a transaction and integration SWOT

    2 hours

    Input: Integration costs, Retention rates, Value IT contributed to the transaction

    Output: Strengths, weaknesses, opportunities, and threats

    Materials: Flip charts, Markers, Sticky notes

    Participants: IT executive/CIO, IT senior leadership, Business transaction team

    The purpose of this activity is to assess the positive and negative elements of the transaction.

    1. Consider the various internal and external elements that could have impacted the outcome of the transaction.
      • Strengths. Internal characteristics that are favorable as they relate to your development environment.
      • Weaknesses Internal characteristics that are unfavorable or need improvement.
      • Opportunities External characteristics that you may use to your advantage.
      • Threats External characteristics that may be potential sources of failure or risk.

    Record the results in the M&A Buy Playbook.

    M&A Buy Playbook review

    With an acquisition complete, your IT organization is now more prepared then ever to support the business through future M&As

    • Now that the transaction is more than 80% complete, take the opportunity to review the key elements that worked well and the opportunities for improvement in future transactions.
    • Critically examine the M&A Buy Playbook your IT organization created and identify what worked well to help the transaction and where your organization could adjust to do better in future transactions.
    • If your organization were to engage in another acquisition under your IT leadership, how would you go about the transaction to make sure the company meets its goals?

    4.2.4 Review the playbook and prepare for future transactions

    4 hours

    Input: Transaction and integration SWOT

    Output: Refined M&A playbook

    Materials: M&A Buy Playbook

    Participants: IT executive/CIO

    The purpose of this activity is to revise the playbook and ensure it is ready to go for future transactions.

    1. Using the outputs from the previous activity, 4.2.3, determine what strengths and opportunities there were that should be leveraged in the next transaction.
    2. Likewise, determine which threats and weaknesses could be avoided in the future transactions.
      Remember, this is your M&A Buy Playbook, and it should reflect the most successful outcome for you in your organization.

    Record the results in the M&A Buy Playbook.

    By the end of this post-transaction phase you should:

    Have completed the integration post-transaction and be fluidly delivering the critical value that the business expected of IT.

    Key outcomes from the Execution & Value Realization phase
    • Ensure the integration tasks are being completed and that any blockers related to the transaction are being removed.
    • Determine where IT was able to realize value for the business and demonstrate IT’s involvement in meeting target goals.
    Key deliverables from the Execution & Value Realization phase
    • Rationalize the IT environment
    • Continually update the project plan for completion
    • Confirm integration costs
    • Review IT’s transaction value
    • Conduct a transaction and integration SWOT
    • Review the playbook and prepare for future transactions

    Summary of Accomplishment

    Problem Solved

    Congratulations, you have completed the M&A Buy Blueprint!

    Rather than reacting to a transaction, you have been proactive in tackling this initiative. You now have a process to fall back on in which you can be an innovative IT leader by suggesting how and why the business should engage in an acquisition. You now have:

    • Created a standardized approach for how your IT organization should address acquisitions.
    • Evaluated the target organizations successfully and established an integration project plan.
    • Delivered on the integration project plan successfully and communicated IT’s transaction value to the business.

    Now that you have done all of this, reflect on what went well and what can be improved in case if you have to do this all again in a future transaction.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information
    workshops@infotech.com 1-888-670-8899

    Research Contributors and Experts

    Ibrahim Abdel-Kader
    Research Analyst | CIO
    Info-Tech Research Group     		Brittany Lutes
    Senior Research Analyst | CIO
    Info-Tech Research Group
    John Annand
    Principal Research Director | Infrastructure
    Info-Tech Research Group     		Scott Bickley
    Principal Research Director | Vendor Management
    Info-Tech Research Group
    Cole Cioran
    Practice Lead | Applications
    Info-Tech Research Group     		Dana Daher
    Research Analyst | Strategy & Innovation
    Info-Tech Research Group
    Eric Dolinar
    Manager | M&A Consulting
    Deloitte Canada     		Christoph Egel
    Director, Solution Design & Deliver
    Cooper Tire & Rubber Company
    Nora Fisher
    Vice President | Executive Services Advisory
    Info-Tech Research Group     		Larry Fretz
    Vice President | Industry
    Info-Tech Research Group

    Research Contributors and Experts

    David Glazer
    Vice President of Analytics
    Kroll     		Jack Hakimian
    Senior Vice President | Workshops and Delivery
    Info-Tech Research Group
    Gord Harrison
    Senior Vice President | Research & Advisory
    Info-Tech Research Group     		Valence Howden
    Principal Research Director | CIO
    Info-Tech Research Group
    Jennifer Jones
    Research Director | Industry
    Info-Tech Research Group     		Nancy McCuaig
    Senior Vice President | Chief Technology and Data Office
    IGM Financial Inc.
    Carlene McCubbin
    Practice Lead | CIO
    Info-Tech Research Group     		Kenneth McGee
    Research Fellow | Strategy & Innovation
    Info-Tech Research Group
    Nayma Naser
    Associate
    Deloitte     		Andy Neill
    Practice Lead | Data & Analytics, Enterprise Architecture
    Info-Tech Research Group

    Research Contributors and Experts

    Rick Pittman
    Vice President | Research
    Info-Tech Research Group     		Rocco Rao
    Research Director | Industry
    Info-Tech Research Group
    Mark Rosa
    Senior Vice President & Chief Information Officer
    Mohegan Gaming and Entertainment     		Tracy-Lynn Reid
    Research Lead | People & Leadership
    Info-Tech Research Group
    Jim Robson
    Senior Vice President | Shared Enterprise Services (retired)
    Great-West Life     		Steven Schmidt
    Senior Managing Partner Advisory | Executive Services
    Info-Tech Research Group
    Nikki Seventikidis
    Senior Manager | Finance Initiative & Continuous Improvement
    CST Consultants Inc.     		Allison Straker
    Research Director | CIO
    Info-Tech Research Group
    Justin Waelz
    Senior Network & Systems Administrator
    Info-Tech Research Group     		Sallie Wright
    Executive Counselor
    Info-Tech Research Group

    Bibliography

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    Altintepe, Hakan. “Mergers and acquisitions speed up digital transformation.” CIO.com, 27 July 2018. Web.

    “America’s elite law firms are booming.” The Economist, 15 July 2021. Web.

    Barbaglia, Pamela, and Joshua Franklin. “Global M&A sets Q1 record as dealmakers shape post-COVID world.” Nasdaq, 1 April 2021. Web.

    Boyce, Paul. “Mergers and Acquisitions Definition: Types, Advantages, and Disadvantages.” BoyceWire, 8 Oct. 2020. Web.

    Bradt, George. “83% Of Mergers Fail -- Leverage A 100-Day Action Plan For Success Instead.” Forbes, 27 Jan. 2015. Web.

    Capgemini. “Mergers and Acquisitions: Get CIOs, IT Leaders Involved Early.” Channel e2e, 19 June 2020. Web.

    Chandra, Sumit, et al. “Make Or Break: The Critical Role Of IT In Post-Merger Integration.” IMAA Institute, 2016. Web.

    Deloitte. “How to Calculate Technical Debt.” The Wall Street Journal, 21 Jan. 2015. Web.

    Ernst & Young. “IT As A Driver Of M&A Success.” IMAA Institute, 2017. Web.

    Fernandes, Nuno. “M&As In 2021: How To Improve The Odds Of A Successful Deal.” Forbes, 23 March 2021. Web.

    “Five steps to a better 'technology fit' in mergers and acquisitions.” BCS, 7 Nov. 2019. Web.

    Fricke, Pierre. “The Biggest Opportunity You’re Missing During an M&Aamp; IT Integration.” Rackspace, 4 Nov. 2020. Web.

    Garrison, David W. “Most Mergers Fail Because People Aren't Boxes.” Forbes, 24 June 2019. Web.

    Harroch, Richard. “What You Need To Know About Mergers & Acquisitions: 12 Key Considerations When Selling Your Company.” Forbes, 27 Aug. 2018. Web.

    Hope, Michele. “M&A Integration: New Ways To Contain The IT Cost Of Mergers, Acquisitions And Migrations.” Iron Mountain, n.d. Web.

    “How Agile Project Management Principles Can Modernize M&A.” Business.com, 13 April 2020. Web.

    Hull, Patrick. “Answer 4 Questions to Get a Great Mission Statement.” Forbes, 10 Jan. 2013. Web.

    Kanter, Rosabeth Moss. “What We Can Learn About Unity from Hostile Takeovers.” Harvard Business Review, 12 Nov. 2020. Web.

    Koller, Tim, et al. “Valuation: Measuring and Managing the Value of Companies, 7th edition.” McKinsey & Company, 2020. Web.

    Labate, John. “M&A Alternatives Take Center Stage: Survey.” The Wall Street Journal, 30 Oct. 2020. Web.

    Lerner, Maya Ber. “How to Calculate ROI on Infrastructure Automation.” DevOps.com, 1 July 2020. Web.

    Loten, Angus. “Companies Without a Tech Plan in M&A Deals Face Higher IT Costs.” The Wall Street Journal, 18 June 2019. Web.

    Low, Jia Jen. “Tackling the tech integration challenge of mergers today” Tech HQ, 6 Jan. 2020. Web.

    Lucas, Suzanne. “5 Reasons Turnover Should Scare You.” Inc. 22 March 2013. Web.

    “M&A Trends Survey: The future of M&A. Deal trends in a changing world.” Deloitte, Oct. 2020. Web.

    Maheshwari, Adi, and Manish Dabas. “Six strategies tech companies are using for successful divesting.” EY, 1 Aug. 2020. Web.

    Majaski, Christina. “Mergers and Acquisitions: What's the Difference?” Investopedia, 30 Apr. 2021.

    “Mergers & Acquisitions: Top 5 Technology Considerations.” Teksetra, 21 Jul. 2020. Web.

    “Mergers Acquisitions M&A Process.” Corporate Finance Institute, n.d. Web.

    “Mergers and acquisitions: A means to gain technology and expertise.” DLA Piper, 2020. Web.

    Nash, Kim S. “CIOs Take Larger Role in Pre-IPO Prep Work.” The Wall Street Journal, 5 March 2015. Web.

    Paszti, Laila. “Canada: Emerging Trends In Information Technology (IT) Mergers And Acquisitions.” Mondaq, 24 Oct. 2019. Web.

    Patel, Kiison. “The 8 Biggest M&A Failures of All Time” Deal Room, 9 Sept. 2021. Web.

    Peek, Sean, and Paula Fernandes. “What Is a Vision Statement?” Business News Daily, 7 May 2020. Web.

    Ravid, Barak. “Tech execs focus on growth amid increasingly competitive M&A market.” EY, 28 April 2021. Web.

    Resch, Scott. “5 Questions with a Mergers & Acquisitions Expert.” CIO, 25 June 2019. Web.

    Salsberg, Brian. “Four tips for estimating one-time M&A integration costs.” EY, 17 Oct. 2019. Web.

    Samuels, Mark. “Mergers and acquisitions: Five ways tech can smooth the way.” ZDNet, 15 Aug. 2018. Web.

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    Steeves, Dave. “7 Rules for Surviving a Merger & Acquisition Technology Integration.” Steeves and Associates, 5 Feb. 2020. Web.

    Tanaszi, Margaret. “Calculating IT Value in Business Terms.” CSO, 27 May 2004. Web.

    “The CIO Playbook. Nine Steps CIOs Must Take For Successful Divestitures.” SNP, 2016. Web.

    “The Role of IT in Supporting Mergers and Acquisitions.” Cognizant, Feb. 2015. Web.

    Torres, Roberto. “M&A playbook: How to prepare for the cost, staff and tech hurdles.” CIO Dive, 14 Nov. 2019. Web.

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    Develop an Availability and Capacity Management Plan

    • Buy Link or Shortcode: {j2store}500|cart{/j2store}
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    • Parent Category Name: Availability & Capacity Management
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    • It is crucial for capacity managers to provide capacity in advance of need to maximize availability.
    • In an effort to ensure maximum uptime, organizations are overprovisioning (an average of 59% for compute, and 48% for storage). With budget pressure mounting (especially on the capital side), the cost of this approach can’t be ignored.
    • Half of organizations have experienced capacity-related downtime, and almost 60% wait more than three months for additional capacity.

    Our Advice

    Critical Insight

    • All too often capacity management is left as an afterthought. The best capacity managers bake capacity management into their organization’s business processes, becoming drivers of value.
    • Communication is key. Build bridges between your organization’s silos, and involve business stakeholders in a dialog about capacity requirements.

    Impact and Result

    • Map business metrics to infrastructure component usage, and use your organization’s own data to forecast demand.
    • Project future needs in line with your hardware lifecycle. Never suffer availability issues as a result of a lack of capacity again.
    • Establish infrastructure as a driver of business value, not a “black hole” cost center.

    Develop an Availability and Capacity Management Plan Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a capacity management plan, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Develop an Availability and Capacity Management Plan – Phases 1-4

    1. Conduct a business impact analysis

    Determine the most critical business services to ensure availability.

    • Develop an Availability and Capacity Management Plan – Phase 1: Conduct a Business Impact Analysis
    • Business Impact Analysis Tool

    2. Establish visibility into core systems

    Craft a monitoring strategy to gather usage data.

    • Develop an Availability and Capacity Management Plan – Phase 2: Establish Visibility into Core Systems
    • Capacity Snapshot Tool

    3. Solicit and incorporate business needs

    Integrate business stakeholders into the capacity management process.

    • Develop an Availability and Capacity Management Plan – Phase 3: Solicit and Incorporate Business Needs
    • Capacity Plan Template

    4. Identify and mitigate risks

    Identify and mitigate risks to your capacity and availability.

    • Develop an Availability and Capacity Management Plan – Phase 4: Identify and Mitigate Risks

    [infographic]

    Workshop: Develop an Availability and Capacity Management Plan

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Conduct a Business Impact Analysis

    The Purpose

    Determine the most important IT services for the business.

    Key Benefits Achieved

    Understand which services to prioritize for ensuring availability.

    Activities

    1.1 Create a scale to measure different levels of impact.

    1.2 Evaluate each service by its potential impact.

    1.3 Assign a criticality rating based on the costs of downtime.

    Outputs

    RTOs/RPOs

    List of gold systems

    Criticality matrix

    2 Establish Visibility Into Core Systems

    The Purpose

    Monitor and measure usage metrics of key systems.

    Key Benefits Achieved

    Capture and correlate data on business activity with infrastructure capacity usage.

    Activities

    2.1 Define your monitoring strategy.

    2.2 Implement your monitoring tool/aggregator.

    Outputs

    RACI chart

    Capacity/availability monitoring strategy

    3 Develop a Plan to Project Future Needs

    The Purpose

    Determine how to project future capacity usage needs for your organization.

    Key Benefits Achieved

    Data-based, systematic projection of future capacity usage needs.

    Activities

    3.1 Analyze historical usage trends.

    3.2 Interface with the business to determine needs.

    3.3 Develop a plan to combine these two sources of truth.

    Outputs

    Plan for soliciting future needs

    Future needs

    4 Identify and Mitigate Risks

    The Purpose

    Identify potential risks to capacity and availability.

    Develop strategies to ameliorate potential risks.

    Key Benefits Achieved

    Proactive approach to capacity that addresses potential risks before they impact availability.

    Activities

    4.1 Identify capacity and availability risks.

    4.2 Determine strategies to address risks.

    4.3 Populate and review completed capacity plan.

    Outputs

    List of risks

    List of strategies to address risks

    Completed capacity plan

    Further reading

    Develop an Availability and Capacity Management Plan

    Manage capacity to increase uptime and reduce costs.

    ANALYST PERSPECTIVE

    The cloud changes the capacity manager’s job, but it doesn’t eliminate it.

    "Nobody doubts the cloud’s transformative power. But will its ascent render “capacity manager” an archaic term to be carved into the walls of datacenters everywhere for future archaeologists to puzzle over? No. While it is true that the cloud has fundamentally changed how capacity managers do their jobs , the process is more important than ever. Managing capacity – and, by extent, availability – means minimizing costs while maximizing uptime. The cloud era is the era of unlimited capacity – and of infinite potential costs. If you put the infinity symbol on a purchase order… well, it’s probably not a good idea. Manage demand. Manage your capacity. Manage your availability. And, most importantly, keep your stakeholders happy. You won’t regret it."

    Jeremy Roberts,

    Consulting Analyst, Infrastructure Practice

    Info-Tech Research Group

    Availability and capacity management transcend IT

    This Research Is Designed For:

    ✓ CIOs who want to increase uptime and reduce costs

    ✓ Infrastructure managers who want to deliver increased value to the business

    ✓ Enterprise architects who want to ensure stability of core IT services

    ✓ Dedicated capacity managers

    This Research Will Help You:

    ✓ Develop a list of core services

    ✓ Establish visibility into your system

    ✓ Solicit business needs

    ✓ Project future demand

    ✓ Set SLAs

    ✓ Increase uptime

    ✓ Optimize spend

    This Research Will Also Assist:

    ✓ Project managers

    ✓ Service desk staff

    This Research Will Help Them:

    ✓ Plan IT projects

    ✓ Better manage availability incidents caused by lack of capacity

    Executive summary

    Situation

    • IT infrastructure leaders are responsible for ensuring that the business has access to the technology needed to keep the organization humming along. This requires managing capacity and availability.
    • Dependencies go undocumented. Services are provided on an ad hoc basis, and capacity/availability are managed reactively.

    Complication

    • Organizations are overprovisioning an average of 59% for compute, and 48% for storage. This is expensive. With budget pressure mounting, the cost of this approach can’t be ignored.
    • Lead time to respond to demand is long. Half of organizations have experienced capacity-related downtime, and almost 60% wait 3+ months for additional capacity. (451 Research, 3)

    Resolution

    • Conduct a business impact analysis to determine which of your services are most critical, and require active capacity management that will reap more in benefits than it produces in costs.
    • Establish visibility into your system. You can’t track what you can’t see, and you can’t see when you don’t have proper monitoring tools in place.
    • Develop an understanding of business needs. Use a combination of historical trend analyses and consultation with line of business and project managers to separate wants from needs. Overprovisioning used to be necessary, but is no longer required.
    • Project future needs in line with your hardware lifecycle. Never suffer availability issues as a result of a lack of capacity again.

    Info-Tech Insight

    1. Components are critical. The business doesn’t care about components. You, however, are not so lucky…
    2. Ask what the business is working on, not what they need. If you ask them what they need, they’ll tell you – and it won’t be cheap. Find out what they’re going to do, and use your expertise to service those needs.
    3. Cloud shmoud. The role of the capacity manager is changing with the cloud, but capacity management is as important as ever.

    Save money and drive efficiency with an effective availability and capacity management plan

    Overprovisioning happens because of the old style of infrastructure provisioning (hardware refresh cycles) and because capacity managers don’t know how much they need (either as a result of inaccurate or nonexistent information).

    According to 451 Research, 59% of enterprises have had to wait 3+ months for new capacity. It is little wonder, then, that so many opt to overprovision. Capacity management is about ensuring that IT services are available, and with lead times like that, overprovisioning can be more attractive than the alternative. Fortunately there is hope. An effective availability and capacity management plan can help you:

    • Identify your gold systems
    • Establish visibility into them
    • Project your future capacity needs

    Balancing overprovisioning and spending is the capacity manager’s struggle.

    Availability and capacity management go together like boots and feet

    Availability and capacity are not the same, but they are related and can be effectively managed together as part of a single process.

    If an IT department is unable to meet demand due to insufficient capacity, users will experience downtime or a degradation in service. To be clear, capacity is not the only factor in availability – reliability, serviceability, etc. are significant as well. But no organization can effectively manage availability without paying sufficient attention to capacity.

    "Availability Management is concerned with the design, implementation, measurement and management of IT services to ensure that the stated business requirements for availability are consistently met."

    – OGC, Best Practice for Service Delivery, 12

    "Capacity management aims to balance supply and demand [of IT storage and computing services] cost-effectively…"

    – OGC, Business Perspective, 90

    Integrate the three levels of capacity management

    Successful capacity management involves a holistic approach that incorporates all three levels.

    Business The highest level of capacity management, business capacity management, involves predicting changes in the business’ needs and developing requirements in order to make it possible for IT to adapt to those needs. Influx of new clients from a failed competitor.
    Service Service capacity management focuses on ensuring that IT services are monitored to determine if they are meeting pre-determined SLAs. The data gathered here can be used for incident and problem management. Increased website traffic.
    Component Component capacity management involves tracking the functionality of specific components (servers, hard drives, etc.), and effectively tracking their utilization and performance, and making predictions about future concerns. Insufficient web server compute.

    The C-suite cares about business capacity as part of the organization’s strategic planning. Service leads care about their assigned services. IT infrastructure is concerned with components, but not for their own sake. Components mean services that are ultimately designed to facilitate business.

    A healthcare organization practiced poor capacity management and suffered availability issues as a result

    CASE STUDY

    Industry: Healthcare

    Source: Interview

    New functionalities require new infrastructure

    There was a project to implement an elastic search feature. This had to correlate all the organization’s member data from an Oracle data source and their own data warehouse, and pool them all into an elastic search index so that it could be used by the provider portal search function. In estimating the amount of space needed, the infrastructure team assumed that all the data would be shared in a single place. They didn’t account for the architecture of elastic search in which indexes are shared across multiple nodes and shards are often split up separately.

    Beware underestimating demand and hardware sourcing lead times

    As a result, they vastly underestimated the amount of space that was needed and ended up short by a terabyte. The infrastructure team frantically sourced more hardware, but the rush hardware order arrived physically damaged and had to be returned to the vendor.

    Sufficient budget won’t ensure success without capacity planning

    The project’s budget had been more than sufficient to pay for the extra necessary capacity, but because a lack of understanding of the infrastructure impact resulted in improper forecasting, the project ended up stuck in a standstill.

    Manage availability and keep your stakeholders happy

    If you run out of capacity, you will inevitably encounter availability issues like downtime and performance degradation . End users do not like downtime, and neither do their managers.

    There are three variables that are monitored, measured, and analyzed as part of availability management more generally (Valentic).

      1. Uptime:

    The availability of a system is the percentage of time the system is “up,” (and not degraded) which can be calculated using the following formula: uptime/(uptime + downtime) x 100%. The more components there are in a system, the lower the availability, as a rule.

      1. Reliability:

    The length of time a component/service can go before there is an outage that brings it down, typically measured in hours.

      1. Maintainability:

    The amount of time it takes for a component/service to be restored in the event of an outage, also typically measured in hours.

    Enter the cloud: changes in the capacity manager role

    There can be no doubt – the rise of the public cloud has fundamentally changed the nature of capacity management.

    Features of the public cloudImplications for capacity management
    Instant, or near-instant, instantiation Lead times drop; capacity management is less about ensuring equipment arrives on time.
    Pay-as-you go services Capacity no longer needs to be purchased in bulk. Pay only for what you use and shut down instances that are no longer necessary.
    Essentially unlimited scalability Potential capacity is infinite, but so are potential costs.
    Offsite hosting Redundancy, but at the price of the increasing importance of your internet connection.

    Vendors will sell you the cloud as a solution to your capacity/availability problems

    The image contains two graphs. The first graph on the left is titled: Reactive Management, and shows the struggling relationship between capacity and demand. The second graph on the right is titled: Cloud future (ideal), which demonstrates a manageable relationship between capacity and demand over time.

    Traditionally, increases in capacity have come in bursts as a reaction to availability issues. This model inevitably results in overprovisioning, driving up costs. Access to the cloud changes the equation. On-demand capacity means that, ideally, nobody should pay for unused capacity.

    Reality check: even in the cloud era, capacity management is necessary

    You will likely find vendors to nurture the growth of a gap between your expectations and reality. That can be damaging.

    The cloud reality does not look like the cloud ideal. Even with the ostensibly elastic cloud, vendors like the consistency that longer-term contracts offer. Enter reserved instances: in exchange for lower hourly rates, vendors offer the option to pay a fee for a reserved instance. Usage beyond the reserved will be billed at a higher hourly rate. In order to determine where that line should be drawn, you should engage in detailed capacity planning. Unfortunately, even when done right, this process will result in some overprovisioning, though it does provide convenience from an accounting perspective. The key is to use spot instances where demand is exceptional and bounded. Example: A university registration server that experiences exceptional demand at the start of term but at no other time.

    The image contains an example of cloud reality not matching with the cloud ideal in the form of a graph. The graph is split horizontally, the top half is red, and there is a dotted line splitting it from the lower half. The line is labelled: Reserved instance ceiling. In the bottom half, it is the colour green and has a curving line.

    Use best practices to optimize your cloud resources

    The image contains two graphs. The graph on the left is labelled: Ineffective reserve capacity. At the top of the graph is a dotted line labelled: Reserved Instance ceiling. The graph is measuring capacity requirements over time. There is a curved line on the graph that suddenly spikes and comes back down. The spike is labelled unused capacity. The graph on the right is labelled: Effective reserve capacity. The reserved instance ceiling is about halfway down this graph, and it is comparing capacity requirements over time. This graph has a curved line on it, also has a spike and is labelled: spot instance.

    Even in the era of elasticity, capacity planning is crucial. Spot instances – the spikes in the graph above – are more expensive, but if your capacity needs vary substantially, reserving instances for all of the space you need can cost even more money. Efficiently planning capacity will help you draw this line.

    Evaluate business impact; not all systems are created equal

    Limited resources are a reality. Detailed visibility into every single system is often not feasible and could be too much information.

    Simple and effective. Sometimes a simple display can convey all of the information necessary to manage critical systems. In cars it is important to know your speed, how much fuel is in the tank, and whether or not you need to change your oil/check your engine.

    Where to begin?! Specialized information is sometimes necessary, but it can be difficult to navigate.

    Take advantage of a business impact analysis to define and understand your critical services

    Ideally, downtime would be minimal. In reality, though, downtime is a part of IT life. It is important to have realistic expectations about its nature and likelihood.

    STEP 1

    STEP 2

    STEP 3

    STEP 4

    STEP 5

    Record applications and dependencies

    Utilize your asset management records and document the applications and systems that IT is responsible for managing and recovering during a disaster.

    Define impact scoring scale

    Ensure an objective analysis of application criticality by establishing a business impact scale that applies to all applications.

    Estimate impact of downtime

    Leverage the scoring criteria from the previous step and establish an estimated impact of downtime for each application.

    Identify desired RTO and RPO

    Define what the RTOs/RPOs should be based on the impact of a business interruption and the tolerance for downtime and data loss.

    Determine current RTO/RPO

    Conduct tabletop planning and create a flowchart of your current capabilities. Compare your current state to the desired state from the previous step.

    Info-Tech Insight

    According to end users, every system is critical and downtime is intolerable. Of course, once they see how much totally eliminating downtime can cost, they might change their tune. It is important to have this discussion to separate the critical from the less critical – but still important – services.

    Establish visibility into critical systems

    You may have seen “If you can’t measure it, you can’t manage it” or a variation thereof floating around the internet. This adage is consumable and makes sense…doesn’t it?

    "It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth."

    – W. Edwards Deming, statistician and management consultant, author of The New Economics

    While it is true that total monitoring is not absolutely necessary for management, when it comes to availability and capacity – objectively quantifiable service characteristics – a monitoring strategy is unavoidable. Capturing fluctuations in demand, and adjusting for those fluctuations, is among the most important functions of a capacity manager, even if hovering over employees with a stopwatch is poor management.

    Solicit needs from line of business managers

    Unless you head the world’s most involved IT department (kudos if you do) you’re going to have to determine your needs from the business.

    Do

    Do not

    ✓ Develop a positive relationship with business leaders responsible for making decisions.

    ✓ Make yourself aware of ongoing and upcoming projects.

    ✓ Develop expertise in organization-specific technology.

    ✓ Make the business aware of your expenses through chargebacks or showbacks.

    ✓ Use your understanding of business projects to predict business needs; do not rely on business leaders’ technical requests alone.

    X Be reactive.

    X Accept capacity/availability demands uncritically.

    X Ask line of business managers for specific computing requirements unless they have the technical expertise to make informed judgments.

    X Treat IT as an opaque entity where requests go in and services come out (this can lead to irresponsible requests).

    Demand: manage or be managed

    You might think you can get away with uncritically accepting your users’ demands, but this is not best practice. If you provide it, they will use it.

    The company meeting

    “I don’t need this much RAM,” the application developer said, implausibly. Titters wafted above the assembled crowd as her IT colleagues muttered their surprise. Heads shook, eyes widened. In fact, as she sat pondering her utterance, the developer wasn’t so sure she believed it herself. Noticing her consternation, the infrastructure manager cut in and offered the RAM anyway, forestalling the inevitable crisis that occurs when seismic internal shifts rock fragile self-conceptions. Until next time, he thought.

    "Work expands as to fill the resources available for its completion…"

    – C. Northcote Parkinson, quoted in Klimek et al.

    Combine historical data with the needs you’ve solicited to holistically project your future needs

    Predicting the future is difficult, but when it comes to capacity management, foresight is necessary.

    Critical inputs

    In order to project your future needs, the following inputs are necessary.

    1. Usage trends: While it is true that past performance is no indication of future demand, trends are still a good way to validate requests from the business.
    2. Line of business requests: An understanding of the projects the business has in the pipes is important for projecting future demand.
    3. Institutional knowledge: Read between the lines. As experts on information technology, the IT department is well-equipped to translate needs into requirements.
    The image contains a graph that is labelled: Projected demand, and graphs demand over time. There is a curved line that passes through a vertical line labelled present. There is a box on top of the graph that contains the text: Note: confidence in demand estimates will very by service and by stakeholder.

    Follow best practice guidelines to maximize the efficiency of your availability and capacity management process

    The image contains Info-Tech's IT Management & Governance Framework. The framework displays many of Info-Tech's research to help optimize and improve core IT processes. The name of this blueprint is under the Infrastructure & Operations section, and has been circled to point out where it is in the framework.

    Understand how the key frameworks relate and interact

    The image contains a picture of the COBIT 5 logo.

    BA104: Manage availability and capacity

    • Current state assessment
    • Forecasting based on business requirements
    • Risk assessment of planning and implementation of requirements
    The image contains a picture of the ITIL logo

    Availability management

    • Determine business requirements
    • Match requirements to capabilities
    • Address any mismatch between requirements and capabilities in a cost-effective manner

    Capacity management

    • Monitoring services and components
    • Tuning for efficiency
    • Forecasting future requirements
    • Influencing demand
    • Producing a capacity plan
    The image contains a picture of Info-Tech Research Group logo.

    Availability and capacity management

    • Conduct a business impact analysis
    • Establish visibility into critical systems
    • Solicit and incorporate business needs
    • Identify and mitigate risks

    Disaster recovery and business continuity planning are forms of availability management

    The scope of this project is managing day-to-day availability, largely but not exclusively, in the context of capacity. For additional important information on availability, see the following Info-Tech projects.

      • Develop a Business Continuity Plan

    If your focus is on ensuring process continuity in the event of a disaster.

      • Establish a Program to Enable Effective Performance Monitoring

    If your focus is on flow mapping and transaction monitoring as part of a plan to engage APM vendors.

      • Create a Right-Sized Disaster Recovery Plan

    If your focus is on hardening your IT systems against major events.

    Info-Tech’s approach to availability and capacity management is stakeholder-centered and cloud ready

    Phase 1:

    Conduct a business impact analysis

    Phase 2:

    Establish visibility into core systems

    Phase 3:

    Solicit and incorporate business needs

    Phase 4:

    Identify and mitigate risks

    1.1 Conduct a business impact analysis

    1.2 Assign criticality ratings to services

    2.1 Define your monitoring strategy

    2.2 Implement monitoring tool/aggregator

    3.1 Solicit business needs

    3.2 Analyze data and project future needs

    4.1 Identify and mitigate risks

    Deliverables
    • Business impact analysis
    • Gold systems
    • Monitoring strategy
    • List of stakeholders
    • Business needs
    • Projected capacity needs
    • Risks and mitigations
    • Capacity management summary cards

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Availability & capacity management – project overview

     

    Conduct a business impact analysis

    Establish visibility into core systems

    Solicit and incorporate business needs

    Identify and
    mitigate risks

    Best-Practice Toolkit

    1.1 Create a scale to measure different levels of impact

    1.2 Assign criticality ratings to services

    2.1 Define your monitoring strategy

    2.2 Implement your monitoring tool/aggregator

    3.1 Solicit business needs and gather data

    3.2 Analyze data and project future needs

    4.1 Identify and mitigate risks

    Guided Implementations

    		 Call 1: Conduct a business impact analysis Call 1: Discuss your monitoring strategy

    Call 1: Develop a plan to gather historical data; set up plan to solicit business needs

    Call 2: Evaluate data sources

    Call 1: Discuss possible risks and strategies for risk mitigation

    Call 2: Review your capacity management plan

    Onsite Workshop

    Module 1:

    Conduct a business impact analysis

    Module 2:

    Establish visibility into core systems

    Module 3:

    Develop a plan to project future needs

    Module 4:

    Identify and mitigate risks
     

    Phase 1 Results:

    • RTOs/RPOs
    • List of gold systems
    • Criticality matrix

    Phase 2 Results:

    • Capacity/availability monitoring strategy

    Phase 3 Results:

    • Plan for soliciting future needs
    • Future needs

    Phase 4 Results:

    • Strategies for reducing risks
    • Capacity management plan

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

     

    Workshop Day 1

    Workshop Day 2

    Workshop Day 3

    Workshop Day 4

     

    Conduct a business
    impact analysis

    Establish visibility into
    core systems

    Solicit and incorporate business needs

    Identify and mitigate risks

    Activities

    1.1 Conduct a business impact analysis

    1.2 Create a list of critical dependencies

    1.3 Identify critical sub-components

    1.4 Develop best practices to negotiate SLAs

    2.1 Determine indicators for sub-components

    2.2 Establish visibility into components

    2.3 Develop strategies to ameliorate visibility issues

    3.1 Gather relevant business-level data

    3.2 Gather relevant service-level data

    3.3 Analyze historical trends

    3.4 Build a list of business stakeholders

    3.5 Directly solicit requirements from the business

    3.6 Map business needs to technical requirements

    3.7 Identify inefficiencies and compare historical data
    • 4.1 Brainstorm potential causes of availability and capacity risk
    • 4.2 Identify and mitigate capacity risks
    • 4.3 Identify and mitigate availability risks

    Deliverables
    1. Business impact analysis
    2. List of gold systems
    3. SLA best practices
    1. Sub-component metrics
    2. Strategy to establish visibility into critical sub-components
    1. List of stakeholders
    2. Business requirements
    3. Technical requirements
    4. Inefficiencies
    1. Strategies for mitigating risks
    2. Completed capacity management plan template

    PHASE 1

    Conduct a Business Impact Analysis

    Step 1.1: Conduct a business impact analysis

    This step will walk you through the following activities:

    • Record applications and dependencies in the Business Impact Analysis Tool.
    • Define a scale to estimate the impact of various applications’ downtime.
    • Estimate the impact of applications’ downtime.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team

    Outcomes of this step

    • Estimated impact of downtime for various applications

    Execute a business impact analysis (BIA) as part of a broader availability plan

    1.1a Business Impact Analysis Tool

    Business impact analyses are an invaluable part of a broader IT strategy. Conducting a BIA benefits a variety of processes, including disaster recovery, business continuity, and availability and capacity management

    STEP 1

    STEP 2

    STEP 3

    STEP 4

    STEP 5

    Record applications and dependencies

    Utilize your asset management records and document the applications and systems that IT is responsible for managing and recovering during a disaster.

    Define impact scoring scale

    Ensure an objective analysis of application criticality by establishing a business impact scale that applies to all applications.

    Estimate impact of downtime

    Leverage the scoring criteria from the previous step and establish an estimated impact of downtime for each application.

    Identify desired RTO and RPO

    Define what the RTOs/RPOs should be based on the impact of a business interruption and the tolerance for downtime and data loss.

    Determine current RTO/RPO

    Conduct tabletop planning and create a flowchart of your current capabilities. Compare your current state to the desired state from the previous step.

    Info-Tech Insight

    Engaging in detailed capacity planning for an insignificant service draws time and resources away from more critical capacity planning exercises. Time spent tracking and planning use of the ancient fax machine in the basement is time you’ll never get back.

    Control the scope of your availability and capacity management planning project with a business impact analysis

    Don’t avoid conducting a BIA because of a perception that it’s too onerous or not necessary. If properly managed, as described in this blueprint, the BIA does not need to be onerous and the benefits are tangible.

    A BIA enables you to identify appropriate spend levels, continue to drive executive support, and prioritize disaster recovery planning for a more successful outcome. For example, an Info-Tech survey found that a BIA has a significant impact on setting appropriate recovery time objectives (RTOs) and appropriate spending.

    The image contains a graph that is labelled: BIA Impact on Appropriate RTOS. With no BIA, there is 59% RTOs are appropriate. With BIA, there is 93% RTOS being appropriate. The image contains a graph that is labelled: BIA Impact on Appropriate Spending. No BIA has 59% indication that BCP is cost effective. With a BIA there is 86% indication that BCP is cost effective.

    Terms

    No BIA: lack of a BIA, or a BIA bases solely on the perceived importance of IT services.

    BIA: based on a detailed evaluation or estimated dollar impact of downtime.

    Source: Info-Tech Research Group; N=70

    Select the services you wish to evaluate with the Business Impact Analysis Tool

    1.1b 1 hour

    In large organizations especially, collating an exhaustive list of applications and services is going to be onerous. For the purposes of this project, a subset should suffice.

    Instructions

    1. Gather a diverse group of IT staff and end users in a room with a whiteboard.
    2. Solicit feedback from the group. Questions to ask:
    • What services do you regularly use? What do you see others using? (End users)
    • Which service inspires the greatest number of service calls? (IT)
    • What services are you most excited about? (Management)
    • What services are the most critical for business operations? (Everybody)
  • Record these applications in the Business Impact Analysis Tool.

    • Input

    • Applications/services

    Output

    • Candidate applications for the business impact analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect
    • Application owners
    • End users

    Info-Tech Insight

    Include a variety of services in your analysis. While it might be tempting to jump ahead and preselect important applications, don’t. The process is inherently valuable, and besides, it might surprise you.

    Record the applications and dependencies in the BIA tool

    1.1c Use tab 1 of the Business Impact Analysis Tool

    1. In the Application/System column, list the applications identified for this pilot as well as the Core Infrastructure category. Also indicate the Impact on the Business and Business Owner.
    2. List the dependencies for each application in the appropriate columns:
    • Hosted On-Premises (In-House) – If the physical equipment is in a facility you own, record it here, even if it is managed by a vendor.
    • Hosted by a Co-Lo/MSP – List any dependencies hosted by a co-lo/MSP vendor.
    • Cloud (includes "as a Service”) – List any dependencies hosted by a cloud vendor.

    Note: If there are no dependencies for a particular category, leave it blank.

  • If you wish to highlight specific dependencies, put an asterisk in front of them (e.g. *SAN). This will cause the dependency to be highlighted in the remaining tabs in this tool.
  • Add comments as needed in the Notes columns. For example, for equipment that you host in-house but is remotely managed by an MSP, specify this in the notes. Similarly, note any DR support services.

    • Example

    The image contains a screenshot of Info-Tech's Business Impact Analysis Tool specifically tab 1.

    ID is optional. It is a sequential number by default.

    In-House, Co-Lo/MSP, and Cloud dependencies; leave blank if not applicable.

    Add notes as applicable – e.g. critical support services.

    Define a scoring scale to estimate different levels of impact

    1.1d Use tab 2 of the Business Impact Analysis Tool

    Modify the Business Impact Scales headings and Overall Criticality Rating terminology to suit your organization. For example, if you don’t have business partners, use that column to measure a different goodwill impact or just ignore that column in this tool (i.e. leave it blank). Estimate the different levels of potential impact (where four is the highest impact and zero is no impact) and record these in the Business Impact Scales columns.

    The image contains a screenshot of Info-Tech's Business Impact Analysis Tool, specifically tab 2.

    Estimate the impact of downtime for each application

    1.1e Use tab 3 of the Business Impact Analysis Tool

    In the BIA tab columns for Direct Costs of Downtime, Impact on Goodwill, and Additional Criticality Factors, use the drop-down menu to assign a score of zero to four based on levels of impact defined in the Scoring Criteria tab. For example, if an organization’s ERP is down, and that affects call center sales operations (e.g. ability to access customer records and process orders), the impact might be as described below:

      • Loss of Revenue might score a two or three depending on the proportion of overall sales lost due to the downtime.
      • The Impact on Customers might be a one or two depending on the extent that existing customers might be using the call center to purchase new products or services, and are frustrated by the inability to process orders.
      • The Legal/Regulatory Compliance and Health or Safety Risk might be a zero.

    On the other hand, if payroll processing is down, this may not impact revenue, but it certainly impacts internal goodwill and productivity.

    Rank service criticality: gold, silver, and bronze

    Gold

    Mission critical services. An outage is catastrophic in terms of cost or public image/goodwill. Example: trading software at a financial institution.

    Silver

    Important to daily operations, but not mission critical. Example: email services at any large organization.

    Bronze

    Loss of these services is an inconvenience more than anything, though they do serve a purpose and will be missed if they are never brought back online. Example: ancient fax machines.

    Info-Tech Best Practice

    Info-Tech recommends gold, silver, and bronze because of this typology’s near universal recognition. If you would prefer a particular designation (it might help with internal comprehension), don’t hesitate to use that one instead.

    Use the results of the business impact analysis to sort systems based on their criticality

    1.1f 1 hour

    Every organization has its own rules about how to categorize service importance. For some (consumer-facing businesses, perhaps) reputational damage may trump immediate costs.

    Instructions

    1. Gather a group of key stakeholders and project the completed Business Impact Analysis Tool onto a screen for them.
    2. Share the definitions of gold, silver, and bronze services with them (if they are not familiar), and begin sorting the services by category,
    • How long would it take to notice if a particular service went out?
    • How important are the non-quantifiable damages that could come with an outage?
  • Sort the services into gold, silver, and bronze on a whiteboard, with sticky notes, or with chart paper.
  • Verify your findings and record them in section 2.1 of the Capacity Plan Template.

    • Input

    • Results of the business impact analysis exercise

    Output

    • List of gold, silver, and bronze systems

    Materials

    • Projector
    • Business Impact Analysis Tool
    • Capacity Plan Template

    Participants

    • Infrastructure manager
    • Enterprise architect

    Leverage the rest of the BIA tool as part of your disaster recovery planning

    Disaster recovery planning is a critical activity, and while it is a sort of availability management, it is beyond this project’s scope. You can complete the business impact analysis (including RTOs and RPOs) for the complete disaster recovery package.

    See Info-Tech’s Create a Right-Sized Disaster Recovery Plan blueprint for instructions on how to complete your business impact analysis.

    Step 1.2: Assign criticality ratings to services

    This step will walk you through the following activities:

    • Create a list of dependencies for your most important applications.
    • Identify important sub-components.
    • Use best practices to develop and negotiate SLAs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team

    Outcomes of this step

    • List of dependencies of most important applications
    • List of important sub-components
    • SLAs based on best practices

    Determine the base unit of the capacity you’re looking to purchase

    Not every IT organization should approach capacity the same way. Needs scale, and larger organizations will inevitably deal in larger quantities.

    Large cloud provider

    Local traditional business

    • Thousands of servers housed in a number of datacenters around the world.
    • Dedicated capacity manager.
    • Purchases components from OEMs in bulk as part of bespoke contracts that are worth many millions of dollars over time.
    • May deal with components at a massive scale (dozens of servers at once, for example).
    • A small server room that runs non-specialized services (email, for example).
    • Barely even a dedicated IT person, let alone an IT capacity manager.
    • Purchases new components from resellers or even retail stores.
    • Deals with components at a small scale (a single switch here, a server upgrade there).

    "Cloud capacity management is not exactly the same as the ITIL version because ITIL has a focus on the component level. I actually don’t do that, because if I did I’d go crazy. There’s too many components in a cloud environment."

    – Richie Mendoza, IT Consultant, SMITS Inc.

    Consider the relationship between component capacity and service capacity

    End users’ thoughts about IT are based on what they see. They are, in other words, concerned with service availability: does the organization have the ability to provide access to needed services?

    Service

    • Email
    • CRM
    • ERP

    Component

    • Switch
    • SMTP server
    • Archive database
    • Storage

    "You don’t ask the CEO or the guy in charge ‘What kind of response time is your requirement?’ He doesn’t really care. He just wants to make sure that all his customers are happy."

    – Todd Evans, Capacity and Performance Management SME, IBM.

    One telco solved its availability issues by addressing component capacity issues

    CASE STUDY

    Industry: Telecommunications

    Source: Interview

    Coffee and Wi-Fi – a match made in heaven

    In tens of thousands of coffee shops around the world, patrons make ample use of complimentary Wi-Fi. Wi-Fi is an important part of customers’ coffee shop experience, whether they’re online to check their email, do a YouTube, or update their Googles. So when one telco that provided Wi-Fi access for thousands of coffee shops started encountering availability issues, the situation was serious.

    Wi-Fi, whack-a-mole, and web woes

    The team responsible for resolving the issue took an ad hoc approach to resolving complaints, fixing issues as they came up instead of taking a systematic approach.

    Resolution

    Looking at the network as a whole, the capacity manager took a proactive approach by using data to identify and rank the worst service areas, and then directing the team responsible to fix those areas in order of the worst first, then the next worst, and so on. Soon the availability of Wi-Fi service was restored across the network.

    Create a list of dependencies for your most important applications

    1.2a 1.5 hours

    Instructions

    1. Work your way down the list of services outlined in step 1, starting with your gold systems. During the first iteration of this exercise select only 3-5 of your most important systems.
    2. Write the name of each application on a sticky note or at the top of a whiteboard (leaving ample space below for dependency mapping).
    3. In the first tier below the application, include the specific services that the general service provides.
    • This will vary based on the service in question, but an example for email is sending, retrieving, retrieving online, etc.
  • For each of the categories identified in step 3, identify the infrastructure components that are relevant to that system. Be broad and sweeping; if the component is involved in the service, include it here. The goal is to be exhaustive.
  • Leave the final version of the map intact. Photographing or making a digital copy for posterity. It will be useful in later activities.

    • Input

    • List of important applications

    Output

    • List of critical dependencies

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Infrastructure manager
    • Enterprise architect

    Info-Tech Insight

    Dependency mapping can be difficult. Make sure you don’t waste effort creating detailed dependency maps for relatively unimportant services.

    Dependency mapping can be difficult. Make sure you don’t waste effort creating detailed dependency maps for relatively unimportant services.

    The image contains a sample dependency map on ride sharing. Ride Sharing has been split between two categories: Application and Drivers. Under drivers it branches out to: Availability, Car, and Pay. Under Application, it branches out to: Compute, Network, Edge devices, Q/A maintenance, and Storage. Compute branches out to Cloud Services. Network branches out to Cellular network and Local. Edge Devices branch out to Drivers and Users. Q/A maintenance does not have a following branch. Storage branches out to Storage (Enterprise) and Storage (local).

    Ride sharing cannot work, at least not at maximum effectiveness, without these constituent components. When one or more of these components are absent or degraded, the service will become unavailable. This example illustrates some challenges of capacity management; some of these components are necessary, but beyond the ride-sharing company’s control.

    Leverage a sample dependency tree for a common service

    The image contains a sample dependency tree for the Email service. Email branches out to: Filtering, Archiving, Retrieval, and Send/receive. Filtering branches out to security appliance which then branches out to CPU, Storage, and Network. Archiving branches to Archive server, which branches out to CPU, Storage, and Network. Retrieval branches out to IMAP/PoP which branches out to CPU, Storage, and Network. Send/receive branches out to IMAP/PoP and SMTP. SMTP branches out to CPU, Storage and Network.

    Info-Tech Best Practice

    Email is an example here not because it is necessarily a “gold system,” but because it is common across industries. This is a useful exercise for any service, but it can be quite onerous, so it should be conducted on the most important systems first.

    Separate the wheat from the chaff; identify important sub-components and separate them from unimportant ones

    1.2b 1.5 hours

    Use the bottom layer of the pyramid drawn in step 1.2a for a list of important sub-components.

    Instructions

    1. Record a list of the gold services identified in the previous activity. Leave space next to each service for sub-components.
    2. Go through each relevant sub-component. Highlight those that are critical and could reasonably be expected to cause problems.
    • Has this sub-component caused a problem in the past?
    • Is this sub-component a bottleneck?
    • What could cause this component to fail? Is it such an occurrence feasible?
  • Record the results of the exercise (and the service each sub-component is tied to) in tab 2 (columns B &C) of the Capacity Snapshot Tool.

    • Input

    • List of important applications

    Output

    • List of critical dependencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect

    Understand availability commitments with SLAs

    With the rise of SaaS, cloud computing, and managed services, critical services and their components are increasingly external to IT.

    • IT’s lack of access to the internal working of services does not let them off the hook for performance issues (as much as that might be the dream).
    • Vendor management is availability management. Use the dependency map drawn earlier in this phase to highlight the components of critical services that rely on capacity that cannot be managed internally.
    • For each of these services ensure that an appropriate SLA is in place. When acquiring new services, ensure that the vendor SLA meets business requirements.

    The image contains a large blue circle labelled: Availability. Also in the blue circle is a small red circle labelled: Capacity.

    In terms of service provision, capacity management is a form of availability management. Not all availability issues are capacity issues, but the inverse is true.

    Info-Tech Insight

    Capacity issues will always cause availability issues, but availability issues are not inherently capacity issues. Availability problems can stem from outages unrelated to capacity (e.g. power or vendor outages).

    Use best practices to develop and negotiate SLAs

    1.2c 20 minutes per service

    When signing contracts with vendors, you will be presented with an SLA. Ensure that it meets your requirements.

    1. Use the business impact analysis conducted in this project’s first step to determine your requirements. How much downtime can you tolerate for your critical services?
    2. Once you have been presented with an SLA, be sure to scour it for tricks. Remember, just because a vendor offers “five nines” of availability doesn’t mean that you’ll actually get that much uptime. It could be that the vendor is comfortable eating the cost of downtime or that the contract includes provisions for planned maintenance. Whether or not the vendor anticipated your outage does little to mitigate the damage an outage can cause to your business, so be careful of these provisions.
    3. Ensure that the person ultimately responsible for the SLA (the approver) understands the limitations of the agreement and the implications for availability.

    Input

    • List of external component dependencies

    Output

    • SLA requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Infrastructure manager
    • Enterprise architect

    Info-Tech Insight

    Vendors are sometimes willing to eat the cost of violating SLAs if they think it will get them a contract. Be careful with negotiation. Just because the vendor says they can do something doesn’t make it true.

    Negotiate internal SLAs using Info-Tech’s rigorous process

    Talking past each other can drive misalignment between IT and the business, inconveniencing all involved. Quantify your needs through an internal SLA as part of a comprehensive availability management plan.

    See Info-Tech’s Improve IT-Business Alignment Through an Internal SLA blueprint for instructions on why you should develop internal SLAs and the potential benefits they bring.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.2

    The image contains a screenshot of activity 1.2 as previously described above.

    Create a list of dependencies for your most important applications

    Using the results of the business impact analysis, the analyst will guide workshop participants through a dependency mapping exercise that will eventually populate the Capacity Plan Template.

    Phase 1 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Conduct a business impact analysis

    Proposed Time to Completion: 1 week

    Step 1.1: Create a scale to measure different levels of impact

    Review your findings with an analyst

    Discuss how you arrived at the rating of your critical systems and their dependencies. Consider whether your external SLAs are appropriate.

    Then complete these activities…

    • Use the results of the business impact analysis to sort systems based on their criticality

    With these tools & templates:

    Business Impact Analysis Tool

    Step 1.2: Assign criticality ratings to services

    Review your findings with an analyst

    Discuss how you arrived at the rating of your critical systems and their dependencies. Consider whether your external SLAs are appropriate.

    Then complete these activities…

    • Create a list of dependencies for your most important applications
    • Identify important sub-components
    • Use best practices to develop and negotiate SLAs

    With these tools & templates:

    Capacity Snapshot Tool

    Phase 1 Results & Insights:

    • Engaging in detailed capacity planning for an insignificant service is a waste of resources. Focus on ensuring availability for your most critical systems.
    • Carefully evaluate vendors’ service offerings. Make sure the SLA works for you, and approach pie-in-the-sky promises with skepticism.

    PHASE 2

    Establish Visibility Into Core Systems

    Step 2.1: Define your monitoring strategy

    This step will walk you through the following activities:

    • Determine the indicators you should be tracking for each sub-component.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team

    Outcomes of this step

    • List of indicators to track for each sub-component

    Data has its significance—but also its limitations

    The rise of big data can be a boon for capacity managers, but be warned: not all data is created equal. Bad data can lead to bad decisions – and unemployed capacity managers.

    Your findings are only as good as your data. Remember: garbage in, garbage out. There are three characteristics of good data:*

    1. Accuracy: is the data exact and correct? More detail and confidence is better.
    2. Reliability: is the data consistent? In other words, if you run the same test twice will you get the same results?
    3. Validity: is the information gleaned believable and relevant?

    *National College of Teaching & Leadership, “Reliability and Validity”

    "Data is king. Good data is absolutely essential to [the capacity manager] role."

    – Adrian Blant, Independent Capacity Consultant, IT Capability Solutions

    Info-Tech Best Practice

    Every organization’s data needs are different; your data needs are going to be dictated by your services, delivery model, and business requirements. Make sure you don’t confuse volume with quality, even if others in your organization make that mistake.

    Take advantage of technology to establish visibility into your systems

    Managing your availability and capacity involves important decisions about what to monitor and how thresholds should be set.

    • Use the list of critical applications developed through the business impact analysis and the list of components identified in the dependency mapping exercise to produce a plan for effectively monitoring component availability and capacity.
    • The nature of IT service provision – the multitude of vendors providing hardware and services necessary for even simple IT services to work effectively – means that it is unlikely that capacity management will be visible through a single pane of glass. In other words, “email” and “CRM” don’t have a defined capacity. It always depends.
    • Establishing visibility into systems involves identifying what needs to be tracked for each component.

    Too much monitoring can be as bad as the inverse

    In 2013, a security breach at US retailer Target compromised more than 70 million customers’ data. The company received an alert, but it was thought to be a false positive because the monitoring system produced so many false and redundant alerts. As a result of the daily deluge, staff did not respond to the breach in time.

    Info-Tech Insight

    Don’t confuse monitoring with management. While establishing visibility is a crucial step, it is only part of the battle. Move on to this project’s next phase to explore opportunities to improve your capacity/availability management process.

    Determine the indicators you should be tracking for each sub-component

    2.1a Tab 3 of the Capacity Snapshot Tool

    It is nearly impossible to overstate the importance of data to the process of availability and capacity management. But the wrong data will do you no good.

    Instructions

    1. Open the Capacity Snapshot Tool to tab 2. The tool should have been populated in step 1.2 as part of the component mapping exercise.
    2. For each service, determine which metric(s) would most accurately tell the component’s story. Consider the following questions when completing this activity (you may end up with more than one metric):
    • How would the component’s capacity be measured (storage space, RAM, bandwidth, vCPUs)?
    • Is the metric in question actionable?
  • Record each metric in the Metric column (D) of the Capacity Snapshot Tool. Use the adjacent column for any additional information on metrics.

    • Info-Tech Insight

    Bottlenecks are bad. Use the Capacity Snapshot Tool (or another tool like it) to ensure that when the capacity manager leaves (on vacation, to another role, for good) the knowledge that they have accumulated does not leave as well.

    Understand the limitations of this approach

    Although we’ve striven to make it as easy as possible, this process will inevitably be cumbersome for organizations with a complicated set of software, hardware, and cloud services.

    Tracking every single component in significant detail will produce a lot of noise for each bit of signal. The approach outlined here addresses that concern in two ways:

    • A focus on gold services
    • A focus on sub-components that have a reasonable likelihood of being problematic in the future.

    Despite this effort, however, managing capacity at the component level is a daunting task. Ultimately, tools provided by vendors like SolarWinds and AppDynamics will fill in some of the gaps. Nevertheless, an understanding of the conceptual framework underlying availability and capacity management is valuable.

    Step 2.2: Implement your monitoring tool/aggregator

    This step will walk you through the following activities:

    • Clarify visibility.
    • Determine whether or not you have sufficiently granular visibility.
    • Develop strategies to .any visibility issues.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team
    • Applications personnel

    Outcomes of this step

    • Method for measuring and monitoring critical sub-components

    Companies struggle with performance monitoring because 95% of IT shops don’t have full visibility into their environments

    CASE STUDY

    Industry: Financial Services

    Source: AppDynamics

    Challenge

    • Users are quick to provide feedback when there is downtime or application performance degradation.
    • The challenge for IT teams is that while they can feel the pain, they don’t have visibility into the production environment and thus cannot identify where the pain is coming from.
    • The most common solution that organizations rely on is leveraging the log files for issue diagnosis. However, this method is slow and often unable to pinpoint the problem areas, leading to delays in problem resolution.

    Solution

    • Application and infrastructure teams need to work together to develop infrastructure flow maps and transaction profiles.
    • These diagrams will highlight the path that each transaction travels across your infrastructure.
    • Ideally at this point, teams will also capture latency breakdowns across every tier that the business transaction flows through.
      • This will ultimately kick start the baselining process.

    Results

    • Ninety-five percent of IT departments don’t have full visibility into their production environment. As a result, a slow business transaction will often require a war-room approach where SMEs from across the organization gather to troubleshoot.
    • Having visibility into the production environment through infrastructure flow mapping and transaction profiling will help IT teams pinpoint problems.
      • At the very least, teams will be able to identify common problem areas and expedite the root-cause analysis process.

    Source: “Just how complex can a Login Transaction be? Answer: Very!,” AppDynamics

    Monitor your critical sub-components

    Establishing a monitoring plan for your capacity involves answering two questions: can I see what I need to see, and can I see it with sufficient granularity?

    • Having the right tool for the job is an important step towards effective capacity and availability management.
    • Application performance management tools (APMs) are essential to the process, but they tend to be highly specific and vertically oriented, like using a microscope.
    • Some product families can cover a wider range of capacity monitoring functions (SolarWinds, for example). It is still important, however, to codify your monitoring needs.

    "You don’t use a microscope to monitor an entire ant farm, but you might use many microscopes to monitor specific ants."

    – Fred Chagnon, Research Director, Infrastructure Practice, Info-Tech Research Group

    Monitor your sub-components: clarify visibility

    2.2a Tab 2 of the Capacity Snapshot Tool

    The next step in capacity management is establishing whether or not visibility (in the broad sense) is available into critical sub-components.

    Instructions

    1. Open the Capacity Snapshot Tool and record the list of sub-components identified in the previous step.
    2. For each sub-component answer the following question:
    • Do I have easy access to the information I need to monitor to ensure this component remains available?
  • Select “Yes” or “No” from the drop-down menus as appropriate. In the adjacent column record details about visibility into the component.
    • What tool provides the information? Where can it be found?

    The image contains a screenshot of Info-Tech's Capacity Snapshot Tool, Tab 2.

    Monitor your sub-components; determine whether or not you have sufficient granular visibility

    2.2b Tab 2 of the Capacity Snapshot Tool

    Like ideas and watches, not all types of visibility are created equal. Ensure that you have access to the right information to make capacity decisions.

    Instructions

    1. For each of the sub-components clarify the appropriate level of granularity for the visibility gained to be useful. In the case of storage, for example, is raw usage (in gigabytes) sufficient, or do you need a breakdown of what exactly is taking up the space? The network might be more complicated.
    2. Record the details of this ideation in the adjacent column.
    3. Select “Yes” or “No” from the drop-down menu to track the status of each sub-component.

    The image contains a picture of an iPhone storage screen where it breaks down the storage into the following categories: apps, media, photos, and other.

    For most mobile phone users, this breakdown is sufficient. For some, more granularity might be necessary.

    Info-Tech Insight

    Make note of monitoring tools and strategies. If anything changes, be sure to re-evaluate the visibility status. An outdated spreadsheet can lead to availability issues if management is unaware of looming problems.

    Develop strategies to ameliorate any visibility issues

    2.2c 1 hour

    The Capacity Snapshot Tool color-codes your components by status. Green – visibility and granularity are both sufficient; yellow – visibility exists, though not at sufficient granularity; and red – visibility does not exist at all.

    Instructions

    1. Write each of the yellow and red sub-components on a whiteboard or piece of chart paper.
    2. Brainstorm amelioration strategies for each of the problematic sub-components.
    • Does the current monitoring tool have sufficient functionality?
    • Does it need to be further configured/customized?
    • Do we need a whole new tool?
  • Record these strategies in the Amelioration Strategy column on tab 4 of the tool.

    • Input

    • Sub-components
    • Capacity Snapshot Tool

    Output

    • Amelioration strategies

    Materials

    • Whiteboard
    • Markers
    • Capacity Snapshot Tool

    Participants

    • Infrastructure manager

    Info-Tech Best Practice

    It might be that there is no amelioration strategy. Make note of this difficulty and highlight it as part of the risk section of the Capacity Plan Template.

    See Info-Tech’s projects on storage and network modernization for additional details

    Leverage other products for additional details on how to modernize your network and storage services.

    The process of modernizing the network is fraught with vestigial limitations. Develop a program to gather requirements and plan.

    As part of the blueprint, Modernize Enterprise Storage, the Modernize Enterprise Storage Workbook includes a section on storage capacity planning.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.2

    The image contains a screenshot of activity 2.2.

    Develop strategies to ameliorate visibility issues

    The analyst will guide workshop participants in brainstorming potential solutions to visibility issues and record them in the Capacity Snapshot Tool.

    Phase 2 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Establish visibility into core systems

    Proposed Time to Completion: 3 weeks

    Step 2.1: Define your monitoring strategy

    Review your findings with an analyst

    Discuss your monitoring strategy and ensure you have sufficient visibility for the needs of your organization.

    Then complete these activities…

    • Determine the indicators you should be tracking for each sub-component

    With these tools & templates:

    • Capacity Snapshot Tool

    Step 2.2: Implement your monitoring tool/aggregator

    Review your findings with an analyst

    Discuss your monitoring strategy and ensure you have sufficient visibility for the needs of your organization.

    Then complete these activities…

    • Clarify visibility
    • Determine whether or not you have sufficiently granular visibility
    • Develop strategies to ameliorate any visibility issues

    With these tools & templates:

    • Capacity Snapshot Tool

    Phase 2 Results & Insights:

    • Every organization’s data needs are different. Adapt data gathering, reporting, and analysis according to your services, delivery model, and business requirements.
    • Don’t confuse monitoring with management. Build a system to turn reported data into useful information that feeds into the capacity management process.

    PHASE 3

    Solicit and Incorporate Business Needs

    Step 3.1: Solicit business needs and gather data

    This step will walk you through the following activities:

    • Build relationships with business stakeholders.
    • Analyze usage data and identify trends.
    • Correlate usage trends with business needs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • System for involving business stakeholders in the capacity planning process
    • Correlated data on business level, service level, and infrastructure level capacity usage

    Summarize your capacity planning activities in the Capacity Plan Template

    The availability and capacity management summary card pictured here is a handy way to capture the results of the activities undertaken in the following phases. Note its contents carefully, and be sure to record specific outputs where appropriate. One such card should be completed for each of the gold services identified in the project’s first phase. Make note of the results of the activities in the coming phase, and populate the Capacity Snapshot Tool. These will help you populate the tool.

    The image contains a screenshot of Info-Tech's Capacity Plan Template.

    Info-Tech Best Practice

    The Capacity Plan Template is designed to be a part of a broader mapping strategy. It is not a replacement for a dedicated monitoring tool.

    Analyze historical trends as a crucial source of data

    The first place to look for information about your organization is not industry benchmarks or your gut (though those might both prove useful).

    • Where better to look than internally? Use the data you’ve gathered from your APM tool or other sources to understand your historical capacity needs and to highlight any periods of unavailability.
    • Consider monitoring the status of the capacity of each of your crucial components. The nature of this monitoring will vary based on the component in question. It can range from a rough Excel sheet all the way to a dedicated application performance monitoring tool.

    "In all cases the very first thing to do is to look at trending…The old adage is ‘you don’t steer a boat by its wake,’ however it’s also true that if something is growing at, say, three percent a month and it has been growing at three percent a month for the last twelve months, there’s a fairly good possibility that it’s going to carry on going in that direction."

    – Mike Lynch, Consultant, CapacityIQ

    Gather relevant data at the business level

    3.1a 2 hours per service

    A holistic approach to capacity management involves peering beyond the beaded curtain partitioning IT from the rest of the organization and tracking business metrics.

    Instructions

    1. Your service/application owners know how changes in business activities impact their systems. Business level capacity management involves responding to those changes. Ask service/application owners what changes will impact their capacity. Examples include:
    • Business volume (net new customers, number of transactions)
    • Staff changes (new hires, exits, etc.)
  • For each gold service, brainstorm relevant metrics. How can you capture that change in business volume?
  • Record these metrics in the summary card of the Capacity Plan Template.
  • In the notes section of the summary card record whether or not you have access to the required business metric.

    • Input

    • Brainstorming
    • List of gold services

    Output

    • Business level data

    Materials

    • In-house solution or commercial tool

    Participants

    • Capacity manager
    • Application/service owners

    Gather relevant data at the service level

    3.1b 2 hours per service

    One level of abstraction down is the service level. Service level capacity management, recall that service level capacity management is about ensuring that IT is meeting SLAs in its service provision.

    Instructions

    1. There should be internal SLAs for each service IT offers. (If not, that’s a good place to start. See Info-Tech’s research on the subject.) Prod each of your service owners for information on the metrics that are relevant for their SLAs. Consider the following:
    • Peak hours, requests per second, etc.
    • This will usually include some APM data.
  • Record these metrics in the summary card of the Capacity Plan Template.
  • Include any visibility issues in the notes in a similar section of the Capacity Plan Template.

    • Input

    • Brainstorming
    • List of gold services

    Output

    • Service level data

    Materials

    • In-house solution or commercial tool

    Participants

    • Capacity manager
    • Application/service owners

    Leverage the visibility into your infrastructure components and compare all of your data over time

    You established visibility into your components in the second phase of this project. Use this data, and that gathered at the business and service levels, to begin analyzing your demand over time.

    • Different organizations will approach this issue differently. Those with a complicated service catalog and a dedicated capacity manager might employ a tool like TeamQuest. If your operation is small, or you need to get your availability and capacity management activities underway as quickly as possible, you might consider using a simple spreadsheet software like Excel.
    • If you choose the latter option, select a level of granularity (monthly, weekly, etc.) and produce a line graph in Excel.
    • Example: Employee count (business metric)

    Jan

    Feb

    Mar

    Apr

    May

    June

    July

    74

    80

    79

    83

    84

    100

    102
    The image contains a graph using the example of employee count described above.

    Note: the strength of this approach is that it is easy to visualize. Use the same timescale to facilitate simple comparison.

    Manage, don’t just monitor; mountains of data need to be turned into information

    Information lets you make a decision. Understand the questions you don’t need to ask, and ask the right ones.

    "Often what is really being offered by many analytics solutions is just more data or information – not insights."

    – Brent Dykes, Director of Data Strategy, Domo

    Info-Tech Best Practice

    You can have all the data in the world and absolutely nothing valuable to add. Don’t fall for this trap. Use the activities in this phase to structure your data collection operation and ensure that your organization’s availability and capacity management plan is data driven.

    Analyze historical trends and track your services’ status

    3.1c Tab 3 of the Capacity Snapshot Tool

    At-a-glance – it’s how most executives consume all but the most important information. Create a dashboard that tracks the status of your most important systems.

    Instructions

    1. Consult infrastructure leaders for information about lead times for new capacity for relevant sub-components and include that information in the tool.
    • Look to historical lead times. (How long does it traditionally take to get more storage?)
    • If you’re not sure, contact an in-house expert, or speak to your vendor
  • Use tab 3 of the tool to record whether your existing capacity will be exceeded before you can stand more hardware up (red), you have a plan to ameliorate capacity issues but new capacity is not yet in place (yellow), or if you are not slated to run out of capacity any time soon (green).
  • Repeat the activity regularly. Include notes about spikes that might present capacity challenges, and information about when capacity may run out.

    • This tool collates and presents information gathered from other sources. It is not a substitute for a performance monitoring tool.

    Build a list of key business stakeholders

    3.1d 10 minutes

    Stakeholder analysis is crucial. Lines of authority can be diffuse. Understand who needs to be involved in the capacity management process early on.

    Instructions

    1. With the infrastructure team, brainstorm a group of departments, roles, and people who may impact demand on capacity.
    2. Go through the list with your team and identify stakeholders from two groups:
    • Line of business: who in the business makes use of the service?
    • Application owner: who in IT is responsible for ensuring the service is up?
  • Insert the list into section 3 of the Capacity Plan Template, and update as needed.

    • Input

    • Gold systems
    • Personnel Information

    Output

    • List of key business stakeholders

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Best Practice

    Consider which departments are most closely aligned with the business processes that fuel demand. Prioritize those that have the greatest impact. Consider the stakeholders who will make purchasing decisions for increasing infrastructure capacity.

    Organize stakeholder meetings

    3.1e 10 hours

    Establishing a relationship with your stakeholders is a necessary step in managing your capacity and availability.

    Instructions

    1. Gather as many of the stakeholders identified in the previous activity as you can and present information on availability and capacity management
    • If you can’t get everyone in the same room, a virtual meeting or even an email blast could get the job done.
  • Explain the importance of capacity and availability management
    • Consider highlighting the trade-offs between cost and availability.
  • Field any questions the stakeholders might have about the process. Be honest. The goal of this meeting is to build trust. This will come in handy when you’re gathering business requirements.
  • Propose a schedule and seek approval from all present. Include the results in section 3 of the Capacity Plan Template.

    • Input

    • List of business stakeholders
    • Hard work

    Output

    • Working relationship, trust
    • Regular meetings

    Materials

    • Work ethic
    • Executive brief

    Participants

    • Capacity manager
    • Business stakeholders

    Info-Tech Insight

    The best capacity managers develop new business processes that more closely align their role with business stakeholders. Building these relationships takes hard work, and you must first earn the trust of the business.

    Bake stakeholders into the planning process

    3.1f Ongoing

    Convince, don’t coerce. Stakeholders want the same thing you do. Bake them into the planning process as a step towards this goal.

    1. Develop a system to involve stakeholders regularly in the capacity planning process.
    • Your system will vary depending on the structure and culture of your organization.
    • See the case study on the following slide for ideas.
    • It may be as simple as setting a recurring reminder in your own calendar to touch base with stakeholders.
  • Liaise with stakeholders regularly to keep abreast of new developments.
    • Ensure stakeholders have reasonable expectations about IT’s available resources, the costs of providing capacity, and the lead times required to source additional needed capacity.
  • Draw on these stakeholders for the step “Gather information on business requirements” later in this phase.

    • Input

    • List of business stakeholders
    • Ideas

    Output

    • Capacity planning process that involves stakeholders

    Materials

    • Meeting rooms

    Participants

    • Capacity manager
    • Business stakeholders
    • Infrastructure team

    A capacity manager in financial services wrangled stakeholders and produced results

    CASE STUDY

    Industry: Financial Services

    Source: Interview

    In financial services, availability is king

    In the world of financial services, availability is absolutely crucial. High-value trades occur at all hours, and any institution that suffers outages runs the risk of losing tens of thousands of dollars, not to mention reputational damage.

    People know what they want, but sometimes they have to be herded

    While line of business managers and application owners understand the value of capacity management, it can be difficult to establish the working relationship necessary for a fruitful partnership.

    Proactively building relationships keeps services available

    He built relationships with all the department heads on the business side, and all the application owners.

    • He met with department heads quarterly.
    • He met with application owners and business liaisons monthly.

    He established a steering committee for capacity.

    He invited stakeholders to regular capacity planning meetings.

    • The first half of each meeting was high-level outlook, such as business volume and IT capacity utilization, and included stakeholders from other departments.
    • The second half of the meeting was more technical, serving the purpose for the infrastructure team.

    He scheduled lunch and learn sessions with business analysts and project managers.

    • These are the gatekeepers of information, and should know that IT needs to be involved when things come down the pipeline.

    Step 3.2: Analyze data and project future needs

    This step will walk you through the following activities:

    • Solicit needs from the business.
    • Map business needs to technical requirements, and technical requirements to infrastructure requirements.
    • Identify inefficiencies in order to remedy them.
    • Compare the data across business, component, and service levels, and project your capacity needs.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • Model of how business processes relate to technical requirements and their demand on infrastructure
    • Method for projecting future demand for your organization’s infrastructure
    • Comparison of current capacity usage to projected demand

    “Nobody tells me anything!” – the capacity manager’s lament

    Sometimes “need to know” doesn’t register with sales or marketing. Nearly every infrastructure manager can share a story about a time when someone has made a decision that has critically impacted IT infrastructure without letting anyone in IT in on the “secret.”

    In brief

    The image contains a picture of a man appearing to be overwhelmed.

    Imagine working for a media company as an infrastructure capacity manager. Now imagine that the powers that be have decided to launch a content-focused web service. Seems like something they would do, right? Now imagine you find out about it the same way the company’s subscribers do. This actually happened – and it shouldn’t have. But a similar lack of alignment makes this a real possibility for any organization. If you don’t establish a systematic plan for soliciting and incorporating business requirements, prepare to lose a chunk of your free time. The business should never be able to say, in response to “nobody tells me anything,” “nobody asked.”

    Pictured: an artist’s rendering of the capacity manager in question.

    Directly solicit requirements from the business

    3.2a 30 minutes per stakeholder

    Once you’ve established, firmly, that everyone’s on the same team, meet individually with the stakeholders to assess capacity.

    Instructions

    1. Schedule a one-on-one meeting with each line of business manager (stakeholders identified in 3.1). Ideally this will be recurring.
    • Experienced capacity managers suggest doing this monthly.
  • In the meeting address the following questions:
    • What are some upcoming major initiatives?
    • Is the department going to expand or contract in a noticeable way?
    • Have customers taken to a particular product more than others?
  • Include the schedule in the Capacity Plan Template, and consider including details of the discussion in the notes section in tab 3 of the Capacity Snapshot Tool.

    • Input

    • Stakeholder opinions

    Output

    • Business requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Sometimes line of business managers will evade or ignore you when you come knocking. They do this because they don’t know and they don’t want to give you the wrong information. Explain that a best guess is all you can ask for and allay their fears.

    Below, you will find more details about what to look for when soliciting information from the line of business manager you’ve roped into your scheme.

    1. Consider the following:
    • Projected sales pipeline
    • Business growth
    • Seasonal cycles
    • Marketing campaigns
    • New applications and features
    • New products and services
  • Encourage business stakeholders to give you their best guess for elements such as projected sales or business growth.
  • Estimate variance and provide a range. What can you expect at the low end? The high end? Record your historical projections for an idea of how accurate you are.
  • Consider carefully the infrastructure impact of new features (and record this in the notes section of the Capacity Snapshot Tool).

    • Directly solicit requirements from the business (optional)

    3.2a 1 hour

    IT staff and line of business staff come with different skillsets. This can lead to confusion, but it doesn’t have to. Develop effective information solicitation techniques.

    Instructions

    1. Gather your IT staff in a room with a whiteboard. As a group, select a gold service/line of business manager you would like to use as a “practice dummy.”
    2. Have everyone write down a question they would ask of the line of business representative in a hypothetical business/service capacity discussion.
    3. As a group discuss the merits of the questions posed:
    • Are they likely to yield productive information?
    • Are they too vague or specific?
    • Is the person in question likely to know the answer?
    • Is the information requested a guarded trade secret?
  • Discuss the findings and include any notes in section 3 of the Capacity Plan Template.

    • Input

    • Workshop participants’ ideas

    Output

    • Interview skills

    Materials

    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Capacity manager
    • Infrastructure staff

    Map business needs to technical requirements, and technical requirements to infrastructure requirements

    3.2b 5 hours

    When it comes to mapping technical requirements, IT alone has the ability to effectively translate business needs.

    Instructions

    1. Use your notes from stakeholder meetings to assess the impact of any changes on gold systems.
    2. For each system brainstorm with infrastructure staff (and any technical experts as necessary) about what the information gleaned from stakeholder discussions. Consider the following discussion points:
    • How has demand for the service been trending? Does it match what the business is telling us?
    • Have we had availability issues in the past?
    • Has the business been right with their estimates in the past?
  • Estimate what a change in business/service metrics means for capacity.
    • E.g. how much RAM does a new email user require?
  • Record the output in the summary card of the Capacity Plan Template.

    • Input

    • Business needs

    Output

    • Technical and infrastructure requirements

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Adapt the analysis to the needs of your organization. One capacity manager called the one-to-one mapping of business process to infrastructure demand the Holy Grail of capacity management. If this level of precision isn’t attainable, develop your own working estimates using the higher-level data

    Avoid putting too much faith in the cloud as a solution to your problem

    Has the rise of on-demand, functionally unlimited services eliminated the need for capacity and availability management?

    Capacity management

    The role of the capacity manager is changing, but it still has a purpose. Consider this:

    • Not everything can move to the cloud. For security/functionality reasons, on-premises infrastructure will continue to exist.
    • Cost management is more relevant than ever in the cloud age. Manage your instances.
    • While a cloud migration might render some component capacity management functions irrelevant, it could increase the relevance of others (the network, perhaps).

    Availability management

    Ensuring services are available is still IT’s wheelhouse, even if that means a shift to a brokerage model:

    • Business availability requirements (as part of the business impact analysis, potentially) are important; internal SLAs and contracts with vendors need to be managed.
    • Even in the cloud environment, availability is not guaranteed. Cloud providers have outages (unplanned, maintenance related, etc.) and someone will have to understand the limitations of cloud services and the impact on availability.

    Info-Tech Insight

    The cloud comes at the cost of detailed performance data. Sourcing a service through an SLA with a third party increases the need to perform your own performance testing of gold level applications. See performance monitoring.

    Beware Parkinson’s law

    A consequence of our infinite capacity for creativity, people have the enviable skill of making work. In 1955, C. Northcote Parkinson pointed out this fact in The Economist . What are the implications for capacity management?

    "It is a commonplace observation that work expands so as to fill the time available for its completion. Thus, an elderly lady of leisure can spend the entire day in writing and despatching a postcard to her niece at Bognor Regis. An hour will be spent in finding the postcard, another in hunting for spectacles, half-an-hour in a search for the address, an hour and a quarter in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the pillar-box in the next street."

    C. Northcote Parkinson, The Economist, 1955

    Info-Tech Insight

    If you give people lots of capacity, they will use it. Most shops are overprovisioned, and in some cases that’s throwing perfectly good money away. Don’t be afraid to prod if someone requests something that doesn’t seem right.

    Optimally align demand and capacity

    When it comes to managing your capacity, look for any additional efficiencies.

    Questions to ask:

    • Are there any infrastructure services that are not being used to their full potential, sitting idle, or allocated to non-critical or zombie functions?
      • Are you managing your virtual servers? If, for example, you experience a seasonal spike in demand, are you leaving virtual machines running after the fact?
    • Do your organization’s policies and your infrastructure setup allow for the use of development resources for production during periods of peak demand?
    • Can you make organizational or process changes in order to satisfy demand more efficiently?

    In brief

    Who isn’t a sports fan? Big games mean big stakes for pool participants and armchair quarterbacks—along with pressure on the network as fans stream games from their work computers. One organization suffered from this problem, and, instead of taking a hardline and banning all streams, opted to stream the game on a large screen in a conference room where those interested could work for its duration. This alleviated strain on the network and kept staff happy.

    Shutting off an idle cloud to cut costs

    CASE STUDY

    Industry:Professional Services

    Source:Interview

    24/7 AWS = round-the-clock costs

    A senior developer realized that his development team had been leaving AWS instances running without any specific reason.

    Why?

    The development team appreciated the convenience of an always-on instance and, because the people spinning them up did not handle costs, the problem wasn’t immediately apparent.

    Resolution

    In his spare time over the course of a month, the senior developer wrote a program to manage the servers, including shutting them down during times when they were not in use and providing remote-access start-up when required. His team alone saved $30,000 in costs over the next six months, and his team lead reported that it would have been more than worth paying the team to implement such a project on company time.

    Identify inefficiencies in order to remediate them

    3.2c 20 minutes per service

    Instructions

    1. Gather the infrastructure team together and discuss existing capacity and demand. Use the inputs from your data analysis and stakeholder meetings to set the stage for your discussion.
    2. Solicit ideas about potential inefficiencies from your participants:
    • Are VMs effectively allocated? If you need 7 VMs to address a spike, are those VMs being reallocated post-spike?
    • Are developers leaving instances running in the cloud?
    • Are particular services massively overprovisioned?
    • What are the biggest infrastructure line items? Are there obvious opportunities for cost reduction there?
  • Record any potential opportunities in the summary of the Capacity Plan Template.

    • Input

    • Gold systems
    • Data inputs

    Output

    • Inefficiencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    The most effective capacity management takes a holistic approach and looks at the big picture in order to find ways to eliminate unnecessary infrastructure usage, or to find alternate or more efficient sources of required capacity.

    Dodging the toll troll by rerouting traffic

    CASE STUDY

    Industry:Telecommunications

    Source: Interview

    High-cost lines

    The capacity manager at a telecommunications provider mapped out his firm’s network traffic and discovered they were using a number of VP circuits (inter building cross connects) that were very expensive on the scale of their network.

    Paying the toll troll

    These VP circuits were supplying needed network services to the telecom provider’s clients, so there was no way to reduce this demand.

    Resolution

    The capacity manager analyzed where the traffic was going and compared this to the cost of the lines they were using. After performing the analysis, he found he could re-route much of the traffic away from the VP circuits and save on costs while delivering the same level of service to their users.

    Compare the data across business, component, and service levels, and project your capacity needs

    3.2d 2 hour session/meeting

    Make informed decisions about capacity. Remember: retain all documentation. It might come in handy for the justification of purchases.

    Instructions

    1. Using either a dedicated tool or generic spreadsheet software like Excel or Sheets, evaluate capacity trends. Ask the following questions:
    • Are there times when application performance degraded, and the service level was disrupted?
    • Are there times when certain components or systems neared, reached, or exceeded available capacity?
    • Are there seasonal variations in demand?
    • Are there clear trends, such as ongoing growth of business activity or the usage of certain applications?
    • What are the ramifications of trends or patterns in relation to infrastructure capacity?
  • Use the insight gathered from stakeholders during the stakeholder meetings, project required capacity for the critical components of each gold service.
  • Record the results of this activity in the summary card of the Capacity Plan Template.

    • Compare current capacity to your projections

    3.2e Section 5 of the Capacity Plan Template

    Capacity management (and, by extension, availability management) is a combination of two balancing acts: cost against capacity and supply and demand.*

    Instructions

    1. Compare your projections with your reality. You already know whether or not you have enough capacity given your lead times. But do you have too much? Compare your sub-component capacity projections to your current state.
    2. Highlight any outliers. Is there a particular service that is massively overprovisioned?
    3. Evaluate the reasons for the overprovisioning.
    • Is the component critically important?
    • Did you get a great deal on hardware?
    • Is it an oversight?
  • Record the results in the notes section of the summary card of the Capacity Plan Template.
    • *Office of Government Commerce 2001, 119.

    In brief

    The fractured nature of the capacity management space means that every organization is going to have a slightly different tooling strategy. No vendor has dominated, and every solution requires some level of customization. One capacity manager (a cloud provider, no less!) relayed a tale about a capacity management Excel sheet programmed with 5,000+ lines of code. As much work as that is, a bespoke solution is probably unavoidable.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.2

    The image contains a screenshot of activity 3.2.

    Map business needs to technical requirements and technical requirements to infrastructure requirements

    The analyst will guide workshop participants in using their organization’s data to map out the relationships between applications, technical requirements, and the underlying infrastructure usage.

    Phase 3 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Solicit and incorporate business needs

    Proposed Time to Completion: 2 weeks

    Step 3.1: Solicit business needs and gather data

    Review your findings with an analyst

    Discuss the effectiveness of your strategies to involve business stakeholders in the planning process and your methods of data collection and analysis.

    Then complete these activities…

    • Analyze historical trends and track your services’ status
    • Build a list of key business stakeholders
    • Bake stakeholders into the planning process

    With these tools & templates:

    Capacity Plan Template

    Step 3.2: Analyze data and project future needs

    Review your findings with an analyst

    Discuss the effectiveness of your strategies to involve business stakeholders in the planning process and your methods of data collection and analysis.

    Then complete these activities…

    • Map business needs to technical requirements and technical requirements to infrastructure requirements
    • Compare the data across business, component, and service levels, and project your capacity needs
    • Compare current capacity to your projections

    With these tools & templates:

    Capacity Snapshot Tool

    Capacity Plan Template

    Phase 3 Results & Insights:

    • Develop new business processes that more closely align your role with business stakeholders. Building these relationships takes hard work, and won’t happen overnight.
    • Take a holistic approach to eliminate unnecessary infrastructure usage or source capacity more efficiently.

    PHASE 4

    Identify and Mitigate Risks

    Step 4.1: Identify and mitigate risks

    This step will walk you through the following activities:

    • Identify potential risks.
    • Determine strategies to mitigate risks.
    • Complete your capacity management plan.

    This involves the following participants:

    • Capacity manager
    • Infrastructure team members
    • Business stakeholders

    Outcomes of this step

    • Strategies for reducing risks
    • Capacity management plan

    Understand what happens when capacity/availability management fails

    1. Services become unavailable. If availability and capacity management are not constantly practiced, an inevitable consequence is downtime or a reduction in the quality of that service. Critical sub-component failures can knock out important systems on their own.
    2. Money is wasted. In response to fears about availability, it’s entirely possible to massively overprovision or switch entirely to a pay-as-you-go model. This, unfortunately, brings with it a whole host of other problems, including overspending. Remember: infinite capacity means infinite potential cost.
    3. IT remains reactive and is unable to contribute more meaningfully to the organization. If IT is constantly putting out capacity/availability-related fires, there is no room for optimization and activities to increase organizational maturity. Effective availability and capacity management will allow IT to focus on other work.

    Mitigate availability and capacity risks

    Availability: how often a service is usable (that is to say up and not too degraded to be effective). Consequences of reduced availability can include financial losses, impacted customer goodwill, and reduced faith in IT more generally.

    Causes of availability issues:

    • Poor capacity management – a service becomes unavailable when there is insufficient supply to meet demand. This is the result of poor capacity management.
    • Scheduled maintenance – services go down for maintenance with some regularity. This needs to be baked into service-level negotiations with vendors.
    • Vendor outages – sometimes vendors experience unplanned outages. There is typically a contract provision that covers unplanned outages, but that doesn’t change the fact that your service will be interrupted.

    Capacity: a particular component’s/service’s/business’ wiggle room. In other words, its usage ceiling.

    Causes of capacity issues:

    • Poor demand management – allowing users to run amok without any regard for how capacity is sourced and paid for.
    • Massive changes in legitimate demand – more usage means more demand.
    • Poor capacity planning – predictable changes in demand that go unaddressed can lead to capacity issues.

    Add additional potential causes of availability and capacity risks as needed

    4.1a 30 minutes

    Availability and capacity issues can stem from a number of different causes. Include a list in your availability and capacity management plan.

    Instructions

    1. Gather the group together. Go around the room and have participants provide examples of incidents and problems that have been the result of availability and capacity issues.
    2. Pose questions to the group about the source of those availability and capacity issues.
    • What could have been done differently to avoid these issues?
    • Was the availability/capacity issue a result of a faulty internal/external SLA?
  • Record the results of the exercise in sections 4.1 and 4.2 of the Capacity Plan Template.

    • Input

    • Capacity Snapshot Tool results

    Output

    • Additional sources of availability and capacity risks

    Materials

    • Capacity Plan Template

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    Availability and capacity problems result in incidents, critical incidents, and problems. These are addressed in a separate project (incident and problem management), but information about common causes can streamline that process.

    Identify capacity risks and mitigate them

    4.1b 30 minutes

    Based on your understanding of your capacity needs (through written SLAs and informal but regular meetings with the business) highlight major risks you foresee.

    Instructions

    1. Make a chart with two columns on a whiteboard. They should be labelled “risk” and “mitigation” respectively.
    2. Record risks to capacity you have identified in earlier activities.
    • Refer to the Capacity Snapshot Tool for components that are highlighted in red and yellow. These are specific components that present special challenges. Identify the risk(s) in as much detail as possible. Include service and business risks as well.
    • Examples: a marketing push will put pressure on the web server; a hiring push will require more Office 365 licenses; a downturn in registration will mean that fewer VMs will be required to run the service.

    Input

    • Capacity Snapshot Tool results

    Output

    • Inefficiencies

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    It’s an old adage, but it checks out: don’t come to the table armed only with problems. Be a problem solver and prove IT’s value to the organization.

    Identify capacity risks and mitigate them (cont.)

    4.1b 1.5 hours

    Instructions (cont.)

    1. Begin developing mitigation strategies. Options for responding to known capacity risks fall into one of two camps:
    • Acceptance: responding to the risk is costlier than acknowledging its existence without taking any action. For gold systems, acceptance is typically not acceptable.
    • Mitigation: limiting/reducing, eliminating, or transferring risk (Herrera) comprise the sort of mitigation discussed here.
      • Limiting/reducing: taking steps to improve the capacity situation, but accepting some level of risk (spinning up a new VM, pushing back on demands from the business, promoting efficiency).
      • Eliminating: the most comprehensive (and most expensive) mitigation strategy, elimination could involve purchasing a new server or, at the extreme end, building a new datacenter.
      • Transfer: “robbing Peter to pay Paul,” in the words of capacity manager Todd Evans, is one potential way to limit your exposure. Is there a less critical service that can be sacrificed to keep your gold service online?
  • Record the results of this exercise in section 5 of the Capacity Plan Template.

    • Input

    • Capacity Snapshot Tool results

    Output

    • Capacity risk mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Insight

    It’s an old adage, but it checks out: don’t come to the table armed only with problems. Be a problem solver and prove IT’s value to the organization.

    Identify availability risks and mitigate them

    4.1c 30 minutes

    While capacity management is a form of availability management, it is not the only form. In this activity, outline the specific nature of threats to availability.

    Instructions

    1. Make a chart with two columns on a whiteboard. They should be labelled “risk” and “mitigation” respectively.
    2. Begin brainstorming general availability risks based on the following sources of information/categories:
    • Vendor outages
    • Disaster recovery
    • Historical availability issues

    The image contains a large blue circle labelled: Availability. Also in the blue circle is a small red circle labelled: Capacity.

    Input

    • Capacity Snapshot Tool results

    Output

    • Availability risks and mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Info-Tech Best Practice

    A dynamic central repository is a good way to ensure that availability issues stemming from a variety of causes are captured and mitigated.

    Identify availability risks and mitigate them (cont.)

    4.1c 1.5 hours

    Although it is easier said than done, identifying potential mitigations is a crucial part of availability management as an activity.

    Instructions (cont.)

    1. Begin developing mitigation strategies. Options for responding to known capacity risks fall into one of two camps:
    • Acceptance – responding to the risk is costlier than taking it on. Some unavailability is inevitable, between maintenance and unscheduled downtime. Record this, though it may not require immediate action.
    • Mitigation strategies:
      • Limiting/reducing – taking steps to increase availability of critical systems. This could include hot spares for unreliable systems or engaging a new vendor.
      • Eliminating – the most comprehensive (and most expensive) mitigation strategy. It could include selling.
      • Transfer – “robbing Peter to pay Paul,” in the words of capacity manager Todd Evans, is one potential way to limit your exposure. Is there a less critical service that can be sacrificed to keep your gold service online?
  • Record the results of this exercise in section 5 of Capacity Plan Template.

    • Input

    • Capacity Snapshot Tool results

    Output

    • Availability risks and mitigations

    Materials

    • Whiteboard
    • Markers

    Participants

    • Capacity manager
    • Infrastructure staff

    Iterate on the process and present your completed availability and capacity management plan

    The stakeholders consulted as part of the process will be interested in its results. Share them, either in person or through a collaboration tool.

    The current status of your availability and capacity management plan should be on the agenda for every stakeholder meeting. Direct the stakeholders’ attention to the parts of the document that are relevant to them, and solicit their thoughts on the document’s accuracy. Over time you should get a pretty good idea of who among your stakeholder group is skilled at projecting demand, and who over- or underestimates, and by how much. This information will improve your projections and, therefore, your management over time.

    Info-Tech Insight

    Use the experience gained and the artifacts generated to build trust with the business. The meetings should be regular, and demonstrating that you’re actually using the information for good is likely to make hesitant participants in the process more likely to open up.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop.

    The image contains a picture of an Info-Tech analyst.

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    4.1

    The image contains a screenshot of activity 4.1.

    Identify capacity risks and mitigate them

    The analyst will guide workshop participants in identifying potential risks to capacity and determining strategies for mitigating them.

    Phase 4 Guided Implementation

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 4: Identify and mitigate risks

    Proposed Time to Completion: 1 week

    Step 4.1: Identify and mitigate risks

    Review your findings with an analyst

    • Discuss your potential risks and your strategies for mitigating those risks.

    Then complete these activities…

    • Identify capacity risks and mitigate them
    • Identify availability risks and mitigate them
    • Complete your capacity management plan

    With these tools & templates:

    Capacity Snapshot Tool

    Capacity Plan Template

    Phase 4 Results & Insights:

    • Be a problem solver and prove IT’s value to the organization. Capacity management allows infrastructure to drive business value.
    • Iterate and share results. Reinforce your relationships with stakeholders and continue to refine how capacity management transforms your organization’s business processes.

    Insight breakdown

    Insight 1

    Components are critical to availability and capacity management.

    The CEO doesn’t care about the SMTP server. She cares about meeting customer needs and producing profit. For IT capacity and availability managers, though, the devil is in the details. It only takes one faulty component to knock out a service. Keep track and keep the lights on.

    Insight 2

    Ask what the business is working on, not what they need.

    If you ask them what they need, they’ll tell you – and it won’t be cheap. Find out what they’re going to do, and use your expertise to service those needs. Use your IT experience to estimate the impact of business and service level changes on the components that secure the availability you need.

    Insight 3

    Cloud shmoud.

    The role of the capacity manager might be changing with the advent of the public cloud, but it has not disappeared. Capacity managers in the age of the cloud are responsible for managing vendor relationships, negotiating external SLAs, projecting costs and securing budgets, reining in prodigal divisions, and so on.

    Summary of accomplishment

    Knowledge Gained

    • Impact of downtime on the organization
    • Gold systems
    • Key dependencies and sub-components
    • Strategy for monitoring components
    • Strategy for soliciting business needs
    • Projected capacity needs
    • Availability and capacity risks and mitigations

    Processes Optimized

    • Availability management
    • Capacity management

    Deliverables Completed

    • Business Impact Analysis
    • Capacity Plan Template

    Project step summary

    Client Project: Develop an Availability and Capacity Management Plan

    1. Conduct a business impact analysis
    2. Assign criticality ratings to services
    3. Define your monitoring strategy
    4. Implement your monitoring tool/aggregator
    5. Solicit business needs and gather data
    6. Analyze data and project future needs
    7. Identify and mitigate risks

    Info-Tech Insight

    This project has the ability to fit the following formats:

    • Onsite workshop by Info-Tech Research Group consulting analysts.
    • Do-it-yourself with your team.
    • Remote delivery via Info-Tech Guided Implementation.

    Research contributors and experts

    The image contains a picture of Adrian Blant.

    Adrian Blant, Independent Capacity Consultant, IT Capability Solutions

    Adrian has over 15 years' experience in IT infrastructure. He has built capacity management business processes from the ground up, and focused on ensuring a productive dialogue between IT and the business.

    The image contains a picture of James Zhang.

    James Zhang, Senior Manager Disaster Recovery, AIG Technology

    James has over 20 years' experience in IT and 10 years' experience in capacity management. Throughout his career, he has focused on creating new business processes to deliver value and increase efficiency over the long term.

    The image contains a picture of Mayank Banerjee.

    Mayank Banerjee, CTO, Global Supply Chain Management, HelloFresh

    Mayank has over 15 years' experience across a wide range of technologies and industries. He has implemented highly automated capacity management processes as part of his role of owning and solving end-to-end business problems.

    The image contains a picture of Mike Lynch

    Mike Lynch, Consultant, CapacityIQ

    Mike has over 20 years' experience in IT infrastructure. He takes a holistic approach to capacity management to identify and solve key problems, and has developed automated processes for mapping performance data to information that can inform business decisions.

    The image contains a picture of Paul Waguespack.

    Paul Waguespack, Manager of Application Systems Engineering, Tufts Health Plan

    Paul has over 10 years' experience in IT. He has specialized in implementing new applications and functionalities throughout their entire lifecycle, and integrating with all aspects of IT operations.

    The image contains a picture of Richie Mendoza.

    Richie Mendoza, IT Consultant, SMITS Inc.

    Richie has over 10 years' experience in IT infrastructure. He has specialized in using demand forecasting to guide infrastructure capacity purchasing decisions, to provide availability while avoiding costly overprovisioning.

    The image contains a picture of Rob Thompson.

    Rob Thompson, President, IT Tools & Process

    Rob has over 30 years’ IT experience. Throughout his career he has focused on making IT a generator of business value. He now runs a boutique consulting firm.

    Todd Evans, Capacity and Performance Management SME, IBM

    Todd has over 20 years' experience in capacity and performance management. At Kaiser Permanente, he established a well-defined mapping of the businesses workflow processes to technical requirements for applications and infrastructure.

    Bibliography

    451 Research. “Best of both worlds: Can enterprises achieve both scalability and control when it comes to cloud?” 451 Research, November 2016. Web.

    Allen, Katie. “Work Also Shrinks to Fit the Time Available: And We Can Prove It.” The Guardian. 25 Oct. 2017.

    Amazon. “Amazon Elastic Compute Cloud.” Amazon Web Services. N.d. Web.

    Armandpour, Tim. “Lies Vendors Tell about Service Level Agreements and How to Negotiate for Something Better.” Network World. 12 Jan 2016.

    “Availability Management.” ITIL and ITSM World. 2001. Web.

    Availability Management Plan Template. Purple Griffon. 30 Nov. 2012. Web.

    Bairi, Jayachandra, B., Murali Manohar, and Goutam Kumar Kundu. “Capacity and Availability Management by Quantitative Project Management in the IT Service Industry.” Asian Journal on Quality 13.2 (2012): 163-76. Web.

    BMC Capacity Optimization. BMC. 24 Oct 2017. Web.

    Brooks, Peter, and Christa Landsberg. Capacity Management in Today’s IT Environment. MentPro. 16 Aug 2017. Web.

    "Capacity and Availability Management." CMMI Institute. April 2017. Web.

    Capacity and Availability Management. IT Quality Group Switzerland. 24 Oct. 2017. Web.

    Capacity and Performance Management: Best Practices White Paper. Cisco. 4 Oct. 2005. Web.

    "Capacity Management." Techopedia.

    “Capacity Management Forecasting Best Practices and Recommendations.” STG. 26 Jan 2015. Web.

    Capacity Management from the Ground up. Metron. 24 Oct. 2017. Web.

    Capacity Management in the Modern Datacenter. Turbonomic. 25 Oct. 2017. Web.

    Capacity Management Maturity Assessing and Improving the Effectiveness. Metron. 24 Oct. 2017. Web.

    “Capacity Management Software.” TeamQuest. 24 Oct 2017. Web,

    Capacity Plan Template. Purainfo. 11 Oct 2012. Web.

    “Capacity Planner—Job Description.” Automotive Industrial Partnership. 24 Oct. 2017. Web.

    Capacity Planning. CDC. Web. Aug. 2017.

    "Capacity Planning." TechTarget. 24 Oct 2017. Web.

    “Capacity Planning and Management.” BMC. 24 Oct 2017. Web.

    "Checklist Capacity Plan." IT Process Wiki. 24 Oct. 2017. Web.

    Dykes, Brent. “Actionable Insights: The Missing Link Between Data and Business Value.” Forbes. April 26, 2016. Web.

    Evolved Capacity Management. CA Technologies. Oct. 2013. Web.

    Francis, Ryan. “False positives still cause threat alert fatigue.” CSO. May 3, 2017. Web.

    Frymire, Scott. "Capacity Planning vs. Capacity Analytics." ScienceLogic. 24 Oct. 2017. Web.

    Glossary. Exin. Aug. 2017. Web.

    Herrera, Michael. “Four Types of Risk Mitigation and BCM Governance, Risk and Compliance.” MHA Consulting. May 17, 2013.

    Hill, Jon. How to Do Capacity Planning. TeamQuest. 24 Oct. 2017. Web.

    “How to Create an SLA in 7 Easy Steps.” ITSM Perfection. 25 Oct. 2017. Web.

    Hunter, John. “Myth: If You Can’t Measure It: You Can’t Manage It.” W. Edwards Deming Institute Blog. 13 Aug 2015. Web.

    IT Service Criticality. U of Bristol. 24 Oct. 2017. Web.

    "ITIL Capacity Management." BMC's Complete Guide to ITIL. BMC Software. 22 Dec. 2016. Web.

    “Just-in-time.” The Economist. 6 Jul 2009. Web.

    Kalm, Denise P., and Marv Waschke. Capacity Management: A CA Service Management Process Map. CA. 24 Oct. 2017. Web.

    Klimek, Peter, Rudolf Hanel, and Stefan Thurner. “Parkinson’s Law Quantified: Three Investigations in Bureaucratic Inefficiency.” Journal of Statistical Mechanics: Theory and Experiment 3 (2009): 1-13. Aug. 2017. Web.

    Landgrave, Tim. "Plan for Effective Capacity and Availability Management in New Systems." TechRepublic. 10 Oct. 2002. Web.

    Longoria, Gina. “Hewlett Packard Enterprise Goes After Amazon Public Cloud in Enterprise Storage.” Forbes. 2 Dec. 2016. Web.

    Maheshwari, Umesh. “Understanding Storage Capacity.” NimbleStorage. 7 Jan. 2016. Web.

    Mappic, Sandy. “Just how complex can a Login Transaction be? Answer: Very!” Appdynamics. Dec. 11 2011. Web.

    Miller, Ron. “AWS Fires Back at Larry Ellison’s Claims, Saying It’s Just Larry Being Larry.” Tech Crunch. 2 Oct. 2017. Web.

    National College for Teaching & Leadership. “The role of data in measuring school performance.” National College for Teaching & Leadership. N.d. Web,

    Newland, Chris, et al. Enterprise Capacity Management. CETI, Ohio State U. 24 Oct. 2017. Web.

    Office of Government Commerce . Best Practice for Service Delivery. London: Her Majesty’s Stationery Office, 2001.

    Office of Government Commerce. Best Practice for Business Perspective: The IS View on Delivering Services to the Business. London: Her Majesty’s Stationery Office, 2004.

    Parkinson, C. Northcote. “Parkinson’s Law.” The Economist. 19 Nov. 1955. Web.

    “Parkinson’s Law Is Proven Again.” Financial Times. 25 Oct. 2017. Web.

    Paul, John, and Chris Hayes. Performance Monitoring and Capacity Planning. VM Ware. 2006. Web.

    “Reliability and Validity.” UC Davis. N.d. Web.

    "Role: Capacity Manager." IBM. 2008. Web.

    Ryan, Liz. “‘If You Can’t Measure It, You Can’t Manage It’: Not True.” Forbes. 10 Feb. 2014. Web.

    S, Lalit. “Using Flexible Capacity to Lower and Manage On-Premises TCO.” HPE. 23 Nov. 2016. Web.

    Snedeker, Ben. “The Pros and Cons of Public and Private Clouds for Small Business.” Infusionsoft. September 6, 2017. Web.

    Statement of Work: IBM Enterprise Availability Management Service. IBM. Jan 2016. Web.

    “The Road to Perfect AWS Reserved Instance Planning & Management in a Nutshell.” Botmetric. 25 Oct. 2017. Web.

    Transforming the Information Infrastructure: Build, Manage, Optimize. Asigra. Aug. 2017. Web.

    Valentic, Branimir. "Three Faces of Capacity Management." ITIL/ISO 20000 Knowledge Base. Advisera. 24 Oct. 2017. Web.

    "Unify IT Performance Monitoring and Optimization." IDERA. 24 Oct. 2017. Web.

    "What is IT Capacity Management?" Villanova U. Aug. 2017. Web.

    Wolstenholme, Andrew. Final internal Audit Report: IT Availability and Capacity (IA 13 519/F). Transport For London. 23 Feb. 2015. Web.

    Simplify Remote Deployment With Zero-Touch Provisioning

    • Buy Link or Shortcode: {j2store}310|cart{/j2store}
    • member rating overall impact: 9.0/10 Overall Impact
    • member rating average dollars saved: $5,199 Average $ Saved
    • member rating average days saved: 5 Average Days Saved
    • Parent Category Name: End-User Computing Strategy
    • Parent Category Link: /end-user-computing-strategy

    Provide better end-user device support to a remote workforce:

    • Remain compliant while purchasing, deploying, supporting, and decommissioning devices.
    • Save time and resources during device deployment while providing a high-quality experience to remote end users.
    • Build a set of capabilities that will let you support different use cases.

    Our Advice

    Critical Insight

    • Zero-touch is more than just deployment. This is more difficult than turning on a tool and provisioning new devices to end users.
    • Consider the entire user experience and device lifecycle to show value to the organization. Don’t forget that you will eventually need to touch the device.

    Impact and Result

    Approach zero-touch provisioning and patching from the end user’s experience:

    • Align your zero-touch approach with stakeholder priorities and larger IT strategies.
    • Build your zero-touch provisioning and patching plan from both the asset lifecycle and the end-user perspective to take a holistic approach that emphasizes customer service.
    • Tailor deployment plans to more easily scope and resource deployment projects.

    Simplify Remote Deployment With Zero-Touch Provisioning Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should adopt zero-touch provisioning, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Design the zero-touch experience

    Design the user’s experience and build a vision to direct your zero-touch provisioning project. Update your ITAM practices to reflect the new experience.

    • Zero-Touch Provisioning and Support Plan
    • HAM Process Workflows (Visio)
    • HAM Process Workflows (PDF)
    • End-User Device Management Standard Operating Procedure

    2. Update device management, provisioning, and patching

    Leverage new tools to manage remote endpoints, keep those devices patched, and allow users to get the apps they need to work.

    • End-User Device Build Book Template

    3. Build a roadmap and communication plan

    Create a roadmap for migrating to zero-touch provisioning.

    • Roadmap Tool
    • Communication Plan Template
    [infographic]

    Define Service Desk Metrics That Matter

    • Buy Link or Shortcode: {j2store}491|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Service Desk
    • Parent Category Link: /service-desk
    • Consolidate your metrics and assign context and actions to ones currently tracked.
    • Establish tension metrics to see and tell the whole story.
    • Split your metrics for each stakeholder group. Assign proper cadences for measurements as a first step to building an effective dashboard.

    Our Advice

    Critical Insight

    • Identify the metrics that serve a real purpose and eliminate the rest. Establish a formal review process to ensure metrics are still valid, continue to provide the answers needed, and are at a manageable and usable level.

    Impact and Result

    • Tracking goal- and action-based metrics allows you to make meaningful, data-driven decisions for your service desk. You can establish internal benchmarks to set your own baselines.
    • Predefining the audience and cadence of each metric allows you to construct targeted dashboards to aid your metrics analysis.

    Define Service Desk Metrics That Matter Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define Service Desk Metrics That Matter Storyboard – A deck that shows you how to look beyond benchmarks and rely on internal metrics to drive success.

    Deciding which service desk metrics to track and how to analyze them can be daunting. Use this deck to narrow down your goal-oriented metrics as a starting point and set your own benchmarks.

    • Define Service Desk Metrics That Matter Storyboard

    2. Service Desk Metrics Workbook – A tool to organize your service desk metrics.

    For each metric, consider adding the relevant overall goal, audience, cadence, and action. Use the audience and cadence of the metric to split your tracked metrics into various dashboards. Your final list of metrics and reports can be added to your service desk SOP.

    • Service Desk Metrics Workbook
    [infographic]

    Further reading

    Define Service Desk Metrics That Matter

    Look beyond benchmarks and rely on internal metrics to drive success.

    Analyst Perspective

    Don’t get paralyzed by benchmarks when establishing metrics

    When establishing a suite of metrics to track, it’s tempting to start with the metrics measured by other organizations. Naturally, benchmarking will enter the conversation. While benchmarking is useful, measuring you organization against others with a lack of context will only highlight your failures. Furthermore, benchmarks will highlight the norm or common practice. It does not necessarily highlight best practice.

    Keeping the limitations of benchmarking in mind, establish your own metrics suite with action-based metrics. Define the audience, cadence, and actions for each metric you track and pair them with business goals. Measure only what you need to.

    Slowly improve your metrics process over time and analyze your environment using your own data as your benchmark.

    Benedict Chang

    Research Analyst, Infrastructure & Operations

    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Measure the business value provided by the service desk.
    • Consolidate your metrics and assign context and actions to ones currently tracked.
    • Establish tension metrics to see and tell the whole story.
    • Split your metrics for each stakeholder group. Assign proper cadences for measurements as a first step to building an effective dashboard or effective dashboards.

    Common Obstacles

    • Becoming too focused on benchmarks or unidimensional metrics (e.g. cost, first-contact resolution, time to resolve) can lead to misinterpretation of the data and poorly informed actions.
    • Sifting through the many sources of data post hoc can lead to stalling in data analysis or slow reaction times to poor metrics.
    • Dashboards can quickly become cluttered with uninformative metrics, thus reducing the signal-to-noise ratio of meaningful data.

    Info-Tech's Approach

    • Use metrics that drive productive change and improvement. Track only what you need to report on.
    • Ensure each metric aligns with the desired business goal, is action-based, and includes the answers to what, why, how, and who.
    • Establish internal benchmarks by analyzing the trends from your own data to set baselines.
    • Act on the results of your metrics by adjusting targets and measuring success.

    Info-Tech Insight

    Identify the metrics that serve a real purpose and eliminate the rest. Establish a formal review process to ensure metrics are still valid, continue to provide the answers needed, and are at a manageable and usable level.

    Improve your metrics to align IT with strategic business goals

    The right metrics can tell the business how hard IT works and how well they perform.

    • Only 19% of CXOs feel that their organization is effective at measuring the success of IT projects with their current metrics.
    • Implementing the proper metrics can facilitate communication between the business division and IT practice.
    • The proper metrics can help IT know what issues the business has and how the CEO and CIO should tackle them.
    • If the goals above resonate with your organization, our blueprint Take Control of Infrastructure and Operations Metrics will take you through the right steps.

    Current Metrics Suite

    19% Effective

    36% Some Improvement Necessary

    45% Significant Improvement Necessary

    Source: Info-Tech Research Group’s CEO/CIO Alignment Diagnostic, 2019; N=622

    CXOs stress that value is the most critical area for IT to improve in reporting

    • You most likely have to improve your metrics suite by addressing business value.
    • Over 80% of organizations say they need improvement to their business value metrics, with 32% of organizations reporting that significant improvement is needed.
    • Of course, measuring metrics for service desk operations is important, but don’t forget business-oriented metrics such as measuring knowledgebase articles written for shift-left enablement, cost (time and money) of service desk tickets, and overall end-user satisfaction.

    The image shows a bar graph with percentages on the Y-Acis, and the following categories on the X-Axis: Business value metrics; Stakeholder satisfaction reporting; Risk metrics; Technology performance & operating metrics; Cost & Salary metrics; and Ad hoc feedback from executives and staff. Each bar is split into two sections, with the blue section marked a Significant Improvement Necessary, and the purple section labelled Some Improvement necessary. Two sections are highlighted with red circles: Business Value metrics--32% blue; 52% purple; and Technology performance & operating metrics--23% blue and 51% purple.

    Source: Info-Tech Research Group’s CEO/CIO Alignment Diagnostic, 2019; N=622

    Benchmarking used in isolation will not tell the whole story

    Benchmarks can be used as a step in the metrics process

    They can be the first step to reach an end goal, but if benchmarks are observed in isolation, it will only highlight your failures.

    Benchmarking relies on standardized models

    This does not account for all the unique variables that make up an IT organization.

    For example, benchmarks that include cost and revenue may include organizations that prioritize first-call resolution (FCR), but the variables that make up this benchmark model will be quite different within your own organization.

    Info-Tech Insight

    Benchmarks reflect the norm and common practice, not best practice.

    Benchmarks are open to interpretation

    Taking the time to establish proper metrics is often more valuable time spent than going down the benchmark rabbit hole.

    Being above or below the norm is neither a good nor a bad thing.

    Determining what the results mean for you depends on what’s being measured and the unique factors, characteristics, and priorities in your organization.

    If benchmark data is a priority within your IT organization, you may look up organizations like MetricNet, but keep the following in mind:

    Review the collected benchmark data

    See where IT organizations in your industry typically stand in relation to the overall benchmark.

    Assess the gaps

    Large gaps between yourself and the overall benchmark could indicate areas for improvement or celebration. Use the data to focus your analysis, develop deeper self-awareness, and prioritize areas for potential concern.

    Benchmarks are only guidelines

    The benchmark source data may not come from true peers in every sense. Each organization is different, so always explore your unique context when interpreting any findings.

    Rely on internal metrics to measure and improve performance

    Measure internal metrics over time to define goals and drive real improvement

    • Internally measured metrics are more reliable because they provide information about your actual performance over time. This allows for targeted improvements and objective measurements of your milestones.
    • Whether a given metric is the right one for your service desk will depend on several different factors, including:
      • The maturity and capability of your service desk processes
      • The volume of service requests and incidents
      • The complexity of your environment when resolving tickets
      • The degree to which your end users are comfortable with self-service

    Take Info-Tech’s approach to metrics management

    Use metrics that drive productive change and improvement. Track only what you need to report on.

    Ensure each metric aligns with the desired business goal, is action-based, and includes the answers to what, why, how, and who.

    Establish internal benchmarks by analyzing the trends from your own data to set baselines.

    Act on the results of your metrics by adjusting targets and measuring success.

    Define action-based metrics to cut down on analysis paralysis

    Every metric needs to be backed with the following criteria:

    • Defining audience, cadence, goal, and action for each metric allows you to keep your tracked metrics to a minimum while maximizing the value.
    • The audience and cadence of each metric may allow you to define targeted dashboards.

    Audience - Who is this metric tracked for?

    Goal - Why are you tracking this metric? This can be defined along with the CSFs and KPIs.

    Cadence - How often are you going to view, analyze, and action this metric?

    Action - What will you do if this metric spikes, dips, trends up, or trends down?

    Activity 1. Define your critical success factors and key performance indicators

    Critical success factors (CSFs) are high-level goals that help you define the direction of your service desk. Key performance indicators (KPIs) can be treated as the trend of metrics that will indicate that you are moving in the direction of your CSFs. These will help narrow the data you have to track and action (metrics).

    CSFs, or your overall goals, typically revolve around three aspects of the service desk: time spent on tickets, resources spent on tickets, and the quality of service provided.

    1. As a group, brainstorm the CSFs and the KPIs that will help narrow your metrics. Use the Service Desk Metrics Workbook to record the results.
    2. Look at the example to the right as a starting point.

    Example metrics:

    Critical success factor Key performance indicator
    High End-User Satisfaction Increasing CSAT score on transactional surveys
    High end-user satisfaction score
    Proper resolution of tickets
    Low time to resolve
    Low Cost per Ticket Decreasing cost per ticket (due to efficient resolution, FCR, automation, self-service, etc.)
    Improve Access to Self-Service (tangential to improve customer service) High utilization of knowledgebase
    High utilization of portal

    Download the Service Desk Metrics Workbook

    Activity 2. Define action-based metrics that align with your KPIs and CSFs

    1. Now that you have defined your goals, continue to fill the workbook by choosing metrics that align with those goals.
    2. Use the chart below as a guide. For every metric, define the cadence of measurement, audience of the metric, and action associated with the metric. There may be multiple metrics for each KPI.
    3. If you find you are unable to define the cadence, audience, or action associated with a metric, you may not need to track the metric in the first place. Alternatively, if you find that you may action a metric in the future, you can decide to start gathering data now.

    Example metrics:

    Critical success factor Key performance indicator Metric Cadence Audience Action
    High End-User Satisfaction Increasing CSAT score on transactional surveys Monthly average of ticket satisfaction scores Monthly Management Action low scores immediately, view long-term trends
    High end-user satisfaction score Average end-user satisfaction score from annual survey Annually IT Leadership View IT satisfaction trends to align IT with business direction
    Proper resolution of tickets Number of tickets reopened Weekly Service Desk Technicians Action reopened tickets, look for training opportunities
    SLA breach rate Daily Service Desk Technicians Action reopened tickets, look for training opportunities
    Low time to resolve Average TTR (incidents) Weekly Management Look for trends to monitor resources
    Average TTR by priority Weekly Management Look for TTR solve rates to align with SLA
    Average TTR by tier Weekly Management Look for improperly escalated tickets or shift-left opportunities

    Download the Service Desk Metrics Workbook

    Activity 3. Define the data ownership, metric viability, and dashboards

    1. For each metric, define where the data is housed. Ideally, the data is directly in the ticketing tool or ITSM tool. This will make it easy to pull and analyze.
    2. Determine how difficult the metric will be to pull or track. If the effort is high, decide if the value of tracking the metric is worth the hassle of gathering it.
    3. Lastly, for each metric, use the cadence and audience to place the metric in a reporting dashboard. This will help divide your metrics and make them easier to report and action.
    4. You may use the output of this exercise to add your tracked metrics to your service desk SOP.
    5. A full suite of metrics can be found in our Infrastructure & Operations Metrics Library in the Take Control of Infrastructure Metrics Storyboard. The metrics have been categorized by low, medium, and advanced capabilities for you.

    Example metrics:

    Metric Who Owns the Data? Efforts to Track? Dashboards
    Monthly average of ticket satisfaction scores Service Desk Low Monthly Management Meeting
    Average end-user satisfaction score Service Desk Low Leadership Meeting
    Number of tickets reopened Service Desk Low Weekly Technician Standup
    SLA breach rate Service Desk Low Daily Technician Standup
    Average TTR (incidents) Service Desk Low Weekly Technician Standup
    Average TTR by priority Service Desk Low Weekly Technician Standup
    Average TTR by tier Service Desk Low Weekly Technician Standup
    Average TTR (SRs) Service Desk Low Weekly Technician Standup
    Number of tickets reopened Service Desk Low Daily Technician Standup

    Download the Service Desk Metrics Workbook

    Keep the following considerations in mind when defining which metrics matter

    Keep the customer in mind

    Metrics are typically focused on transactional efficiency and process effectiveness and not what was achieved against the customers’ need and satisfaction.

    Understand the relationships between performance and metrics management to provide the end-to-end service delivery picture you are aiming to achieve.

    Don’t settle for tool defaults

    ITSM solutions offer an abundance of metrics to choose from. The most common ones are typically built into the reporting modules of the tool suite.

    Do not start tracking everything. Choose metrics that are specifically aligned to your organization’s desired business outcomes.

    Establish tension metrics to achieve balance

    Don’t ignore the correlation and context between the suites of metrics chosen and how one interacts and affects the other.

    Measuring metrics in isolation may lead to an incomplete picture or undesired technician behavior. Tension metrics help complete the picture and lead to proper actions.

    Adjust those targets

    An arbitrary target on a metric that is consistently met month over month is useless. Each metric should inform the overall performance by combining capable service level management and customer experience programs to prove the value IT is providing to the organization.

    Related Info-Tech Research

    Standardize the Service Desk

    This project will help you build and improve essential service desk processes, including incident management, request fulfillment, and knowledge management, to create a sustainable service desk.

    Take Control of Infrastructure and Operations Metrics

    Make faster decisions and improve service delivery by using the right metrics for the job.

    Analyze Your Service Desk Ticket Data

    Take a data-driven approach to service desk optimization.

    IT Diagnostics: Build a Data-Driven IT Strategy

    Our data-driven programs ask business and IT stakeholders the right questions to ensure you have the inputs necessary to build an effective IT strategy.

    Create an Effective SEO Keyword Strategy

    • Buy Link or Shortcode: {j2store}568|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions

    Digital Marketers working with an outdated or bad SEO strategy often see:

    • Declining keyword ranking and traffic
    • Poor keyword strategy
    • On-page errors

    Our Advice

    Critical Insight

    Most marketers fail in their SEO efforts because they focus on creating content for computers, not people.

    Impact and Result

    Using the SoftwareReviews methodology, digital marketers are able to break up their SEO project and data into bite-sized, actionable steps that focus on long-term improvement. Our methodology includes:

    • Competitive keyword research and identification of opportunities
    • On-page keyword strategy

    Create an Effective SEO Keyword Strategy Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Create an Effective SEO Keyword Strategy

    Update your on-page SEO strategy with competitively relevant keywords.

    • Create an Effective SEO Keyword Strategy Storyboard
    [infographic]

    Further reading

    Create an Effective SEO Keyword Strategy
    Update your on-page SEO strategy with competitively relevant keywords.

    Analyst Perspective

    Most marketers fail in their SEO efforts because they focus on creating content for computers, not people.

    Leading search engine optimization methods focus on creating and posting relevant keyword-rich content, not just increasing page rank. Content and keywords should move a buyer along their journey, close a sale, and develop long-term relationships. Unfortunately, many SEO specialists focus on computers, not the buyer. What's even more concerning is that up to 70% of SaaS businesses have already been impacted by outdated and inefficient SEO techniques. Poor strategies often focus on ballooning SEO metrics in the short-term instead of building the company's long-term PageRank.

    Best-in-class digital marketers stop chasing the short-term highs and focus on long-term growth. This starts with developing a competitive keyword strategy and updating website content with the new keywords.

    SEO is a large topic, so we have broken the strategy into small, easy-to-implement steps, taking the guesswork out of how to use the data from SEO tools and giving CMOs a solid path to increase their SEO results.

    This is a picture of Terra Higginson

    Terra Higginson
    Marketing Research Director
    SoftwareReviews

    Executive Summary

    Your Challenge

    Digital marketers working with an outdated or bad SEO strategy often see:

    • Declining keyword ranking and traffic
    • Poor keyword strategy
    • On-page errors

    Search algorithms change all the time, which means that the strategy is often sitting on the sifting sands of technology, making SEO strategies quickly outdated.

    Common Obstacles

    Digital marketers are responsible for developing and implementing a competitive SEO strategy but increasingly encounter the following obstacles:

    • SEO practitioners that focus on gaming the system
    • Ever-changing SEO technology
    • Lack of understanding of the best SEO techniques
    • SEO techniques focus on the needs of computers, not people
    • Lack of continued investment

    SoftwareReviews' Approach

    Using the SoftwareReviews methodology, digital marketers are able to break up their SEO project and data into bite-sized, actionable steps that focus on long-term improvement. Our methodology includes:

    • Competitive keyword research and identification of opportunities
    • On-page keyword strategy

    Our methodology will take a focused step-by-step strategy in a series of phases that will increase PageRank and competitive positioning.

    SoftwareReviews' SEO Methodology

    In this blueprint, we will cover:

    Good SEO vs. Poor SEO Techniques

    The difference between good and bad SEO techniques.

    Common Good
    SEO Techniques

    Common Poor
    SEO Techniques

    • Writing content for people, not machines.
    • Using SEO tools to regularly adjust and update SEO content, keywords, and backlinks.
    • Pillar and content cluster strategy in addition to a basic on- and off-page strategy.
    • Keyword stuffing and content duplication.
    • A strategy that focuses on computers first and people second.
    • Low-quality or purchased backlinks.

    Companies With Great SEO…

    Keyword Strategy

    • Have identified a keyword strategy that carves out targets within the white space available between themselves and the competition.

    Error-Free Site

    • Have error-free sites without duplicate content. Their URLs and redirects are all updated. Their site is responsive, and every page loads in under two seconds.

    Pillar & Content Clusters

    • Employ a pillar and content cluster strategy to help move the buyer through their journey.

    Authentic Off-Page Strategy

    • Build an authentic backlink strategy that incorporates the right information on the right sites to move the buyer through their journey.

    SEO Terms Defined

    A glossary to define common Phase 1 SEO terms.

    Search Volume: this measures the number of times a keyword is searched for in a certain time period. Target keywords with a volume of between 100-100,000. A search volume greater than 100,000 will be increasingly difficult to rank (A Beginner's Guide to Keyword Search Volume, 2022, Semrush).

    Keyword Difficulty: the metric that quantifies how difficult it will be to rank for a certain keyword. The keyword difficulty percentage includes the number of competitors attempting to rank for the same keyword, the quality of their content, the search intent, backlinks, and domain authority (Keyword Difficulty: What Is It and Why Is It Important? 2022, Semrush).

    Intent: this metric focuses on the intent of the user's search. All search intent is categorized into Informational, Commercial, Navigational, and Transactional (What Is Search Intent? A Complete Guide, 2022, Semrush).

    On-Page SEO: refers to the practice of search engine optimizing elements of your site such as title tags, internal links, HTML code, URL optimization, on-page content, images, and user experience.

    Off-Page SEO: refers to the practice of optimizing brand awareness (What Is Off-Page SEO? A Comprehensive Guide, 2022, Semrush).

    H1: HTML code that tells a search engine the title of the page (neilpatel.com).

    SEO Tool: A subscription-based all-in-one search engine optimization MarTech tool.

    Google's mission is to organize the world's information and make it universally accessible and useful… We believe Search should deliver the most relevant and reliable information available.
    – An excerpt from Google's mission statement

    Your Challenge

    Google makes over 4.5k algorithm changes per year1, directly impacting digital marketing search engine optimization efforts.

    Digital marketers with SEO problems will often see the following issues:

    • Keyword ranking – A decline in keyword ranking is alarming and results in decreased PageRank.
    • Bounce rate – Attracting the wrong audience to your site will increase the bounce rate because the H1 doesn't resonate with your audience.
    • Outdated keywords – Many companies are operating on a poor keyword strategy, or even worse, no keyword strategy. In addition, many marketers haven't updated their strategy to include pillar and cluster content.
    • Errors – Neglected sites often have a large number of errors.
    • Bad backlinks – Neglected sites often have a large number of toxic backlinks.

    The best place to hide a dead body is on page two of the search results.
    – Huffington Post

    Common Obstacles

    Digital marketers are responsible for developing and executing a competitive SEO strategy but increasingly encounter the following obstacles:

    • Inefficient and ineffective SEO practitioners.
    • Changing SEO technology and search engine algorithms.
    • Lack of understanding of the best-in-class SEO techniques.
    • Lack of a sustainable plan to manage the strategy and invest in SEO.

    SEO is a helpful activity when it's applied to people-first content. However, content created primarily for search engine traffic is strongly correlated with content that searchers find unsatisfying.
    – Google Search Central Blog

    Benefits of Proper SEO

    A good SEO keyword strategy will create long-term, sustainable SEO growth:

    • Write content for people, not algorithms – Good SEO prioritizes the needs of humans over the needs of computers, being ever thoughtful of the meaning of content and keywords.
    • Content that aligns with intent – Content and keyword intent will align with the buyer journey to help move prospects through the funnel.
    • Competitive keyword strategy – Find keyword white space for your brand. Keywords will be selected to optimize your ranking among competition with reasonable and sustainable targets.
    • Actionable and impactful fixes – By following the SoftwareReviews phases of SEO, you will be able to take a very large task and divide it into conquerable actions. Small improvements everyday lead to very large improvements over time.

    Digital Marketing SEO Stats

    61%
    61% of marketers believe that SEO is the key to online success.
    Source: Safari Digital

    437%
    Updating an existing title tag with an SEO optimised one can increase page clicks by more than 437%.
    Source: Safari Digital

    Good SEO Aligns With Search Intent

    What type of content is the user searching for? Align your keyword to the logical search objective.

    Informational

    This term categorizes search intent for when a user wants to inform or educate themselves on a specific topic.

    Commercial

    This term categorizes search intent for when a user wants to do research before making a purchase.

    Transactional

    This term categorizes search intent for when a user wants to purchase something.

    Navigational

    This term categorizes search intent for when a user wants to find a specific page.

    SoftwareReviews' Methodology toCreate an Effective SEO Strategy

    1. Competitive Analysis & Keyword Discovery 2. On-Page Keyword Optimization
    Phase Steps
    1. Make a list of keywords in your current SEO strategy – including search volume, keyword difficulty percentage, intent.
    2. Research the keywords of top competitors.
    3. Make a list of target keywords you would like to own – including the search volume, keyword difficulty percentage, and intent. Make sure that these keywords align with your buyer persona.
    1. List product and service pages, along with the URL and current ranking(s) for the keyword(s) for that URL.
    2. Create a new individual page strategy for each URL. Record the current keyword, rank, title tag, H1 tag, and meta description. Then, with keyword optimization in mind, develop the new title tag, new H1 tag, and new meta description. Build the target keywords into the pages and tags.
    3. Record the current ranking for the pages' keywords then reassess after three to six months.
    Phase Outcomes
    • Understanding of competitive landscape for SEO
    • A list of target new keywords
    • Keyword optimized product and service pages

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2

    Call #1: Identify your current SEO keyword strategy.

    Call #2: Discuss how to start a competitive keyword analysis.

    Call #4: Discuss how to build the list of target keywords.

    Call #6: Discuss keyword optimization of the product & services pages.

    Call #8: (optional)

    Schedule a call to update every three to six months.

    Call #3: Discuss the results of the competitive keyword analysis.

    Call #5: Discuss which pages to update with new target keywords.

    Call #7: Review final page content and tags.

    Call #9: Schedule a call for SEO Phase 2: On-Page Technical Refinement.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 8 to 12 calls over the course of 1 to 2 months.

    Guided Implementation

    What does a typical GI on this topic look like?

    Phase 1 Phase 2

    Call #1: Identify your current SEO keyword strategy.

    Call #2: Discuss how to start a competitive keyword analysis.

    Call #4: Discuss how to build the list of target keywords.

    Call #6: Discuss keyword optimization of the product & services pages.

    Call #8: (optional)

    Schedule a call to update every three to six months.

    Call #3: Discuss the results of the competitive keyword analysis.

    Call #5: Discuss which pages to update with new target keywords.

    Call #7: Review final page content and tags.

    Call #9: Schedule a call for SEO Phase 2: On-Page Technical Refinement.

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is between 8 to 12 calls over the course of 1 to 2 months.

    SoftwareReviews offers various levels of support to best suit your needs

    Included Within an Advisory Membership Optional Add-Ons
    DIY Toolkit Guided Implementation Workshop Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Insight Summary

    People-First Content

    Best-in-class SEO practitioners focus on people-first content, not computer-first content. Search engine algorithms continue to focus on how to rank better content first, and a strategy that moves your buyers through the funnel in a logical and cohesive way will beat any SEO trick over the long run.

    Find White Space

    A good SEO strategy uses competitive research to carve out white space and give them a competitive edge in an increasingly difficult ranking algorithm. An understanding of the ideal client profile and the needs of their buyer persona(s) sit as a pre-step to any good SEO strategy.

    Optimize On-Page Keywords

    By optimizing the on-page strategy with competitively relevant keywords that target your ideal client profile, marketers are able to take an easy first step at improving the SEO content strategy.

    Understand the Strategy

    If you don't understand the strategy of your SEO practitioner, you are in trouble. Marketers need to work hand in hand with their SEO specialists to quickly uncover gaps, create a strategy that aligns with the buyer persona(s), and execute the changes.

    Quality Trumps Quantity

    The quality of the prospect that your SEO efforts bring to your site is more important than the number of people brought to your site.

    Stop Here and Ask Yourself:

    • Do I have an updated (completed within the last two years) buyer persona and journey?
    • Do I know who the ICP (ideal client profile) is for my product or company?

    If not, stop here, and we can help you define your buyer persona and journey, as well as your ideal client profile before moving forward with SEO Phase 1.

    The Steps to SEO Phase 1

    The Keyword Strategy

    1. Current Keywords
      • Identify the keywords your SEO strategy is currently targeting.
    2. Competitive Analysis
      • Research the keywords of competitor(s). Identify keyword whitespace.
    3. New Target Keywords
      • Identify and rank keywords that will result in more quality leads and less competition.
    4. Product & Service Pages
      • Identify your current product and service pages. These pages represent the easiest content to update on your site.
    5. Individual Page Update
      • Develop an SEO strategy for each of your product and service pages, include primary target keyword, H1, and title tags, as well as keyword-rich description.

    Resources Needed for Search Engine Optimization

    Consider the working skills required for search engine optimization.

    Required Skills/Knowledge

    • SEO
    • Web development
    • Competitive analysis
    • Content creation
    • Understanding of buyer persona and journey
    • Digital marketing

    Suggested Titles

    • SEO Analyst
    • Competitive Intelligence Analyst
    • Content Marketing Manager
    • Website Developer
    • Digital Marketing Manager

    Digital Marketing Software

    • CMS that allows you to easily access and update your content

    SEO Software

    • SEO tool

    Step 1: Current Keywords

    Use this sheet to record your current keyword research.

    Use your SEO tool to research keywords and find the following:
    Use a quality tool like SEMRush to obtain SEO data.

    1. Keyword difficulty
    2. Search volume
    3. Search intent

    This is a screenshot of the SEO tool SEMRush, which can be used to identify current keywords.

    Step 2: Competitive Analysis

    Use this sheet to guide the research on your competitors' keywords.

    Use your SEO tool to find the following:

    1. Top organic keywords
    2. Ranking of keywords
    3. Domain authority and trust
    4. Position changes

    This is a screenshot of the SEO tool SEMRush, which can be used to perform an competitive analysis

    Step 3: New Target Keywords

    Use this sheet to record target keywords that have a good volume but are less competitive. The new target keywords should align with your buyer persona and their journey.

    Use your SEO tool to research keywords and find the following:
    Use a quality tool like SEMRush to obtain SEO data.

    1. Keyword difficulty
    2. Search volume
    3. Search intent

    This is a screenshot of the SEO tool SEMRush, which can be used to identify new target keywords.

    Step 4: Product & Service Pages

    Duplicate this page so that you have a separate page for each URL from Step 4

    Use this sheet to identify your current product and service pages.

    Use your SEO tool to find the following:

    1. Current rank
    2. Current keywords

    This is a screenshot of the SEO tool SEMRush, showing where you can display product and service pages.

    Step 5: Individual Page Strategy

    Develop a keyword strategy for each of your product and service pages. Use a fresh page for each URL.

    Date last optimized:
    mm/dd/yyyy

    This is a screenshot of the SEO tool SEMRush, with an example of how you can use an individual page strategy to develop a keyword strategy.

    Bibliography

    Council, Y. "Council Post: The Rundown On Black Hat SEO Techniques And Why You Should Avoid Them." Forbes, 2022. Accessed September 2022.

    "Our approach – How Google Search works." Google Search. Accessed September 2022.

    "The Best Place to Hide a Dead Body is Page Two of Google." HuffPost, 2022. Accessed September 2022.

    Patel, Neil. "How to Create the Perfect H1 Tag for SEO." neilpatel.com. Accessed September 2022.

    Schwartz, B. "Google algorithm updates 2021 in review: Core updates, product reviews, page experience and beyond." Search Engine Land, 2022. Accessed September 2022.

    Schwartz, B. "Google algorithm updates 2021 in review: Core updates, product reviews, page experience and beyond." Search Engine Land, 2022. Accessed September 2022.

    Create a Buyer Persona and Journey

    • Buy Link or Shortcode: {j2store}558|cart{/j2store}
    • member rating overall impact: N/A
    • member rating average dollars saved: N/A
    • member rating average days saved: N/A
    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • Contacts fail to convert to leads because messaging fails to resonate with buyers.
    • Products fail to reach targets given shallow understanding of buyer needs.
    • Sellers' emails go unopened and attempts at discovery fail due to no understanding of buyer challenges, pain points, and needs.

    Our Advice

    Critical Insight

    • Marketing leaders in possession of well-researched and up-to-date buyer personas and journeys dramatically improve product market fit, lead gen, and sales results.
    • Success starts with product, marketing, and sales alignment on targeted personas.
    • Speed to deploy is enabled via initial buyer persona attribute discovery internally.
    • However, ultimate success requires buyer interviews, especially for the buyer journey.
    • Leading marketers update journey maps every six months as disruptive events such as COVID-19 and new media and tech platform advancements require continual innovation.

    Impact and Result

    • Reduce time and treasure wasted chasing the wrong prospects.
    • Improve product-market fit.
    • Increase open and click-through rates in your lead gen engine.
    • Perform more effective sales discovery and increase eventual win rates.

    Create a Buyer Persona and Journey Research & Tools

    Start here – read the Executive Brief

    Our Executive Brief summarizes the challenges faced when buyer persona and journeys are ill-defined. It describes the attributes of, and the benefits that accrue from, a well-defined persona and journey and the key steps to take to achieve success.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Drive an aligned initial draft of buyer persona

    Define and align your team on target persona, outline steps to capture and document a robust buyer persona and journey, and capture current team buyer knowledge.

    • Buyer Persona Creation Template
    • Buyer Persona and Journey Interview Guide and Data Capture Tool

    2. Interview buyers and validate persona and journey

    Hold initial buyer interviews, test initial results, and continue with interviews.

    3. Prepare communications and educate stakeholders

    Consolidate interview findings, present to product, marketing, and sales teams. Work with them to apply to product design, marketing launch/campaigning, and sales and customer success enablement.

    • Buyer Persona and Journey Summary Template
    [infographic]

    Workshop: Create a Buyer Persona and Journey

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Align Team, Identify Persona, and Document Current Knowledge

    The Purpose

    Organize, drive alignment on target persona, and capture initial views.

    Key Benefits Achieved

    Steering committee and project team roles and responsibilities clarified.

    Product, marketing, and sales aligned on target persona.

    Build initial team understanding of persona.

    Activities

    1.1 Outline a vision for buyer persona and journey creation and identify stakeholders.

    1.2 Identify buyer persona choices and settle on an initial target.

    1.3 Document team knowledge about buyer persona (and journey where possible).

    Outputs

    Documented steering committee and working team

    Executive Brief on personas and journey

    Personas and initial targets

    Documented team knowledge

    2 Validate Initial Work and Identify Buyer Interviewees

    The Purpose

    Build list of buyer interviewees, finalize interview guide, and validate current findings with analyst input.

    Key Benefits Achieved

    Interview efficiently using 75-question interview guide.

    Gain analyst help in persona validation, reducing workload.

    Activities

    2.1 Share initial insights with covering industry analyst.

    2.2 Hear from industry analyst their perspectives on the buyer persona attributes.

    2.3 Reconcile differences; update “current understanding.”

    2.4 Identify interviewee types by segment, region, etc.

    Outputs

    Analyst-validated initial findings

    Target interviewee types

    3 Schedule and Hold Buyer Interviews

    The Purpose

    Validate current persona hypothesis and flush out those attributes only derived from interviews.

    Key Benefits Achieved

    Get to a critical mass of persona and journey understanding quickly.

    Activities

    3.1 Identify actual list of 15-20 interviewees.

    3.2 Hold interviews and use interview guides over the course of weeks.

    3.3 Hold review session after initial 3-4 interviews to make adjustments.

    3.4 Complete interviews.

    Outputs

    List of interviewees; calls scheduled

    Initial review – “are you going in the right direction?”

    Completed interviews

    4 Summarize Findings and Provide Actionable Guidance to Colleagues

    The Purpose

    Summarize persona and journey attributes and provide activation guidance to team.

    Key Benefits Achieved

    Understanding of product market fit requirements, messaging, and marketing, and sales asset content.

    Activities

    4.1 Summarize findings.

    4.2 Create action items for supporting team, e.g. messaging, touch points, media spend, assets.

    4.3 Convene steering committee/executives and working team for final review.

    4.4 Schedule meetings with colleagues to action results.

    Outputs

    Complete findings

    Action items for team members

    Plan for activation

    5 Measure Impact and Results

    The Purpose

    Measure results, adjust, and improve.

    Key Benefits Achieved

    Activation of outcomes; measured results.

    Activities

    5.1 Review final copy, assets, launch/campaign plans, etc.

    5.2 Develop/review implementation plan.

    5.3 Reconvene team to review results.

    Outputs

    Activation review

    List of suggested next steps

    Further reading

    Create a Buyer Persona and Journey

    Make it easier to market, sell, and achieve product-market fit with deeper buyer understanding.

    EXECUTIVE BRIEF

    Executive Summary

    Your Challenge

    B2B marketers without documented personas and journeys often experience the following:

    • Contacts fail to convert to leads because messaging fails to resonate with buyers.
    • Products fail to reach targets given shallow understanding of buyer needs.
    • Sellers’ emails go unopened, and attempts at discovery fail due to no understanding of buyer challenges, pain points, and needs.

    Without a deeper understanding of buyer needs and how they buy, B2B marketers will waste time and precious resources targeting the incorrect personas.

    Common Obstacles

    Despite being critical elements, organizations struggle to build personas due to:

    • A lack of alignment and collaboration among marketing, product, and sales.
    • An internal focus; or a lack of true customer centricity.
    • A lack of tools and techniques for building personas and buyer journeys.

    In today’s Agile development environment, combined with the pressure to generate revenues quickly, high tech marketers often skip the steps necessary to go deeper to build buyer understanding.

    SoftwareReviews’ Approach

    With a common framework and target output, clients will:

    • Align marketing, sales, and product, and collaborate together to share current knowledge on buyer personas and journeys.
    • Target 12-15 customers and prospects to interview and validate insights. Share that with customer-facing staff.
    • Activate the insights for more customer-centric lead generation, product development, and selling.

    Clients who activate findings from buyer personas and journeys will see a 50% results improvement.

    SoftwareReviews Insight:
    Buyer personas and buyer journeys are essential ingredients in go-to-market success, as they inform for product, marketing, sales, and customer success who we are targeting and how to engage with them successfully.

    Buyer personas and journeys: A go-to-market critical success factor

    Marketers – large and small – will fail to optimize product-market fit, lead generation, and sales effectiveness without well-defined buyer personas and a buyer journey.

    Critical Success Factors of a Successful G2M Strategy:

    • Opportunity size and business case
    • Buyer personas and journey
    • Competitively differentiated product hypothesis
    • Buyer-validated commercial concept
    • Sales revenue plan and program cost budget
    • Consolidated communications to steering committee

    Jeff Golterman, Managing Director, SoftwareReviews Advisory

    “44% of B2B marketers have already discovered the power of Personas.”
    – Hasse Jansen, Boardview.io!, 2016

    Documenting buyer personas enables success beyond marketing

    Documenting buyer personas has several essential benefits to marketing, sales, and product teams:

    • Achieve a better understanding of your target buyer – by building a detailed buyer persona for each type of buyer and keeping it fresh, you take a giant step toward becoming a customer-centric organization.
    • Team alignment on a common definition – will happen when you build buyer personas collaboratively and among those teams that touch the customer.
    • Improved lead generation – increases dramatically when messaging and marketing assets across your lead generation engine better resonate with buyers because you have taken the time to understand them deeply.
    • More effective selling – is possible when sellers apply persona development output to their interactions with prospects and customers.
    • Better product-market fit – increases when product teams more deeply understand for whom they are designing products. Documenting buyer challenges, pain points, and unmet needs gives product teams what they need to optimize product adoption.

    “It’s easier buying gifts for your best friend or partner than it is for a stranger, right? You know their likes and dislikes, you know the kind of gifts they’ll have use for, or the kinds of gifts they’ll get a kick out of. Customer personas work the same way, by knowing what your customer wants and needs, you can present them with content targeted specifically to their wants and needs.”
    – Emma Bilardi, Product Marketing Alliance, 2020

    Buyer understanding activates just about everything

    Without the deep buyer insights that persona and journey capture enables, marketers are suboptimized.

    Buyer Persona and Journey

    • Product design
    • Customer targeting
    • Personalization
    • Messaging
    • Content marketing
    • Lead gen & scoring
    • Sales Effectiveness
    • Customer retention

    “Marketing eutopia is striking the all-critical sweet spot that adds real value and makes customers feel recognized and appreciated, while not going so far as to appear ‘big brother’. To do this, you need a deep understanding of your audience coming from a range of different data sets and the capability to extract meaning.”
    – Plexure, 2020

    Does your organization need buyer persona and journey updating?

    “Yes,” if experiencing one or more key challenges:

    • Sales time is wasted on unqualified leads
    • Website abandon rates are high
    • Lead gen engine click-through rates are low
    • Ideal customer profile is ill defined
    • Marketing asset downloads are low
    • Seller discovery with prospects is ineffective
    • Sales win/loss rates drop due to poor product-market fit
    • Higher than desired customer churn

    SoftwareReviews Advisory Insight:
    Marketers developing buyer personas and journeys that lack agreement among Marketing, Sales, and Product of personas to target will squander precious time and resources throughout the customer targeting and acquisition process.

    Outcomes and benefits

    Building your buyer persona and journey using our methodology will enable:

    • Greater stakeholder alignment – when marketing, product, and sales agree on personas, less time is wasted on targeting alternate personas.
    • Improved product-market fit – when buyers see both pain-relieving features and value-based pricing, “because you asked vs. guessed,” win rates increase.
    • Greater open and click-through rates – because you understood buyer pain points and motivations for solution seeking, you’ll see higher visits and engagement with your lead gen engine, and because you asked “what asset types do you find most helpful” your CTAs become ”lead-gen magnets” because you’ve offered the right asset types in your content marketing strategy.
    • More qualified leads – because you defined a more accurate ideal customer profile (ICP) and your lead scoring algorithm has improved, sellers see more qualified leads.
    • Increased sales cycle velocity – since you learned from personas their content and engagement preferences and what collateral types they need during the down-funnel sales discussions, sales calls are more productive and sales cycles shrink.

    Our methodology for buyer persona and journey creation

    1. Document Team Knowledge of Buyer Persona and Drive Alignment 2. Interview Target Buyer Prospects and Customers 3. Create Outputs and Apply to Marketing, Sales, and Product
    Phase Steps
    1. Outline a vision for buyer persona and journey creation and identify stakeholders.
    2. Pull stakeholders together, identify initial buyer persona, and begin to document team knowledge about buyer persona (and journey where possible).
    3. Validate with industry and marketing analyst’s initial buyer persona, and identify list of buyer interviewees.
    1. Hold interviews and document and share findings.
    2. Validate initial drafts of buyer persona and create initial documented buyer journey. Review findings among key stakeholders, steering committee, and supporting analysts.
    3. Complete remaining interviews.
    1. Summarize findings.
    2. Convene steering committee/exec. and working team for final review.
    3. Communicate to key stakeholders in product, marketing, sales, and customer success for activation.
    Phase Outcomes
    1. Steering committee and team selection
    2. Team insights about buyer persona documented
    3. Buyer persona validation with industry and marketing analysts
    4. Sales, marketing, and product alignment
    1. Interview guide
    2. Target interviewee list
    3. Buyer-validated buyer persona
    4. Buyer journey documented with asset types, channels, and “how buyers buy” fully documented
    1. Education deck on buyer persona and journey ready for use with all stakeholders: product, field marketing, sales, executives, customer success, partners
    2. Activation will update product-market fit, optimize lead gen, and improve sales effectiveness

    Our approach provides interview guides and templates to help rebuild buyer persona

    Our methodology will enable you to align your team on why it’s important to capture the most important attributes of buyer persona including:

    • Functional – helps you find and locate your target personas
    • Emotive – deepens team understanding of buyer initiatives, motivations for seeking alternatives, challenges they face, pain points for your offerings to address, and terminology that describes the “space”
    • Solution – enables greater product market fit
    • Behavioral – clarifies how to communicate with personas and understand their content preferences
    Functional – “to find them”
    Job Role Title Org. Chart Dynamics Buying Center Firmographics
    Emotive – “what they do and jobs to be done”
    Initiatives: What programs/projects the persona is tasked with and their feelings and aspirations about these initiatives. Motivations? Build credibility? Get promoted? Challenges: Identify the business issues, problems, and pain points that impede attainment of objectives. What are their fears, uncertainties, and doubts about these challenges? Buyer Need: They may have multiple needs; which need is most likely met with the offering? Terminology: What are the keywords/phrases they organically use to discuss the buyer need or business issue?
    Decision Criteria – “how they decide”
    Buyer Role: List decision-making criteria and power level. The five common buyer roles are champion, influencer, decision maker, user, and ratifier (purchaser/negotiator). Evaluation and Decision Criteria: Which lens – strategic, financial, or operational – does the persona evaluate the impact of purchase through?
    Solution Attributes – “what does the ideal solution look like”
    Steps in “Jobs to Be Done” Elements of the “Ideal Solution” Business outcomes from ideal solution Opportunity scope; other potential users Acceptable price for value delivered Alternatives that see consideration Solution sourcing: channel, where to buy
    Behavioral Attributes – “how to approach them successfully”
    Content Preferences: List the persona’s content preferences – blog, infographic, demo, video – vs. long-form assets (e.g. white paper, presentation, analyst report). Interaction Preferences: Which are preferred among in-person meetings, phone calls, emails, videoconferencing, conducting research via Web, mobile, and social? Watering Holes: Which physical or virtual places do they go to network or exchange info with peers (e.g. LinkedIn)?

    Buyer journeys are constantly shifting

    If you didn’t remap buyer journeys in 2021, you may be losing to competitors that did. Leaders remap buyer journey frequently.

    • The multi-channel buyer journey is constantly changing. Today’s B2B buyer uses industry research sites, vendor content marketing assets, software reviews sites, contacts with vendor salespeople, events participation, peer networking, consultants, emails, social media sites, and electronic media to research purchasing decisions.
    • COVID-19 has dramatically decreased face-to-face interaction. We estimate a B2B buyer spent 20-25% more time online in 2021 than pre-COVID-19 researching software buying decisions. This has diminished the importance of face-to-face selling and given dramatic rise to digital selling and outbound marketing.
    • Content marketing has exploded, but without mapping the buyer journey and knowing where – by channel –and when – by buyer journey step – to offer content marketing assets, we will fail to convert prospects into buyers.

    “~2/3 of [B2B] buyers prefer remote human interactions or digital self-service.” And during Aug. ‘20 to Feb. ‘21, use of digital self-service to interact with sales reps leapt by more than 10% for both researching and evaluating new suppliers.”
    – Liz Harrison, Dennis Spillecke, Jennifer Stanley, and Jenny Tsai McKinsey & Company, 2021

    SoftwareReviews Advisory Insight:
    Marketers are advised to update their buyer journey annually and with greater frequency when the human vs. digital mix is affected due to events such as COVID-19 and as emerging media such as AR shifts asset-type usage and engagement options.

    Our approach helps you define the buyer journey

    Because marketing leaders need to reach buyers through the right channel with the right message at the right time during their decision cycle, you’ll benefit by using questionnaires that enable you to build the below easily and quickly.

    You’ll be more successful by following our overall guidance

    Overarching insight

    Buyer personas and buyer journeys are essential ingredients in go-to-market success, as they inform for product, marketing, sales, and customer success who we are targeting and how to engage with them successfully.

    Align Your Team

    Marketers developing buyer personas and journeys that lack agreement among Marketing, Sales, and Product of personas to target will squander precious time and resources throughout the customer targeting and acquisition process.

    Jump-Start Persona Development

    Marketing leaders leverage the buyer persona knowledge not only from in-house experts in areas such as sales and executives but from analysts that speak with their buyers each and every day.

    Buyer Interviews Are a Must

    While leaders will get a fast start by interviewing sellers, executives, and analysts, you will fail to craft the right messages, build the right marketing assets, and design the best buyer journey if you skip buyer interviews.

    Watch for Disruption

    Leaders will update their buyer journey annually and with greater frequency when the human vs. digital mix is effected due to events such as COVID-19 and as emerging media such as AR and VR shifts the way buyers engage.

    Advanced Buyer Journey Discovery

    Digital marketers that ramp up lead gen engine capabilities to capture “wins” and measure engagement back through the lead gen and nurturing engines will build a more data-driven view of the buyer journey. Target to build this advanced capability in your initial design.

    Tools and templates to speed your success

    This blueprint is accompanied by supporting deliverables to help you gather team insights, interview customers and prospects, and summarize results for ease in communications.

    To support your buyer persona and journey creation, we’ve created the enclosed tools

    Buyer Persona Creation Template

    A PowerPoint template to aid the capture and summarizing of your team’s insights on the buyer persona.

    Buyer Persona and Journey Interview Guide and Data Capture Tool

    For interviewing customers and prospects, this tool is designed to help you interview personas and summarize results for up to 15 interviewees.

    Buyer Persona and Journey Summary Template

    A PowerPoint template into which you can drop your buyer persona and journey interviewees list and summary findings.

    SoftwareReviews offers two levels of support to best suit your needs

    DIY Toolkit

    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

    The "do-it-yourself" step-by-step instructions begin with Phase 1.

    Guided Implementation

    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

    A Guided Implementation is a series of analysts inquiries with you and your team.

    Diagnostics and consistent frameworks are used throughout each option.

    Guided Implementation

    A Guided Implementation (GI) is series of calls with a SoftwareReviews Advisory analyst to help implement our best practices in your organization.

    For guidance on marketing applications, we can arrange a discussion with an Info-Tech analyst.

    Your engagement managers will work with you to schedule analyst calls.

    What does our GI on buyer persona and journey mapping look like?

    Drive an Aligned Initial Draft of Buyer Persona

    • Call #1: Collaborate on vision for buyer persona and the buyer journey. Review templates and sample outputs. Identify your team.
    • Call #2: Review work in progress on capturing working team knowledge of buyer persona elements.
    • Call #3: (Optional) Review Info-Tech’s research-sourced persona insights.
    • Call #4: Validate the persona WIP with Info-Tech analysts. Review buyer interview approach and target list.

    Interview Buyers and Validate Persona and Journey

    • Call #5: Revise/review interview guide and final interviewee list; schedule interviews.
    • Call #6: Review interim interview finds; adjust interview guide.
    • Call #7: Use interview findings to validate/update persona and build journey map.
    • Call #8: Add supporting analysts to final stakeholder review.

    Prepare Communications and Educate Stakeholders

    • Call #9: Review output templates completed with final persona and journey findings.
    • Call #10: Add supporting analysts to stakeholder education meetings for support and help with addressing questions/issues.

    Workshop overview

    Contact your account representative for more information. workshops@infotech.com 1-888-670-8889

    Day1 Day 2 Day 3 Day 4 Day 5
    Align Team, Identify Persona, and Document Current Knowledge Validate Initial Work and Identify Buyer Interviewees Schedule and Hold Buyer interviews Summarize Findings and Provide Actionable Guidance to Colleagues Measure Impact and Results
    Activities

    1.1 Outline a vision for buyer persona and journey creation and identify stakeholders.

    1.2 Identify buyer persona choices and settle on an initial target.

    1.3 Document team knowledge about buyer persona (and journey where possible).

    2.1 Share initial insights with covering industry analyst.

    2.2 Hear from industry analyst their perspectives on the buyer persona attributes.

    2.3 Reconcile differences; update “current understanding.”

    2.4 Identify interviewee types by segment, region, etc.

    3.1 Identify actual list of 15-20 interviewees.

    A gap of up to a week for scheduling of interviews.

    3.2 Hold interviews and use interview guides (over the course of weeks).

    3.3 Hold review session after initial 3-4 interviews to make adjustments.

    3.4 Complete interviews.

    4.1 Summarize findings.

    4.2 Create action items for supporting team, e.g. messaging, touch points, media spend, assets.

    4.3 Convene steering committee/exec. and working team for final review.

    4.4 Schedule meetings with colleagues to action results.

    5.1 Review final copy, assets, launch/campaign plans, etc.

    5.2 Develop/review implementation plan.

    A period of weeks will likely intervene to execute and gather results.

    5.3 Reconvene team to review results.

    Deliverables
    1. Documented steering committee and working team
    2. Executive Brief on personas and journey
    3. Personas and initial targets
    4. Documented team knowledge
    1. Analyst-validated initial findings
    2. Target interviewee types
    1. List of interviewees; calls scheduled
    2. Initial review – “are we going in the right direction?”
    3. Completed interviews
    1. Complete findings
    2. Action items for team members
    3. Plan for activation
    1. Activation review
    2. List of suggested next steps

    Phase 1
    Drive an Aligned Initial Draft of Buyer Persona

    This Phase walks you through the following activities:

    • Develop an understanding of what comprises a buyer persona and journey, including their importance to overall go-to-market strategy and execution.
    • Sample outputs.

    This Phase involves the following stakeholders:

    • Program leadership
    • Product Marketing
    • Product Management
    • Representative(s) from Sales
    • Executive Leadership

    1.1 Establish the team and align on shared vision

    Input

    • Typically a joint recognition that buyer personas have not been fully documented.
    • Identify working team members/participants (see below), and an executive sponsor.

    Output

    • Communication of team members involved and the make-up of steering committee and working team
    • Alignment of team members on a shared vision of “Why Build Buyer Personas and Journey” and what key attributes define both.

    Materials

    • N/A

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • CMO/Sponsoring Executive Working Team – typically representatives in Product Marketing, Product Management, and Sales
    • SoftwareReviews marketing analyst

    60 minutes

    1. Schedule inquiry with working team members and walk the team through the Buyer Persona and Journey Executive Brief PowerPoint presentation.
    2. Optional: Have the (SoftwareReviews Advisory) SRA analyst walk the team through the Buyer Persona and Journey Executive Brief PowerPoint presentation as part of your session.

    Review the Create a Buyer Persona Executive Brief (Slides 3-14)

    1.2 Document team knowledge of buyer persona

    Input

    • Working team member knowledge

    Output

    • Initial draft of your buyer persona

    Materials

    • Buyer Persona Creation Template

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • CMO/Sponsoring Executive (optional)
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales

    2-3 sessions of 60 minutes each

    1. Schedule meeting with working team members and, using the Buyer Persona Template, lead the team in a discussion that documents current team knowledge of the target buyer persona.
    2. Lead the team to prioritize an initial, single, most important persona and to collaborate to complete the template (and later, the buyer journey). Once the team learns the process for working on the initial persona, the development of additional personas will become more efficient.
    3. Place the PowerPoint template in a shared drive for team collaboration. Expect to schedule several 60-minute meets. Quicken collaboration by encouraging team to “do their homework” by sharing persona knowledge within the shared drive version of the template. Your goal is to get to an initial agreed upon version that can be shared for additional validation with industry analyst(s) in the next step.

    Download the Buyer Persona Creation Template

    1.3 Validate with industry analysts

    Input

    • Identify gaps in persona from previous steps

    Output

    • Further validated buyer persona

    Materials

    • Bring your Buyer Persona Creation Template to the meeting to share with analysts

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • CMO/Sponsoring Executive (Optional)
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales
    • Info-Tech analyst covering your product category and SoftwareReviews marketing analyst

    30 minutes

    1. Schedule meeting with working team members and discuss which persona areas require further validation from an Info-Tech analyst who has worked closely with those buyers within your persona.

    60 minutes

    1. Schedule an inquiry with the appropriate Info-Tech analyst and SoftwareReviews Advisory analyst to share current findings and see:
      1. Info-Tech analyst provide content feedback given what they know about your target persona and product category.
      2. SoftwareReviews Advisory analyst provide feedback on persona approach and to coach any gaps or important omissions.
    2. Tabulate results and update your persona summary. At this point you will likely require additional validation through interviews with customers and prospects.

    1.4 Identify interviewees and prepare for interviews

    Input

    • Identify segments within which you require persona knowledge
    • Understand your persona insight gaps

    Output

    • List of interviewees

    Materials

    • Interviewee recording template on following slide
    • Interview guide questions found within the Buyer Persona and Journey Interview Guide and data Capture Tool

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales

    1-2 weeks

    1. Identify the types of customers and prospects that will best represent your target persona. Choose interviewees that when interviewed will inform key differences among key segments (geographies, company size, mix of customers and prospects, etc.).
    2. Recruit interviewees and schedule interviews for 45 minutes.
    3. Keep track of Interviewees using the slide following this one.
    4. In preparation for interviews, review the Buyer Persona and Journey Interview Guide and Data Capture Tool. Review the two sets of questions:
      1. Buyer Persona-Related – use to validate areas where you still have gaps in your persona, OR if you are starting with a blank persona and wish to build your personas entirely based on customer and prospect interviews.
      2. Buyer-Journey Related, which we will focus on in the next phase.

    Download the Buyer Persona and Journey Interview Guide and Data Capture Tool

    The image shows a table titled ‘Interviewee List.’ A note next to the title indicates: Here you will document your interviewee list and outreach plan. A note in the Segment column indicates: Ensure you are interviewing personas across segments that will give you the insights you need, e.g. by size, by region, mix of customers and prospects. A note in the Title column reads: Vary your title types up or down in the “buying center” if you are seeking to strengthen buying center dynamics understanding. A note in the Roles column reads: Vary your role types according to decision-making roles (decision maker, influencer, ratifier, coach, user) if you are seeking to strengthen decision-making dynamics understanding.

    Phase 2
    Interview Buyers and Validate Persona and Journey

    This Phase walks you through the following activities:

    • Developing final interview guide.
    • Interviewing buyers and customers.
    • Adjusting approach.
    • Validating buyer persona.
    • Crafting buyer journey
    • Gaining analyst feedback.

    This Phase involves the following stakeholders:

    • Program leadership
    • Product Marketing
    • Representative(s) from Sales

    2.1 Hold interviews

    Input

    • List of interviewees
    • Final list of questions

    Output

    • Buyer perspectives on their personas and buyer journeys

    Materials

    • Buyer Persona and Journey Interview Guide and data Capture Tool

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales

    1-2 weeks

    1. Hold interviews and adjust your interviewing approach as you go along. Uncover where you are not getting the right answers, check with working team and analysts, and adjust.

    Download the Buyer Persona and Journey Interview Guide and Data Capture Tool

    2.2 Use interview findings to validate what’s needed for activation

    Input

    • List of interviewees
    • Final list of questions

    Output

    • Buyer perspectives on their personas and buyer journeys
    • Stakeholder feedback that actionable insights are resulting from interviews

    Materials

    • Buyer Persona Creation Template
    • Buyer Persona and Journey Interview Guide and Data Capture Tool

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales
    • SoftwareReviews marketing analyst

    2 hours

    1. Convene your team, with marketing analysts, and test early findings: It’s wise to test initial interview results to check that you are getting the right insights to understand and validate key challenges, pain points, needs, and other vital areas pertaining to the buyer persona. Are the answers you are getting enabling you to complete the Summary slides for later communications and training for Sales?
    2. Check when doing buyer journey interviews that you are getting actionable answers that drive messaging, what asset types are needed, what the marketing channel mix is, and other vital insights to activate the results. Are the answers you are getting adequate to give guidance to campaigners, content marketers, and sales enablement?
    3. See the following slides for detailed questions that need to be answered satisfactorily by your team members that need to “activate” the results.

    Download the Buyer Persona and Journey Interview Guide and Data Capture Tool

    2.2.1 Are you getting what you need from interviews to inform the buyer persona?

    Test that you are on the right track:

    1. Are you getting the functional answers so you can guide sellers to the right roles? Can you guide marketers/campaigners to the right “Ideal Customer Profile” for lead scoring?
    2. Are you capturing the right emotive areas that will support message crafting? Solutioning? SEM/SEO?
    3. Are you capturing insights into “how they decide” so sellers are well informed on the decision-making dynamics?
    4. Are you getting a strong understanding of content, interaction preferences, and news and information sources so sellers can outreach more effectively, you can pinpoint media spend, and content marketing can create the right assets?
    Functional – “to find them”
    Job Role Title Org. Chart Dynamics Buying Center Firmographics
    Emotive – “what they do and jobs to be done”
    Initiatives: What programs/projects the persona is tasked with and their feelings and aspirations about these initiatives. Motivations? Build credibility? Get promoted? Challenges: Identify the business issues, problems, and pain points that impede attainment of objectives. What are their fears, uncertainties, and doubts about these challenges? Buyer Need: They may have multiple needs; which need is most likely met with the offering? Terminology: What are the keywords/phrases they organically use to discuss the buyer need or business issue?
    Decision Criteria – “how they decide”
    Buyer Role: List decision-making criteria and power level. The five common buyer roles are champion, influencer, decision maker, user, and ratifier (purchaser/negotiator). Evaluation and Decision Criteria: Which lens – strategic, financial, or operational – does the persona evaluate the impact of purchase through?
    Solution Attributes – “what does the ideal solution look like”
    Steps in “Jobs to Be Done” Elements of the “Ideal Solution” Business outcomes from ideal solution Opportunity scope; other potential users Acceptable price for value delivered Alternatives that see consideration Solution sourcing: channel, where to buy
    Behavioral Attributes – “how to approach them successfully”
    Content Preferences: List the persona’s content preferences – blog, infographic, demo, video – vs. long-form assets (e.g. white paper, presentation, analyst report). Interaction Preferences: Which are preferred among in-person meetings, phone calls, emails, videoconferencing, conducting research via Web, mobile, and social? Watering Holes: Which physical or virtual places do they go to network or exchange info with peers (e.g. LinkedIn)?

    2.2.2 Are you getting what you need from interviews to support the buyer journey?

    Our approach helps you define the buyer journey

    Because marketing leaders need to reach buyers through the right channel with the right message at the right time during their decision cycle, you’ll benefit by using questionnaires that enable you to build the below easily and quickly.

    2.3 Continue interviews

    Input

    • Final adjustments to list of interview questions

    Output

    • Final buyer perspectives on their personas and buyer journeys

    Materials

    • Buyer Persona Creation Template
    • Buyer Persona and Journey Interview Guide and data Capture Tool

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales

    1-2 weeks

    1. Continue customer and prospect interviews.
    2. Ensure you are gaining the segment perspectives needed.
    3. Complete the “Summary” columns within the Buyer Persona and Journey Interview Guide and Data Capture Tool.

    Download the Buyer Persona and Journey Interview Guide and Data Capture Tool

    Phase 3
    Prepare Communications and Educate Stakeholders

    This Phase walks you through the following activities:

    • Creating outputs for key stakeholders
    • Communicating final findings and supporting marketing, sales, and product activation.

    This Phase involves the following stakeholders:

    • Program leadership
    • Product Marketing
    • Product Management
    • Sales
    • Field Marketing/Campaign Management
    • Executive Leadership

    3.1 Summarize interview results and convene full working team and steering committee for final review

    Input

    • Buyer persona and journey interviews detail

    Output

    • Buyer perspectives on their personas and buyer journeys

    Materials

    • Buyer Persona and Journey Interview Guide and Data Capture Tool
    • Buyer Persona and Journey Summary Template

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • CMO/Sponsoring Executive (Optional)
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales
    • SoftwareReviews marketing analyst

    1-2 hours

    1. Summarize interview results within the Buyer Persona and Journey Summary Template.

    Download the Buyer Persona and Journey Interview Guide and Data Capture Tool

    Download the Buyer Persona and Journey Summary Template

    3.2 Convene executive steering committee and working team to review results

    Input

    • Buyer persona and journey interviews summary

    Output

    • Buyer perspectives on their personas and buyer journeys

    Materials

    • Buyer Persona and Journey Summary Template

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales

    1-2 hours

    1. Present final persona and journey results to the steering committee/executives and to working group using the summary slides interview results within the Buyer Persona and Journey Summary Template to finalize results.

    Download the Buyer Persona and Journey Summary Template

    3.3 Convene stakeholder meetings to activate results

    Input

    • Buyer persona and journey interviews summary

    Output

    Activation of key learnings to drive:

    • Better product –market fit
    • Lead gen
    • Sales effectiveness
    • Awareness

    Materials

    • Buyer Persona and Journey Summary Template

    Participants

    • Initiative Manager – individual leading the buyer persona and journey initiative
    • Working Team – typically representatives in Product Marketing, Product Management, and Sales
    • Stakeholder team members (see left)

    4-5 hours

    Present final persona and journey results to each stakeholder team. Key presentations include:

    1. Product team to validate product market fit.
    2. Content marketing to provide messaging direction for the creation of awareness and lead gen assets.
    3. Campaigners/Field Marketing for campaign-related messaging and to identify asset types required to be designed and delivered to support the buyer journey.
    4. Social media strategists for social post copy, and PR for other awareness-building copy.
    5. Sales enablement/training to enable updating of sales collateral, proposals, and sales training materials. Sellers to help with their targeting, prospecting, and crafting of outbound messaging and talk tracks.

    Download the Buyer Persona and Journey Summary Template

    Summary of Accomplishment

    Problem Solved

    With the help of this blueprint, you have deepened your and your colleagues’ buyer understanding at both the persona “who they are” level and the buyer journey “how do they buy” level. You are among the minority of marketing leaders that have fully documented a buyer persona and journey – congratulations!

    The benefits of having led your team through the process are significant and include the following:

    • Better alignment of customer/buyer-facing teams such as in product, marketing, sales, and customer success.
    • Messaging that can be used by marketing, sales, and social teams that will resonate with buyer initiatives, pain points, sought-after “pain relief,” and value.
    • Places in the digital and physical universe where your prospects “hang out” so you can optimize your media spend.
    • More effective use of marketing assets and sales collateral that align with the way your prospect needs to consume information throughout their buyer journey to make a decision in your solution area.

    And by capturing and documenting your buyer persona and journey even for a single buyer type, you have started to build the “institutional strength” to apply the process to other roles in the decision-making process or for when you go after new and different buyer types for new products. And finally, by bringing your team along with you in this process, you have also led your team in becoming a more customer-focused organization – a strategic shift that all organizations should pursue.

    If you would like additional support, contact us and we’ll make sure you get the professional expertise you need.

    Contact your account representative for more information.

    info@softwarereviews.com

    1-888-670-8889

    Related Software Reviews Research

    Optimize Lead Generation With Lead Scoring

    • Save time and money and improve your sales win rates when you apply our methodology to score contacts with your lead gen engine more accurately and pass better qualified leads over to your sellers.
    • Our methodology teaches marketers to develop your own lead scoring approach based upon lead/contact profile vs. your Ideal Customer Profile (ICP) and scores contact engagement. Applying the methodology to arrive at your own approach to scoring will mean reduced lead gen costs, higher conversion rates, and increased marketing-influenced wins.

    Bibliography

    Bilardi, Emma. “How to Create Buyer Personas.” Product Marketing Alliance, July 2020. Accessed Dec. 2021.

    Harrison, Liz, Dennis Spillecke, Jennifer Stanley, and Jenny Tsai. “Omnichannel in B2B sales: The new normal in a year that has been anything but.” McKinsey & Company, 15 March 2021. Accessed Dec. 2021.

    Jansen, Hasse. “Buyer Personas – 33 Mind Blowing Stats.” Boardview.io!, 19 Feb. 2016. Accessed Jan. 2022.

    Raynor, Lilah. “Understanding The Changing B2B Buyer Journey.” Forbes Agency Council, 18 July 2021. Accessed Dec. 2021.

    Simpson, Jon. “Finding Your Audience: The Importance of Developing a Buyer Persona.” Forbes Agency Council, 16 May 2017. Accessed Dec. 2021.

    “Successfully Executing Personalized Marketing Campaigns at Scale.” Plexure, 6 Jan. 2020. Accessed Dec 2020.

    Ulwick, Anthony W. JOBS TO BE DONE: Theory to Practice. E-book, Strategyn, 1 Jan. 2017. Accessed Jan. 2022.

    Make the Case for Legacy Application Modernization

    • Buy Link or Shortcode: {j2store}613|cart{/j2store}
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    • Parent Category Name: Selection & Implementation
    • Parent Category Link: /selection-and-implementation
    • Organizations are under continual pressure to deliver faster, with shorter time-to-market, while introducing new products and services at the same time.
    • You and your team have concerns that your existing portfolio of applications is not up to the task.
    • While you understand the need for more investments to modernize your portfolio, your leadership does not appreciate what is required.

    Our Advice

    Critical Insight

    • Legacy modernization is a process, not a single event.
    • Your modernization approach requires you to understand your landscape and decide on a path that minimizes business continuity risks, keeps the investments under control, and is prepared for surprises but always has your final state in mind.

    Impact and Result

    • Evaluate the current state, develop a legacy application strategy, and execute in an agile manner.
    • When coupled with a business case and communications strategy, this approach gives the organization a clear decision-making framework that will maximize business outcomes and deliver value where needed.

    Make the Case for Legacy Application Modernization Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Make the Case for Legacy Application Modernization Storyboard – Understand legacy application modernization in the context of your organization, assess your landscape of applications, and define prioritization and disposition.

    This blueprint provides the steps necessary to build your own enterprise application implementation playbook that can be deployed and leveraged by your implementation teams.

    • Make the Case for Legacy Application Modernization Storyboard

    2. Make the Case for Legacy Application Modernization Presentation Template – The key output from leveraging this research is a presentation to pitch the modernization process.

    Build a proposal deck to make the case for legacy application modernization for your stakeholders. This will contain a definition of what a legacy application is in the context of your organization, a list of candidate applications to modernize, and a disposition strategy for each selected application.

    • Make the Case for Legacy Application Modernization Presentation Template
    [infographic]

    Further reading

    Make the Case for Legacy Application Modernization

    Revamp your business potential to improve agility, security, and user experience while reducing costs.

    Analyst Perspective

    An old application may have served us reliably, but it can prevent us from pursuing future business needs.

    Legacy systems remain well-embedded in the fabric of many organizations' application portfolios. They were often custom-built to meet the needs of the business. Typically, these are core tools that the business leverages to accomplish its goals.

    A legacy application becomes something we need to address when it no longer supports our business goals, is no longer supportable, bears an unsustainable ownership cost, or poses a threat to the organization's cybersecurity or compliance.

    When approaching your legacy application strategy, you must navigate a complex web of business, stakeholder, software, hardware, resourcing, and financial decisions. To complicate matters, the full scope of required effort is not immediately clear. Years of development are embedded in these legacy applications, which must be uncovered and dealt with appropriately.

    IT leaders require a proactive approach for evaluating the current state, developing a legacy application strategy, and executing in an agile manner. When coupled with a business case and communications strategy, the organization will have a clear decision-making framework that will maximize business outcomes and deliver value where needed.

    Ricardo de Oliveira, Research Director, Enterprise Applications

    Ricardo de Oliveira
    Research Director, Enterprise Applications
    Info-Tech Research Group

    Executive Summary

    Your Challenge Common Obstacles Info-Tech's Approach
    • Organizations face continual pressure to decrease time-to-market while also introducing new products and services.
    • You and your team have concerns that the existing application portfolio is not up to the task.
    • While you may understand the need for greater investment to modernize your portfolio, leadership does not appreciate what is required.
    • For well-established organizations, applications can have a long lifespan. Employees who are used to existing tools and processes often resist change.
    • Modernization plans can be substantial, but budget and resources are limited.
    • Poor documentation of legacy applications can make it challenging to know what to modernize and how to do it effectively.
    • There are concerns that any changes will have material impacts on business continuity.
    • Info-Tech will enable you to build a proposal deck to make the case for legacy application modernization for your stakeholders. This will assist with:
      • Defining what a legacy application is in the context of your organization.
      • Creating a list of candidate applications for modernization.
      • Articulating the right disposition strategy for each selected applications.
      • Laying out what is next on your modernization journey.

    Info-Tech Insight
    Legacy modernization is a process, not a single event. Your modernization approach requires you to understand your landscape and decide on a path that minimizes business continuity risks, keeps investments under control, and is prepared for surprises but always has your final state in mind.

    An approach to making the case for legacy application modernization

    Understand
    Assess the challenges, lay out the reasons, define your legacy, and prepare to remove the barriers to modernization.
    Assess
    Determine the benefits by business capability. Leverage APM foundations to select the candidate applications and prioritize.     		Legacy Application Modernization
    Define
    Use the prioritized application list to drive the next steps to modernization.

    Legacy application modernization is perceived as necessary to remain competitive

    The 2022 State CIO Survey by NASCIO shows that legacy application modernization jumped from fifth to second in state CIO priorities.

    "Be patient and also impatient. Patient because all states have a lot of legacy tech they are inheriting and government is NOT easy. But also, impatient because there is a lot to do - make your priorities clear but also find out what the CIO needs to accomplish those priorities."

    Source: NASCIO, 2022

    State CIO Priorities

    US government agencies feel pressured to deal with legacy applications

    In fiscal year 2021, the US government planned to spend over $100 billion on information technology. Most of that was to be used to operate and maintain existing systems, including legacy applications, which can be both more expensive to maintain and more vulnerable to hackers. The Government Accountability Office (GAO) identified:

    • 10 critical federal IT legacy systems
    • In operation between 8 and 51 years
    • Collectively cost $337 million per year to operate and maintain

    Source: U.S. Government Accountability Office, 2021

    Example: In banking, modern platforms are essential

    Increasing competition from fintech 73% of financial services executives perceive retail banking as being the most susceptible to fintech disruption (PwC, 2016)
    Growing number of neo-banks The International Monetary Fund (IMF) notes the fast growth of fintech in financial services is creating systemic risk to global financial stability (IMF, 2022)
    Access to data and advanced analytics Estimated global bank revenue lost due to poor data is 15% to 25% (MIT, 2017)
    Shifting client expectations/demographics 50% of Gen X, millennials, and Gen Z use a digital bank to provide their primary checking account (Finextra, 2022)
    Generational transfer of wealth It is estimated that up to US$68 trillion in wealth will be transferred from baby boomers (Forbes, 2021)

    Case Study

    Delta takes off with a modernized blend of mainframes and cloud

    INDUSTRY: Transportation
    SOURCE: CIO Magazine, 2023

    Challenge
    The airline has hundreds of applications in the process of moving to the cloud, but most main capabilities are underpinned by workloads on the mainframe and will remain so for the foreseeable future.
    Some of those workloads include travel reservation systems and crew scheduling systems - mission-critical, 24/7 applications that are never turned off.     		Solution
    Delta has shifted to a hybrid architecture, with a customer experience transformation that makes the most of the cloud's agility and the mainframe's dependability.
    Delta's foray into the cloud began about two years ago as the pandemic brought travel to a virtual halt. The airline started migrating many front-end and distributed applications to the cloud while retaining traditional back-end workloads on the mainframe.     		Results
    Hybrid infrastructures are expected to remain in complex industries such as airlines and banking, where high availability and maximum reliability are non-negotiable.
    While some CIOs are sharpening their mainframe exit strategies by opting for a steep journey to the cloud, mainframes remain ideal for certain workloads.

    Phase 1: Make the Case for Legacy Application Modernization

    Phase 1
    1.1 Understand your challenges
    1.2 Define legacy applications
    1.3 Assess your barriers
    1.4 Find the impacted capabilities
    1.5 Define candidate applications
    1.6 Now, Next, Later

    This phase will walk you through the following activities:

    • Understand your challenges with modernization
    • Define legacy applications in your context
    • Assess your barriers to modernization
    • Find the impacted capabilities and their benefits
    • Define candidate applications and dispositions

    This phase involves the following participants:

    • Application group leaders
    • Individual application owners

    The ESG Imperative and Its Impact on Organizations

    • Buy Link or Shortcode: {j2store}196|cart{/j2store}
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    • Parent Category Name: IT Governance, Risk & Compliance
    • Parent Category Link: /it-governance-risk-and-compliance
    • Global regulatory climate disclosure requirements are still evolving and are not consistent.
    • Sustainability is becoming a corporate imperative, but IT’s role is not fully clear.
    • The environmental, social, and governance (ESG) data challenge is large and continually expanding in scope.
    • Collecting the necessary data and managing ethical issues across supply chains is a daunting task.
    • Communicating long-term value is difficult when customer and employee expectations are shifting.

    Our Advice

    Critical Insight

    • An organization's approach to ESG cannot be static or tactical. It is a moving landscape that requires a flexible, holistic approach across the organization. Cross-functional coordination is essential in order to be ready to respond to changing conditions.
    • Even though the ESG data requirements are large and continually expanding in scope, many organizations have well-established data frameworks and governance practices in place to meet regulatory obligations such as Sarbanes–Oxley that should used as a starting point.

    Impact and Result

    • Organizations will have greater success if they focus their ESG program efforts on the ESG factors that will have a material impact on their company performance and their key stakeholders.
    • Continually evaluating the evolving ESG landscape and its impact on key stakeholders will enable organizations to react quickly to changing conditions.
    • A successful ESG program requires a collaborative and integrated approach across key business stakeholders.
    • Delivering high-quality metrics and performance indicators requires a flexible and digital data approach, where possible, to enable data interoperability.

    The ESG Imperative and Its Impact on Organizations Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. The ESG Imperative and Its Impact on Organizations Deck – Learn why sustainability is becoming a key measurement of corporate performance and how to set your organization up for success.

    Understand the foundational components and drivers of the broader concept of sustainability: environmental, social, and governance (ESG) and IT’s roles within an organization’s ESG program. Learn about the functional business areas involved, the roles they play and how they interact with each other to drive program success.

    • The ESG Imperative and Its Impact on Organizations Storyboard

    Infographic

    Further reading

    The ESG Imperative and Its Impact on Organizations

    Design to enable an active response to changing conditions.

    Analyst Perspective

    Environmental, social, and governance (ESG) is a corporate imperative that is tied to long-term value creation. An organization's social license to operate and future corporate performance depends on managing ESG factors well.

    Central to an ESG program is having a good understanding of the ESG factors that may have a material impact on enterprise value and key internal and external stakeholders. A comprehensive ESG strategy supported by strong governance and risk management is also essential to success.

    Capturing relevant data and applying it within risk models, metrics, and internal and external reports is necessary for sharing your ESG story and measuring your progress toward meeting ESG commitments. Consequently, the data challenges have received a lot of attention, and IT leaders have a role to play as strategic partner and enabler to help address these challenges. However, ESG is more than a data challenge, and IT leaders need to consider the wider implications in managing third parties, selecting tools, developing supporting IT architecture, and ensuring ethical design.

    For many organizations, the ESG program journey has just begun, and collaboration between IT and risk, procurement, and compliance will be critical in shaping program success.

    This is a picture of Donna Bales, Principal Research Director, Info-Tech Research Group

    Donna Bales
    Principal Research Director
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Global regulatory climate disclosure requirements are still evolving and are not consistent.
    • Sustainability is becoming a corporate imperative, but IT's role is not fully clear.
    • The ESG data challenge is large and continually expanding in scope.
    • Collecting the necessary data and managing ethical issues across supply chains is a daunting task.
    • Communicating long-term value is difficult when customer and employee expectations are shifting.

    Common Obstacles

    • The data necessary for data-driven insights and accurate disclosure is often hampered by inaccurate and incomplete primary data.
    • Other challenges include:
      • Approaching ESG holistically and embedding it into existing governance, risk, and IT capabilities.
      • Building knowledge and adapting culture throughout all levels of the organization.
      • Monitoring stakeholder sentiment and keeping strategy aligned to expectations.

    Info-Tech's Approach

    • Use this blueprint to educate yourself on ESG factors and the broader concept of sustainability.
    • Learn about Info-Tech's ESG program approach and use it as a framework to begin your ESG program journey.
    • Identify changes that may be needed in your organizational operating model, strategy, governance, and risk management approach.
    • Discover areas of IT that may need to be prioritized and resourced.

    Info-Tech Insight

    An organization's approach to ESG cannot be static or tactical. ESG is a moving landscape that requires a flexible, holistic approach across the organization. It must become part of the way you work and enable an active response to changing conditions.

    This is an image of Info-Tech's thoughtmap for eight steps of the ESG Program Journey

    Putting ESG in context

    ESG has moved beyond the tipping point to corporate table stakes

    • In recent years, ESG issues have moved from voluntary initiatives driven by corporate responsibility teams to an enterprise-wide strategic imperative.
    • Organizations are no longer being measured by financial performance but by how they contribute to a sustainable and equitable future, such as how they support sustainable innovation through their business models and their focus on collaboration and inclusion.
    • A corporation's efforts toward sustainability is measured by three components: environmental, social, and governance.

    Sustainability

    The ability of a corporation and broader society to endure and survive over the long term by managing adverse impacts well and promoting positive opportunities.

    This is an image of the United Nation's 17 sustainable goals.

    Source: United Nations

    Putting "E," "S," and "G" in context

    Corporate sustainability depends on managing ESG factors well

    • Environmental, social, and governance are the component pieces of a sustainability framework that is used to understand and measure how an organization impacts or is affected by society as a whole.
    • Human activities, particularly fossil fuel burning since the mid twentieth century, have increased greenhouse gas concentration, resulting in observable changes to the atmosphere, ocean, cryosphere, and biosphere.
    • The E in ESG relates to the positive and negative impacts an organization may have on the environment, such as the energy it takes in and the waste it discharges.
    • The S in ESG is the most ambiguous component in the framework, as social impact relates not only to risks but also prosocial behaviour. It's the most difficult to measure but can have significant financial and reputational impact on corporations if material and poorly managed.
    • The G in ESG is foundational to the realization of S and E. It encompasses how well an organization integrates these considerations into the business and how well the organization engages with key stakeholders, receives feedback, and is transparent with its intentions.

    Common examples of ESG issues include: Environmental: Climate change, greenhouse gas emissions (CHG), deforestation, biodiversity, pollution, water, waste, extended producer responsibility, etc. Social: Customer relations, employee relations, labor, human rights, occupational health and safety, community relations, supply chains, etc. Governance: Board management practices, succession planning, compensation, diversity, equity and inclusion, regulatory compliance, corruption, fraud, data hygiene and security, etc. Source: Getting started with ESG - Sustainalytics

    Understanding the drivers behind ESG

    $30 trillion is expected to be transferred from the baby boomers to Generation Z and millennials over the next decade
    – Accenture

    Drivers

    • The rapid rise of ESG investing
    • The visibility of climate change is driving governments, society, and corporations to act and to initiate and support net zero goals.
    • A younger demographic that has strong convictions and financial influence
    • A growing trend toward mandatory climate and diversity, equity, and inclusion (DEI) disclosures required by global regulators
    • Recent emphasis by regulators on board accountability and fiduciary duty
    • Greater societal awareness of social issues and sustainability
    • A new generation of corporate leadership that is focused on sustainable innovation

    The evolving regulatory landscape

    Global regulators are mobilizing toward mandatory regulatory climate disclosure

    Canada

    • Canadian Securities Administrators (CSA) NI 51-107 Disclosure of Climate-related Matters

    Europe

    • European Commission, Sustainable Finance Disclosure Regulation (SFDR)
    • European Commission, EU Supply Chain Act
    • Germany – The German Supply Chain Act (GSCA)
    • Financial Conduct Authority UK, Proposal (DP 21/4) Sustainability Disclosure Requirements and investment labels
    • UK Modern Slavery Act, 2015

    United States

    • Securities and Exchange Commission (SEC) 33-11042– The Enhancement and Standardization of Climate-Related Disclosures for Investors
    • SEC 33-11038 Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure
    • Nasdaq Board Diversity Rule (5605(f))

    New Zealand

    • New Zealand, The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021

    Begin by setting your purpose

    Consider your role as a corporation in society and your impact on key stakeholders

    • The impact of a corporation can no longer be solely measured by financial impact but also its impact on social good. Corporations have become real-world actors that impact and are affected by the environment, people, and society.
    • An ESG program should start with defining your organization's purpose in terms of corporate responsibility, the role it will play, and how it will endure over time through managing adverse impacts and promoting positive impacts.
    • Corporations should look inward and outward to assess the material impact of ESG factors on their organization and key internal and external stakeholders.
    • Once stakeholders are identified, consider how the ESG factors might be perceived by delving into what matters to stakeholders and what drives their behavior.

    Understanding your stakeholder landscape is essential to achieving ESG goals

    Internal Stakeholders: Board; Management; Employees. External Stakeholders: Activists; Regulators; Customers; Lenders; Government; Investors; Stakeholders; Community; Suppliers

    Assess ESG impact

    Materiality assessments help to prioritize your ESG strategy and enable effective reporting

    • The concept of materiality as it relates to ESG is the process of gaining different perspectives on ESG issues and risks that may have significant impact (both positive and negative) on or relevance to company performance.
    • The objective of a materiality assessment is to identify material ESG issues most critical to your organization by looking a broad range of social and environmental factors. Its purpose is to narrow strategic focus and enable an organization to assess the impact of financial and non-financial risks aggregately.
    • It helps to make the case for ESG action and strategy, assess financial impact, get ahead of long-term risks, and inform communication strategies.
    • Organizations can leverage assessment tools from Sustainalytics or SASB Standards to help assess ESG risks or use guidance or benchmarking information from industry associations.

    Info-Tech Insight

    Survey key stakeholders to obtain a more holistic viewpoint of expectations and the industry landscape and gain credibility through the process.

    Use a materiality matrix to understand ESG exposure

    This is an image of a materiality matrix used to understand ESG exposure.

    Example: Beverage Company

    Follow a holistic approach

    To deliver on your purpose, sustainability must be integrated throughout the organization

    • An ESG program cannot be implemented in a silo. It must be anchored on its purpose and supported by a strong governance structure that is intertwined with other functional areas.
    • Effective governance is essential to instill trust, support sound decision making, and manage ESG.
    • Governance extends beyond shareholder rights to include many other factors, such as companies' interactions with competitors, suppliers, and governments. More transparency is sought on:
      • Corporate behavior, executive pay, and oversight of controls.
      • Board diversity, compensation, and skill set.
      • Oversight of risk management, particularly risks related to fraud, product, data, and cybersecurity

    "If ESG is the framework of non-financial risks that may have a material impact on the company's stakeholders, corporate governance is the process by which the company's directors and officers manage those risks."
    – Zurich Insurance

    A pyramid is depicted. The top of the pyramid is labeled Continual Improvement, and the following terms are inside this box. Governance: Strategy; Risk Management; Metrics & Targets. At the bottom of the pyramid is a box with right facing arrows, labeled Transparency and Disclosure. This is Informed by the TCFD Framework

    Governance and organization approach

    There is no one-size-fits-all approach

    47% of companies reported that the full board most commonly oversees climate related risks and opportunities while 20% delegate to an existing board governance committee (EY Research, 2021).

    • The organizational approach to ESG will differ across industry segments and corporations depending on material risks and their upstream and downstream value change. However, the accountability for ESG sits squarely at the CEO and board level.
    • Some organizations have taken the approach of hiring a Chief Sustainability Officer to work alongside the CEO on execution of ESG goals and stakeholder communication, while others use other members of the strategic leadership to drive the desired outcomes.
    Governance Layer Responsibilities
    Board
    • Overall accountability lies with the full board. Some responsibilities may be delegated to newly formed dedicated ESG governance committee.
    Oversight
    Executive leadership
    • Accountable for sustainability program success and will work with CEO to set ESG purpose and goals.
    Oversight and strategic direction
    Management
    • Senior management drives execution; sometimes led by a cross-functional committee.
    Execution

    Strategy alignment

    "74% of finance leaders say that investors increasingly use nonfinancial information in their decision-making."

    – "Aligning nonfinancial reporting..." EY, 2020

    • Like any journey, the ESG journey requires knowing where you are starting from and where you are heading to.
    • Once your purpose is crystalized, identify and surface gaps between where you want to go as an organization (your purpose and goals) and what you need to deliver as an organization to meet the expectations of your internal and external stakeholders (your output).
    • Using the results of the materiality assessment, weigh the risk, opportunities, and financial impact to help prioritize and determine vulnerabilities and where you might excel.
    • Finally, evaluate and make changes to areas of your business that need development to be successful (culture, accountability and board structure, ethics committee, etc.)

    Gap analysis example for delivering reporting requirements

    Organizational Goals

    • Regulatory Disclosure
      • Climate
      • DEI
      • Cyber governance
    • Performance Tracking/Annual Reporting
      • Corporate transparency on ESG performance via social, annual circular
    • Evidence-Based Business Reporting
      • Risk
      • Board
      • Suppliers

    Risk-size your ESG goals

    When integrating ESG risks, stick with a proven approach

    • Managing ESG risks is central to making sound organizational decisions regarding sustainability but also to anticipating future risks.
    • Like any new risk type, ESG risk should be interwoven into your current risk management and control framework via a risk-based approach.
    • Yet ESG presents some new risk challenges, and some risk areas may need new control processes or enhancements.
    NET NEW ENHANCEMENT
    Climate disclosure Data quality management
    Assurance specific to ESG reporting Risk sensing and assessment
    Supply chain transparency tied back to ESG Managing interconnections
    Scenario analysis
    Third-party ratings and monitoring

    Info-Tech Insight

    Integrate ESG risks early, embrace uncertainty by staying flexible, and strive for continual improvement.

    A funnel chart is depicted. The inputs to the funnel are: Strategy - Derive ESG risks from strategy, and Enterprise Risk Appetite. Inside the funnel, are the following terms: ESG; Data; Cyber. The output of the funnel is: Evidence based reporting ESG Insights & Performance metrics

    Managing supplier risks

    Suppliers are a critical input into an organization's ESG footprint

    "The typical consumer company's supply chain ... [accounts] for more than 80% of greenhouse-gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources."
    – McKinsey & Company, 2016

    • Although companies are accustomed to managing third parties via procurement processes, voluntary due-diligence, and contractual provisions, COVID-19 surfaced fragility across global supply chains.
    • The mismanagement of upstream and downstream risks of supply chains can harm the reputation, operations, and financial performance of businesses.
    • To build resiliency to and visibility of supply chain risk, organizations need to adapt current risk management programs, procurement practices, and risk assessment tools and techniques.
    • Procurement departments have an enhanced function, effectively acting as gatekeepers by performing due diligence, evaluating performance, and strengthening the supplier relationship through continual feedback and dialogue.
    • Technologies such as blockchain and IoT are starting to play a more dominant role in supply chain transparency.

    Raw materials are upstream and consumers are downstream.

    "Forty-five percent of survey respondents say that they either have no visibility into their upstream supply chain or that they can see only as far as their first-tier suppliers."
    – "Taking the pulse of shifting supply chains," McKinsey & Company, 2022

    Metrics and targets

    Metrics are key to stakeholder transparency, measuring performance against goals, and surfacing organizational blind spots

    • ESG metrics are qualitative or quantitative insights that measure organizations' performance against ESG goals. Along with traditional business metrics, they assist investors with assessing the long-term performance of companies based on non-financial ESG risks and opportunities.
    • Metrics, key performance indicators (KPIs), and key risk indicators (KRIs) are used to measure how ESG factors affect an organization and how an organization may impact any of the underlying issues related to each ESG factor.
    • There are several reporting standards that offer specific ESG performance metrics, such as the Global Reporting Institute (GRI), Sustainability Accounting Standards Board (SASB), and World Economic Forum (WEF).
    • For climate-related disclosures, global regulators are converging on the Task Force for Climate-related Disclosures (TCFD) and the International Sustainability Standards Board (ISSB).

    Example metrics for ESG factors

    Example metrics for environment include greenhouse gas emissions, water footprint, renewable energy share, and % of recycled material. Example social metrics include rates of injury, proportion of spend on local supplies, and percentage of gender or ethnic groups in management roles. Example governance metrics include annual CEO compensation compared to median, number of PII data breaches, and completed number of supplier assessments.

    The impact of ESG on IT

    IT plays a critical role in achieving ESG goals

    • IT groups have a critical role to play in helping organizations develop strategic plans to meet ESG goals, measure performance, monitor risks, and deliver on disclosure requirements.
    • IT's involvement extends from the CIO providing input at a strategic level to leading the charge within IT to instill new goals and adapt the culture toward one focused on sustainability.
    • To set the tone, CIOs should begin by updating their IT governance structure and setting ESG goals for IT.
    • IT leaders will need to think about resource use and efficiency and incorporate this into their IT strategy.

    Info-Tech Insight

    IT leaders need to work collaboratively with risk management to optimize decision making and continually improve ESG performance and disclosure.

    "A great strategy meeting is a meeting of the minds."
    – Max McKeown

    The data challenge

    The ESG data requirement is large and continually expanding in scope

    • To meet ESG objectives, corporations are challenged with collecting non-financial data from across functional business and geographical locations and from their supplier base and supply chains.
    • One of the biggest impediments to ESG implementation is the lack of high-quality data and of mature processes and tools to support data collection.
    • The data challenge is compounded by the availability and usability of data, immature and fragmented standards that hinder comparability, and workflow integration.

    Info-Tech Insight

    Keep your data model flexible and digital where possible to enable data interoperability.

    A flow chart is depicted. the top box is labeled ESG Program. Below that are Boxes labeled Tactical and Strategic. Below the Tactical Box, is a large X showing a lack of connection to the following points: Duplicative; Inefficient/Costly. Below the box labeled Strategic are the following terms: Data-Driven; Reusable; Digital.

    "You can have data without information, but you cannot have information without data."
    – Daniel Keys Moran

    It's more than a data challenge

    Organizations will rely on IT for execution, and IT leaders will need to be ready

    Data Management: Aggregated Reporting; Supplier Management; Cyber Management; Operational Management; Ethical Design(AI, Blockchain); IT Architecture; Resource Efficiency; Processing & Tooling; Supplier Assessment.

    Top impacts on IT departments

    1. ESG requires corporations to keep track of ESG-related risks of third parties. This will mean more robust assessments and monitoring.
    2. Many areas of ESG are new and will require new processes and tools.
    3. The SEC has upped the ante recently, requiring more rigorous accountability and reporting on cyber incidents.
    4. New IT systems and architecture may be needed to support ESG programs.
    5. Current reporting frameworks may need updating as regulators move to digital.
    6. Ethical design will need to be considered when AI is used to support risk/data management and when it is used as part of product solutions.

    Key takeaways

    • It's critical for organizations to look inward and outward to assess the material impact of ESG factors on their organization and key internal and external stakeholders.
    • ESG requires a flexible, holistic approach across the organization. It must become part of the way you work and enable an active response to changing conditions.
    • ESG introduces new risks that should not be viewed in isolation but interwoven into your current risk management and control framework via a risk-based approach.
    • Identify and integrate risks early, embrace uncertainty by staying flexible, and strive for continual improvement.
    • Metrics are key to telling your ESG story. Place the appropriate importance on the information that will be reported.
    • Recognize that the data challenge is complex and evolving and design your data model to be flexible, interoperable, and digital.
    • IT's role is far reaching, and IT will have a critical part in managing third parties, selecting tools, developing supporting IT architecture, and using ethical design.

    Definitions

    TERM DEFINITON
    Corporate Social Responsibility Management concept whereby organizations integrate social and environmental concerns in their operations and interactions with their stakeholders.
    Chief Sustainability Officer Steers sustainability commitments, helps with compliance, and helps ensure internal commitments are met. Responsibilities may extend to acting as a liaison with government and public affairs, fostering an internal culture, acting as a change agent, and leading delivery.
    ESG An acronym that stands for environment, social, and governance. These are the three components of a sustainability program.
    ESG Standard Contains detailed disclosure criteria including performance measures or metrics. Standards provide clear, consistent criteria and specifications for reporting. Typically created through consultation process.
    ESG Framework A broad contextual model for information that provides guidance and shapes the understanding of a certain topic. It sets direction but does not typically delve into the methodology. Frameworks are often used in conjunction with standards.
    ESG Factors The factors or issues that fall under the three ESG components. Measures the sustainability performance of an organization.
    ESG Rating An aggregated score based on the magnitude of an organization's unmanaged ESG risk. Ratings are provided by third-party rating agencies and are increasingly being used for financing, transparency to investors, etc.
    ESG Questionnaire ESG surveys or questionnaires are administered by third parties and used to assess an organization's sustainability performance. Participation is voluntary.
    Key Risk Indicator (KRI) A measure to indicate the potential presence, level, or trend of a risk.
    Key Performance Indicator (KPI) A measure of deviation from expected outcomes to help a firm see how it is performing.
    Materiality Material topics are topics that have a direct or indirect impact on an organization's ability to create, preserve, or erode economic, environment and social impact for itself and its stakeholder and society as a whole
    Materiality Assessment A materiality assessment is a tool to identify and prioritize the ESG issues most critical to the organization.
    Risk Sensing The range of activities carried out to identify and understand evolving sources of risk that could have a significant impact on the organization (e.g. social listening).
    Sustainability The ability of an organization and broader society to endure and survive over the long term by managing adverse impacts well and promoting positive opportunities.
    Sustainalytics Now part of Morningstar. Sustainalytics provides ESG research, ratings, and data to institutional investors and companies.
    UN Guiding Principles on Business and Human Rights (UNGPs) UN Guiding Principles on Business and Human Rights (UNGPs) provide an essential methodological foundation for how impacts across all dimensions should be assessed.

    Reporting & standard frameworks

    STANDARD DEFINITION AND FOCUS
    CDP CDP has created standards and metrics for comparing sustainability impact. Focuses on environmental data (e.g. carbon, water, and forests) and on data disclosure and benchmarking.
    (Formally Carbon Disclosure Project) Audience: All stakeholders
    Dow Jones Sustainability Indices (DJSI) Heavy on corporate governance and company performance. Equal balance of economic, environmental, and social.
    Audience: All stakeholders
    Global Reporting Initiative (GRI) International standards organization that has a set of standards to help organizations understand and communicate their impacts on climate change and social responsibility. The standard has a strong emphasis on transparency and materiality, especially on social issues.
    Audience: All stakeholders
    International Sustainability Standards Board (ISSB) Standard-setting board that sits within the International Financial Reporting Standards (IFRS) Foundation. The IFRS Foundation is a not-for-profit, public-interest organization established to develop high-quality, understandable, enforceable, and globally accepted accounting and sustainability disclosure standards.
    Audience: Investor-focused
    United Nations Sustainable Development Goals (UNSDG) Global partnership across sectors and industries to achieve sustainable development for all (17 Global Goals)
    Audience: All stakeholders
    Sustainability Accounting Standards Board (SASB) Industry-specific standards to help corporations select topics that may impact their financial performance. Focus on material impacts on financial condition or operating performance.
    Audience: Investor-focused
    Task Force Of Climate-related Disclosures (TCFD; created by the Financial Stability Board) Standards framework focused on the impact of climate risk on financial and operating performance. More broadly the disclosures inform investors of positive and negative measures taken to build climate resilience and make transparent the exposure to climate-related risk.
    Audience: Investors, financial stakeholders

    Bibliography

    Anne-Titia Bove and Steven Swartz, McKinsey, "Starting at the source: Sustainability in supply chains", 11 November 2016

    Accenture, "The Greater Wealth Transfer – Capitalizing on the intergenerational shift in wealth", 2012

    Beth Kaplan, Deloitte, "Preparing for the ESG Landscape, Readiness and reporting ESG strategies through controllership playbook", 15 February 2022

    Bjorn Nilsson et al, McKinsey & Company, "Financial institutions and nonfinancial risk: How corporates build resilience," 28 February 2022

    Bolden, Kyle, Ernst and Young, "Aligning nonfinancial reporting with your ESG strategy to communicate long-term value", 18 Dec. 2020

    Canadian Securities Administrators, "Canadian securities regulators seek comment on climate-related disclosure requirements", 18 October 2021

    Carol A. Adams et al., Global Risk Institute, "The double-materiality concept, Application and issues", May 2021

    Dunstan Allison-Hope et al, BSR, "Impact-Based Materiality, Why Companies Should-Focus Their Assessments on Impacts Rather than Perception", 3 February 2022

    EcoVadis, "The World's Most Trusted Business Sustainability Ratings",

    Ernst and Young, "Four opportunities for enhancing ESG oversight", 29 June 2021

    Federal Ministry of Labour and Social Affairs, The Act on Corporate Due Diligence Obligations in Supply Chains (Gesetz über die unternehmerischen Sorgfaltspflichten in Lieferketten)", Published into Federal Law Gazette, 22, July 2021

    "What Every Company Needs to Know", Sustainalytics

    Global Risk Institute, The GRI Perspective, "The materiality madness: why definitions matter", 22 February 2022

    John P Angkaw "Applying ERM to ESG Risk Management", 1 August 2022

    Hillary Flynn et al., Wellington Management, "A guide to ESG materiality assessments", June 2022

    Katie Kummer and Kyle Lawless, Ernst and Young, "Five priorities to build trust in ESG", 14 July 2022

    Knut Alicke et al., McKinsey & Company, "Taking the pulse of shifting supply chains", 26 August 2022

    Kosmas Papadopoulos and Rodolfo Arauj. The Harvard School Forum on Corporate Governance, "The Seven Sins of ESG Management", 23 September 2020

    KPMG, Sustainable Insight, "The essentials of materiality assessment", 2014

    Lorraine Waters, The Stack, "ESG is not an environmental issue, it's a data one", 20 May 2021

    Marcel Meyer, Deloitte, "What is TCFD and why does it matter? Understanding the various layers and implications of the recommendations",

    Michael W Peregnne et al., "The Harvard Law School Forum on Corporate Governance, The Important Legacy of the Sarbanes Oxley Act," 30 August 2022

    Michael Posner, Forbes, "Business and Human Rights: Looking Ahead To The Challenges Of 2022", 15 December 2021

    Myles Corson and Tony Kilmas, Ernst and Young, "How the CFO can balance competing demands and drive future growth", 3 November 2020

    Novisto, "Navigating Climate Data Disclosure", 2022

    Novisto, "XBRL is coming to corporate sustainability reporting", 17 April 2022

    "Official Journal of the European Union, Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector", 9 December 2019

    Osler, "ESG and the future of sustainability", Podcast, 01 June 2022

    Osler, "The Rapidly Evolving World of ESG Disclosure: ISSB draft standards for sustainability and climate related disclosures", 19 May 2022

    Sarwar Choudhury and Zach Johnston, Ernst and Young "Preparing for Sox-Like ESG Regulation", 7 June 2022

    Securities and Exchange Commission, "The Enhancement and Standardization of Climate-related Disclosures for Investors", 12 May 2022

    "Securities and Exchange Commission, SEC Proposes Rules on Cybersecurity, Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies, 9 May 2022

    Sean Brown and Robin Nuttall, McKinsey & Company, "The role of ESG and purpose", 4 January 2022

    Statement by Chair Gary Gensler, "Statement on ESG Disclosure Proposal", 25 May 2022

    Svetlana Zenkin and Peter Hennig, Forbes, "Managing Supply Chain Risk, Reap ESG Rewards", 22 June 2022

    Task Force on Climate Related Financial Disclosures, "Final Report, Recommendations of the Task Force on Climate-related Financial Disclosures", June 2017

    World Economic Forum, "Why sustainable governance and corporate integrity are crucial for ESG", 29 July 2022

    World Economic Forum (in collaboration with PwC) "How to Set Up Effective Climate Governance on Corporate Boards, Guiding Principles and questions", January 2019

    World Economic Forum, "Defining the "G" in ESG Governance Factors at the Heart of Sustainable Business", June 2022

    World Economic Forum, "The Risk and Role of the Chief Integrity Officer: Leadership Imperatives in and ESG-Driven World", December 2021

    World Economic Forum, "How to Set Up Effective Climate Governance on Corporate Boards Guiding principles and questions", January 2019

    Zurich Insurance, "ESG and the new mandate for corporate governance", 2022

    Select a Marketing Management Suite

    • Buy Link or Shortcode: {j2store}533|cart{/j2store}
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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Time, money, and effort are wasted on channels and campaigns that are not resonating with your customer base.
    • Email marketing, social marketing, and/or lead management alone are often not enough to meet more sophisticated marketing needs.
    • Many organizations struggle with taking a systematic approach to selection that pairs functional requirements with specific marketing workflows, and as a result they choose a marketing management suite (MMS) that is not well aligned to their needs, wasting resources and causing end-user frustration.
    • For IT managers or marketing professionals, the task to incorporate MMS technology into the organization requires not only receiving the buy-in for the MMS investment but also determining the vendor and solution that best fit the organization’s particular marketing management needs.

    Our Advice

    Critical Insight

    • An MMS enables complex campaigns across many channels, product lines, customer segments, and marketing groups throughout the enterprise.
    • Selecting an MMS has become increasingly difficult because the number of players in the marketplace has ballooned. Moreover, picking the wrong marketing solution has a direct impact on revenue.
    • Determine whether the investment in an MMS is worthwhile or the funds are better allocated elsewhere. For organizations with a large audience or varied product offerings, an MMS enables complex campaigns across many channels, product lines, customer segments, and marketing groups throughout the enterprise.

    Impact and Result

    • Maximize your success and credibility with a proposal that emphasizes the areas relevant to your situation.
    • Perform more effective customer targeting and campaign management. Having an MMS equips marketers with the tools they need to make informed decisions around campaign execution, resulting in better targeting, acquisition, and customer retention. This means more revenue.
    • Maximize marketing impact with analytics-based decision making. Understanding users’/customers’ behaviors and preferences will allow you to run effective marketing initiatives.

    Select a Marketing Management Suite Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to approach selecting an MMS, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Launch the MMS project and collect requirements

    Assess the organization’s fit for MMS technology and structure the MMS selection project.

    • Select a Marketing Management Suite – Phase 1: Launch the MMS Project and Collect Requirements
    • MMS Readiness Assessment Checklist

    2. Shortlist marketing management suites

    Produce a vendor shortlist for your MMS.

    • Select a Marketing Management Suite – Phase 2: Shortlist Marketing Management Suites

    3. Select vendor and communicate decision to stakeholders

    Evaluate RFPs, conduct vendor demonstrations, and select an MMS.

    • Select a Marketing Management Suite – Phase 3: Select Vendor and Communicate Decision to Stakeholders
    • MMS Requirements Picklist Tool
    • MMS Request for Proposal Template
    • MMS Vendor Demo Script
    • MMS Selection Executive Presentation Template
    [infographic]

    Workshop: Select a Marketing Management Suite

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Launch the MMS Project and Collect Requirements

    The Purpose

    Determine a “right-size” approach to marketing enablement applications.

    Key Benefits Achieved

    Confirmation of the goals, objectives, and direction of the organization is marketing application strategy.

    Activities

    1.1 Assess the value and identify the organization’s fit for MMS technology.

    1.2 Understand the art of the possible.

    1.3 Understand CXM strategy and identify your fit for MMS technology.

    1.4 Build procurement team and project customer experience management (CXM) strategy.

    1.5 Identify your MMS requirements.

    Outputs

    Project team list.

    Preliminary requirements list.

    2 Shortlist Marketing Management Suites

    The Purpose

    Enumerate relevant marketing management suites and point solutions.

    Key Benefits Achieved

    List of marketing enablement applications based on requirements articulated in the preliminary requirements list strategy.

    Activities

    2.1 Identify relevant use cases.

    2.2 Discuss the vendor landscape.

    Outputs

    Vendor shortlist.

    3 Select Vendor and Communicate Decision to Stakeholders

    The Purpose

    Develop a rationale for selecting a specific MMS vendor.

    Key Benefits Achieved

    MMS Vendor decision.

    A template to communicate the decision to executives.

    Activities

    3.1 Create a procurement strategy.

    3.2 Discuss the executive presentation.

    3.3 Plan the procurement process.

    Outputs

    Executive/stakeholder PowerPoint presentation.

    Selection of an MMS.

    Further reading

    Select a Marketing Management Suite

    A best-fit solution balances needs, cost, and capability.

    Table of contents

    1. Project Rationale
    2. Execute the Project/DIY Guide
    3. Appendices

    ANALYST PERSPECTIVE

    Navigate the complexity of a vast ecosystem by taking a structured approach to marketing management suite (MMS) selection.

    “Marketing applications are in high demand, but it is difficult to select a suite that is right for your organization. Market offerings have grown from 50 vendors to over 800 in the past five years. Much of the process of identifying an appropriate vendor is not about the vendor at all, but rather about having a comprehensive understanding of internal needs. There are instances where a smaller-point solution is necessary to satisfy requirements and a full marketing management suite is an overinvestment.

    Likewise, a partner with differentiating features such as AI-driven workflows and a mobile software development kit can act as a powerful extension of an overall customer experience management strategy. It is crucial to make the right decision; missing the mark on an MMS selection will have a direct impact on the business’ bottom line.”

    Ben Dickie
    Research Director, Enterprise Applications
    Info-Tech Research Group

    Phase milestones

    Launch the MMS Project and Collect Requirements — Phase 1

    • Understand the MMS market space.
    • Assess organizational and project readiness for MMS selection.
    • Structure your MMS selection and implementation project by refining your MMS roadmap.
    • Align organizational use-case fit with market use cases.
    • Collect, prioritize, and document MMS requirements.

    Shortlist MMS Tool — Phase 2

    • Review MMS market leaders and players within your aligned use case.
    • Review MMS vendor profiles and capabilities.
    • Shortlist MMS vendors based on organizational fit.

    Select an MMS — Phase 3

    • Submit request for proposal (RFP) to shortlisted vendors.
    • Evaluate vendor responses and develop vendor demonstration scripts.
    • Score vendor demonstrations and select the final product.

    Stop! Are you ready for this project?

    This Research Is Designed For:
    • IT applications directors and business analysts supporting their marketing teams in selecting and implementing a robust marketing solution.
    • Any organization looking to procure an MMS tool that will allow it to automate its marketing processes or learn more about the MMS vendor landscape.
    		 This Research Will Help You:
    • Understand today’s MMS market, specific to marketing automation, marketing intelligence, and social marketing use-case scenarios.
    • Understand MMS functionality as well as marketing terminology.
    • Follow best practices to prepare for and execute on selection, including requirements gathering and vendor evaluation.
    This Research Will Also Assist:
    • Marketing managers, brand managers, and any marketing professional looking to build a cohesive marketing platform.
    • MMS project teams or working groups tasked with managing an RFP process for vendor selection.
    		 This Research Will Help Them
    • Assess organizational and project readiness for embarking on MMS selection.
    • Draft an RFP, manage the vendor and product review process, and select a vendor.

    Executive summary

    Situation

    The MMS market is a landscape of vendors offering campaign management, multichannel support, analytics, and publishing tools. Many vendors specialize in some of these areas but not all. Sometimes multiple products are necessary – but determining which feature sets the organization truly needs can be a challenging task. The right technology stack is critical in order to bring automation to marketing initiatives.

    Complication

    • The first challenge is deciding whether to implement a full marketing suite or a point solution.
    • The number of marketing suites and point solutions has increased from 50 to more than 800 just in the past five years.
    • IT is receiving a growing number of marketing analytics requests and must be prepared to speak intelligently about marketing management vendor selection.

    Resolution

    • Leverage Info-Tech’s comprehensive three-phase approach to MMS selection projects: assess your organization’s preparedness to go into the selection stage, move through technology selection, and present decisions to stakeholders.
    • Conduct an MMS project preparedness assessment to ensure you maximize the value of your time, effort, and spend.
    • Determine whether your organization’s needs will best be met by a marketing management suite or a point solution.
    • Determine which use case your organization fits into and review the relevant vendor landscape, common capability, and areas of product differentiation. Consult Info-Tech’s market analysis to shortlist vendors for your RFP process.
    • Take advantage of traceable and auditable selection tools to run an effective evaluation and selection process. Be prepared to answer the retroactive question “Why this MMS?” with documentation of your selection process and outputs.

    Info-Tech Insight

    1. The new MMS market. Selecting a marketing management solution has become increasingly difficult, with the number of players in the marketplace ballooning to meet buyer demand.
    2. Direct translation to revenue. Picking the wrong marketing solution has a direct impact on the bottom line. However, the right MMS can lead to a 7.3x greater year-over-year increase in annual revenue.
    3. Don’t buy best-of-breed; buy best-for-you. Base your vendor selection on your requirements and use case, not on the vendor’s overall performance.

    MMS is a key piece of the CRM puzzle

    In order to optimize cross-sell opportunities and marketing effectiveness, there needs to be a master customer database, which belongs in the customer relationship management (CRM) suite.

    “When it comes to marketing automation capabilities, using CRM is like building a car from a kit. All the parts are there, but you need the time and skill to put it all together. Using marketing automation is like buying the car you want or need, with all the features you want already installed and some gas in the tank, ready to drive. In either case, you still need to know how to drive and where you want to go.” (Mac McIntosh, Marketo Inc.) 'CRM' surrounded by its components with 'MMS' highlighted. A master database – the central place where all up-to-the-minute data on a customer profile is stored – is essential for MMS success. This is particularly true for real-time capability effectiveness and to minimize customer fatigue.

    Understand what an MMS can do for you

    Take time to learn the capabilities of modern marketing applications. Understanding the “art of the possible” will help you to get the most out of your MMS.

    MMS helps marketers in two primary ways:
    1. It allows them to efficiently execute and manage campaigns across dozens of channels and products.
    2. It allows them to analyze the outcomes of campaigns.
    Marketing suites accomplish these tasks by:
    • Leveraging workflow automation to reduce the amount of time spent creating marketing campaigns
    • Using internal or third-party data to increase conversion effectiveness from customer databases across the organization
    A strong MMS provides marketers with the data they need for actionable insights about their customers.    		 “A marketing automation solution delivers essentially all the benefits of an email marketing solution along with integrated capabilities that would otherwise need to be cobbled together using various standalone technologies.” (Marketo Inc.)

    Review Info-Tech’s vendor profiles of the MMS market to identify vendors that meet your requirements

    Logos of multiple vendors including 'Hubspot', 'IBM', 'Salesforce marketing cloud', etc.

    Use Info-Tech’s MMS implementation methodology as a starting point for your organization’s MMS selection

    Info-Tech’s implementation methodology is not a step-by-step approach to vendor selection, but rather it highlights the pertinent considerations for MMS selection at each of the five steps outlined below.

    1

    2

    3

    4

    5
    Establish Resources Gather Requirements Write and Assemble RFP Exercise Due Diligence Evaluate Candidate Solutions
    • Determine work initiative dependencies and project milestones.
    • Establish the project timeline.
    • Designate project resources.
    • Prioritize rollout of functionality.
    • Link business goals with the MMS selection project.
    • Determine user roles and profiles.
    • Conduct stakeholder interviews.
    • Build communication and change management plan.
    • Draft an RFP.
    • Make a plan for soliciting feedback and publishing the RFP.
    • Customize a vendor demo script and scorecard.
    • Conduct vendor demos.
    • Speak with vendor references.
    • Evaluate nonfunctional requirements.
    • Understand upgrade schedules.
    • Define a vendor evaluation framework.
    • Prepare the final evaluation.
    • Prepare a presentation for management.

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Professional services provider engages Info-Tech to guide it through its MMS selection journey

    CASE STUDY
    Industry: Professional Services | Source: Info-Tech Consulting

    Challenge

    A large professional services firm specializing in knowledge development was looking to modernize an outdated marketing services stack.

    Previous investments in marketing tools ranging from email automation to marketing analytics led to system fragmentation. As a result, there was no 360-degree overview of marketing operations and no way to run campaigns at scale.

    To satisfy the organization’s aspirations, a comprehensive marketing management suite had to be selected that met needs for the foreseeable future.

    Solution

    The Info-Tech consulting team was brought in to assist in the MMS selection process.

    After meeting with several stakeholders, MMS requirements were developed and weighted. An RFP was then created from these requirements.

    Following a market scan, four vendors were selected to complete the organization’s RFP. Demonstration scripts were then developed as the RFPs were completed by vendors.

    Shortlisted vendors progressed to the demonstration phase.

    Results

    Vendor scorecards were utilized during the two-day demonstrations with the core project team to score each vendor.

    During the scoring process the team also identified the need to replace the organization’s core customer repository (a legacy CRM).

    The decision was made to select a CRM before finalizing the MMS selection. Doing so ensured uniform system architecture and strong interoperability between the firm’s MMS and its CRM.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Select a Marketing Management Suite – project overview

    1. Launch the MMS Project and Collect Requirements 2. Shortlist Marketing Management Suites 3. Select Vendor and Communicate Decision to Stakeholders
    Supporting Tool icon

    Best-Practice Toolkit

    1.1 Assess the value and identify your organization’s fit for MMS technology.

    1.2 Build your procurement team and project customer experience management (CXM) strategy.

    1.3 Identify your MMS requirements.

    2.1 Produce your shortlist

    3.1 Select your MMS

    3.2 Present selection

    Guided Implementations
    • Understand CXM strategy and identify your fit for MMS technology.
    • Identify staffing needs.
    • Plan requirements gathering steps.
    • Discuss use-case fit assessment results.
    • Discuss vendor landscape.
    • Create a procurement strategy.
    • Discuss executive presentation.
    • Conduct a proposal review.
    Associated Activity icon

    Onsite Workshop

    		 Module 1:
    Launch Your MMS Selection Project    		 Module 2:
    Analyze MMS Requirements and Shortlist Vendors    		 Module 3:
    Plan Your Procurement Process
    Phase 1 Outcome:
    • Launch of MMS selection project
    		 Phase 2 Outcome:
    • Shortlist of vendors
    		 Phase 3 Outcome:
    • Selection of MMS

    Use these icons to help direct you as you navigate this research

    Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

    A small monochrome icon of a wrench and screwdriver creating an X.

    This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.
    A small monochrome icon depicting a person in front of a blank slide.

    This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members who will come onsite to facilitate a workshop for your organization.
    A small monochrome icon depicting a descending bar graph.

    This icon denotes a slide that pertains directly to the Info-Tech vendor profiles on marketing management technology. Use these slides to support and guide your evaluation of the MMS vendors included in the research.

    Select a Marketing Management Suite

    PHASE 1

    Launch the MMS Project and Collect Requirements

    Phase 1 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Launch Your MMS Project and Collect Requirements

    Proposed Time to Completion: 3 weeks
    Step 1.2: Structure the Project Step 1.3: Gather Requirements
    Start with an analyst kick-off call:
    • Review readiness requirements for an MMS project.
    • Understand the work initiatives involved in MMS selection.
    		 Review findings with analyst:
    • Determine use case based on your organizational alignment.
    • Discuss core MMS requirements.
    Then complete these activities…
    • Conduct an organizational MMS readiness assessment.
    		 Then complete these activities…
    • Identify best-fit use case.
    • Elicit, capture, and prioritize requirements.
    With these tools & templates:
    • MMS Readiness Assessment Checklist
    		 With these tools & templates:
    • MMS Requirements Picklist Tool
    Phase 1 Results:
    • Completed readiness assessment.
    • Refined project plan to incorporate selection and implementation.

    Phase 1 milestones

    Launch the MMS Project and Collect Requirements — Phase 1

    • Understand the MMS market space.
    • Assess organizational and project readiness for MMS selection.
    • Structure your MMS selection and implementation project by refining your MMS roadmap.
    • Align organizational use-case fit with market use cases.
    • Collect, prioritize, and document MMS requirements.

    Shortlist MMS Tool — Phase 2

    • Review MMS market leaders and players within your aligned use case.
    • Review MMS vendor profiles and capabilities.
    • Shortlist MMS vendors based on organizational fit.

    Select an MMS — Phase 3

    • Submit request for proposal (RFP) to shortlisted vendors.
    • Evaluate vendor responses and develop vendor demonstration scripts.
    • Score vendor demonstrations and select the final product.

    Step 1.1: Understand the MMS market

    1.1

    1.2

    1.3
    Understand the MMS Market Structure the Project Gather MMS Requirements

    This step will walk you through the following activities:

    • MMS market overview

    This step involves the following participants:

    • Project team
    • Project manager
    • Project sponsor

    Outcomes of this step

    • An understanding of the evolution of the MMS market space and how it helps today’s organizations.
    • An evaluation of new and upcoming trends sought by MMS clients.
    • Verification of whether an MMS is a fit with your organization.

    Speak the same language as the marketing department to deliver the most business value

    Marketing Management Suite Glossary

    Analytics The practice of measuring marketing performance to improve return on investment (ROI). It is often carried out through the visualization of meaningful patterns in data as a result of marketing initiatives.
    Channels The different places where marketers can reach customers (e.g. social media, print mail, television).
    Click-through rate The percentage of individuals who proceed (click-through) from one part of a marketing campaign to the next.
    Content management Curating, creating, editing, and keeping track of content and client-facing assets.
    Customer relationship management (CRM) A core enterprise application that provides a broad feature set for supporting customer interaction processes. The CRM frequently serves as a core customer data repository.
    Customer experience management (CXM) The holistic management of customer interaction processes across marketing, sales, and customer service to create valuable, mutually beneficial customer experiences.
    Engagement rate A social media metric used to describe the amount of likes, comments, shares, etc., that a piece of content receives.
    Lead An individual or organization who has shown interest in the product or service being marketed.
    Omnichannel The portfolio of interaction channels you use.

    MMS is a key piece of the customer experience ecosystem

    Within the broader CXM ecosystem, an MMS typically lives within the CRM platform. Interfacing with the CRM’s master customer database allows an MMS to optimize cross-sell opportunities and marketing effectiveness.

    A master database – the central place where all up-to-the-minute data on a customer profile is stored – is essential for MMS success. This is particularly true for real-time capability effectiveness and to minimize customer fatigue.

    If you have customer records in multiple places, you risk missing customer opportunities and potentially upsetting clients. For example, if a client has communicated preferences or disinterest through one channel, and this is not effectively recorded throughout the organization, another representative is likely to contact them in the same method again – possibly alienating the customer for good.

    A master database requires automatic synchronization with all point solutions, POS, billing systems, agencies, etc. If you don’t have up-to-the-minute information, you can’t score prospects effectively and you lose out on the benefits of the MMS.

    		 'CRM' surrounded by its components with 'MMS' highlighted.
    Focus on the fundamentals before proceeding. Secure organizational readiness to reduce project risk using Info-Tech’s Build a Strong Technology Foundation for CXM and Select and Implement a CRM Platform blueprints.

    Understanding the “art of the possible”

    The world of marketing technology changes rapidly! Understand how modern marketing management suites are used in most organizations.

    An MMS helps marketers in two primary ways:

    1. It allows them to efficiently execute and manage campaigns across dozens of channels and products.
    2. It allows them to analyze the outcomes of campaigns.

    Marketing suites accomplish these tasks by:

    • Leveraging workflow automation to reduce the amount of time spent creating marketing campaigns.
    • Using internal or third-party data to increase conversion effectiveness from customer databases across the organization.

    A strong MMS provides marketers with the data they need for actionable insights about their customers.

    “A marketing automation solution delivers essentially all the benefits of an email marketing solution along with integrated capabilities that would otherwise need to be cobbled together using various standalone technologies.” (Marketo Inc.)

    Inform your way of thinking by understanding the capabilities of modern marketing applications.

    A tree with icons related to knowledge.

    Expect the marketing department to drive suite adoption, but don’t count out the benefits MMS will also provide to IT

    MMS adoption is driven by the need for better campaign execution and marketing intelligence. MMS technologies are adopted to create faster, easier, more intelligent, and more measurable campaigns and make managing complex channels easy and repeatable.

    Top Drivers for Adopting Marketing Management Technologies

    Bar chart of top drivers for adopting marketing management technology. The first four bars are highlighted and the largest, they are labelled 'Campaign Measurement & Effectiveness', 'Execute Multi-channel Campaigns', 'Shorten Marketing Campaign Cycle', and 'Reduce Manual Campaign Creation'.
    (Source: Info-Tech Research Group; N=23)

    The key drivers for MMS are business-related, not IT-related. However, this does not mean that there are no benefits to IT. In fact, the IT department will see numerous benefits, including time and resource savings. Further, not having an MMS creates more work for your IT department. IT must serve as a valued partner for selection and implementation.

    Additional benefits to IT driven by MMS

    Marketing management suites are ideal for large organizations with multiple product lines in complex marketing environments. IT is often more centralized than its counterparts in the business, making it uniquely positioned to encourage greater coordination by helping the business units understand the shared goals and the benefits of working together to roll out suites for marketing workflow management, intelligence, and channel management.

    Cross-Segmentation Additional Revenue Generation Real-Time Capabilities Lead Growth/ Conversion Rate
    Business Value
    • Share resources between brands and product lines.
    • Increase database size with populated client data.
    • Track customer lifetime value.
    • Increase average deal size.
    • Decrease time to execute campaigns.
    • Decrease lead acquisition costs while collecting higher quality leads.
    • Improve retention rates.
    • Reduce cost to serve.
    • Increase customer retention due to effective service.
    • Higher campaign and response rates.
    • Track, measure, and prove the value of marketing activities.
    • Broaden reach through social channels.
    IT Value
    • Reduce reliance on IT for routine tasks such as list creation and data cleansing.
    • Free up IT resources for the sectors of the business where the ROI is greatest.
    • Reduce need for IT to cleanse, modify, or merge data lists because most suites include CRM connectors.
    • Reduce need for constant customization on status reports on lead value and campaign success.

    Info-Tech Insight

    Don’t forget that MMS technologies deliver on the overarching suite value proposition: a robust solution within one integrated offering. Without an MMS in play, organizations in need of this functionality are forced to piece together point solutions (or ad hoc management). This not only increases costs but also is an integration nightmare for IT.

    Step 1.2: Structure the project

    1.1

    1.2

    1.3

    Understand the MMS MarketStructure the ProjectGather MMS Requirements

    This step will walk you through the following activities:

    • Determine if you are ready to kick off the MMS selection project.
    • Align project goals with CXM strategy and business goals.

    This step involves the following participants:

    • Core project team
    • Project manager
    • Project sponsor

    Outcomes of this step

    • Assurance that you have completed adequate preparation, obtained stakeholder and sponsor buy-in, secured sufficient resources, and completed strategy and planning activities to move forward with selection.
    • An approach to remedy organizational readiness to prepare for MMS selection.
    • An understanding of stakeholder goals.

    Identify the scope and purpose of your MMS selection process

    Vendor Profiles icon

    Sample Project Overview

    [Organization] plans to select and implement a marketing management suite in order to introduce better campaign management to the business’ processes. This procurement and implementation of an MMS tool will enable the business to improve the efficiency and effectiveness of marketing campaign execution.

    This project will oversee the assessment and shortlisting of MMS vendors, selection of an MMS tool, the configuration of the solution, and the implementation of the technology into the business environment.

    Rationale Behind the Project

    Consider the business drivers behind the interest in MMS technology.

    Be specific to business units impacted and identify key considerations (both opportunities and risks).

    Business Drivers

    • Organizational productivity
    • Customer satisfaction
    • Marketing management costs
    • Risk management

    Info-Tech Insights

    Creating repeatable and streamlined marketing processes is a common overarching business objective that is driven by multiple factors. To ensure this objective is achieved, confirm that the primary drivers are following the implementation of the first automated marketing channels.

    Activity: Understand your business’ goals for MMS by parsing your formal CXM strategy

    Associated Activity icon 1.2.1 1 hour

    INPUT: Stakeholder user stories

    OUTPUT: Understanding of ideal outcomes from MMS implementation

    MATERIALS: Whiteboard and marker or sticky notes

    PARTICIPANTS: Project sponsor, Project stakeholders, Business analysts, Business unit reps

    Instructions

    1. Outline the purpose of the future MMS tool and the drivers behind this business decision with the project’s key stakeholders.
    2. Document plans to ensure that these drivers are taken into consideration and realized following implementation. Example:
      Improve Reduce/Eliminate KPIs
      Multichannel marketing Duplication of effort Number of customer interaction channels supported
      Social integration Process inefficiencies Number of social signals received (likes, shares, etc.)
      … … …

    If you do not have a well-defined CXM strategy, leverage Info-Tech’s research to Build a Strong Technology Foundation for Customer Experience Management.

    Understanding marketing suites

    Vendor Profiles icon

    This blueprint focuses on complete, integrated marketing management suites

    An integrated suite is a single product that is designed to assist with multiple marketing processes. Information from these suites is deeply connected to the core CRM. Changing a piece of information for one process will update all affected.

    		 'MMS' surrounded by its integrated processes, including 'Marketing Operations Management', 'Breadth of Channel Support', 'Marketing Asset Management', etc.

    Understanding marketing point solutions

    Vendor Profiles icon

    A point solution typically interfaces with a single customer interaction channel with minimal CRM integration.

    Why use a marketing point solution?

    1. A marketing point solution is a standalone application used to manage a unique process.
    2. Point solutions can be implemented and updated relatively quickly.
    3. They cost less than full-feature, integrated marketing suites.
    4. Some point solutions integrate with CRM platforms or MMS platforms.

    Refer to Phase 2 for a bird’s-eye view of the point solution marketplace.

    Marketing Point Solutions

    • Twitter Analytics
    • Search Engine Optimization
    • Customer Portals
    • Livechat
    • Marketing Attribution
    • Demand Side Platform

    Determine if MMS is right for your organization

    Vendor Profiles icon

    Adopt an MMS if:

    1. Your organization is actively pursuing a multichannel marketing strategy, particularly if its marketing campaigns are complex and multifaceted, involving consumer-specific conditional messaging.
    2. Your enterprise serves a high volume of customers and marketing needs extend to formally managing budgets and resources, lead generation and segmentation, and measuring channel effectiveness.
    3. Your organizations has multiple product lines and is interested in increasing cross-sale opportunities.

    Bypass an MMS if:

    • Your organization does not participate in multichannel campaigns and is primarily using email or web channels to generate leads. You may find the advanced features and capabilities of an MMS to be overkill and should consider lead marketing automation (LMA) or email marketing services first.
    • You are a small to midsize business (SMB) with a limited budget or fewer than five marketing professionals. Don’t buy what you don’t need; organizations with fewer than five people in the marketing department are unlikely to need an MMS.
    • Sales generation is not a priority for the business or a primary goal for the marketing department.

    Info-Tech Insight

    Using an MMS is ideal for organizations with multiple brands and product portfolios (e.g. consumer packaged goods). Ad hoc management and email marketing services are best for small organizations with a client base that requires only bare bones engagement.

    Determine if you are ready to kick off your MMS selection and implementation project

    Supporting Tool icon 1.2.2 MMS Readiness Assessment Checklist
    Use Info-Tech’s MMS Readiness Assessment Checklist to determine if your organization has sufficient process and campaign maturity to warrant the investment in a consolidated marketing management suite.

    Sections of the Tool:

    1. Goals & Objectives
    2. Project Team
    3. Current State Understanding
    4. Future State Vision
    5. Business Process Improvement
    6. Project Metrics
    7. Executive Sponsorship
    8. Stakeholder Buy-In & Change Management
    9. Risk Management
    10. Cost & Budget

    INFO-TECH DELIVERABLE

    Sample of Info-Tech's MMS Readiness Assessment Checklist.

    Complete the MMS Readiness Assessment Checklist by following the instructions in Activity 1.2.3.

    Activity: Determine if you are ready to kick off your MMS selection project

    Associated Activity icon 1.2.3 30 minutes

    INPUT: MMS foundation, MMS strategy

    OUTPUT: Readiness remediation approach, Validation of MMS project readiness

    MATERIALS: Info-Tech’s MMS Readiness Assessment Checklist

    PARTICIPANTS: Project sponsor, Core project team

    Instructions

    1. Download the MMS Readiness Assessment Checklist.
    2. Review Section 1 of the checklist with the core project team and/or project sponsor, item by item. For completed items, tick the relative checkbox.
    3. Once the whole checklist has been reviewed, document all incomplete items in the table under Section 1 in the first table column (“Incomplete Readiness Item”).
    4. For each incomplete item, use your discretion to determine whether its completion is critical in preparation for MMS selection and implementation. This may vary given the complexity of your MMS project. If the item is critical to the project, indicate this with “Y” in the second column (“Criticality (Y/N)”).
    5. For each critical item, reflect on the barriers that have prevented or are preventing its completion. Possible barriers include incomplete task dependencies, low value-to-effort determination, lack of organizational knowledge or resources, pressure of deadlines, etc. Document these barriers in the third column (“Barriers to Completion”).
    6. Based on the barriers determined in Step 5, determine a remediation approach for each item. Document the approach in the fourth column (“Remediation Approach”).
    7. For each remediation activity, designate a due date and remediation owner. Document this in the fifth column (“Due Date & Owner”).
    8. Carry out the remediation of critical tasks and return to this blueprint to kickstart your selection and implementation project.

    Step 1.3: Gather MMS requirements

    1.1

    1.2

    1.3

    Understand the MMS MarketStructure the ProjectGather MMS Requirements

    This step will walk you through the following activities:

    • Understand your MMS use case.
    • Elicit and capture your MMS requirements.
    • Prioritize your solution requirements.

    This step involves the following participants:

    • Core project team
    • Project manager
    • Business analysts
    • Procurement subject-matter experts (SMEs)

    Outcomes of this step

    • Project alignment with MMS market use case.
    • Inventory of categorized and prioritized MMS business requirements.

    Understand the dominant use-case scenarios for MMS across organizations

    Vendor Profiles icon

    USE CASES

    		 While an organization may be product- or service-centric, most fall into one of the three use cases described on this slide.

    1) Marketing Automation

    Workflow Management

    Managing complex marketing campaigns and building and tracking marketing workflows are the mainstay responsibilities of brand managers and other senior marketing professionals. In this category, we evaluated vendors that provide marketers with comprehensive tools for marketing campaign automation, workflow building and tracking, lead management, and marketing resource planning for campaigns that need to reach a large segment of customers.

    Omnichannel Management

    The proliferation of marketing channels has created significant challenges for many organizations. In this use case, we executed a special evaluation of vendors that are well suited for the intricacies of juggling multiple channels, particularly mobile, social, and email marketing.

    2) Marketing Intelligence

    Sifting through data from a myriad of sources and coming up with actionable intelligence and insights remains a critical activity for marketing departments, particularly for market researchers. In this category, we evaluated solutions that aggregate, analyze, and visualize complex marketing data from multiple sources to allow decision makers to execute informed decisions.

    3) Social Marketing

    The proliferation of social networks, customer data, and use cases has made ad hoc social media management challenging. In this category we evaluated vendors that bring uniformity to an organization’s social media capabilities and contribute to a 360-degree customer view.

    Activity: Understand which type of MMS you need

    Associated Activity icon 1.3.1 30 minutes

    INPUT: Use-case breakdown

    OUTPUT: Project use-case alignments

    Materials: Whiteboard, markers

    Participants: Project manager, Core project team (optional)

    Instructions

    1. Familiarize your team with Info-Tech’s MMS use-case breakdown from the previous slide.
    2. Determine which use case is best aligned with your organization’s MMS project objectives. If you need assistance with this, consider the relevance of the cases studies and statements on the following slides.
    3. If your team agrees with most or all statements under a given use case, this indicates strong alignment towards that use case. It is possible for an organization to align with more than one use case. Your use-case alignment will guide you in creating a vendor shortlist later in this project.

    Use Info-Tech’s vendor research and use-case scenarios to support your organization’s vendor analysis

    The use-case view of vendor and product performance provides multiple opportunities for vendors to fit into your application architecture depending on their product and market performance. The use cases selected are based on market research and client demand.

    Determining your use case is crucial for:

    1. Selecting an application that is the right fit
    2. Establishing a business case for MMS

    The following slides illustrate how the three most common use cases (marketing automation, marketing intelligence, and social marketing) align with business needs. As shown by the case studies, the right MMS can result in great benefits to your organization.

    Use-case alignment and business need

    Vendor Profiles icon

    Marketing Automation

    Marketing Need Manage customer experience across multiple channels Manage multiple campaigns simultaneously Integrate web-enabled devices (IoT) into marketing campaigns Run and track email marketing campaigns
    A line of arrows pointing down.
    Corresponding Feature End-to-end management of email marketing Visual workflow editor Customer journey mapping Business rules engine A/B tracking

    The Portland Trail Blazers utilize an MMS to amplify their message with marketing automation technology

    CASE STUDY

    Industry: Entertainment | Source: Marketo

    Challenge

    The Portland Trail Blazers, an NBA franchise, were looking to expand their appeal beyond the city of Portland and into the greater Pacific Northwest Region.

    The team’s management group also wanted to showcase the full range of events that were hosted in the team’s multipurpose stadium.

    The Trail Blazers were looking to engage fans in a more targeted fashion than their CRM allowed for. Ultimately, they hoped to move from “batch and blast” email campaigns to an automated and targeted approach.

    Solution

    The Trail Blazers implemented an MMS that allowed it to rapidly build different types of campaigns. These campaigns could be executed across a variety of channels and target multiple demographics at various points in the fan journey.

    Contextual ads were implemented using the marketing suite’s automated customer journey mapping feature. Targeted ads were served based on a fan’s location in the journey and interactions with the Trail Blazers’ online collateral.

    Results

    The automated campaigns led to a 75% email open rate, which contributed to a 96% renewal rate for season ticket holders – a franchise record.

    Other benefits resulting from the improved conversion rate included an increased cohesion between the Trail Blazers’ marketing, analytics, and ticket sales operations.

    Use-case alignment and business need

    Vendor Profiles icon

    Marketing Intelligence

    Marketing Need Capture marketing- and customer-related data from multiple sources Analyze large quantities of marketing data Visualize marketing-related data in a manner that is easy for decision makers to consume Perform trend and predictive analysis
    A line of arrows pointing down.
    Corresponding Feature Integrate data across customer segments Analysis through machine learning Assign attributers to unstructured data Displays featuring data from external sources Create complex customer data visualizations

    Chico’s FAS uses marketing intelligence to drive customer loyalty

    CASE STUDY

    Industry: Retail | Source: SAS

    Challenge

    Women’s apparel retailer Chico’s FAS was looking to capitalize on customer data from in-store and online experiences.

    Chico’s hoped to consolidate customer data from multiple online and brick-and-mortar retail channels to get a complete view of the customer.

    Doing so would satisfy Chico’s need to create more highly segmented, cost-effective marketing campaigns

    Solution

    Chico’s selected an MMS with strong marketing intelligence, analysis, and data visualization capability.

    The MMS could consolidate and analyze customer and transactional information. The suite’s functionality enabled Chico’s marketing team to work directly with the data, without help from statisticians or IT staff.

    Results

    The approach to marketing indigence led to customers getting deals on products that were actually relevant to them, increasing sales and brand loyalty.

    Moreover, the time it took to perform data consolidation decreased dramatically, from 17 hours to two hours, allowing the process to be performed daily instead of weekly.

    Use-case alignment and business need

    Vendor Profiles icon

    Social Marketing

    Marketing Need Understand customers' likes and dislikes Manage and analyze social media channels like Facebook and Twitter Foster a conversation around specific products Engage international audiences through regional messaging apps
    A line of arrows pointing down.
    Corresponding Feature Social listening capabilities Tools for curating customer community content Ability to aggregate social data Integration with popular social networks Ability to conduct trend reporting

    Bayer leverages MMS technology to cultivate a social presence

    CASE STUDY

    Industry: Life Sciences | Source: Adobe

    Challenge

    Bayer, a Fortune 500 health and life sciences company, was looking for a new way to communicate its complex medical breakthroughs to the general public.

    The decision was made to share the science behind its products via social channels in order to generate excitement.

    Bayer needed tools to publish content across a variety of social media platforms while fostering conversations that were more focused on the science behind products.

    Solution

    Based on the requirements, Bayer decided that an MMS would be the best fit.

    After conducting a market scan, the company selected an MMS with a comprehensive social media suite.

    The suite included tools for social listening and moderation and tools to guide conversations initiated by both marketers and customers.

    Results

    The MMS provided Bayer with the toolkit to engage its audience.

    Bayer took control of the conversation about its products by serving potential customers with relevant video content on social media.

    Its social strategy coupled with advanced engagement tools resulted in new business opportunities and more than 65,000 views on YouTube and more than 87,000 Facebook views in a single month.

    Leverage Info-Tech’s requirements gathering framework to serve as the basis for capturing your MMS requirements

    An important step in selecting an MMS that will have widespread user adoption is creating archetypal customer personas. This will enable you to talk concretely about them as consumers of the application you select and allow you to build buyer scenarios around them.
    REQUIREMENTS GATHERING
    Info-Tech’s requirements gathering framework is a comprehensive approach to requirements management that can be scaled to any size of project or organization. This framework ensures that the application created will capture the needs of all stakeholders and deliver business value. Develop and right-size a proven standard operating procedure for requirements gathering with Info-Tech’s blueprint Build a Strong Approach to Business Requirements Gathering.    		 Stock photo of a Jenga tower with title: Build a Strong Approach to Business Requirements Gathering
    KEY INPUTS TO MMS REQUIREMENTS GATHERING
    Requirements Gathering Methodology

    Sample of Requirements Gathering Blueprint.

    Requirements Gathering Blueprint Slide 25: Understand the best-practice framework for requirements gathering for enterprise applications projects.

    		 Requirements Gathering SOP

    Sample of Requirements Gathering Blueprint.

    Requirements Gathering Blueprint Activities 1.2.2-1.2.5, 2.1.1, 2.1.2, 3.1.1, 3.2.1, 4.1.1-4.1.3, 4.2.2: Consolidate outputs to right-size a best-practice SOP for your organization.

    		 Project Level Selection Tool

    Sample of Requirements Gathering Blueprint.

    Requirements Gathering Blueprint Activity 1.2.4: Determine project-level selection guidelines to inform the due diligence required in your MMS requirements gathering.

    Activity: Elicit and capture your MMS requirements

    Associated Activity icon 1.3.2 Varies

    INPUT: MMS tool user expertise, MMS Requirements Picklist Tool

    OUTPUT: A list of needs from the MMS tool user perspective

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: MMS users in the organization, MMS selection committee

    Instructions

    1. Identify stakeholders for the requirements gathering exercise. Consider holding one-on-one sessions or large focus groups with key stakeholders or the project sponsor to gather business requirements for an MMS.
    2. Use the MMS Requirements Picklist Tool as a starting point for conducting the requirements elicitation session(s).
    3. Begin by reading the instructions in the template and then move to the “Requirements” worksheet. Read each defined requirement in the worksheet and indicate in the “Requirement Status” column whether the requirement is a “Must,” “High,” or “Low.” Confirming the status is an important part of the exercise. The status will help filter vendors for final selection later on in the process.
    4. Decide whether additional requirements are necessary by asking the MMS tool users. If so, add the requirements to the bottom of the “Requirements” worksheet and indicate their “Requirement Status.”

    Download the MMS Requirements Picklist Tool to help with completing this activity.

    Show the measurable benefits of MMS with metrics

    The return on investment (ROI) and perceived value of the organization’s marketing solution will be a critical indication of the likelihood of success of the suite’s selection and implementation.

    EXAMPLE
    METRICS

    MMS and Technology Adoption

    Marketing Performance Metrics
    Average revenue gain per campaign Quantity and quality of marketing insights
    Average time to execute a campaign Customer acquisition rates
    Savings from automated processes Marketing cycle times
    User Adoption and Business Feedback Metrics
    User satisfaction feedback User satisfaction survey with the technology
    Business adoption rates Application overhead cost reduction

    Info-Tech Insight

    Even if marketing metrics are difficult to track right now, the implementation of an MMS brings access to valuable customer intelligence from data that was once kept in silos.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop Associated Activity icon

    Book a workshop with our Info-Tech analysts:

    Photo of an Info-Tech analyst.
    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.2.1

    		 Sample of activity 1.2.1 'Understand your business' goals for MMS by parsing your formal CXM strategy'. Align the CXM strategy value proposition to MMS capabilities

    Our facilitator will help your team identify the IT CXM strategy and marketing goals. The analyst will then work with the team to map the strategy to technological drivers available in the MMS market.

    1.3.2

    		 Sample of activity 1.3.2 'Elicit and capture your MMS requirements'. Define the needs of MMS users

    Our facilitator will work with your team to identify user requirements for the MMS Requirements Picklist Tool. The analyst will facilitate a discussion with your team to prioritize identified requirements.

    Select a Marketing Management Suite

    PHASE 2

    Shortlist Marketing Management Suites

    Phase 2 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Shortlist Marketing Management Suites

    Proposed Time to Completion: 1-3 months
    Step 2.1: Analyze and Shortlist MMS Vendors
    Start with an analyst kick-off call:
    • Review requirements gathering findings.
    • Review the MMS market space.
    Then complete these activities…
    • Review vendor profiles and analysis.
    • Weigh the evaluation criteria’s importance in product capabilities and vendor characteristics.
    • Shortlist MMS vendors.
    With these tools & templates:
    Phase 2 Results:
    • Shortlist of MMS tools

    Phase 2 milestones

    Launch the MMS Project and Collect Requirements — Phase 1

    • Understand the MMS market space.
    • Assess organizational and project readiness for MMS selection.
    • Structure your MMS selection and implementation project by refining your MMS roadmap.
    • Align organizational use-case fit with market use cases.
    • Collect, prioritize, and document MMS requirements.

    Shortlist MMS Tool — Phase 2

    • Review MMS market leaders and players within your aligned use case.
    • Review MMS vendor profiles and capabilities.
    • Shortlist MMS vendors based on organizational fit.

    Select an MMS — Phase 3

    • Submit request for proposal (RFP) to shortlisted vendors.
    • Evaluate vendor responses and develop vendor demonstration scripts.
    • Score vendor demonstrations and select the final product.

    Step 2.1: Analyze and shortlist MMS vendors

    2.1
    Analyze and Shortlist MMS Vendors

    This step will walk you through the following activities:

    • Review MMS vendor landscape.
    • Take note of relevant point solutions.
    • Shortlist vendors for the RFP process.

    This step involves the following participants:

    • Core project team

    Outcomes of this step

    • Understanding of Info-Tech’s use-case scenarios for MMS: marketing automation, marketing intelligence, and social marketing.
    • Familiarity with the MMS vendor landscape.
    • Shortlist of MMS vendors for RFP process.

    Familiarize yourself with the MMS market: How it got here

    Vendor Profiles icon

    Loosely Tied Together

    Originally the sales and marketing enterprise application space was highly fragmented, with disparate best-of-breed point solutions patched together. Soon after, vendors in the late 1990s started bundling automation technologies into a single suite offering. Marketing capabilities of CRM suites were minimal at best and often restricted to web and email only.

    Limited to Large Enterprises

    Many vendors started to combine all marketing tools into a single, comprehensive marketing suite, but cost and complexity limited them to large enterprises and marketing agencies.

    Best-of-breed solutions targeting new channels and new goals, like closed-loop sales and marketing, continued driving new marketing software genres, like dedicated lead management suites.

    “In today’s volatile business environment, judgment built from past experience is increasingly unreliable. With consumer behaviors in flux, once-valid assumptions (e.g. ‘older consumers don’t use Facebook or send text messages’) can quickly become outdated.” (SAS Magazine)

    Info-Tech Insight

    As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Some features, like basic CRM integration, have become table stakes capabilities. Focus on advanced analytics features and omnichannel integration capabilities to get the best fit for your requirements.

    Familiarize yourself with the MMS market: Where it’s going

    Vendor Profiles icon

    AI and Machine Learning

    Vendors are beginning to offer AI capabilities across MMS for data-driven customer engagement scoring and social listening insights. Machine learning capability is being leveraged to determine optimal customer journey and suggest next steps to users.

    Marketplace Fragmentation

    The number of players in the marketing application space has grown exponentially. The majority of these new vendors offer point solutions rather than full-blown marketing suites. Fragmentation is leading to tougher choices when looking to augment an existing platform with specific functionality.

    Improving Application Integration

    MMS vendors are fostering deeper integrations between their marketing products and core CRM products, leading to improved data hygiene. At the same time, vendors are improving flexibility in the marketing suite so that new channels can be added easily.

    Greater Self-Service

    Vendors have an increased emphasis on application usability. Their goal is to enable marketers to execute campaigns without relying on specialists.

    “There’s a firehose of customer data coming at marketers today, and with more interconnected devices emerging (wearables, smart watches, etc.), cultivating a seamless customer experience is likely to grow even more challenging.

    Building out a data-driven marketing strategy and technology stack that enables you to capture behaviors across channels is key.” (IBM, Ideas for Exceeding Customer Expectations)

    Review Info-Tech’s vendor profiles of the MMS market to identify vendors that meet your requirements

    Vendors & Products Evaluated

    Vendor logos including 'Adobe', 'ORACLE', and 'IBM'.

    VENDOR PROFILES

    Review the MMS Vendor Evaluation

    		 Large icon of a descending bar graph for vendor profiles title page.

    Table stakes are the minimum standard; without these, a product doesn’t even get reviewed

    Vendor Profiles icon

    TABLE STAKES

    Feature Table Stake Functionality
    Basic Workflow Automation Simple automation of common marketing tasks (e.g. handling inbound leads).
    Basic Channel Integration Integration with minimum two or more marketing channels (e.g. email and direct mail).
    Customizable User Interface A user interface that can be changed and optimized to users’ preferences. This includes customizable dashboards for displaying relevant marketing metrics.
    Basic Mobile UX Accessible from a mobile device in some fashion.
    Cloud Compatibility Able to offer integration within pre-existing or proprietary cloud server. Many vendors only have SaaS products.

    What does this mean?

    The products assessed in these vendor profiles meet, at the very least, the requirements outlined as table stakes.

    Many of the vendors go above and beyond the outlined table stakes; some even do so in multiple categories. This section aims to highlight the products’ capabilities in excess of the criteria listed here.

    Info-Tech Insight

    If table stakes are all you need from your MMS, determine whether your existing CRM platform already satisfies your requirements. Otherwise, dig deeper to find the best price-to-value ratio for your needs.

    Take a holistic approach to vendor and product evaluation

    Almost – or equally – as important as evaluating vendor feature capabilities is the need to evaluate vendor viability and non-functional aspects of the MMS. Include an evaluation of the following criteria in your vendor scoring methodology:

    Vendor Attribute Description
    Vendor Stability and Variability The vendor’s proven ability to execute on constant product improvement, deliberate strategic direction, and overall commitment to research and development efforts in responding to emerging trends.
    Security Model The potential to integrate the application to existing security models and the vendor's approach to handling customer data.
    Deployment Style The choice to deploy a single or multi-tenant SaaS environment via a perpetual license.
    Ease of Customization The relative ease with which a system can be customized to accommodate niche or industry-specific business or functional needs.
    Vendor Support Options The availability of vendor support options, including selection consulting, application development resources, implementation assistance, and ongoing support resources.
    Size of Partner Ecosystem The quantity of enterprise applications and third-party add-ons that can be linked to the MMS, as well as the number of system integrators available.
    Ease of Data Integration The relative ease with which the system can be integrated with an organization’s existing application environment, including legacy systems, point solutions, and other large enterprise applications.

    Info-Tech Insight

    Evaluate vendor capabilities, not just product capabilities. An MMS is typically a long-term commitment; ensure that your organization is teaming up with a vendor or provider that you feel you can work well with and depend on.

    Advanced features are the capabilities that allow for granular differentiation of market players and use-case performance

    Vendor Profiles icon

    Evaluation Methodology

    These product features were assessed as part of the classification of vendors into use cases. In determining use-case leaders and players, select features were considered based on best alignment with the use case.
    Feature Advanced Functionality
    Advanced Campaign Management End-to-end marketing campaign management: customer journey mapping, campaign initiation, monitoring, and dynamic reporting and adjustment.
    Marketing Asset Management Content repository functionality (or tight ECM integration) for marketing assets and campaign collateral (static, multimedia, e-commerce–related, etc.).
    Marketing Analytics
    • Predictive analytics; machine learning; capabilities for data ingestion and visualization across various marketing research/marketing intelligence categories (demographic, psychographic, etc.).
    • Data segmentation; drill-down ability to assign attributes to unstructured data; ability to construct complex customer/competitive data visualizations from segmented data.
    Breadth of Channel Support Ability to support and manage a wide range of marketing channels (e-commerce, SEO/SEM, paid advertising, email, traditional [print, multimedia], etc.).
    Marketing Workflow Management Visual workflow editors and business rules engine creation.

    Advanced features are the capabilities that allow for granular differentiation of market players and use-case performance

    Vendor Profiles icon

    Evaluation Methodology

    These product features were assessed as part of the classification of vendors into use cases. In determining use-case leaders and players, select features were considered based on best alignment with the use case.

    Feature Advanced Functionality
    Community Marketing Management Branded customer communities (e.g. community support forums) and DMB/DSP.
    Email Marketing Automation End-to-end management of email marketing: email templates, email previews, spam testing, A/B tracking, multivariate testing, and email metrics tracking.
    Social Marketing Ability to integrate with popular social media networks and manage social properties and to aggregate and analyze social data for trend reporting.
    Mobile Marketing Ability to manage SMS, push, and mobile application marketing.
    Marketing Operations Management Project management tools for marketers (timelines, performance indicators, budgeting/resourcing tools, etc.).

    Use the information in the MMS vendor profiles to streamline your vendor analysis process

    Vendor Profiles icon This section includes profiles of the vendors evaluated against the previously outlined framework.
    Review the use-case scenarios relevant to your organization’s use case to identify a vendor’s fit to your organization’s MMS needs.
    • L = Use-case leader
    • P = Use-case player
    		 Three column headers: 'Marketing Automation', 'Marketing Intelligence', and 'Social Media Marketing'.
    Understand your organization’s size and whether it falls within the product’s market focus.
    • Large enterprise: 2,000+ employees and revenue of $250M+
    • Small-medium enterprise: 30-2,000 employees and revenue of $25M-$250M
    		 Column header 'MARKET FOCUS' with row headers 'Small-Medium' and 'Large Enterprise'.
    Review the differentiating features to identify where the application performs best. A list of features.
    Colors signify a feature’s performance. A key for color-coding: Blue - 'Best of Breed', Green - 'Present: Competitive Strength', Yellow-Green - 'Present: Competitive Parity', Yellow - 'Semi-Present', Grey - 'Absent'.

    Adobe Marketing Cloud

    Vendor Profiles icon
    Logo for Adobe. FUNCTIONAL SPOTLIGHT

    Creative Cloud Integration: To make for a more seamless cross-product experience, projects can be sent between Marketing Cloud and Creative Cloud apps such as Photoshop and After Effects.

    Sensei: Adobe has revamped its machine learning and AI platform in an effort to integrate AI into all of its marketing applications. Sensei includes data from Microsoft in a new partnership program.

    Anomaly Detection: Adobe’s Anomaly Detection contextualizes data and provides a statistical method to determine how a given metric has changed in relation to previous metrics.
    USE-CASE PERFORMANCE
    Marketing
    Automation    		 Marketing
    Intelligence    		 Social
    Marketing

    L

    L

    P
    		MARKET FOCUS
    Small-Medium
    Large Enterprise ✔
    Adobe’s goal with Marketing Cloud is to help businesses provide customers with cohesive, seamless experiences by surfacing customer profiles in relevant situations quickly. Adobe Marketing Cloud has traditionally been used in the B2C space but has seen an increase in B2C use cases driven by the finance and technology sectors. FEATURES
    Color-coded ranking of each feature for Adobe.
    Employees (2018): 17,000 Presence: Global Founded: 1982 NASDAQ: ADBE

    HubSpot

    Vendor Profiles icon

    Logo for Hubspot.FUNCTIONAL SPOTLIGHT

    Content Optimization System (COS): The fully integrated system stores assets and serves them to their designated channels at relevant times. The COS is integrated into HubSpot's marketing platform.

    Email Automation: HubSpot provides basic email that can be linked to a specific part of an organization’s marketing funnel. These emails can also be added to pre-existing automated workflows.

    Email Deliverability Tool: HubSpot identifies HTML or content that will be flagged by spam filters. It also validates links and minimizes email load times.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    P

    P

    		MARKET FOCUS
    Small-Medium ✔
    Large Enterprise ✔
    Hubspot’s primary focus has been on email marketing campaigns. It has put effort into developing solid “click not code” email marketing capabilities. Also, Hubspot has an official integration with Salesforce for expanded operations management and analytics capabilities. FEATURES
    Color-coded ranking of each feature for Hubspot.
    Employees (2018): 1,400 Presence: Global Founded: 2006 NYSE: HUBS

    IBM Marketing Cloud

    Vendor Profiles icon

    Logo for IBM.FUNCTIONAL SPOTLIGHT

    Watson: IBM is leveraging its popular Watson AI brand to generate marketing insights for automated campaigns.

    Weather Effects: Set campaign rules based on connections between weather conditions and customer behavior relative to zip code made by Watson.

    Real-Time Personalization: IBM has made efforts to remove campaign interaction latency and optimize live customer engagement by acting on information about what customers are doing in the current moment.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		 Marketing
    Intelligence    		 Social
    Marketing

    L

    L

    P
    		MARKET FOCUS
    Small-Medium ✔
    Large Enterprise ✔
    IBM has remained ahead of the curve by incorporating its well-known AI technology throughout Marketing Cloud. The application’s integration with the wide array of IBM products makes it a powerful tool for users already in the IBM ecosystem. FEATURES
    Color-coded ranking of each feature for IBM.
    Employees (2018): 380,000 Presence: Global Founded: 1911 NYSE: IBM

    Marketo

    Vendor Profiles icon

    Logo for Marketo.FUNCTIONAL SPOTLIGHT

    Content AI: Marketo has leveraged its investments in machine learning to intelligently fetch marketing assets and serve them to customers based on their interactions with a campaign.

    Email A/B Testing: To improve lead generation from email campaigns, Marketo features the ability to execute A/B testing for customized campaigns.

    Partnership with Google: Marketo is now hosted on Google’s cloud platform, enabling it to provide support for larger enterprise clients and improve GDPR compliance.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    P

    P

    		MARKET FOCUS
    Small-Medium ✔
    Large Enterprise
    Marketo has strong capabilities for lead management but has recently bolstered its analytics capabilities. Marketo is hoping to capture some of the analytics application market share by offering tools with varying complexity and to cater to firms with a wide range of analytics needs. FEATURES
    Color-coded ranking of each feature for Marketo.
    Employees (2018): 1,000 Presence: Global Founded: 2006 Private Corporation

    Oracle Marketing Cloud

    Vendor Profiles icon

    Logo for Oracle.FUNCTIONAL SPOTLIGHT

    Data Visualization: To make for a more seamless cross-product experience, marketing projects can be sent between Marketing Cloud and Creative Cloud apps such as Dreamweaver.

    ID Graph: Use ID Graph to unite disparate data sources to form a singular profile of leads, making the personalization and contextualization of campaigns more efficient.

    Interest-Based Messaging: Pause a campaign to update a segment or content based on aggregated customer activity and interaction data.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    P

    P

    		MARKET FOCUS
    Small-Medium
    Large Enterprise ✔
    Oracle Marketing Cloud is known for its balance between campaigns and analytics products. Oracle has taken the lead on expanding its marketing channel mix to include international options such as WeChat. Users already using Oracle’s CRM/CEM products will derive the most value from Marketing Cloud. FEATURES
    Color-coded ranking of each feature for Oracle.
    Employees (2018): 138,000 Presence: Global Founded: 1977 NYSE: ORCL

    Salesforce Marketing Cloud

    Vendor Profiles icon

    Logo for Salesforce Marketing Cloud.FUNCTIONAL SPOTLIGHT

    Einstein: Salesforce is putting effort into integrating AI into all of its applications. The Einstein AI platform provides marketers with predictive analytics and insights into customer behavior.

    Mobile Studio: Salesforce has a robust mobile marketing offering that encompasses SMS/MMS, in-app engagement, and group messaging platforms.

    Journey Builder: Salesforce created Journey Builder, which is a workflow automation tool. Its user-friendly drag-and-drop interface makes it easy to automate responses to customer actions.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    L

    P

    L

    		MARKET FOCUS
    Small-Medium ✔
    Large Enterprise ✔
    Salesforce Marketing Cloud is primarily used by organizations in the B2C space. It has strong Sales Cloud CRM integration. Pardot is positioning itself as a tool for sales teams in addition to marketers. FEATURES
    Color-coded ranking of each feature for Salesforce Marketing Cloud.
    Employees (2018): 1,800 Presence: Global Founded: 2000 NYSE: CRM

    Salesforce Pardot

    Vendor Profiles icon

    Logo for Salesforce Pardot.FUNCTIONAL SPOTLIGHT

    Engagement Studio: Salesforce is putting marketing capabilities in the hands of sales reps by giving them access to a team email engagement platform.

    Einstein: Salesforce’s Einstein AI platform helps marketers and sales reps identify the right accounts to target with predictive lead scoring.

    Program Steps: Salesforce developed a distinct own workflow building tool for Pardot. Workflows are made of “Program Steps” that have the functionality to initiate campaigns based on insights from Einstein.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    P

    -

    		MARKET FOCUS
    Small-Medium ✔
    Large Enterprise ✔
    Pardot is Salesforce’s B2B marketing solution. Pardot has focused on developing tools that enable sales teams and marketers to work in lockstep in order to achieve lead-generation goals. Pardot has deep integration with Salesforce’s CRM and customer service management products. FEATURES
    Color-coded ranking of each feature for Salesforce Pardot.
    Employees (2018): 1,800 Presence: Global Founded: 2000 NYSE: CRM

    SAP Hybris Marketing

    Vendor Profiles icon

    Logo for SAP.FUNCTIONAL SPOTLIGHT

    CMO Dashboard: The specialized dashboard is aimed at providing overviews for the executive level. It includes the ability to coordinate marketing activities and project budgets, KPIs, and timelines.

    Loyalty Management: SAP features in-app tools to manage campaigns specifically geared toward customer loyalty with digital coupons and iBeacons.

    Customer Segmentation: SAP’s predictive capabilities dynamically suggest relevant customer profiles for new campaigns.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    L

    P

    		MARKET FOCUS
    Small-Medium
    Large Enterprise ✔
    SAP Hybris Marketing Cloud optimizes marketing strategies in real time with accurate attribution and measurements. SAP’s operations management capabilities are robust, including the ability to view consolidated data streams from ongoing marketing plans, performance targets, and budgets. FEATURES
    Color-coded ranking of each feature for SAP.
    Employees (2018): 84,000 Presence: Global Founded: 1972 NYSE: SAP

    SAS Marketing Intelligence

    Vendor Profiles icon

    Logo for SAS.FUNCTIONAL SPOTLIGHT

    Activity Map: A user-friendly workflow builder that can be used to execute campaigns. Multiple activities can be simultaneously A/B tested within the Activity Map UI. The outcome of the test can automatically adjust the workflow.

    Spots: A native digital asset manager that can store property that is part of existing and future campaigns.

    Viya: A framework for fully integrating third-party data sources into SAS Marketing Intelligence. Viya assists with pairing on-premises databases with a cloud platform for use with the SAS suite.

    USE-CASE PERFORMANCE
    Marketing
    Automation    		Marketing
    Intelligence    		Social
    Marketing

    P

    L

    		MARKET FOCUS
    Small-Medium
    Large Enterprise ✔
    SAS has been a leading BI and analytics provider for more than 35 years. Rooted in statistical analysis of data, SAS products provide forward-looking strategic insights. Organizations that require extensive customer intelligence capabilities and the ability to “slice and dice” segments should have SAS on their shortlist. FEATURES
    Color-coded ranking of each feature for SAS.
    Employees (2018): 14,000 Presence: Global Founded: 1976 Private Corporation

    Consider alternative MMS vendors not included in Info-Tech’s vendor profiles

    Info-Tech evaluated only a portion of vendors in the MMS market. In order for a vendor to be included in this landscape, the company needed to meet three baseline criteria:
    1. Our clients must be talking about the solution.
    2. Our analysts must believe the solution will play well within the evaluation.
    3. The vendor must meet table stakes criteria.
    Below is a list of notable vendors in the space that did not meet all of Info-Tech’s inclusion requirements.

    Additional vendors in the MMS market:
    Logo for act-on. Logo for SharpSpring.

    See the next slides for suggested point solutions.

    Leverage Info-Tech’s WXM and SMMP vendor landscapes to select platforms that fit with your CXM strategy

    Web experience management (WXM) and social media management platforms (SMMP) act in concert with your MMS to execute complex campaigns.

    Social Media Management

    Info-Tech’s SMMP selection guide enables you to find a solution that satisfies your objectives across marketing, sales, public relations, HR, and customer service. Create a unified framework for driving successful implementation and adoption of your SMMP that fully addresses CRM and marketing automation integration, end-user adoption, and social analytics with Info-Tech’s blueprint Select and Implement a Social Media Management Platform.

    		 Stock image with the title Select and Implement a Social Media Management Platform.
    Web Experience Management

    Info-Tech’s approach to WXM ensures you have the right suite of tools for web content management, experience design, and web analytics. Put your best foot forward by conducting due diligence as the selection project advances. Ensure that your organization will see quick results with Info-Tech’s blueprint Select and Implement a Web Experience Management Solution.

    		 Stock image with the title Select and Implement a Web Experience Management Solution.

    POINT SOLUTION PROFILES

    Review this cursory list of point solutions by use case

    Consider point solutions if a full suite is not required

    		 Large icon of a target for point solution profiles title page.

    Consider point solutions if a full suite is not required

    Email Marketing

    Logos of companies for Email Marketing including MailChimp and emma.

    Consider point solutions if a full suite is not required

    Search Engine Optimization (SEO)

    Logos of companies for Search Engine Optimization including SpyFu and SerpStat.

    Consider point solutions if a full suite is not required

    Demand-Side Platform (DSP)

    Logos of companies for Demand-Side Platform including MediaMath and rocketfuel.

    Consider point solutions if a full suite is not required

    Customer Portal Software

    Logos of companies for Customer Portal Software including LifeRay and lithium.

    Select a Marketing Management Suite

    PHASE 3

    Select Vendor and Communicate Decision to Stakeholders

    Phase 3 outline

    Associated Activity icon Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Plan Your MMS Implementation

    Proposed Time to Completion: 2 weeks
    Step 3.1: Select Your MMS Step 3.2: Communicate the Decision to Stakeholders
    Start with an analyst kick-off call:
    • Review the MMS shortlist.
    • Discuss how to link RFP questions and demo script scenarios to gathered requirements.
    		 Review findings with analyst:
    • Review the alignment between MMS capability and the business’ CXM strategy.
    • Discuss how to present the decision to stakeholders.
    Then complete these activities…
    • Build a vendor response template.
    • Evaluate RFP responses from vendors.
    • Build demo scripts and set up product demonstrations.
    • Establish evaluation criteria.
    • Select MMS product and vendor.
    		 Then complete these activities…
    • Present decision rationale to stakeholders.
    With these tools & templates:
    • MMS Request for Proposal Template
    • MMS Vendor Demo Script
    		 With these tools & templates:
    • MMS Selection Executive Presentation Template
    Phase 3 Results
    • Select an MMS that meets requirements and is approved by stakeholders.

    Phase 3 milestones

    Launch the MMS Project and Collect Requirements — Phase 1

    • Understand the MMS market space.
    • Assess organizational and project readiness for MMS selection.
    • Structure your MMS selection and implementation project by refining your MMS roadmap.
    • Align organizational use-case fit with market use cases.
    • Collect, prioritize, and document MMS requirements.

    Shortlist MMS Tool — Phase 2

    • Review MMS market leaders and players within your aligned use case.
    • Review MMS vendor profiles and capabilities.
    • Shortlist MMS vendors based on organizational fit.

    Select an MMS — Phase 3

    • Submit request for proposal (RFP) to shortlisted vendors.
    • Evaluate vendor responses and develop vendor demonstration scripts.
    • Score vendor demonstrations and select the final product.

    Step 2.1: Analyze and shortlist MMS vendors

    3.1

    3.2
    Select Your MMS Communicate Decision to Stakeholders

    This step will walk you through the following activities:

    • Build a response template to standardize potential vendor responses and streamline your evaluation process.
    • Evaluate the RFPs you receive with a clear scoring process and evaluation framework.
    • Build a demo script to evaluate product demonstrations by vendors.
    • Select your solution.

    This step involves the following participants:

    • Core project team
    • Procurement SMEs
    • Project sponsor

    Outcomes of this step

    • Completed MMS RFP vendor response template
    • Completed MMS demo script(s)
    • Established product and vendor evaluation criteria
    • Final MMS selection

    Activity: Shortlist vendors for the RFP process

    Associated Activity icon 3.1.1 30 minutes

    INPUT: Organizational use-case fit

    OUTPUT: MMS vendor shortlist

    Materials: Info-Tech’s MMS use cases, Info-Tech’s vendor profiles, Whiteboard, markers

    Participants: Core project team

    Instructions

    1. Collectively with the core project team, determine any knock-out criteria for shortlisting MMS vendors. For example, if your team is executing on a strategy that favors mobile deployment, vendors who do not have a mobile offering may be off the table.
    2. Based on the results in Activity 1.3.2, write a longlist of vendors. In most cases, this list will consist of all the vendors that fall into your organization’s use-case scenario. If your organization fits into more than one use case (e.g. your organization has both product-centric and service-centric MMS needs), look for the overlap of vendors between the use cases.
    3. Review the profiles of the vendors that fall into your use-case scenario. Based on your knock-out criteria established in Step 1, eliminate any vendors as applicable.
    4. Finalize and record your shortlist of MMS vendors.

    Use Info-Tech’s MMS Request for Proposal Template to document and communicate your requirements to vendors

    Supporting Tool icon 3.1.2 MMS Request for Proposal Template

    Use the MMS Request for Proposal Template as a step-by-step guide on how to request interested vendors to submit written proposals that meet your set of requirements.

    If interested in bidding for your project, vendors will respond with a description of the techniques they would employ to address your organizational challenges and meet your requirements, along with a plan of work and detailed budget for the project.

    The RFP is an important piece of setting and aligning your expectations with the vendors’ product offerings. Make sure to address the following elements in the RFP:

    Sections of the Tool:

    1. Statement of work
    2. General information
    3. Proposal preparation instructions
    4. Scope of work, specifications, and requirements
    5. Vendor qualifications and references
    6. Budget and estimated pricing
    7. Additional terms and conditions
    8. Vendor certification

    INFO-TECH DELIVERABLE

    Sample of Info-Tech's MMS Request Proposal Template.

    Complete the MMS Request for Proposal Template by following the instructions in Activity 3.1.3.

    Activity: Create an RFP to submit to MMS vendors

    Associated Activity icon 3.1.3 1-2 hours

    INPUT: Business requirements document, Procurement procedures

    OUTPUT: MMS RFP

    Materials: Internal RFP tools or templates (if available), Info-Tech’s MMS Request for Proposal Template (optional)

    Participants: Procurement SMEs, Project manager, Core project team (optional)

    Instructions

    1. Download Info-Tech’s MMS Request for Proposal Template or prepare internal best-practice RFP tools.
    2. Build your RFP:
      1. Complete the statement of work and general information sections to provide organizational context to your longlisted vendors.
      2. Outline the organization’s procurement instructions for vendors, including due diligence, assessment criteria, and dates.
      3. Input the business requirements document as created in Activity 1.3.2.
      4. Create a scenario overview to provide vendors with an opportunity to give an estimate price.
    3. Obtain approval for your RFP. Each organization has a unique procurement process; follow your own organization’s process as you submit your RFPs to vendors. Ensure compliance with your organization’s standards and gain approval for submitting your RFP.

    Establish vendor evaluation criteria

    Vendor demonstrations are an integral part of the selection process. Having clearly defined selection criteria will help with setting up relevant demos as well as inform the vendor scorecards.

    EXAMPLE EVALUATION CRITERIAPie chart indicating the weight of each 'Vendor Evaluation Criteria': 'Functionality, 30%', 'Ease of Use, 25%', 'Cost, 15%', 'Vendor, 15%', and 'Technology, 15%'.
    Functionality (30%)
    • Breadth of capability
    • Tactical capability
    • Operational capability
    		Ease of Use (25%)
    • End-user usability
    • Administrative usability
    • UI attractiveness
    • Self-service options
    Cost (15%)
    • Maintenance
    • Support
    • Licensing
    • Implementation (internal and external costs)
    		Vendor (15%)
    • Support model
    • Customer base
    • Sustainability
    • Product roadmap
    • Proof of concept
    • Implementation model
    Technology (15%)
    • Configurability options
    • Customization requirements
    • Deployment options
    • Security and authentication
    • Integration environment
    • Ubiquity of access (mobile)

    Info-Tech Insight

    Base your vendor evaluations not on the capabilities of the solutions but instead on how the solutions align with your organization’s process automation requirements and considerations.

    Vendor demonstrations

    Examine how the vendor’s solution performs against your evaluation framework.

    What is the value of a vendor demonstration?

    Vendor demonstrations create a valuable opportunity for your organization to confirm that the vendor’s claims in the RFP are actually true.

    A display of the vendor’s functional capabilities and its execution of the scenarios given in your demo script will help to support your assessment of whether a vendor aligns with your MMS requirements.

    What should be included in a vendor demonstration?

    1. Vendor’s display of its solution for the scenarios provided in the demo script.
    2. Display of functional capabilities of the tool.
    3. Briefing on integration capabilities.

    Activity: Invite top performing vendors for product demonstrations

    Associated Activity icon 3.1.4 1-2 hours

    INPUT: Business requirements document, Logistical considerations, Usage scenarios by functional area

    OUTPUT: MMS demo script

    Materials: Info-Tech’s MMS Vendor Demo Script

    Participants: Procurement SMEs, Core project team

    Instructions

    1. Have your evaluation team (selected at the onset of the project) present to evaluate each vendor’s presentation. In some cases you may choose to bring in a subject matter expert (SME) to evaluate a specific area of the tool.
    2. Outline the logistics of the demonstration in the Introduction section of the template. Be sure to outline the total length of the demo and the amount of time that should be dedicated to the following:
      • Product demonstration in response to the demo script
      • Showcase of unique product elements, not reflective of the demo script
      • Question and answer session
      • Breaks and other potential interruptions
    3. Provide prompts for the vendor to display the capabilities by listing and describing usage scenarios by functional area. For example, when asking a vendor to demo financial and accounting management capabilities, you may break scenarios out by task (e.g. general ledger, accounts payable) or user role (e.g. finance manager, administrator).

    Info-Tech Insight

    Challenge vendor project teams during product demonstrations. Asking the vendor to make adjustments or customizations on the fly will allow you to get an authentic feel of product capability and flexibility, as well as of the degree of adaptability of the vendor project team. Ask the vendor to demonstrate how to do things not listed in your user scenarios, such as change system visualizations or design, change underlying data, add additional datasets, demonstrate analytics capabilities, or channel specific automation.

    Use Info-Tech’s MMS Vendor Demo Script template to set expectations for vendor product demonstration

    Vendor Profiles icon MMS Vendor Demo Script

    Customize and use Info-Tech’s MMS Vendor Demo Script to help identify how a vendor’s solution will fit your organization’s particular business capability needs.

    This tool assists with outlining logistical considerations for the demo itself and the scenarios with which the vendors should script their demonstration.

    Sections of the Tool:

    1. Introduction
    2. Demo scenarios by functional area

    Info-Tech Best Practice

    Avoid providing vendors with a rigid script for product demonstration; instead, provide user scenarios. Part of the value of a vendor demonstration is the opportunity to assess whether or not the vendor project team has a solid understanding of your organization’s MMS challenges and requirements and can work with your team to determine the best solution possible. A rigid script may result in your inability to assess whether the vendor will adjust for and scale with your project and organization as a technology partner.

    INFO-TECH DELIVERABLE

    Sample of Info-Tech's MMS Vendor Demo Script.

    Use the MMS Vendor Demo Script by following the instructions in Activity 3.1.4.

    Leverage Info-Tech’s vendor selection and negotiation models as the basis for a streamlined MMS selection process

    Design a procurement process that is robust, ruthless, and reasonable. Rooting out bias during negotiation is vital to making unbiased vendor selections.

    Vendor Selection

    Info-Tech’s approach to vendor selection gets you to design a procurement process that is robust, ruthless, and reasonable. This approach enables you to take control of vendor communications. Implement formal processes with an engaged team to achieve the right price, the right functionality, and the right fit for the organization with Info-Tech's blueprint Implement a Proactive and Consistent Vendor Selection Process.

    		 Stock image with the title Implement a Proactive and Consistent Vendor Selection Process.
    Vendor Negotiation

    Info-Tech’s SaaS negotiation strategy focuses on taking control of implementation from the beginning. The strategy allows you to work with your internal stakeholders to make sure they do not team up with the vendor instead of you. Reach an agreement with your vendor that takes into account both parties’ best interests with Info-Tech’s blueprint Negotiate SaaS Agreements That Are Built to Last.

    		 Stock image with the title Negotiate SaaS Agreements That Are Built to Last.

    Step 3.2: Communicate decision to stakeholders

    3.1

    3.2
    Select Your MMS Communicate Decision to Stakeholders

    This step will walk you through the following activities:

    • Collect project rationale documentation.
    • Create a presentation to communicate your selection decision to stakeholders.

    This step involves the following participants:

    • Core project team
    • Procurement SMEs
    • Project sponsor
    • Business stakeholders
    • Relevant management

    Outcomes of this step

    • Completed MMS Selection Executive Presentation Template
    • Affirmation of MMS selection by stakeholders

    Inform internal stakeholders of the final decision

    Ensure traceability from the selected tool to the needs identified in the first phase. Internal stakeholders must understand the reasoning behind the final selection and see the alignment to their defined requirements and needs.

    Document the selection process to show how the selected tool aligns to stakeholder needs:

    A large arrow labelled 'Application Benefits', underlaid beneath two smaller arrows labelled 'MMS stakeholder needs' and 'MMS technology needs', all pointing to the right.

    Documentation will assist with:

    1. Adopting the selected MMS.
    2. Demonstrating that proper due diligence was performed during the selection process.
    3. Providing direct traceability between the selected applications and internal stakeholder needs.

    Activity: Prepare a presentation deck to communicate the selection process and decision to internal stakeholders

    Associated Activity icon 3.2.1 1 week

    INPUT: MMS tool selection committee expertise

    OUTPUT: Decision to invest or not invest in an MMS tool

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: MMS tool selection committee

    Instructions

    1. Download Info-Tech’s MMS Selection Executive Presentation Template.
    2. Read the instructions on slide 2 of the template. Then, on slide 3, decide if any portion of the selection process should be removed from the communication. Discuss with the team and make adjustments to slide 3 as necessary.
    3. Work with the MMS selection committee to populate the slides that remain after the adjustments. Follow the instructions on each slide to help complete the content.
    4. Refer to the square brackets on each slide (e.g. [X.X]) to identify the activity numbers in this storyboard that correspond to the slide in the MMS Selection Executive Presentation Template. Use the outputs produced from the corresponding activities in this deck and populate each slide in the MMS Selection Executive Presentation Template.
    5. Use the completed template to present to internal stakeholders.

    Info-Tech Insight

    Documenting the process of how the selection decision was made will avoid major headaches down the road. Without a documented process, internal stakeholders and even vendors can challenge and discredit the selection process.

    Vendor participation

    Vendors Who Briefed with Info-Tech Research Group

    Logos of vendors who participated in this blueprint: Salesforce Pardot, SAS, Adobe, Marketo, and Salesforce Marketing Cloud.

    Professionals Who Contributed to Our Evaluation and Research

    • Sara Camden, Digital Change Agent, Equifax
    • Caren Carrasco, Lifecycle Marketing and Automation, Benjamin David Group
    • 10 anonymous contributors participated in the vendor briefings

    Works cited

    Adobe Systems Incorporated. “Bayer builds understanding, socially.” Adobe.com, 2017. Web.

    IBM Corporation, “10 Key Marketing Trends for 2017.” IBM.com, 2017. Web.

    Marketo, Inc. “The Definitive Guide to Marketing Automation.” Marketo.com, 2013. Web.

    Marketo, Inc. “NBA franchise amplifies its message with help from Marketo’s marketing automation technology.” Marketo.com, 2017. Web.

    Salesforce Pardot. “Marketing Automation & Your CRM: The Dynamic Duo.” Pardot.com, 2017. Web.

    SAS Institute Inc. “Marketing Analytics: How, why and what’s next.” SAS Magazine, 2013. Web.

    SAS Institute Inc. “Give shoppers offers they’ll love.” SAS.com, 2017. Web.

    External Compliance

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    • Parent Category Name: Security and Risk
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    • byline: External audits are about measuring you; Do not play games, but be in control.
    Take Control of Compliance Improvement to Conquer Every Audit

    Create Stakeholder-Centric Architecture Governance

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    • Parent Category Name: Strategy & Operating Model
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    • Traditional enterprise architecture management (EAM) caters to only 10% – the IT people, and not to the remaining 90% of the organization.
    • EAM practices do not scale well with the agile way of working and are often perceived as "bottlenecks” or “restrictors of design freedom.”
    • The organization scale does not justify a full-fledged EAM with many committees, complex processes, and detailed EA artifacts.

    Our Advice

    Critical Insight

    Architecture is a competency, not a function. Project teams, including even business managers outside of IT, can assimilate “architectural thinking.”

    Impact and Result

    Increase business value through the dissemination of architectural thinking throughout the organization. Maturing your EAM practices beyond a certain point does not help.

    Create Stakeholder-Centric Architecture Governance Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Start here

    Improve benefits from your enterprise architecture efforts through the dissemination of architecture thinking throughout your organization.

    • Create Stakeholder-Centric Architecture Governance Storyboard
    [infographic]

    Change Management's Role in Incident Prevention: standard changes

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    During peak business hours, I witnessed a straightforward database field addition bring down a whole e-commerce platform. It was meant to be standard procedure, the type of “standard change” that is automatically approved because we have performed it innumerable times.

    Adding a field to the end of a table and having applications retrieve data by field name instead of position made the change itself textbook low-impact. There is no need to alter the application or the functional flow. This could have been problematic in the past if you added a field in the middle of the list and it affected the values of other fields, but adding it at the end? That ought to have been impenetrable.

    However, it wasn't.

    Before I tell you what went wrong, let me explain why this is important to all of the IT professionals who are reading this.

    Over the past three decades, industry data has repeatedly supported what this incident taught me: our presumptions about “safe” changes are frequently our greatest weakness. Upon reviewing the ITIL research, I was not surprised to learn that failed changes, many of which were categorized as “standard” or “low-risk,” are responsible for about 80% of unplanned outages.

    When you look more closely, the numbers become even more concerning. Since I've been following the Ponemon Institute's work for years, I wasn't surprised to learn that companies with well-established change management procedures have 65% fewer unscheduled outages. The paradox surprised me: many of these “mature” procedures still operate under the premise that safety correlates with repetition.

    What I had been observing in the field for decades was confirmed when Gartner released their research showing that standard changes are responsible for almost 40% of change-related incidents. The very changes we consider safe enough to avoid thorough review subtly create some of our greatest risks. IBM's analysis supports the pattern I've seen in innumerable organizations: standard changes cause three times as much business disruption due to their volume and our decreased vigilance around them, whereas emergency changes receive all the attention and scrutiny.

    Aberdeen Group data indicates that the average cost of an unplanned outage has increased to $300,000 per hour, with change-related failures accounting for the largest category of preventable incidents. This data makes the financial reality stark.

    What precisely went wrong with the addition of that database field that caused our e-commerce platform to crash?

    We were unaware that the addition of this one field would cause the database to surpass an internal threshold, necessitating a thorough examination of its execution strategy. In its algorithmic wisdom, the database engine determined that the table structure had changed enough to necessitate rebuilding its access and retrieval mechanisms. Our applications relied on high-speed requests, and the new execution plan was terribly unoptimized for them.

    Instead of completing quotes or purchases, customers were spending minutes viewing error pages. All applications began to time out while they awaited data that just wasn't showing up in the anticipated amounts of time. Thousands of transactions were impacted by a single extra field that should have been invisible to the application layer.

    The field addition itself was not the primary cause. We assumed that since we had made similar adjustments dozens of times previously, this one would also act in the same way. Without taking into account the hidden complexities of database optimization thresholds, we had categorized it as a standard change based on superficial similarities.

    My approach to standard changes was completely altered by this experience, and it is now even more applicable in DevOps-driven environments. Many organizations use pipeline deployments, which produce a standard change at runtime. It's great for speed and reliability, but it can easily fall into the same trap.

    However, I have witnessed pipeline deployments result in significant incidents for non-code-related reasons. Due to timing, resource contention, or environmental differences that weren't noticeable in earlier runs, a deployment that performed flawlessly in development and staging abruptly fails in production. Although the automation boosts our confidence, it may also reveal blind spots.

    Over the course of thirty years, I have come to the unsettling realization that there is no such thing as a truly routine change in complex systems. Every modification takes place in a slightly different setting, with varying environmental factors, data states, and system loads. What we refer to as “standard changes” are actually merely modifications with comparable processes rather than risk profiles.

    For this reason, I support contextual change management. We must consider the system state, timing, dependencies, and cumulative effect of recent changes rather than just categorizing them based on their technical features. After three other changes have changed the system's behavior patterns, a change made at two in the morning on a Sunday with little system load is actually different from the same change made during peak business hours.

    Effective change advisory boards must therefore go beyond assessing individual changes separately. I've worked with organizations where the change board carefully considered and approved each modification on its own merits, only to find that the cumulative effect of seemingly unrelated changes led to unexpected interactions and stress on the system. The most developed change management procedures I've come across mandate that their advisory boards take a step back and look at the whole change portfolio over a specified period of time. They inquire whether we are altering the database too frequently during a single maintenance window. Could there be unanticipated interactions between these three different application updates? What is the total resource impact of this week's approved changes?

    It's the distinction between forest management and tree management. While each change may seem logical individually, when combined, they can create situations beyond the scope of any single change assessment.

    Having worked in this field for thirty years, I've come to the conclusion that our greatest confidences frequently conceal our greatest vulnerabilities. Our primary blind spots frequently arise from the changes we've made a hundred times before, the procedures we've automated and standardized, and the adjustments we've labeled as “routine.”

    Whether we should slow down our deployment pipelines or stop using standard changes is not the question. In the current competitive environment, speed and efficiency are crucial. The issue is whether we are posing the appropriate queries before carrying them out. Are we taking into account not only what the change accomplishes but also when it occurs, what else is changing at the same time, and how our systems actually look right now?

    I've discovered that the phrase “we've done this before” is more dangerous in IT operations than “what could go wrong?” Because, despite what we may believe, we never actually perform the same action twice in complex systems.

    Here is what I would like you to think about: which everyday modifications are subtly putting your surroundings at risk? Which procedures have you standardized or automated to the extent that you no longer challenge their presumptions? Most importantly, when was the last time your change advisory board examined your changes as a cohesive portfolio of system modifications rather than as discrete items on a checklist?

    Remember that simple addition to a database field the next time you're tempted to accept a standard change. The most unexpected outcomes can occasionally result from the most routine adjustments.

    I'm always up for a conversation if you want to talk about your difficulties with change management.

    Mentoring for Agile Teams

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    • Parent Category Name: Development
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    • Today’s realities are driving organizations to digitize faster and become more Agile.
    • Most hierarchical, command and control–style organizations are not yet well adapted to using Agile.
    • So-called textbook Agile practices often clash with traditional processes and practices.
    • Members must adapt their Agile practices to accommodate their organizational realities.

    Our Advice

    Critical Insight

    • There is no one-size-fits-all approach to Agile. Agile practices need to be adjusted to work in your organization based on a thoughtful diagnosis of the challenges and solutions tailored to the nature of your organization.

    Impact and Result

    • Identify your Agile challenges and success factors (both organization-wide and team-specific).
    • Leverage the power of research and experience to solve key Agile challenges and gain immediate benefits for your project.
    • Your Agile playbook will capture your findings so future projects can benefit from them.

    Mentoring for Agile Teams Research & Tools

    Start here – read the Executive Brief

    Read this Executive Brief to understand how a Agile Mentoring can help your organization to successfully establish Agile practices within your context.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Take the Info-Tech Agile Challenges and Success Factors Survey

    This tool will help you identify where your Agile teams are experiencing the most pain so you can create your Agile challenges hit list.

    • Agile Challenges and Success Factors Survey

    2. Review typical challenges and findings

    While each organization/team will struggle with its own individual challenges, many members find they face similar organizational/systemic challenges when adopting Agile. Review these typical challenges and learn from what other members have discovered.

    • Mentoring for Agile Teams – Typical Findings

    Infographic

    Workshop: Mentoring for Agile Teams

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Take the Agile Challenges and Success Factors Survey

    The Purpose

    Determine whether an Agile playbook is right for you.

    Broadly survey your teams to identify Agile challenges and success factors in your organization.

    Key Benefits Achieved

    Better understanding of common Agile challenges and success factors

    Identification of common Agile challenges and success factors are prevalent in your organization

    Activities

    1.1 Distribute survey and gather results.

    1.2 Consolidate survey results.

    Outputs

    Completed survey responses from across teams/organization

    Consolidated heat map of your Agile challenges and success factors

    2 Identify Your Agile Challenges Hit List

    The Purpose

    Examine consolidated survey results.

    Identify your most pressing challenges.

    Create a hit list of challenges to be resolved.

    Key Benefits Achieved

    Identification of the most serious challenges to your Agile transformation

    Attention focused on those challenge areas that are most impacting your Agile teams

    Activities

    2.1 Analyze and discuss your consolidated heat map.

    2.2 Prioritize identified challenges.

    2.3 Select your hit list of challenges to address.

    Outputs

    Your Agile challenges hit list

    3 Problem Solve

    The Purpose

    Address each challenge in your hit list to eliminate or improve it.

    Key Benefits Achieved

    Better Agile team performance and effectiveness

    Activities

    3.1 Work with Agile mentor to problem solve each challenge in your hit list.

    3.2 Apply these to your project in real time.

    Outputs

    4 Create Your Agile Playbook

    The Purpose

    Capture the findings and lessons learned while problem solving your hit list.

    Key Benefits Achieved

    Strategies and tactics for being successful with Agile in your organization which can be applied to future projects

    Activities

    4.1 For each hit list item, capture the findings and lessons learned in Module 3.

    4.2 Document these in your Agile Playbook.

    Outputs

    Your Agile Playbook deliverable

    Build an Extensible Data Warehouse Foundation

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    • Data warehouse implementation is a costly and complex undertaking, and can end up not serving the business' needs appropriately.
    • Too heavy a focus on technology creates a data warehouse that isn’t sustainable and ends up with poor adoption.
    • Emerging data sources and technologies add complexity to how the appropriate data is made available to business users.

    Our Advice

    Critical Insight

    • A data warehouse is a project; but successful data warehousing is a program. An effective data warehouse requires planning beyond the technology implementation.
    • Governance, not technology needs to be the core support system for enabling a data warehouse program.
    • Understand business processes at the operational, tactical, and ad hoc levels to ensure a fit-for-purpose DW is built.

    Impact and Result

    • Leverage an approach that focuses on constructing a data warehouse foundation that is able to address a combination of operational, tactical, and ad hoc business needs.
    • Invest time and effort to put together pre-project governance to inform and provide guidance to your data warehouse implementation.
    • Develop “Rosetta Stone” views of your data assets to facilitate data modeling.
    • Select the most suitable architecture pattern to ensure the data warehouse is “built right” at the very beginning.

    Build an Extensible Data Warehouse Foundation Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why the data warehouse is becoming an important tool for driving business value, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Prepare for the data warehouse foundation project

    Begin the data warehouse foundation by defining the project and governance teams, as well as reviewing supporting data management practices.

    • Build an Extensible Data Warehouse Foundation – Phase 1: Prepare for the Data Warehouse Foundation Project
    • Data Warehouse Foundation Project Plan Template
    • Data Warehouse Work Breakdown Structure Template
    • Data (Warehouse) Architect
    • Data Integration Specialist
    • Business Intelligence Specialist
    • Director of Data Warehousing/Business Intelligence
    • Data Warehouse Program Charter Template
    • Data Warehouse Steering Committee Charter Template

    2. Establish the business drivers and data warehouse strategy

    Using the business activities as a guide, develop a data model, data architecture, and technology plan for a data warehouse foundation.

    • Build an Extensible Data Warehouse Foundation – Phase 2: Establish the Business Drivers and Data Warehouse Strategy
    • Business Data Catalog
    • Data Classification Inventory Tool
    • Data Warehouse Architecture Planning Tool
    • Master Data Mapping Tool

    3. Plan for data warehouse governance

    Start developing a data warehouse program by defining how users will interact with the new data warehouse environment.

    • Build an Extensible Data Warehouse Foundation – Phase 3: Plan for Data Warehouse Governance
    • Data Warehouse Standard Operating Procedures Template
    • Data Warehouse Service Level Agreement
    [infographic]

    Workshop: Build an Extensible Data Warehouse Foundation

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Prepare for the Data Warehouse Foundation Project

    The Purpose

    Identify the members of the foundation project team.

    Define overarching statements and define success factors/risks.

    Outline basic project governance.

    Key Benefits Achieved

    Defined membership, roles, and responsibilities involved in the foundation project.

    Establishment of a steering committee as a starting point for the data warehouse program.

    Activities

    1.1 Identify foundation project team and create a RACI chart.

    1.2 Understand what a data warehouse can and cannot enable.

    1.3 Define critical success factors, key performance metrics, and project risks.

    1.4 Develop rough timelines for foundation project completion.

    1.5 Define the current and future states for key data management practices.

    Outputs

    Job Descriptions and RACI

    Data Warehouse Steering Committee Charter

    Data Warehouse Foundation Project Plan

    Work Breakdown Structure

    2 Establish the Business Drivers and Data Warehouse Strategy

    The Purpose

    Define the information needs of the business and its key processes.

    Create the components that will inform an appropriate data model.

    Design a data warehouse architecture model.

    Key Benefits Achieved

    Clear definition of business needs that will directly inform the data and architecture models.

    Activities

    2.1 Understand the most fundamental needs of the business.

    2.2 Define the data warehouse vision, mission, purpose, and goals.

    2.3 Detail the most important operational, tactical, and ad hoc activities the data warehouse should support.

    2.4 Link the processes that will be central to the data warehouse foundation.

    2.5 Walk through the four-column model and business entity modeling as a starting point for data modeling.

    2.6 Create data models using the business data glossary and data classification.

    2.7 Identify master data elements to define dimensions.

    2.8 Design lookup tables based on reference data.

    2.9 Create a fit-for-purpose data warehousing model.

    Outputs

    Data Warehouse Program Charter

    Data Warehouse Vision and Mission

    Documentation of Business Processes

    Business Entity Map

    Business Data Glossary

    Data Classification Scheme

    Data Warehouse Architecture Model

    3 Plan for Data Warehouse Governance

    The Purpose

    Create a plan for governing your data warehouse efficiently and effectively.

    Key Benefits Achieved

    Documentation of current standard operating procedures.

    Identified members of a data warehouse center of excellence.

    Activities

    3.1 Develop a technology capability map to visualize your desired state.

    3.2 Establish a data warehouse center of excellence.

    3.3 Create a data warehouse foundation roadmap.

    3.4 Define data warehouse service level agreements.

    3.5 Create standard operating procedures.

    Outputs

    Technology Capability Map

    Project Roadmap

    Service Level Agreement

    Data Warehouse Standard Operating Procedure Workbook

    Enable Organization-Wide Collaboration by Scaling Agile

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    • Your organization is realizing benefits from adopting Agile principles and practices in pockets of your organization.
    • You are starting to investigate opportunities to extend Agile beyond these pilot implementations into other areas of the organization. You are looking for a coordinated approach aligned to business priorities.

    Our Advice

    Critical Insight

    • Not all lessons from a pilot project are transferable. Pilot processes are tailored to a specific project’s scope, team, and tools, and they may not account for the diverse attributes in your organization.
    • Control may be necessary for coordination. More moving parts means enforcing consistent cadences, reporting, and communication is a must if teams are not disciplined or lack good governance.
    • Scale Agile in departments tolerable to change. Incrementally roll Agile out in departments where its principles are accepted (e.g. a culture of continuous improvement, embracing failures as lessons).

    Impact and Result

    • Complete an Agile capability assessment of your pilot functional group to gauge anticipated Agile benefits. Identify the business objectives and the group drivers that are motivating a scaled Agile implementation.
    • Understand the challenges that you may face when scaling Agile. Investigate the root causes of inefficiencies that can derail your scaling initiatives.
    • Brainstorm solutions to your scaling challenges and envision a target state for your growing Agile environment. Your target state will discover new opportunities to drive more business value and eliminate current activities driving down productivity.
    • Coordinate the implementation and execution of scaling Agile initiatives with a Scaling Agile Playbook. This organic and collaborative document will lay out the process, roles, goals, and objectives needed to successfully manage your Agile environment.

    Enable Organization-Wide Collaboration by Scaling Agile Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should scale up Agile, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Gauge readiness to scale up Agile

    Evaluate the readiness of the pilot functional group and Agile development processes to adopt scaled Agile practices.

    • Enable Organization-Wide Collaboration by Scaling Agile – Phase 1: Gauge Readiness to Scale Up Agile
    • Scaling Agile Playbook Template
    • Scrum Development Process Template

    2. Define scaled Agile target state

    Alleviate scaling issues and risks and introduce new opportunities to enhance business value delivery with Agile practices.

    • Enable Organization-Wide Collaboration by Scaling Agile – Phase 2: Define Scaled Agile Target State

    3. Create implementation plan

    Roll out scaling Agile initiatives in a gradual, iterative approach and define the right metrics to demonstrate success.

    • Enable Organization-Wide Collaboration by Scaling Agile – Phase 3: Create Implementation Plan
    [infographic]

    Workshop: Enable Organization-Wide Collaboration by Scaling Agile

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Gauge Your Readiness to Scale Up Agile

    The Purpose

    Identify the business objectives and functional group drivers for adopting Agile practices to gauge the fit of scaling Agile.

    Select the pilot project to demonstrate the value of scaling Agile.

    Review and evaluate your current Agile development process and functional group structure.

    Key Benefits Achieved

    Understanding of the notable business and functional group gaps that can derail the scaling of Agile.

    Selection of a pilot program that will be used to gather metrics to continuously improve implementation and obtain buy-in for wider rollout.

    Realization of the root causes behind functional group and process issues in the current Agile implementation.

    Activities

    1.1 Assess your pilot functional group

    Outputs

    Fit assessment of functional group to pilot Agile scaling

    Selection of pilot program

    List of critical success factors

    2 Define Your Scaled Agile Target State

    The Purpose

    Think of solutions to address the root causes of current communication and process issues that can derail scaling initiatives.

    Brainstorm opportunities to enhance the delivery of business value to customers.

    Generate a target state for your scaled Agile implementation.

    Key Benefits Achieved

    Defined Agile capabilities and services of your functional group.

    Optimized functional group team structure, development process, and program framework to support scaled Agile in your context.

    Identification and accommodation of the risks associated with implementing and executing Agile capabilities.

    Activities

    2.1 Define Agile capabilities at scale

    2.2 Build your scaled Agile target state

    Outputs

    Solutions to scaling issues and opportunities to deliver more business value

    Agile capability map

    Functional group team structure, Agile development process and program framework optimized to support scaled Agile

    Risk assessment of scaling Agile initiatives

    3 Create Your Implementation Plan

    The Purpose

    List metrics to gauge the success of your scaling Agile implementation.

    Define the initiatives to scale Agile in your organization and to prepare for a wider rollout.

    Key Benefits Achieved

    Strategic selection of the right metrics to demonstrate the value of scaling Agile initiatives.

    Scaling Agile implementation roadmap based on current resource capacities, task complexities, and business priorities.

    Activities

    3.1 Create your implementation plan

    Outputs

    List of metrics to gauge scaling Agile success

    Scaling Agile implementation roadmap

    Develop a Web Experience Management Strategy

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    • Parent Category Name: Marketing Solutions
    • Parent Category Link: /marketing-solutions
    • Web Experience Management (WEM) solutions have emerged as applications that provide marketers and other customer experience professionals with a complete set of tools for web content management, delivery, campaign execution, and site analytics.
    • However, many organizations are unsure of how to leverage these new technologies to enhance their customer interaction strategy.

    Our Advice

    Critical Insight

    • WEM products are not a one-size-fits-all investment: unique evaluations and customization is required in order to deploy a solution that fits your organization.
    • WEM technology often complements core CRM and marketing management products – it does not supplant it, and must augment the rest of your customer experience management portfolio.
    • WEM provides benefits by giving web visitors a better experience – leveraging tools such as web analytics gives the customer a tailored experience. Marketing can then monitor their behavior and use this information to warm leads.

    Impact and Result

    • Deploy a WEM platform and execute initiatives that will strengthen the web-facing customer experience, improving customer satisfaction and unlocking new revenue opportunities.
    • Avoid making unnecessary new WEM investments.
    • Make informed decisions about the types of technologies and initiatives that are necessary to support WEM.

    Develop a Web Experience Management Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should develop a WEM strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Harness the value of web experience management

    Make the case for a web experience management suite and structure the WEM strategy project.

    • Develop a Web Experience Management Strategy Phase 1: Harness the Value of Web Experience Management
    • Web Experience Management Strategy Summary Template
    • WEM Project Charter Template

    2. Create the vision for web experience management

    Identify the target state WEM strategy, assess current state, and identify gaps.

    • Develop a Web Experience Management Strategy Phase 2: Create the Vision for Web Experience Management

    3. Execute initiatives for WEM deployment

    Build the WEM technology stack and create a web strategy initiatives roadmap.

    • Develop a Web Experience Management Strategy Phase 3: Execute Initiatives for WEM Deployment
    • Web Process Automation Investment Appropriateness Assessment Tool
    [infographic]

    Workshop: Develop a Web Experience Management Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Launch the WEM Selection Project

    The Purpose

    Discuss the general project overview for the WEM selection.

    Key Benefits Achieved

    Launch of your WEM selection project.

    Development of your organization’s WEM requirements. 

    Activities

    1.1 Facilitation of activities from the Launch the WEM Project and Collect Requirements phase, including project scoping and resource planning.

    1.2 Conduct overview of the WEM market landscape, trends, and vendors.

    1.3 Conduct process mapping for selected marketing processes.

    1.4 Interview business stakeholders.

    1.5 Prioritize WEM functional requirements.

    Outputs

    WEM Procurement Project Charter

    WEM Use-Case Fit Assessment

    2 Plan the Procurement and Implementation Process

    The Purpose

    Plan the procurement and the implementation of the WEM solution.

    Key Benefits Achieved

    Selection of a WEM solution.

    A plan for implementing the selected WEM solution. 

    Activities

    2.1 Complete marketing process mapping with business stakeholders.

    2.2 Interview IT staff and project team, identify technical requirements for the WEM suite, and document high-level solution requirements.

    2.3 Perform a use-case scenario assessment, review use-case scenario results, identify use-case alignment, and review the WEM Vendor Landscape vendor profiles and performance.

    2.4 Create a custom vendor shortlist and investigate additional vendors for exploration in the marketplace.

    2.5 Meet with project manager to discuss results and action items.

    Outputs

    Vendor Shortlist

    WEM RFP

    Vendor Evaluations

    Selection of a WEM Solution

    WEM projected work break-down

    Implementation plan

    Framework for WEM deployment and CRM/Marketing Management Suite Integration

    Build a Winning Business Process Automation Playbook

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    • Parent Category Name: Business Analysis
    • Parent Category Link: /business-analysis
    • Organizations often have many business processes that rely on manual, routine, and repetitive data collection and processing work. These processes need to be automated to meet strategic priorities.
    • Your stakeholders may have decided to invest in process automation solutions. They may be ready to begin the planning and delivery of their first automated processes.
    • However, if your processes are costly, slow, defective, and do not generate the value end users want, automation will only magnify these inefficiencies.

    Our Advice

    Critical Insight

    • Put the user front and center. Aim to better understand the end user and their operational environment. Use cases, data models, and quality factors allow you to visualize the human-computer interactions from an end-user perspective and initiate a discussion on how technology and process improvements can be better positioned to help your end users.
    • Build for the future. Automation sets the technology foundations and process governance and management building blocks in your organization. Expect that more automation will be done using earlier investments.
    • Manage automations as part of your application portfolio. Automations are add-ons to your application portfolio. Unmanaged automations, like applications, will sprawl and reduce in value over time. A collaborative rationalization practice pinpoints where automation is required and identifies which business inefficiencies should be automated next.

    Impact and Result

    • Clarify the problem being solved. Gain a grounded understanding of your stakeholders’ drivers for business process automation. Discuss current business operations and systems to identify automation candidates.
    • Optimate your processes. Apply good practices to first optimize (opti-) and then automate (-mate) key business processes. Take a user-centric perspective to understand how users interact with technology to complete their tasks.
    • Deliver minimum viable automations (MVAs). Maximize the learning of automation solutions and business operational changes through small, strategic automation use cases. This sets the foundations for a broader automation practice.

    Build a Winning Business Process Automation Playbook Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Business Process Automation Deck – A step-by-step document that walks you through how to optimize and automate your business processes.

    This blueprint helps you develop a repeatable approach to understand your process challenges and to optimize and automate strategic business processes.

    • Build a Winning Business Process Automation Playbook – Phases 1-3

    2. Business Process Automation Playbook – A repeatable set of practices to assess, optimize, and automate your business processes.

    This playbook template gives your teams a step-by-step guide to build a repeatable and standardized framework to optimize and automate your processes.

    • Business Process Automation Playbook

    3. Process Interview Template – A structured approach to interviewing stakeholders about their business processes.

    Info-Tech's Process Interview Template provides a number of sections that you can populate to help facilitate and document your stakeholder interviews.

    • Process Interview Template

    4. Process Mapping Guide – A guide to mapping business processes using BPMN standards.

    Info-Tech's Process Mapping Guide provides a thorough framework for process mapping, including the purpose and benefits, the best practices for facilitation, step-by-step process mapping instructions, and process mapping naming conventions.

    • Process Mapping Guide

    Infographic

    Workshop: Build a Winning Business Process Automation Playbook

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Identify Automation Opportunities

    The Purpose

    Understand the goals and visions of business process automation.

    Develop your guiding principles.

    Build a backlog of automation opportunities

    Key Benefits Achieved

    Business process automation vision, expectations, and objectives.

    High-priority automation opportunities identified to focus on.

    Activities

    1.1 State your objectives and metrics.

    1.2 Build your backlog.

    Outputs

    Business process automation vision and objectives

    Business process automation guiding principles

    Process automation opportunity backlog

    2 Define Your MVAs

    The Purpose

    Assess and optimize high-strategic-importance business process automation use cases from the end user’s perspective.

    Shortlist your automation solutions.

    Build and plan to deliver minimum viable automations (MVAs).

    Key Benefits Achieved

    Repeatable framework to assess and optimize your business process.

    Selection of the possible solutions that best fit the business process use case.

    Maximized learning with a low-risk minimum viable automation.

    Activities

    2.1 Optimize your processes.

    2.2 Automate your processes.

    2.3 Define and roadmap your MVAs.

    Outputs

    Assessed and optimized business processes with a repeatable framework

    Fit assessment of use cases to automation solutions

    MVA definition and roadmap

    3 Deliver Your MVAs

    The Purpose

    Modernize your SDLC to support business process automation delivery.

    Key Benefits Achieved

    An SDLC that best supports the nuances and complexities of business process automation delivery.

    Activities

    3.1 Deliver your MVAs

    Outputs

    Refined and enhanced SDLC

    Application Maintenance

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    • Parent Category Name: Applications
    • Parent Category Link: /applications
    • byline: Effective maintenance ensures the long-term value creation.

    The challenge

    • If you work with application maintenance or operations teams that handle the "run" of your applications, you may find that the sheer volume and variety of requests create large backlogs.
    • Your business and product owners may want scrum or DevOps teams to work on new functionality rather than spend effort on lifecycle management.
    • Increasing complexity and increasing reliance on technology may create unrealistic expectations for your maintenance teams. Business applications must be available around the clock, and new feature roadmaps cannot be side-tracked by maintenance.

    Our advice

    Insight

    • Improving maintenance focus may mean doing less work but create more value. Your teams need to be realistic about what commitments they take—balance maintenance with business value and risk levels.
    • Treat maintenance the same as any other development practice. Use the same intake and prioritization practices. Uphold the same quality standards.

    Impact and results 

    • Justify the necessity of streamlined and regular maintenance. Understand each stakeholder's objectives and concerns, validate them against your staff's current state, processes, and technologies involved.
    • Maintenance and risk go hand in hand. And the business wants to move forward all the time as well. Strengthen your prioritization practice. Use a holistic view of the business and technical impacts, risks, urgencies across the maintenance needs and requests. That allows you to justify their respective positions in the overall development backlog. Identify opportunities to bring some requirements and features together.
    • Build a repeatable process with appropriate governance around it. Ensure that people know their roles and responsibilities and are held accountable.
    • Instill development best-practices into your maintenance processes.

    The roadmap

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    Get started.

    Read our executive brief to understand everyday struggles regarding application maintenance, the root causes, and our methodology to overcome these. We show you how we can support you.

    Understand your maintenance priorities

    Identify your stakeholders and understand their drivers.

    • Streamline Application Maintenance – Phase 1: Assess the Current Maintenance Landscape (ppt)
    • Application Maintenance Operating Model Template (doc)
    • Application Maintenance Resource Capacity Assessment (xls)
    • Application Maintenance Maturity Assessment (xls)

    Define and employ maintenance governance

    Identify the right level of governance appropriate to your company and business context for your application maintenance. That ensures that people uphold standards across maintenance practices.

    • Streamline Application Maintenance – Phase 2: Develop a Maintenance Release Schedule (ppt)

    Enhance your prioritization practices

    Most companies cannot do everything for all applications and systems. Build your maintenance triage and prioritization rules to safeguard your company, maximize business value generation and IT risks and requirements.

    • Streamline Application Maintenance – Phase 3: Optimize Maintenance Capabilities (ppt)

    Streamline your maintenance delivery

    Define quality standards in maintenance practices. Enforce these in alignment with the governance you have set up. Show a high degree of transparency and open discussions on development challenges.

    • Streamline Application Maintenance – Phase 4: Streamline Maintenance Delivery (ppt)
    • Application Maintenance Business Case Presentation Document (ppt)

     

     

    IT Metrics and Dashboards During a Pandemic

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    • Parent Category Name: Performance Measurement
    • Parent Category Link: /performance-measurement

    The ways you measure success as a business are based on the typical business environment, but during a crisis like a pandemic, the business environment is rapidly changing or significantly different.

    • How do you assess the scope of the risk?
    • How do you quickly align your team to manage new risks?
    • How do you remain flexible enough to adapt to a rapidly changing situation?

    Our Advice

    Critical Insight

    Measure what you have the data for and focus on managing the impacts to your employees, customers, and suppliers. Be willing to make decisions based on imperfect data. Don’t forget to keep an eye on the long-term objectives and remember that how you act now can reflect on your business for years to come.

    Impact and Result

    Use Info-Tech’s approach to:

    • Quickly assess the risk and identify critical items to manage.
    • Communicate what your decisions are based on so teams can either quickly align or challenge conclusions made from the data.
    • Quickly adjust your measures based on new information or changing circumstances.
    • Use the tools you already have and keep it simple.

    IT Metrics and Dashboards During a Pandemic Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out how to develop your temporary crisis dashboard.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Consider your organizational goals

    Identify the short-term goals for your organization and reconsider your long-term objectives.

    • Crisis Temporary Measures Dashboard Tool

    2. Build a temporary data collection and dashboard method

    Determine your tool for data collection and your data requirements and collect initial data.

    3. Implement a cadence for review and action

    Determine the appropriate cadence for reviewing the dashboard and action planning.

    [infographic]

    Build a Strong Technology Foundation for Customer Experience Management

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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Technology is a fundamental enabler of an organization’s customer experience management (CXM) strategy. However, many IT departments fail to take a systematic approach when building a portfolio of applications for supporting marketing, sales, and customer service functions.
    • The result is a costly, ineffective, and piecemeal approach to CXM application deployment (including high-profile applications like CRM).

    Our Advice

    Critical Insight

    • IT must work in lockstep with their counterparts in marketing, sales, and customer service to define a unified vision and strategic requirements for enabling a strong CXM program.
    • To deploy applications that specifically align with the needs of the organization’s customers, IT leaders must work with the business to define and understand customer personas and common interaction scenarios. CXM applications are mission critical and failing to link them to customer needs can have a detrimental effect on customer satisfaction and ultimately, revenue.
    • IT must act as a valued partner to the business in creating a portfolio of CXM applications that are cost effective.
    • Organizations should create a repeatable framework for CXM application deployment that addresses critical issues, including the integration ecosystem, customer data quality, dashboards and analytics, and end-user adoption.

    Impact and Result

    • Establish strong application alignment to strategic requirements for CXM that is based on concrete customer personas.
    • Improve underlying business metrics across marketing, sales, and service, including customer acquisition, retention, and satisfaction metrics.
    • Better align IT with customer experience needs.

    Build a Strong Technology Foundation for Customer Experience Management Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a strong technology foundation for CXM, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Drive value with CXM

    Understand the benefits of a robust CXM strategy.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 1: Drive Value with CXM
    • CXM Strategy Stakeholder Presentation Template
    • CXM Strategy Project Charter Template

    2. Create the framework

    Identify drivers and objectives for CXM using a persona-driven approach and deploy the right applications to meet those objectives.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 2: Create the Framework
    • CXM Business Process Shortlisting Tool
    • CXM Portfolio Designer

    3. Finalize the framework

    Complete the initiatives roadmap for CXM.

    • Build a Strong Technology Foundation for Customer Experience Management – Phase 3: Finalize the Framework
    [infographic]

    Workshop: Build a Strong Technology Foundation for Customer Experience Management

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create the Vision for CXM Technology Enablement

    The Purpose

    Establish a consistent vision across IT, marketing, sales, and customer service for CXM technology enablement.

    Key Benefits Achieved

    A clear understanding of key business and technology drivers for CXM.

    Activities

    1.1 CXM fireside chat

    1.2 CXM business drivers

    1.3 CXM vision statement

    1.4 Project structure

    Outputs

    CXM vision statement

    CXM project charter

    2 Conduct the Environmental Scan and Internal Review

    The Purpose

    Create a set of strategic requirements for CXM based on a thorough external market scan and internal capabilities assessment.

    Key Benefits Achieved

    Well-defined technology requirements based on rigorous, multi-faceted analysis.

    Activities

    2.1 PEST analysis

    2.2 Competitive analysis

    2.3 Market and trend analysis

    2.4 SWOT analysis

    2.5 VRIO analysis

    2.6 Channel map

    Outputs

    Completed external analysis

    Strategic requirements (from external analysis)

    Completed internal review

    Channel interaction map

    3 Build Customer Personas and Scenarios

    The Purpose

    Augment strategic requirements through customer persona and scenario development.

    Key Benefits Achieved

    Functional requirements aligned to supporting steps in customer interaction scenarios.

    Activities

    3.1 Persona development

    3.2 Scenario development

    3.3 Requirements definition for CXM

    Outputs

    Personas and scenarios

    Strategic requirements (based on personas)

    4 Create the CXM Application Portfolio

    The Purpose

    Using the requirements identified in the preceding modules, build a future-state application inventory for CXM.

    Key Benefits Achieved

    A cohesive, rationalized portfolio of customer interaction applications that aligns with identified requirements and allows investment (or rationalization) decisions to be made.

    Activities

    4.1 Build business process maps

    4.2 Review application satisfaction

    4.3 Create the CXM application portfolio

    4.4 Prioritize applications

    Outputs

    Business process maps

    Application satisfaction diagnostic

    Prioritized CXM application portfolio

    5 Review Best Practices and Confirm Initiatives

    The Purpose

    Establish repeatable best practices for CXM applications in areas such as data management and end-user adoption.

    Key Benefits Achieved

    Best practices for rollout of new CXM applications.

    A prioritized initiatives roadmap.

    Activities

    5.1 Create data integration map

    5.2 Define adoption best practices

    5.3 Build initiatives roadmap

    5.4 Confirm initiatives roadmap

    Outputs

    Integration map for CXM

    End-user adoption plan

    Initiatives roadmap

    Further reading

    Build a Strong Technology Foundation for Customer Experience Management

    Design an end-to-end technology strategy to enhance marketing effectiveness, drive sales, and create compelling customer service experiences.

    ANALYST PERSPECTIVE

    Technology is the catalyst to create – and keep! – your customers.

    "Customers want to interact with your organization on their own terms, and in the channels of their choice (including social media, mobile applications, and connected devices). Regardless of your industry, your customers expect a frictionless experience across the customer lifecycle. They desire personalized and well-targeted marketing messages, straightforward transactions, and effortless service. Research shows that customers value – and will pay more for! – well-designed experiences.

    Strong technology enablement is critical for creating customer experiences that drive revenue. However, most organizations struggle with creating a cohesive technology strategy for customer experience management (CXM). IT leaders need to take a proactive approach to developing a strong portfolio of customer interaction applications that are in lockstep with the needs of their marketing, sales, and customer service teams. It is critical to incorporate the voice of the customer into this strategy.

    When developing a technology strategy for CXM, don’t just “pave the cow path,” but instead move the needle forward by providing capabilities for customer intelligence, omnichannel interactions, and predictive analytics. This blueprint will help you build an integrated CXM technology roadmap that drives top-line revenue while rationalizing application spend."

    Ben Dickie

    Research Director, Customer Experience Strategy

    Info-Tech Research Group

    Framing the CXM project

    This Research Is Designed For:

    • IT leaders who are responsible for crafting a technology strategy for customer experience management (CXM).
    • Applications managers who are involved with the selection and implementation of critical customer-centric applications, such as CRM platforms, marketing automation tools, customer intelligence suites, and customer service solutions.

    This Research Will Help You:

    • Clearly link your technology-enablement strategy for CXM to strategic business requirements and customer personas.
    • Build a rationalized portfolio of enterprise applications that will support customer interaction objectives.
    • Adopt standard operating procedures for CXM application deployment that address issues such as end-user adoption and data quality.

    This Research Will Also Assist:

    • Business leaders in marketing, sales, and customer service who want to deepen their understanding of CXM technologies, and apply best practices for using these technologies to drive competitive advantage.
    • Marketing, sales, and customer service managers involved with defining requirements and rolling out CXM applications.

    This Research Will Help Them:

    • Work hand-in-hand with counterparts in IT to deploy high-value business applications that will improve core customer-facing metrics.
    • Understand the changing CXM landscape and use the art of the possible to transform the internal technology ecosystem and drive meaningful customer experiences.

    Executive summary

    Situation

    • Customer expectations for personalization, channel preferences, and speed-to-resolution are at an all-time high.
    • Your customers are willing to pay more for high-value experiences, and having a strong customer CXM strategy is a proven path to creating sustainable value for the organization.

    Complication

    • Technology is a fundamental enabler of an organization’s CXM strategy. However, many IT departments fail to take a systematic approach to building a portfolio of applications to support Marketing, Sales, and Customer Service.
    • The result is a costly, ineffective, and piecemeal approach to CXM application deployment (including high profile applications like CRM).

    Resolution

    • IT must work in lockstep with their counterparts in marketing, sales, and customer service to define a unified vision, strategic requirements and roadmap for enabling strong customer experience capabilities.
    • In order to deploy applications that don’t simply follow previously established patterns but are aligned with the specific needs of the organization’s customers, IT leaders must work with the business to define and understand customer personas and common interaction scenarios. CXM applications are mission critical and failing to link them to customer needs can have a detrimental effect on customer satisfaction – and ultimately revenue.
    • IT must act as a valued partner to the business in creating a portfolio of CXM applications that are cost effective.
    • Organizations should create a repeatable framework for CXM application deployment that addresses critical issues, including the integration ecosystem, customer data quality, dashboards and analytics, and end-user adoption.

    Info-Tech Insight

    1. IT can’t hide behind the firewall. IT must understand the organization’s customers to properly support marketing, sales, and service efforts.
    2. IT – or Marketing – must not build the CXM strategy in a vacuum if they want to achieve a holistic, consistent, and seamless customer experience.
    3. IT must get ahead of shadow IT. To be seen as an innovator within the business, IT must be a leading enabler in building a rationalized and integrated CXM application portfolio.

    Guide to frequently used acronyms

    CXM - Customer Experience Management

    CX - Customer Experience

    CRM - Customer Relationship Management

    CSM - Customer Service Management

    MMS - Marketing Management System

    SMMP - Social Media Management Platform

    RFP - Request for Proposal

    SaaS - Software as a Service

    Customers’ expectations are on the rise: meet them!

    Today’s consumers expect speed, convenience, and tailored experiences at every stage of the customer lifecycle. Successful organizations strive to support these expectations.

    67% of end consumers will pay more for a world-class customer experience. 74% of business buyers will pay more for strong B2B experiences. (Salesforce, 2018)

    5 CORE CUSTOMER EXPECTATIONS

    1. More personalization
    2. More product options
    3. Constant contact
    4. Listen closely, respond quickly
    5. Give front-liners more control

    (Customer Experience Insight, 2016)

    Customers expect to interact with organizations through the channels of their choice. Now more than ever, you must enable your organization to provide tailored customer experiences.

    Realize measurable value by enabling CXM

    Providing a seamless customer experience increases the likelihood of cross-sell and up-sell opportunities and boosts customer loyalty and retention. IT can contribute to driving revenue and decreasing costs by providing the business with the right set of tools, applications, and technical support.

    Contribute to the bottom line

    Cross-sell, up-sell, and drive customer acquisition.

    67% of consumers are willing to pay more for an upgraded experience. (Salesforce, 2018)

    80%: The margin by which CX leaders outperformer laggards in the S&P 500.(Qualtrics, 2017)

    59% of customers say tailored engagement based on past interactions is very important to winning their business. (Salesforce, 2018)

    Enable cost savings

    Focus on customer retention as well as acquisition.

    It is 6-7x more costly to attract a new customer than it is to retain an existing customer. (Salesforce Blog, 2019)

    A 5% increase in customer retention has been found to increase profits by 25% to 95%. (Bain & Company, n.d.)

    Strategic CXM is gaining traction with your competition

    Organizations are prioritizing CXM capabilities (and associated technologies) as a strategic investment. Keep pace with the competition and gain a competitive advantage by creating a cohesive strategy that uses best practices to integrate marketing, sales, and customer support functions.

    87% of customers share great experiences they’ve had with a company. (Zendesk, n.d.)

    61% of organizations are investing in CXM. (CX Network, 2015)

    53% of organizations believe CXM provides a competitive advantage. (Harvard Business Review, 2014)

    Top Investment Priorities for Customer Experience

    1. Voice of the Customer
    2. Customer Insight Generation
    3. Customer Experience Governance
    4. Customer Journey Mapping
    5. Online Customer Experience
    6. Experience Personalization
    7. Emotional Engagement
    8. Multi-Channel Integration/Omnichannel
    9. Quality & Customer Satisfaction Management
    10. Customer/Channel Loyalty & Rewards Programs

    (CX Network 2015)

    Omnichannel is the way of the future: don’t be left behind

    Get ahead of the competition by doing omnichannel right. Devise a CXM strategy that allows you to create and maintain a consistent, seamless customer experience by optimizing operations within an omnichannel framework. Customers want to interact with you on their own terms, and it falls to IT to ensure that applications are in place to support and manage a wide range of interaction channels.

    Omnichannel is a “multi-channel approach to sales that seeks to provide the customer with a seamless transactional experience whether the customer is shopping online from a desktop or mobile device, by telephone, or in a bricks and mortar store.” (TechTarget, 2014)

    97% of companies say that they are investing in omnichannel. (Huffington Post, 2015)

    23% of companies are doing omnichannel well.

    CXM applications drive effective multi-channel customer interactions across marketing, sales, and customer service

    The success of your CXM strategy depends on the effective interaction of various marketing, sales, and customer support functions. To deliver on customer experience, organizations need to take a customer-centric approach to operations.

    From an application perspective, a CRM platform generally serves as the unifying repository of customer information, supported by adjacent solutions as warranted by your CXM objectives.

    CXM ECOSYSTEM

    Customer Relationship Management Platform

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management Platform
    • Customer Intelligence Platform
    • Customer Service Management Tools
    • Marketing Management Suite

    Application spotlight: Customer experience platforms

    Description

    CXM solutions are a broad range of tools that provide comprehensive feature sets for supporting customer interaction processes. These suites supplant more basic applications for customer interaction management. Popular solutions that fall under the umbrella of CXM include CRM suites, marketing automation tools, and customer service applications.

    Features and Capabilities

    • Manage sales pipelines, provide quotes, and track client deliverables.
    • View all opportunities organized by their current stage in the sales process.
    • View all interactions that have occurred between employees and the customer, including purchase order history.
    • Manage outbound marketing campaigns via multiple channels (email, phone, social, mobile).
    • Build visual workflows with automated trigger points and business rules engine.
    • Generate in-depth customer insights, audience segmentation, predictive analytics, and contextual analytics.
    • Provide case management, ticketing, and escalation capabilities for customer service.

    Highlighted Vendors

    Microsoft Dynamics

    Adobe

    Marketo

    sprinklr

    Salesforce

    SugarCRM

    Application spotlight: Customer experience platforms

    Key Trends

    • CXM applications have decreased their focus on departmental silos to make it easier to share information across the organization as departments demand more data.
    • Vendors are developing deeper support of newer channels for customer interaction. This includes providing support for social media channels, native mobile applications, and SMS or text-based services like WhatsApp and Facebook Messenger.
    • Predictive campaigns and channel blending are becoming more feasible as vendors integrate machine learning and artificial intelligence into their applications.
    • Content blocks are being placed on top of scripting languages to allow for user-friendly interfaces. There is a focus on alleviating bottlenecks where content would have previously needed to go through a specialist.
    • Many vendors of CXM applications are placing increased emphasis on strong application integration both within and beyond their portfolios, with systems like ERP and order fulfillment.

    Link to Digital Strategy

    • For many organizations that are building out a digital strategy, improving customer experience is often a driving factor: CXM apps enable this goal.
    • As part of a digital strategy, create a comprehensive CXM application portfolio by leveraging both core CRM suites and point solutions.
    • Ensure that a point solution aligns with the digital strategy’s technology drivers and user personas.

    CXM KPIs

    Strong CXM applications can improve:

    • Lead Intake Volume
    • Lead Conversion Rate
    • Average Time to Resolution
    • First-Contact Resolution Rate
    • Customer Satisfaction Rate
    • Share-of-Mind
    • Share-of-Wallet
    • Customer Lifetime Value
    • Aggregate Reach/Impressions

    IT is critical to the success of your CXM strategy

    Technology is the key enabler of building strong customer experiences: IT must stand shoulder-to-shoulder with the business to develop a technology framework for CXM.

    Top 5 Challenges with CXM for Marketing

    1. Maximizing customer experience ROI
    2. Achieving a single view of the customer
    3. Building new customer experiences
    4. Cultivating a customer-focused culture
    5. Measuring CX investments to business outcomes

    Top 5 Obstacles to Enabling CXM for IT

    1. Systems integration
    2. Multichannel complexity
    3. Organizational structure
    4. Data-related issues
    5. Lack of strategy

    (Harvard Business Review, 2014)

    Only 19% of organizations have a customer experience team tasked with bridging gaps between departments. (Genesys, 2018)

    IT and Marketing can only tackle CXM with the full support of each other. The cooperation of the departments is crucial when trying to improve CXM technology capabilities and customer interaction and drive a strong revenue mandate.

    CXM failure: Blockbuster

    CASE STUDY

    Industry Entertainment

    Source Forbes, 2014

    Blockbuster

    As the leader of the video retail industry, Blockbuster had thousands of retail locations internationally and millions of customers. Blockbuster’s massive marketing budget and efficient operations allowed it to dominate the competition for years.

    Situation

    Trends in Blockbuster’s consumer market changed in terms of distribution channels and customer experience. As the digital age emerged and developed, consumers were looking for immediacy and convenience. This threatened Blockbuster’s traditional, brick-and-mortar B2C operating model.

    The Competition

    Netflix entered the video retail market, making itself accessible through non-traditional channels (direct mail, and eventually, the internet).

    Results

    Despite long-term relationships with customers and competitive standing in the market, Blockbuster’s inability to understand and respond to changing technology trends and customer demands led to its demise. The organization did not effectively leverage internal or external networks or technology to adapt to customer demands. Blockbuster went bankrupt in 2010.

    Customer Relationship Management

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management
    • Customer Intelligence
    • Customer Service
    • Marketing Management

    Blockbuster did not leverage emerging technologies to effectively respond to trends in its consumer network. It did not optimize organizational effectiveness around customer experience.

    CXM success: Netflix

    CASE STUDY

    Industry Entertainment

    Source Forbes, 2014

    Netflix

    Beginning as a mail-out service, Netflix offered subscribers a catalog of videos to select from and have mailed to them directly. Customers no longer had to go to a retail store to rent a video. However, the lack of immediacy of direct mail as the distribution channel resulted in slow adoption.

    The Situation

    In response to the increasing presence of tech-savvy consumers on the internet, Netflix invested in developing its online platform as its primary distribution channel. The benefit of doing so was two-fold: passive brand advertising (by being present on the internet) and meeting customer demands for immediacy and convenience. Netflix also recognized the rising demand for personalized service and created an unprecedented, tailored customer experience.

    The Competition

    Blockbuster was the industry leader in video retail but was lagging in its response to industry, consumer, and technology trends around customer experience.

    Results

    Netflix’s disruptive innovation is built on the foundation of great CXM. Netflix is now a $28 billion company, which is tenfold what Blockbuster was worth.

    Customer Relationship Management Platform

    • Web Experience Management Platform
    • E-Commerce & Point of Sale Solutions
    • Social Media Management Platform
    • Customer Intelligence Platform
    • Customer Service Management Tools
    • Marketing Management Suite

    Netflix used disruptive technologies to innovatively build a customer experience that put it ahead of the long-time, video rental industry leader, Blockbuster.

    Leverage Info-Tech’s approach to succeed with CXM

    Creating an end-to-end technology-enablement strategy for CXM requires a concerted, dedicated effort: Info-Tech can help with our proven approach.

    Build the CXM Project Charter

    Conduct a Thorough Environmental Scan

    Build Customer Personas and Scenarios

    Draft Strategic CXM Requirements

    Build the CXM Application Portfolio

    Implement Operational Best Practices

    Why Info-Tech’s Approach?

    Info-Tech draws on best-practice research and the experiences of our global member base to develop a methodology for CXM that is driven by rigorous customer-centric analysis.

    Our approach uses a unique combination of techniques to ensure that your team has done its due diligence in crafting a forward-thinking technology-enablement strategy for CXM that creates measurable value.

    A global professional services firm drives measurable value for CXM by using persona design and scenario development

    CASE STUDY

    Industry Professionals Services

    Source Info-Tech Workshop

    The Situation

    A global professional services firm in the B2B space was experiencing a fragmented approach to customer engagement, particularly in the pre-sales funnel. Legacy applications weren’t keeping pace with an increased demand for lead evaluation and routing technology. Web experience management was also an area of significant concern, with a lack of ongoing customer engagement through the existing web portal.

    The Approach

    Working with a team of Info-Tech facilitators, the company was able to develop several internal and external customer personas. These personas formed the basis of strategic requirements for a new CXM application stack, which involved dedicated platforms for core CRM, lead automation, web content management, and site analytics.

    Results

    Customer “stickiness” metrics increased, and Sales reported significantly higher turnaround times in lead evaluations, resulting in improved rep productivity and faster cycle times.

    Components of a persona
    Name Name personas to reflect a key attribute such as the persona’s primary role or motivation.
    Demographic Include basic descriptors of the persona (e.g. age, geographic location, preferred language, education, job, employer, household income, etc.)
    Wants, needs, pain points Identify surface-level motivations for buying habits.
    Psychographic/behavioral traits Observe persona traits that are representative of the customers’ behaviors (e.g. attitudes, buying patterns, etc.).

    Follow Info-Tech’s approach to build your CXM foundation

    Create the Project Vision

    • Identify business and IT drivers
    • Outputs:
      • CXM Strategy Guiding Principles

    Structure the Project

    • Identify goals and objectives for CXM project
    • Form Project Team
    • Establish timeline
    • Obtain project sponsorship
    • Outputs:
      • CXM Strategy Project Charter

    Scan the External Environment

    • Create CXM operating model
    • Conduct external analysis
    • Create customer personas
    • Outputs:
      • CXM Operating Model
    • Conduct PEST analysis
    • Create persona scenarios
    • Outputs:
      • CXM Strategic Requirements

    Assess the Current State of CXM

    • Conduct SWOT analysis
    • Assess application usage and satisfaction
    • Conduct VRIO analysis
    • Outputs:
      • CXM Strategic Requirements

    Create an Application Portfolio

    • Map current processes
    • Assign business process owners
    • Create channel map
    • Build CXM application portfolio
    • Outputs:
      • CXM Application Portfolio Map

    Develop Deployment Best Practices

    • Develop CXM integration map
    • Create mitigation plan for poor data quality
    • Outputs:
      • Data Quality Preservation Map

    Create an Initiative Rollout Plan

    • Create risk management plan
    • Identify work initiative dependencies
    • Create roadmap
    • Outputs:
      • CXM Initiative Roadmap

    Confirm and Finalize the CXM Blueprint

    • Identify success metrics
    • Create stakeholder communication plan
    • Present CXM strategy to stakeholders
    • Outputs:
      • Stakeholder Presentation

    Info-Tech offers various levels of support to suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Build a Strong Technology Foundation for CXM – project overview

    1. Drive Value With CXM 2. Create the Framework 3. Finalize the Framework
    Best-Practice Toolkit

    1.1 Create the Project Vision

    1.2 Structure the CXM Project

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Guided Implementations
    • Determine project vision for CXM.
    • Review CXM project charter.
    • Review environmental scan.
    • Review application portfolio for CXM.
    • Confirm deployment best practices.
    • Review initiatives rollout plan.
    • Confirm CXM roadmap.
    Onsite Workshop Module 1: Drive Measurable Value with a World-Class CXM Program Module 2: Create the Strategic Framework for CXM Module 3: Finalize the CXM Framework

    Phase 1 Outcome:

    • Completed drivers
    • Completed project charter

    Phase 2 Outcome:

    • Completed personas and scenarios
    • CXM application portfolio

    Phase 3 Outcome:

    • Strategic summary blueprint

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Workshop Day 5
    Activities

    Create the Vision for CXM Enablement

    1.1 CXM Fireside Chat

    1.2 CXM Business Drivers

    1.3 CXM Vision Statement

    1.4 Project Structure

    Conduct the Environmental Scan and Internal Review

    2.1 PEST Analysis

    2.2 Competitive Analysis

    2.3 Market and Trend Analysis

    2.4 SWOT Analysis

    2.5 VRIO Analysis

    2.6 Channel Mapping

    Build Personas and Scenarios

    3.1 Persona Development

    3.2 Scenario Development

    3.3 Requirements Definition for CXM

    Create the CXM Application Portfolio

    4.1 Build Business Process Maps

    4.2 Review Application Satisfaction

    4.3 Create the CXM Application Portfolio

    4.4 Prioritize Applications

    Review Best Practices and Confirm Initiatives

    5.1 Create Data Integration Map

    5.2 Define Adoption Best Practices

    5.3 Build Initiatives Roadmap

    5.4 Confirm Initiatives Roadmap

    Deliverables
    1. CXM Vision Statement
    2. CXM Project Charter
    1. Completed External Analysis
    2. Completed Internal Review
    3. Channel Interaction Map
    4. Strategic Requirements (from External Analysis)
    1. Personas and Scenarios
    2. Strategic Requirements (based on personas)
    1. Business Process Maps
    2. Application Satisfaction Diagnostic
    3. Prioritized CXM Application Portfolio
    1. Integration Map for CXM
    2. End-User Adoption Plan
    3. Initiatives Roadmap

    Phase 1

    Drive Measurable Value With a World-Class CXM Program

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Drive Measurable Value With a World-Class CXM Program

    Proposed Time to Completion: 2 weeks

    Step 1.1: Create the Project Vision

    Start with an analyst kick-off call:

    • Review key drivers from a technology and business perspective for CXM
    • Discuss benefits of strong technology enablement for CXM

    Then complete these activities…

    • CXM Fireside Chat
    • CXM Business and Technology Driver Assessment
    • CXM Vision Statement

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Step 1.2: Structure the Project

    Review findings with analyst:

    • Assess the CXM vision statement for competitive differentiators
    • Determine current alignment disposition of IT with different business units

    Then complete these activities…

    • Team Composition and Responsibilities
    • Metrics Definition

    With these tools & templates:

    • CXM Strategy Project Charter Template

    Phase 1 Results & Insights:

    • Defined value of strong technology enablement for CXM
    • Completed CXM project charter

    Step 1.1: Create the Project Vision

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Fireside Chat: Discuss past challenges and successes with CXM
    • Identify business and IT drivers to establish guiding principles for CXM

    Outcomes:

    • Business benefits of a rationalized technology strategy to support CXM
    • Shared lessons learned
    • Guiding principles for providing technology enablement for CXM

    Building a technology strategy to support customer experience isn’t an option – it’s a mission-critical activity

    • Customer-facing departments supply the lifeblood of a company: revenue. In today’s fast-paced and interconnected world, it’s becoming increasingly imperative to enable customer experience processes with a wide range of technologies, from lead automation to social relationship management. CXM is the holistic management of customer interaction processes across marketing, sales, and customer service to create valuable, mutually beneficial customer experiences. Technology is a critical building block for enabling CXM.
    • The parallel progress of technology and process improvement is essential to an efficient and effective CXM program. While many executives prefer to remain at the status quo, new technologies have caused major shifts in the CXM environment. If you stay with the status quo, you will fall behind the competition.
    • However, many IT departments are struggling to keep up with the pace of change and find themselves more of a firefighter than a strategic partner to marketing, sales, and service teams. This not only hurts the business, but it also tarnishes IT’s reputation.

    An aligned, optimized CX strategy is:

    Rapid: to intentionally and strategically respond to quickly-changing opportunities and issues.

    Outcome-based: to make key decisions based on strong business cases, data, and analytics in addition to intuition and judgment.

    Rigorous: to bring discipline and science to bear; to improve operations and results.

    Collaborative: to conduct activities in a broader ecosystem of partners, suppliers, vendors, co-developers, and even competitors.

    (The Wall Street Journal, 2013)

    Info-Tech Insight

    If IT fails to adequately support marketing, sales, and customer service teams, the organization’s revenue will be in direct jeopardy. As a result, CIOs and Applications Directors must work with their counterparts in these departments to craft a cohesive and comprehensive strategy for using technology to create meaningful (and profitable) customer experiences.

    Fireside Chat, Part 1: When was technology an impediment to customer experience at your organization?

    1.1.1 30 minutes

    Input

    • Past experiences of the team

    Output

    • Lessons learned

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Think about a time when technology was an impediment to a positive customer experience at your organization. Reflect on the following:
      • What frustrations did the application or the technology cause to your customers? What was their reaction?
      • How did IT (and the business) identify the challenge in the first place?
      • What steps were taken to mitigate the impact of the problem? Were these steps successful?
      • What were the key lessons learned as part of the challenge?

    Fireside Chat, Part 2: What customer success stories has your organization created by using new technologies?

    1.1.2 30 minutes

    Input

    • Past experiences of the team

    Output

    • Lessons learned

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Think about a time when your organization successfully leveraged a new application or new technology to enhance the experience it provided to customers. Reflect on this experience and consider:
      • What were the organizational drivers for rolling out the new application or solution?
      • What obstacles had to be overcome in order to successfully deploy the solution?
      • How did the application positively impact the customer experience? What metrics improved?
      • What were the key lessons learned as part of the deployment? If you had to do it all over again, what would you do differently?

    Develop a cohesive, consistent, and forward-looking roadmap that supports each stage of the customer lifecycle

    When creating your roadmap, consider the pitfalls you’ll likely encounter in building the IT strategy to provide technology enablement for customer experience.

    There’s no silver bullet for developing a strategy. You can encounter pitfalls at a myriad of different points including not involving the right stakeholders from the business, not staying abreast of recent trends in the external environment, and not aligning sales, marketing, and support initiatives with a focus on the delivery of value to prospects and customers.

    Common Pitfalls When Creating a Technology-Enablement Strategy for CXM

    Senior management is not involved in strategy development.

    Not paying attention to the “art of the possible.”

    “Paving the cow path” rather than focusing on revising core processes.

    Misalignment between objectives and financial/personnel resources.

    Inexperienced team on either the business or IT side.

    Not paying attention to the actions of competitors.

    Entrenched management preferences for legacy systems.

    Sales culture that downplays the potential value of technology or new applications.

    IT is only one or two degrees of separation from the end customer: so take a customer-centric approach

    IT →Marketing, Sales, and Service →External Customers

    Internal-Facing Applications

    • IT enables, supports, and maintains the applications used by the organization to market to, sell to, and service customers. IT provides the infrastructural and technical foundation to operate the function.

    Customer-Facing Applications

    • IT supports customer-facing interfaces and channels for customer interaction.
    • Channel examples include web pages, mobile device applications and optimization, and interactive voice response for callers.

    Info-Tech Insight

    IT often overlooks direct customer considerations when devising a technology strategy for CXM. Instead, IT leaders rely on other business stakeholders to simply pass on requirements. By sitting down with their counterparts in marketing and sales, and fully understanding business drivers and customer personas, IT will be much better positioned to roll out supporting applications that drive customer engagement.

    A well-aligned CXM strategy recognizes a clear delineation of responsibilities between IT, sales, marketing, and service

    • When thinking about CXM, IT must recognize that it is responsible for being a trusted partner for technology enablement. This means that IT has a duty to:
      • Develop an in-depth understanding of strategic business requirements for CXM. Base your understanding of these business requirements on a clear conception of the internal and external environment, customer personas, and business processes in marketing, sales, and customer service.
      • Assist with shortlisting and supporting different channels for customer interaction (including email, telephony, web presence, and social media).
      • Create a rationalized, cohesive application portfolio for CXM that blends different enabling technologies together to support strategic business requirements.
      • Provide support for vendor shortlisting, selection, and implementation of CXM applications.
      • Assist with end-user adoption of CXM applications (i.e. training and ongoing support).
      • Provide initiatives that assist with technical excellence for CXM (such as data quality, integration, analytics, and application maintenance).
    • The business (marketing, sales, customer service) owns the business requirements and must be responsible for setting top-level objectives for customer interaction (e.g. product and pricing decisions, marketing collateral, territory management, etc.). IT should not take over decisions on customer experience strategy. However, IT should be working in lockstep with its counterparts in the business to assist with understanding business requirements through a customer-facing lens. For example, persona development is best done in cross-functional teams between IT and Marketing.

    Activity: Identify the business drivers for CXM to establish the strategy’s guiding principles

    1.1.3 30 minutes

    Input

    • Business drivers for CXM

    Output

    • Guiding principles for CXM strategy

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Define the assumptions and business drivers that have an impact on technology enablement for CXM. What is driving the current marketing, sales, and service strategy on the business side?
    Business Driver Name Driver Assumptions, Capabilities, and Constraints Impact on CXM Strategy
    High degree of customer-centric solution selling A technically complex product means that solution selling approaches are employed – sales cycles are long. There is a strong need for applications and data quality processes that support longer-term customer relationships rather than transactional selling.
    High desire to increase scalability of sales processes Although sales cycles are long, the organization wishes to increase the effectiveness of rep time via marketing automation where possible. Sales is always looking for new ways to leverage their reps for face-to-face solution selling while leaving low-level tasks to automation. Marketing wants to support these tasks.
    Highly remote sales team and unusual hours are the norm Not based around core hours – significant overtime or remote working occurs frequently. Misalignment between IT working only core hours and after-hours teams leads to lag times that can delay work. Scheduling of preventative sales maintenance must typically be done on weekends rather than weekday evenings.

    Activity: Identify the IT drivers for CXM to establish the strategy’s guiding principles

    1.1.4 30 minutes

    Input

    • IT drivers for CXM

    Output

    • Guiding principles for CXM strategy

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Define the assumptions and IT drivers that have an impact on technology enablement for CXM. What is driving the current IT strategy for supporting marketing, sales, and service initiatives?
    IT Driver Name Driver Assumptions, Capabilities, and Constraints Impact on CXM Strategy
    Sales Application Procurement Methodology Strong preference for on-premise COTS deployments over homebrewed applications. IT may not be able to support cloud-based sales applications due to security requirements for on premise.
    Vendor Relations Minimal vendor relationships; SLAs not drafted internally but used as part of standard agreement. IT may want to investigate tightening up SLAs with vendors to ensure more timely support is available for their sales teams.
    Development Methodology Agile methodology employed, some pockets of Waterfall employed for large-scale deployments. Agile development means more perfective maintenance requests come in, but it leads to greater responsiveness for making urgent corrective changes to non-COTS products.
    Data Quality Approach IT sees as Sales’ responsibility IT is not standing as a strategic partner for helping to keep data clean, causing dissatisfaction from customer-facing departments.
    Staffing Availability Limited to 9–5 Execution of sales support takes place during core hours only, limiting response times and access for on-the-road sales personnel.

    Activity: Use IT and business drivers to create guiding principles for your CXM technology-enablement project

    1.1.5 30 minutes

    Input

    • Business drivers and IT drivers from 1.1.3 and 1.1.4

    Output

    • CXM mission statement

    Materials

    • Whiteboard
    • Markers

    Participants

    • Core Team

    Instructions

    1. Based on the IT and business drivers identified, craft guiding principles for CXM technology enablement. Keep guiding principles in mind throughout the project and ensure they support (or reconcile) the business and IT drivers.

    Guiding Principle Description
    Sales processes must be scalable. Our sales processes must be able to reach a high number of target customers in a short time without straining systems or personnel.
    Marketing processes must be high touch. Processes must be oriented to support technically sophisticated, solution-selling methodologies.

    2. Summarize the guiding principles above by creating a CXM mission statement. See below for an example.

    Example: CXM Mission Statement

    To ensure our marketing, sales and service team is equipped with tools that will allow them to reach out to a large volume of contacts while still providing a solution-selling approach. This will be done with secure, on-premise systems to safeguard customer data.

    Ensure that now is the right time to take a step back and develop the CXM strategy

    Determine if now is the right time to move forward with building (or overhauling) your technology-enablement strategy for CXM.

    Not all organizations will be able to proceed immediately to optimize their CXM technology enablement. Determine if the organizational willingness, backbone, and resources are present to commit to overhauling the existing strategy. If you’re not ready to proceed, consider waiting to begin this project until you can procure the right resources.

    Do not proceed if:

    • Your current strategy for supporting marketing, sales, and service is working well and IT is already viewed as a strategic partner by these groups. Your current strategy is well aligned with customer preferences.
    • The current strategy is not working well, but there is no consensus or support from senior management for improving it.
    • You cannot secure the resources or time to devote to thoroughly examining the current state and selecting improvement initiatives.
    • The strategy has been approved, but there is no budget in place to support it at this time.

    Proceed if:

    • Senior management has agreed that technology support for CXM should be improved.
    • Sub-divisions within IT, sales, marketing, and service are on the same page about the need to improve alignment.
    • You have an approximate budget to work with for the project and believe you can secure additional funding to execute at least some improvement initiatives.
    • You understand how improving CXM alignment will fit into the broader customer interaction ecosystem in your organization.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.3; 1.1.4; 1.1.5 - Identify business and IT drivers to create CXM guiding principles

    The facilitator will work with stakeholders from both the business and IT to identify implicit or explicit strategic drivers that will support (or pose constraints on) the technology-enablement framework for the CXM strategy. In doing so, guiding principles will be established for the project.

    Step 1.2: Structure the Project

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Define the project purpose, objectives, and business metrics
    • Define the scope of the CXM strategy
    • Create the project team
    • Build a RACI chart
    • Develop a timeline with project milestones
    • Identify risks and create mitigation strategies
    • Complete the strategy project charter and obtain approval

    Outcomes:

    CXM Strategy Project Charter Template

    • Purpose, objectives, metrics
    • Scope
    • Project team & RACI
    • Timeline
    • Risks & mitigation strategies
    • Project sponsorship

    Use Info-Tech’s CXM Strategy Project Charter Template to outline critical components of the CXM project

    1.2.1 CXM Strategy Project Charter Template

    Having a project charter is the first step for any project: it specifies how the project will be resourced from a people, process, and technology perspective, and it clearly outlines major project milestones and timelines for strategy development. CXM technology enablement crosses many organizational boundaries, so a project charter is a very useful tool for ensuring everyone is on the same page.

    Sections of the document:

    1. Project Drivers, Rationale, and Context
    2. Project Objectives, Metrics, and Purpose
    3. Project Scope Definition
    4. Project Team Roles and Responsibilities (RACI)
    5. Project Timeline
    6. Risk Mitigation Strategy
    7. Project Metrics
    8. Project Review & Approvals

    INFO-TECH DELIVERABLE

    CXM Strategy Project Charter Template

    Populate the relevant sections of your project charter as you complete activities 1.2.2-1.2.8.

    Understand the roles necessary to complete your CXM technology-enablement strategy

    Understand the role of each player within your project structure. Look for listed participants on the activities slides to determine when each player should be involved.

    Title Role Within Project Structure
    Project Sponsor
    • Owns the project at the management/C-suite level
    • Responsible for breaking down barriers and ensuring alignment with organizational strategy
    • CIO, CMO, VP of Sales, VP of Customer Care, or similar
    Project Manager
    • The IT individual(s) that will oversee day-to-day project operations
    • Responsible for preparing and managing the project plan and monitoring the project team’s progress
    • Applications or other IT Manager, Business Analyst, Business Process Owner, or similar
    Business Lead
    • Works alongside the IT PM to ensure that the strategy is aligned with business needs
    • In this case, likely to be a marketing, sales, or customer service lead
    • Sales Director, Marketing Director, Customer Care Director, or similar
    Project Team
    • Comprised of individuals whose knowledge and skills are crucial to project success
    • Responsible for driving day-to-day activities, coordinating communication, and making process and design decisions. Can assist with persona and scenario development for CXM.
    • Project Manager, Business Lead, CRM Manager, Integration Manager, Application SMEs, Developers, Business Process Architects, and/or similar SMEs
    Steering Committee
    • Comprised of C-suite/management level individuals that act as the project’s decision makers
    • Responsible for validating goals and priorities, defining the project scope, enabling adequate resourcing, and managing change
    • Project Sponsor, Project Manager, Business Lead, CFO, Business Unit SMEs and similar

    Info-Tech Insight

    Do not limit project input or participation to the aforementioned roles. Include subject matter experts and internal stakeholders at particular stages within the project. Such inputs can be solicited on a one-off basis as needed. This ensures you take a holistic approach to creating your CXM technology-enablement strategy.

    Activity: Kick-off the CXM project by defining the project purpose, project objectives, and business metrics

    1.2.2 30 minutes

    Input

    • Activities 1.1.1 to 1.1.5

    Output

    • Drivers & rationale
    • Purpose statement
    • Business goals
    • Business metrics
    • CXM Strategy Project Charter Template, sections 1.0, 2.0, and 2.1

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Sponsor
    • Project Manager
    • Business Lead
    • Steering Committee

    Instructions

    Hold a meeting with IT, Marketing, Sales, Service, Operations, and any other impacted business stakeholders that have input into CXM to accomplish the following:

    1. Discuss the drivers and rationale behind embarking on a CXM strategy.
    2. Develop and concede on objectives for the CXM project, metrics that will gauge its success, and goals for each metric.
    3. Create a project purpose statement that is informed by decided-upon objectives and metrics from the steps above. When establishing a project purpose, ask the question, “what are we trying to accomplish?”
    • Example: Project Purpose Statement
      • The organization is creating a CXM strategy to gather high-level requirements from the business, IT, and Marketing, Sales, and Service, to ensure that the selection and deployment of the CXM meets the needs of the broader organization and provides the greatest return on investment.
  • Document your project drivers and rationale, purpose statement, project objectives, and business metrics in Info-Tech’s CXM Strategy Project Charter Template in sections 1.0 and 2.0.

    • Info-Tech Insight

    Going forward, set up a quarterly review process to understand changing needs. It is rare that organizations never change their marketing and sales strategy. This will change the way the CXM will be utilized.

    Establish baseline metrics for customer engagement

    In order to gauge the effectiveness of CXM technology enablement, establish core metrics:

    1. Marketing Metrics: pertaining to share of voice, share of wallet, market share, lead generation, etc.
    2. Sales Metrics: pertaining to overall revenue, average deal size, number of accounts, MCV, lead warmth, etc.
    3. Customer Service Metrics: pertaining to call volumes, average time to resolution, first contact resolution, customer satisfaction, etc.
    4. IT Metrics: pertaining to end-user satisfaction with CXM applications, number of tickets, contract value, etc.
    Metric Description Current Metric Future Goal
    Market Share 25% 35%
    Share of Voice (All Channels) 40% 50%
    Average Deal Size $10,500 $12,000
    Account Volume 1,400 1,800
    Average Time to Resolution 32 min 25 min
    First Contact Resolution 15% 35%
    Web Traffic per Month (Unique Visitors) 10,000 15,000
    End-User Satisfaction 62% 85%+
    Other metric
    Other metric
    Other metric

    Understand the importance of setting project expectations with a scope statement

    Be sure to understand what is in scope for a CXM strategy project. Prevent too wide of a scope to avoid scope creep – for example, we aren’t tackling ERP or BI under CXM.

    In Scope

    Establishing the parameters of the project in a scope statement helps define expectations and provides a baseline for resource allocation and planning. Future decisions about the strategic direction of CXM will be based on the scope statement.

    Scope Creep

    Well-executed requirements gathering will help you avoid expanding project parameters, drawing on your resources, and contributing to cost overruns and project delays. Avoid scope creep by gathering high-level requirements that lead to the selection of category-level application solutions (e.g. CRM, MMS, SMMP, etc.), rather than granular requirements that would lead to vendor application selection (e.g. Salesforce, Marketo, Hootsuite, etc.).

    Out of Scope

    Out-of-scope items should also be defined to alleviate ambiguity, reduce assumptions, and further clarify expectations for stakeholders. Out-of-scope items can be placed in a backlog for later consideration. For example, fulfilment and logistics management is out of scope as it pertains to CXM.

    In Scope
    Strategy
    High-Level CXM Application Requirements CXM Strategic Direction Category Level Application Solutions (e.g. CRM, MMS, etc.)
    Out of Scope
    Software Selection
    Vendor Application Review Vendor Application Selection Granular Application System Requirements

    Activity: Define the scope of the CXM strategy

    1.2.3 30 minutes

    Input

    • N/A

    Output

    • Project scope and parameters
    • CXM Strategy Project Charter Template, section 3.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Sponsor
    • Project Manager
    • Business Lead

    Instructions

    1. Formulate a scope statement. Decide which people, processes, and functions the CXM strategy will address. Generally, the aim of this project is to develop strategic requirements for the CXM application portfolio – not to select individual vendors.
    2. Document your scope statement in Info-Tech’s CXM Strategy Project Charter Template in section 3.0.

    To form your scope statement, ask the following questions:

    • What are the major coverage points?
    • Who will be using the systems?
    • How will different users interact with the systems?
    • What are the objectives that need to be addressed?
    • Where do we start?
    • Where do we draw the line?

    Identify the right stakeholders to include on your project team

    Consider the core team functions when composing the project team. Form a cross-functional team (i.e. across IT, Marketing, Sales, Service, Operations) to create a well-aligned CXM strategy.

    Required Skills/Knowledge Suggested Project Team Members
    IT
    • Application development
    • Enterprise integration
    • Business processes
    • Data management
    • CRM Application Manager
    • Business Process Manager
    • Integration Manager
    • Application Developer
    • Data Stewards
    Business
    • Understanding of the customer
    • Departmental processes
    • Sales Manager
    • Marketing Manager
    • Customer Service Manager
    Other
    • Operations
    • Administrative
    • Change management
    • Operations Manager
    • CFO
    • Change Management Manager

    Info-Tech Insight

    Don’t let your project team become too large when trying to include all relevant stakeholders. Carefully limiting the size of the project team will enable effective decision making while still including functional business units such as marketing, sales, service, and finance, as well as IT.

    Activity: Create the project team

    1.2.4 45 minutes

    Input

    • Scope Statement (output of Activity 1.2.3).

    Output

    • Project Team
    • CXM Strategy Project Charter Template, section 4.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Review your scope statement. Have a discussion to generate a complete list of key stakeholders that are needed to achieve the scope of work.
    2. Using the previously generated list, identify a candidate for each role and determine their responsibilities and expected time commitment for the CXM strategy project.
    3. Document the project team in Info-Tech’s CXM Strategy Project Charter Template in section 4.0.

    Define project roles and responsibilities to improve progress tracking

    Build a list of the core CXM strategy team members, and then structure a RACI chart with the relevant categories and roles for the overall project.

    Responsible - Conducts work to achieve the task

    Accountable - Answerable for completeness of task

    Consulted - Provides input for the task

    Informed - Receives updates on the task

    Info-Tech Insight

    Avoid missed tasks between inter-functional communications by defining roles and responsibilities for the project as early as possible.

    Benefits of Assigning RACI Early:

    • Improve project quality by assigning the right people to the right tasks.
    • Improve chances of project task completion by assigning clear accountabilities.
    • Improve project buy-in by ensuring that stakeholders are kept informed of project progress, risks, and successes.

    Activity: Build a RACI chart

    1.2.5 30 minutes

    Input

    • Project Team (output of Activity 1.2.4)

    Output

    • RACI chart
    • CXM Strategy Project Charter Template, section 4.2

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Identify the key stakeholder teams that should be involved in the CXM strategy project. You should have a cross-functional team that encompasses both IT (various units) and the business.
    2. Determine whether each stakeholder should be responsible, accountable, consulted, and/or informed with respect to each overarching project step.
    3. Confirm and communicate the results to relevant stakeholders and obtain their approval.
    4. Document the RACI chart in Info-Tech’s CXM Strategy Project Charter Template in section 4.2.
    Example: RACI Chart Project Sponsor (e.g. CMO) Project Manager (e.g. Applications Manager) Business Lead (e.g. Marketing Director) Steering Committee (e.g. PM, CMO, CFO…) Project Team (e.g. PM, BL, SMEs…)
    Assess Project Value I C A R C
    Conduct a Current State Assessment I I A C R
    Design Application Portfolio I C A R I
    Create CXM Roadmap R R A I I
    ... ... ... ... ... ...

    Activity: Develop a timeline in order to specify concrete project milestones

    1.2.6 30 minutes

    Input

    • N/A

    Output

    • Project timeline
    • CXM Strategy Project Charter Template, section 5.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead

    Instructions

    1. Assign responsibilities, accountabilities, and other project involvement to each project team role using a RACI chart. Remember to consider dependencies when creating the schedule and identifying appropriate subtasks.
    2. Document the timeline in Info-Tech’s CXM Strategy Project Charter Template in section 5.0.
    Key Activities Start Date End Date Target Status Resource(s)
    Structure the Project and Build the Project Team
    Articulate Business Objectives and Define Vision for Future State
    Document Current State and Assess Gaps
    Identify CXM Technology Solutions
    Build the Strategy for CXM
    Implement the Strategy

    Assess project-associated risk by understanding common barriers and enablers

    Common Internal Risk Factors

    Management Support Change Management IT Readiness
    Definition The degree of understanding and acceptance of CXM as a concept and necessary portfolio of technologies. The degree to which employees are ready to accept change and the organization is ready to manage it. The degree to which the organization is equipped with IT resources to handle new systems and processes.
    Assessment Outcomes
    • Is CXM enablement recognized as a top priority?
    • Will management commit time to the project?
    • Are employees resistant to change?
    • Is there an organizational awareness of the importance of customer experience?
    • Who are the owners of process and content?
    • Is there strong technical expertise?
    • Is there strong infrastructure?
    • What are the important integration points throughout the business?
    Risk
    • Low management buy-in
    • Lack of funding
    • Lack of resources
    • Low employee motivation
    • Lack of ownership
    • Low user adoption
    • Poor implementation
    • Reliance on consultants

    Activity: Identify the risks and create mitigation strategies

    1.2.7 45 minutes

    Input

    • N/A

    Output

    • Risk mitigation strategy
    • CXM Strategy Project Charter Template, section 6.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead
    • Project Team

    Instructions

    1. Brainstorm a list of possible risks that may impede the progress of your CXM project.
    2. Classify risks as strategy based (related to planning) or systems based (related to technology).
    3. Brainstorm mitigation strategies to overcome each risk.
    4. On a scale of 1 to 3, determine the impact of each risk on project success and the likelihood of each risk occurring.
    5. Document your findings in Info-Tech’s CXM Strategy Project Charter Template in section 6.0.

    Likelihood:

    1 - High/Needs Focus

    2 - Can Be Mitigated

    3 - Unlikely

    Impact

    1 - High Impact

    2 - Moderate Impact

    3 - Minimal Impact

    Example: Risk Register and Mitigation Tactics

    Risk Impact Likelihood Mitigation Effort
    Cost of time and implementation: designing a robust portfolio of CXM applications can be a time consuming task, representing a heavy investment for the organization 1 1
    • Have a clear strategic plan and a defined time frame
    • Know your end-user requirements
    • Put together an effective and diverse strategy project team
    Availability of resources: lack of in-house resources (e.g. infrastructure, CXM application developers) may result in the need to insource or outsource resources 1 2
    • Prepare a plan to insource talent by hiring or transferring talent from other departments – e.g. marketing and customer service

    Activity: Complete the project charter and obtain approval

    1.2.8 45 minutes

    Input

    • N/A

    Output

    • Project approval
    • CXM Strategy Project Charter Template, section 8.0

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Manager
    • Business Lead
    • Project Team

    Instructions

    Before beginning to develop the CXM strategy, validate the project charter and metrics with senior sponsors or stakeholders and receive their approval to proceed.

    1. Schedule a 30-60 minute meeting with senior stakeholders and conduct a live review of your CXM strategy project charter.
    2. Obtain stakeholder approval to ensure there are no miscommunications or misunderstandings around the scope of the work that needs to be done to reach a successful project outcome. Final sign-off should only take place when mutual consensus has been reached.
      • Obtaining approval should be an iterative process; if senior management has concerns over certain aspects of the plan, revise and review again.

    Info-Tech Insight

    In most circumstances, you should have your CXM strategy project charter validated with the following stakeholders:

    • Chief Information Officer
    • IT Applications Director
    • CFO or Comptroller (for budget approval)
    • Chief Marketing Office or Head of Marketing
    • Chief Revenue Officer or VP of Sales
    • VP Customer Service

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    1.2.2 Define project purpose, objectives, and business metrics

    Through an in-depth discussion, an analyst will help you prioritize corporate objectives and organizational drivers to establish a distinct project purpose.

    1.2.3 Define the scope of the CXM strategy

    An analyst will facilitate a discussion to address critical questions to understand your distinct business needs. These questions include: What are the major coverage points? Who will be using the system?

    1.2.4; 1.2.5; 1.2.6 Create the CXM project team, build a RACI chart, and establish a timeline

    Our analysts will guide you through how to create a designated project team to ensure the success of your CXM strategy and suite selection initiative, including project milestones and team composition, as well as designated duties and responsibilities.

    Phase 2

    Create a Strategic Framework for CXM Technology Enablement

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 2 outline: Steps 2.1 and 2.2

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Create a Strategic Framework for CXM Technology Enablement

    Proposed Time to Completion: 4 weeks

    Step 2.1: Scan the External Environment

    Start with an analyst kick-off call:

    • Discuss external drivers
    • Assess competitive environment
    • Review persona development
    • Review scenarios

    Then complete these activities…

    • Build the CXM operating model
    • Conduct a competitive analysis
    • Conduct a PEST analysis
    • Build personas and scenarios

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Step 2.2: Assess the Current State for CRM

    Review findings with analyst:

    • Review SWOT analysis
    • Review VRIO analysis
    • Discuss strategic requirements for CXM

    Then complete these activities…

    • Conduct a SWOT analysis
    • Conduct a VRIO analysis
    • Inventory existing applications

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Phase 2 outline: Steps 2.3 and 2.4

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Create a Strategic Framework for CXM Technology Enablement

    Proposed Time to Completion: 4 weeks

    Step 2.3: Create an Application Portfolio

    Start with an analyst kick-off call:

    • Discuss possible business process maps
    • Discuss strategic requirements
    • Review application portfolio results

    Then complete these activities…

    • Build business maps
    • Execute application mapping

    With these tools & templates:

    CXM Portfolio Designer

    CXM Strategy Stakeholder Presentation Template

    CXM Business Process Shortlisting Tool

    Step 2.4: Develop Deployment Best Practices

    Review findings with analyst:

    • Review possible integration maps
    • Discuss best practices for end-user adoption
    • Discuss best practices for customer data quality

    Then complete these activities…

    • Create CXM integration ecosystem
    • Develop adoption game plan
    • Create data quality standards

    With these tools & templates:

    CXM Strategy Stakeholder Presentation Template

    Phase 2 Results & Insights:

    • Application portfolio for CXM
    • Deployment best practices for areas such as integration, data quality, and end-user adoption

    Step 2.1: Scan the External Environment

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Inventory CXM drivers and organizational objectives
    • Identify CXM challenges and pain points
    • Discuss opportunities and benefits
    • Align corporate and CXM strategies
    • Conduct a competitive analysis
    • Conduct a PEST analysis and extract strategic requirements
    • Build customer personas and extract strategic requirements

    Outcomes:

    • CXM operating model
      • Organizational drivers
      • Environmental factors
      • Barriers
      • Enablers
    • PEST analysis
    • External customer personas
    • Customer journey scenarios
    • Strategic requirements for CXM

    Develop a CXM technology operating model that takes stock of needs, drivers, barriers, and enablers

    Establish the drivers, enablers, and barriers to developing a CXM technology enablement strategy. In doing so, consider needs, environmental factors, organizational drivers, and technology drivers as inputs.

    CXM Strategy

    • Barriers
      • Lack of Resources
      • Cultural Mindset
      • Resistance to Change
      • Poor End-User Adoption
    • Enablers
      • Senior Management Support
      • Customer Data Quality
      • Current Technology Portfolio
    • Business Needs (What are your business drivers? What are current marketing, sales, and customer service pains?)
      • Acquisition Pipeline Management
      • Live Chat for Support
      • Social Media Analytics
      • Etc.
    • Organizational Goals
      • Increase Profitability
      • Enhance Customer Experience Consistency
      • Reduce Time-to-Resolution
      • Increase First Contact Resolution
      • Boost Share of Voice
    • Environmental Factors (What factors that affect your strategy are out of your control?)
      • Customer Buying Habits
      • Changing Technology Trends
      • Competitive Landscape
      • Regulatory Requirements
    • Technology Drivers (Why do you need a new system? What is the purpose for becoming an integrated organization?)
      • System Integration
      • Reporting Capabilities
      • Deployment Model

    Understand your needs, drivers, and organizational objectives for creating a CXM strategy

    Business Needs Organizational Drivers Technology Drivers Environmental Factors
    Definition A business need is a requirement associated with a particular business process (for example, Marketing needs customer insights from the website – the business need would therefore be web analytics capabilities). Organizational drivers can be thought of as business-level goals. These are tangible benefits the business can measure such as customer retention, operation excellence, and financial performance. Technology drivers are technological changes that have created the need for a new CXM enablement strategy. Many organizations turn to technology systems to help them obtain a competitive edge. External considerations are factors taking place outside of the organization that are impacting the way business is conducted inside the organization. These are often outside the control of the business.
    Examples
    • Web analytics
    • Live chat capabilities
    • Mobile self-service
    • Social media listening
    • Data quality
    • Customer satisfaction
    • Branding
    • Time-to-resolution
    • Deployment model (i.e. SaaS)
    • Integration
    • Reporting capabilities
    • Fragmented technologies
    • Economic factors
    • Customer preferences
    • Competitive influencers
    • Compliance regulations

    Info-Tech Insight

    A common organizational driver is to provide adequate technology enablement across multiple channels, resulting in a consistent customer experience. This driver is a result of external considerations. Many industries today are highly competitive and rapidly changing. To succeed under these pressures, you must have a rationalized portfolio of enterprise applications for customer interaction.

    Activity: Inventory and discuss CXM drivers and organizational objectives

    2.1.1 30 minutes

    Input

    • Business needs
    • Exercise 1.1.3
    • Exercise 1.1.4
    • Environmental factors

    Output

    • CXM operating model inputs
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm the business needs, organizational drivers, technology drivers, and environmental factors that will inform the CXM strategy. Draw from exercises 1.1.3-1.1.5.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is a graphic, with a rectangle split into three sections in the centre. The three sections are: Barriers; CXM Strategy; Enablers. Around the centre are 4 more rectangles, labelled: Business Needs; Organizational Drivers; Technology Drivers; Environmental Factors. The outer rectangles are a slightly darker shade of grey than the others, highlighting them.

    Understand challenges and barriers to creating and executing the CXM technology-enablement strategy

    Take stock of internal challenges and barriers to effective CXM strategy execution.

    Example: Internal Challenges & Potential Barriers

    Understanding the Customer Change Management IT Readiness
    Definition The degree to which a holistic understanding of the customer can be created, including customer demographic and psychographics. The degree to which employees are ready to accept operational and cultural changes and the degree to which the organization is ready to manage it. The degree to which IT is ready to support new technologies and processes associated with a portfolio of CXM applications.
    Questions to Ask
    • As an organization, do we have a true understanding of our customers?
    • How might we achieve a complete understanding of the customer throughout different phases of the customer lifecycle?
    • Are employees resistant to change?
    • Are there enough resources to drive an CXM strategy?
    • To what degree is the existing organizational culture customer-centric?
    • Is there strong technical expertise?
    • Is there strong infrastructure?
    Implications
    • Uninformed creation of CXM strategic requirements
    • Inadequate understanding of customer needs and wants
    • User acceptance
    • Lack of ownership
    • Lack of accountability
    • Lack of sustainability
    • Poor implementation
    • Reliance on expensive external consultants
    • Lack of sustainability

    Activity: Identify CXM challenges and pain points

    2.1.2 30 minutes

    Input

    • Challenges
    • Pain points

    Output

    • CXM operating model barriers
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm the challenges and pain points that may act as barriers to the successful planning and execution of a CXM strategy.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is the same graphic from a previous section. In this instance, the Barriers sections is highlighted.

    Identify opportunities that can enable CXM strategy execution

    Existing internal conditions, capabilities, and resources can create opportunities to enable the CXM strategy. These opportunities are critical to overcoming challenges and barriers.

    Example: Opportunities to Leverage for Strategy Enablement

    Management Buy-In Customer Data Quality Current Technology Portfolio
    Definition The degree to which upper management understands and is willing to enable a CXM project, complete with sponsorship, funding, and resource allocation. The degree to which customer data is accurate, consistent, complete, and reliable. Strong customer data quality is an opportunity – poor data quality is a barrier. The degree to which the existing portfolio of CXM-supporting enterprise applications can be leveraged to enable the CXM strategy.
    Questions to Ask
    • Is management informed of changing technology trends and the subsequent need for CXM?
    • Are adequate funding and resourcing available to support a CXM project, from strategy creation to implementation?
    • Are there any data quality issues?
    • Is there one source of truth for customer data?
    • Are there duplicate or incomplete sets of data?
    • Does a strong CRM backbone exist?
    • What marketing, sales, and customer service applications exist?
    • Are CXM-enabling applications rated highly on usage and performance?
    Implications
    • Need for CXM clearly demonstrated
    • Financial and logistical feasibility
    • Consolidated data quality governance initiatives
    • Informed decision making
    • Foundation for CXM technology enablement largely in place
    • Reduced investment of time and money needed

    Activity: Discuss opportunities and benefits

    2.1.3 30 minutes

    Input

    • Opportunities
    • Benefits

    Output

    • Completed CXM operating model
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm opportunities that should be leveraged or benefits that should be realized to enable the successful planning and execution of a CXM strategy.
    2. Document your findings in the CXM operating model template. This can be found in the CXM Strategy Stakeholder Presentation Template.

    The image is the same graphic from earlier sections, this time with the Enablers section highlighted.

    Ensure that you align your CXM technology strategy to the broader corporate strategy

    A successful CXM strategy requires a comprehensive understanding of an organization’s overall corporate strategy and its effects on the interrelated departments of marketing, sales, and service, including subsequent technology implications. For example, a CXM strategy that emphasizes tools for omnichannel management and is at odds with a corporate strategy that focuses on only one or two channels will fail.

    Corporate Strategy

    • Conveys the current state of the organization and the path it wants to take.
    • Identifies future goals and business aspirations.
    • Communicates the initiatives that are critical for getting the organization from its current state to the future state.

    CXM Strategy

    • Communicates the company’s budget and spending on CXM applications and initiatives.
    • Identifies IT initiatives that will support the business and key CXM objectives, specific to marketing, sales, and service.
    • Outlines staffing and resourcing for CXM initiatives.

    Unified Strategy

    • The CXM implementation can be linked, with metrics, to the corporate strategy and ultimate business objectives.

    Info-Tech Insight

    Your organization’s corporate strategy is especially important in dictating the direction of the CXM strategy. Corporate strategies are often focused on customer-facing activity and will heavily influence the direction of marketing, sales, customer service, and consequentially, CXM. Corporate strategies will often dictate market targeting, sales tactics, service models, and more.

    Review sample organizational objectives to decipher how CXM technologies can support such objectives

    Identifying organizational objectives of high priority will assist in breaking down CXM objectives to better align with the overall corporate strategy and achieve buy-in from key stakeholders.

    Corporate Objectives Aligned CXM Technology Objectives
    Increase Revenue Enable lead scoring Deploy sales collateral management tools Improve average cost per lead via a marketing automation tool
    Enhance Market Share Enhance targeting effectiveness with a CRM Increase social media presence via an SMMP Architect customer intelligence analysis
    Improve Customer Satisfaction Reduce time-to-resolution via better routing Increase accessibility to customer service with live chat Improve first contact resolution with customer KB
    Increase Customer Retention Use a loyalty management application Improve channel options for existing customers Use customer analytics to drive targeted offers
    Create Customer-Centric Culture Ensure strong training and user adoption programs Use CRM to provide 360-degree view of all customer interaction Incorporate the voice of the customer into product development

    Activity: Review your corporate strategy and validate its alignment with the CXM operating model

    2.1.4 30 minutes

    Input

    • Corporate strategy
    • CXM operating model (completed in Activity 2.1.3)

    Output

    • Strategic alignment between the business and CXM strategies

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Brainstorm and create a list of organizational objectives at the corporate strategy level.
    2. Break down each organizational objective to identify how CXM may support it.
    3. Validate CXM goals and organizational objectives with your CXM operating model. Be sure to address the validity of each with the business needs, organizational drivers, technology drivers, and environmental factors identified as inputs to the operating model.

    Amazon leverages customer data to drive decision making around targeted offers and customer experience

    CASE STUDY

    Industry E-Commerce

    Source Pardot, 2012

    Situation

    Amazon.com, Inc. is an American electronic commerce and cloud computing company. It is the largest e-commerce retailer in the US.

    Amazon originated as an online book store, later diversifying to sell various forms of media, software, games, electronics, apparel, furniture, food, toys, and more.

    By taking a data-driven approach to marketing and sales, Amazon was able to understand its customers’ needs and wants, penetrate different product markets, and create a consistently personalized online-shopping customer experience that keeps customers coming back.

    Technology Strategy

    Use Browsing Data Effectively

    Amazon leverages marketing automation suites to view recent activities of prospects on its website. In doing so, a more complete view of the customer is achieved, including insights into purchasing interests and site navigation behaviors.

    Optimize Based on Interactions

    Using customer intelligence, Amazon surveys and studies standard engagement metrics like open rate, click-through rate, and unsubscribes to ensure the optimal degree of marketing is being targeted to existing and prospective customers, depending on level of engagement.

    Results

    Insights gained from having a complete understanding of the customer (from basic demographic characteristics provided in customer account profiles to observed psychographic behaviors captured by customer intelligence applications) are used to personalize Amazon’s sales and marketing approaches. This is represented through targeted suggestions in the “recommended for you” section of the browsing experience and tailored email marketing.

    It is this capability, partnered with the technological ability to observe and measure customer engagement, that allows Amazon to create individual customer experiences.

    Scan the external environment to understand your customers, competitors, and macroenvironmental trends

    Do not develop your CXM technology strategy in isolation. Work with Marketing to understand your STP strategy (segmentation, targeting, positioning): this will inform persona development and technology requirements downstream.

    Market Segmentation

    • Segment target market by demographic, geographic, psychographic, and behavioral characteristics
    • What does the competitive market look like?
    • Who are the key customer segments?
    • What segments are you going to target?

    Market Targeting

    • Evaluate potential and commercial attractiveness of each segment, considering the dynamics of the competition
    • How do you target your customers?
    • How should you target them in the future?
    • How do your products/services differ from the competition?

    Product Positioning

    • Develop detailed product positioning and marketing mixes for selected segments
    • What is the value of the product/service to each segment of the market?
    • How are you positioning your product/service in the market?

    Info-Tech Insight

    It is at this point that you should consider the need for and viability of an omnichannel approach to CXM. Through which channels do you target your customers? Are your customers present and active on a wide variety of channels? Consider how you can position your products, services, and brand through the use of omnichannel methodologies.

    Activity: Conduct a competitive analysis to understand where your market is going

    2.1.5 1 hour

    Input

    • Scan of competitive market
    • Existing customer STP strategy

    Output

    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team
    • Marketing SME

    Instructions

    1. Scan the market for direct and indirect competitors.
    2. Evaluate current and/or future segmentation, targeting, and positioning strategies by answering the following questions:
    • What does the competitive market look like?
    • Who are the key customer segments?
    • What segments are you going to target?
    • How do you target your customers?
    • How should you target them in the future?
    • How do your products/services differ from the competition?
    • What is the value of the product/service to each segment of the market?
    • How are you positioning your product/service in the market?
    • Other helpful questions include:
      • How formally do you target customers? (e.g. through direct contact vs. through passive brand marketing)
      • Does your organization use the shotgun or rifle approach to marketing?
        • Shotgun marketing: targets a broad segment of people, indirectly
        • Rifle marketing: targets smaller and more niche market segments using customer intelligence
  • For each point, identify CXM requirements.
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Activity: Conduct a competitive analysis (cont’d)

    2.1.5 30 minutes

    Input

    • Scan of competitive market

    Output

    • Competitive analysis
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team
    • Marketing SME (e.g. Market Research Stakeholders)

    Instructions

    1. List recent marketing technology and customer experience-related initiatives that your closest competitors have implemented.
    2. For each identified initiative, elaborate on what the competitive implications are for your organization.
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Competitive Implications

    Competitor Organization Recent Initiative Associated Technology Direction of Impact Competitive Implication
    Organization X Multichannel E-Commerce Integration WEM – hybrid integration Positive
    • Up-to-date e-commerce capabilities
    • Automatic product updates via PCM
    Organization Y Web Social Analytics WEM Positive
    • Real-time analytics and customer insights
    • Allows for more targeted content toward the visitor or customer

    Conduct a PEST analysis to determine salient political, economic, social, and technological impacts for CXM

    A PEST analysis is a structured planning method that identifies external environmental factors that could influence the corporate and IT strategy.

    Political - Examine political factors, such as relevant data protection laws and government regulations.

    Economic - Examine economic factors, such as funding, cost of web access, and labor shortages for maintaining the site(s).

    Technological - Examine technological factors, such as new channels, networks, software and software frameworks, database technologies, wireless capabilities, and availability of software as a service.

    Social - Examine social factors, such as gender, race, age, income, and religion.

    Info-Tech Insight

    When looking at opportunities and threats, PEST analysis can help to ensure that you do not overlook external factors, such as technological changes in your industry. When conducting your PEST analysis specifically for CXM, pay particular attention to the rapid rate of change in the technology bucket. New channels and applications are constantly emerging and evolving, and seeing differential adoption by potential customers.

    Activity: Conduct and review the PEST analysis

    2.1.6 30 minutes

    Input

    • Political, economic, social, and technological factors related to CXM

    Output

    • Completed PEST analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Identify your current strengths and weaknesses in managing the customer experience.
    2. Identify any opportunities to take advantage of and threats to mitigate.

    Example: PEST Analysis

    Political

    • Data privacy for PII
    • ADA legislation for accessible design

    Economic

    • Spending via online increasing
    • Focus on share of wallet

    Technological

    • Rise in mobile
    • Geo-location based services
    • Internet of Things
    • Omnichannel

    Social

    • Increased spending power by millennials
    • Changing channel preferences
    • Self-service models

    Activity: Translate your PEST analysis into a list of strategic CXM technology requirements to be addressed

    2.1.7 30 minutes

    Input

    • PEST Analysis conducted in Activity 2.1.6.

    Output

    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    For each PEST quadrant:

    1. Document the point and relate it to a goal.
    2. For each point, identify CXM requirements.
    3. Sort goals and requirements to eliminate duplicates.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Parsing Requirements from PEST Analysis

    Technological Trend: There has been a sharp increase in popularity of mobile self-service models for buying habits and customer service access.

    Goal: Streamline mobile application to be compatible with all mobile devices. Create consistent branding across all service delivery applications (e.g. website, etc.).

    Strategic Requirement: Develop a native mobile application while also ensuring that resources through our web presence are built with responsive design interface.

    IT must fully understand the voice of the customer: work with Marketing to develop customer personas

    Creating a customer-centric CXM technology strategy requires archetypal customer personas. Creating customer personas will enable you to talk concretely about them as consumers of your customer experience and allow you to build buyer scenarios around them.

    A persona (or archetypal user) is an invented person that represents a type of user in a particular use-case scenario. In this case, personas can be based on real customers.

    Components of a persona Example – Organization: Grocery Store
    Name Name personas to reflect a key attribute such as the persona’s primary role or motivation Brand Loyal Linda: A stay-at-home mother dedicated to maintaining and caring for a household of 5 people
    Demographic Include basic descriptors of the persona (e.g. age, geographic location, preferred language, education, job, employer, household income, etc.) Age: 42 years old Geographic location: London Suburbia Language: English Education: Post-secondary Job: Stay-at-home mother Annual Household Income: $100,000+
    Wants, needs, pain points Identify surface-level motivations for buying habits

    Wants: Local products Needs: Health products; child-safe products

    Pain points: Fragmented shopping experience

    Psychographic/behavioral traits Observe persona traits that are representative of the customers’ behaviors (e.g. attitudes, buying patterns, etc.)

    Psychographic: Detail-oriented, creature of habit

    Behavioral: Shops at large grocery store twice a week, visits farmers market on Saturdays, buys organic products online

    Activity: Build personas for your customers

    2.1.8 2 hours

    Input

    • Customer demographics and psychographics

    Output

    • List of prioritized customer personas
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    Project Team

    Instructions

    1. In 2-4 groups, list all the customer personas that need to be built. In doing so, consider the people who interact with your organization most often.
    2. Build a demographic profile for each customer persona. Include information such as age, geographic location, occupation, annual income, etc.
    3. Augment the persona with a psychographic profile of each customer. Consider the goals and objectives of each customer persona and how these might inform buyer behaviors.
    4. Introduce your group’s personas to the entire group, in a round-robin fashion, as if you are introducing your persona at a party.
    5. Summarize the personas in a persona map. Rank your personas according to importance and remove any duplicates.

    Info-Tech Insight

    For CXM, persona building is typically used for understanding the external customer; however, if you need to gain a better understanding of the organization’s internal customers (those who will be interacting with CXM applications), personas can also be built for this purpose. Examples of useful internal personas are sales managers, brand managers, customer service directors, etc.

    Sample Persona Templates

    Fred, 40

    The Family Man

    Post-secondary educated, white-collar professional, three children

    Goals & Objectives

    • Maintain a stable secure lifestyle
    • Progress his career
    • Obtain a good future for his children

    Behaviors

    • Manages household and finances
    • Stays actively involved in children’s activities and education
    • Seeks potential career development
    • Uses a cellphone and email frequently
    • Sometimes follows friends Facebook pages

    Services of Interest

    • SFA, career counselling, job boards, day care, SHHS
    • Access to information via in-person, phone, online

    Traits

    General Literacy - High

    Digital Literacy - Mid-High

    Detail-Oriented - High

    Willing to Try New Things - Mid-High

    Motivated and Persistent - Mid-High

    Time Flexible - Mid-High

    Familiar With [Red.] - Mid

    Access to [Red.] Offices - High

    Access to Internet - High

    Ashley, 35

    The Tourist

    Single, college educated, planning vacation in [redacted], interested in [redacted] job opportunities

    Goals & Objectives

    • Relax after finishing a stressful job
    • Have adventures and try new things
    • Find a new job somewhere in Canada

    Behaviors

    • Collects information about things to do in [redacted]
    • Collects information about life in [redacted]
    • Investigates and follows up on potential job opportunities
    • Uses multiple social media to keep in touch with friends
    • Shops online frequently

    Services of Interest

    • SFA, job search, road conditions, ferry schedules, hospital, police station, DL requirements, vehicle rental
    • Access to information via in-person, phone, website, SMS, email, social media

    Traits

    General Literacy - Mid

    Digital Literacy - High

    Detail-Oriented - Mid

    Willing to Try New Things - High

    Motivated and Persistent - Mid

    Time Flexible - Mid-High

    Familiar With [Red.] - Low

    Access to [Red.] Offices - Low

    Access to Internet - High

    Bill, 25

    The Single Parent

    15-year resident of [redacted], high school education, waiter, recently divorced, two children

    Goals & Objectives

    • Improve his career options so he can support his family
    • Find an affordable place to live
    • Be a good parent
    • Work through remaining divorce issues

    Behaviors

    • Tries to get training or experience to improve his career
    • Stays actively involved in his children’s activities
    • Looks for resources and supports to resolve divorce issues
    • Has a cellphone and uses the internet occasionally

    Services of Interest

    • Child care, housing authority, legal aid, parenting resources
    • Access to information via in person, word-of mouth, online, phone, email

    Traits

    General Literacy - Mid

    Digital Literacy - Mid-Low

    Detail-Oriented - Mid-Low

    Willing to Try New Things - Mid

    Motivated and Persistent - High

    Time Flexible - Mid

    Familiar With [Red.] - Mid-High

    Access to [Red.] Offices - High

    Access to Internet - High

    Marie, 19

    The Regional Youth

    Single, [redacted] resident, high school graduate

    Goals & Objectives

    • Get a good job
    • Maintain ties to family and community

    Behaviors

    • Looking for work
    • Gathering information about long-term career choices
    • Trying to get the training or experience that can help her develop a career
    • Staying with her parents until she can get established
    • Has a new cellphone and is learning how to use it
    • Plays videogames and uses the internet at least weekly

    Services of Interest

    • Job search, career counselling
    • Access to information via in-person, online, phone, email, web applications

    Traits

    General Literacy - Mid

    Digital Literacy - Mid

    Detail-Oriented - Mid-Low

    Willing to Try New Things - Mid-High

    Motivated and Persistent - Mid-Low

    Time Flexible - High

    Familiar With [Red.] - Mid-Low

    Access to [Red.] Offices - Mid-Low

    Access to Internet - Mid

    Build key scenarios for each persona to extract strategic requirements for your CXM application portfolio

    A scenario is a story or narrative that helps explore the set of interactions that a customer has with an organization. Scenario mapping will help parse requirements used to design the CXM application portfolio.

    A Good Scenario…

    • Describes specific task(s) that need to be accomplished
    • Describes user goals and motivations
    • Describes interactions with a compelling but not overwhelming amount of detail
    • Can be rough, as long as it provokes ideas and discussion

    Scenarios Are Used To…

    • Provide a shared understanding about what a user might want to do, and how they might want to do it
    • Help construct the sequence of events that are necessary to address in your user interface(s)

    To Create Good Scenarios…

    • Keep scenarios high level, not granular in nature
    • Identify as many scenarios as possible. If you’re time constrained, try to develop 2-3 key scenarios per persona
    • Sketch each scenario out so that stakeholders understand the goal of the scenario

    Activity: Build scenarios for each persona and extract strategic requirements for the CXM strategy

    2.1.9 1.5 hours

    Input

    • Customer personas (output of Activity 2.1.5)

    Output

    • CX scenario maps
    • Strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. For each customer persona created in Activity 2.1.5, build a scenario. Choose and differentiate scenarios based on the customer goal of each scenario (e.g. make online purchase, seek customer support, etc.).
    2. Think through the narrative of how a customer interacts with your organization, at all points throughout the scenario. List each step in the interaction in a sequential order to form a scenario journey.
    3. Examine each step in the scenario and brainstorm strategic requirements that will be needed to support the customer’s use of technology throughout the scenario.
    4. Repeat steps 1-3 for each persona. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Scenario Map

    Persona Name: Brand Loyal Linda

    Scenario Goal: File a complaint about in-store customer service

    Look up “[Store Name] customer service” on public web. →Reach customer support landing page. →Receive proactive notification prompt for online chat with CSR. →Initiate conversation: provide order #. →CSR receives order context and information. →Customer articulates problem, CSR consults knowledgebase. →Discount on next purchase offered. →Send email with discount code to Brand Loyal Linda.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.1; 2.1.2; 2.1.3; 2.1.4 - Create a CXM operating model

    An analyst will facilitate a discussion to identify what impacts your CXM strategy and how to align it to your corporate strategy. The discussion will take different perspectives into consideration and look at organizational drivers, external environmental factors, as well as internal barriers and enablers.

    2.1.5 Conduct a competitive analysis

    Calling on their depth of expertise in working with a broad spectrum of organizations, our facilitator will help you work through a structured, systematic evaluation of competitors’ actions when it comes to CXM.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.1.6; 2.1.7 - Conduct a PEST analysis

    The facilitator will use guided conversation to target each quadrant of the PEST analysis and help your organization fully enumerate political, economic, social, and technological trends that will influence your CXM strategy. Our analysts are deeply familiar with macroenvironmental trends and can provide expert advice in identifying areas of concern in the PEST and drawing strategic requirements as implications.

    2.1.8; 2.1.9 - Build customer personas and subsequent persona scenarios

    Drawing on the preceding exercises as inputs, the facilitator will help the team create and refine personas, create respective customer interaction scenarios, and parse strategic requirements to support your technology portfolio for CXM.

    Step 2.2: Assess the Current State of CXM

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Conduct a SWOT analysis and extract strategic requirements
    • Inventory existing CXM applications and assess end-user usage and satisfaction
    • Conduct a VRIO analysis and extract strategic requirements

    Outcomes:

    • SWOT analysis
    • VRIO analysis
    • Current state application portfolio
    • Strategic requirements

    Conduct a SWOT analysis to prepare for creating your CXM strategy

    A SWOT analysis is a structured planning method that evaluates the strengths, weaknesses, opportunities, and threats involved in a project.

    Strengths - Strengths describe the positive attributes that are within your control and internal to your organization (i.e. what do you do better than anyone else?)

    Weaknesses - Weaknesses are internal aspects of your business that place you at a competitive disadvantage; think of what you need to enhance to compete with your top competitor.

    Opportunities - Opportunities are external factors the project can capitalize on. Think of them as factors that represent reasons your business is likely to prosper.

    Threats - Threats are external factors that could jeopardize the project. While you may not have control over these, you will benefit from having contingency plans to address them if they occur.

    Info-Tech Insight

    When evaluating weaknesses of your current CXM strategy, ensure that you’re taking into account not just existing applications and business processes, but also potential deficits in your organization’s channel strategy and go-to-market messaging.

    Activity: Conduct a SWOT analysis

    2.2.1 30 minutes

    Input

    • CXM strengths, weaknesses, opportunities, and threats

    Output

    • Completed SWOT analysis

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Identify your current strengths and weaknesses in managing the customer experience. Consider marketing, sales, and customer service aspects of the CX.
    2. Identify any opportunities to take advantage of and threats to mitigate.

    Example: SWOT Analysis

    Strengths

    • Strong customer service model via telephony

    Weaknesses

    • Customer service inaccessible in real-time through website or mobile application

    Opportunities

    • Leverage customer intelligence to measure ongoing customer satisfaction

    Threats

    • Lack of understanding of customer interaction platforms by staff could hinder adoption

    Activity: Translate your SWOT analysis into a list of requirements to be addressed

    2.2.2 30 minutes

    Input

    • SWOT Analysis conducted in Activity 2.2.1.

    Output

    • Strategic CXM requirements
    • CXM Stakeholder Presentation Template

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    For each SWOT quadrant:

    1. Document the point and relate it to a goal.
    2. For each point, identify CXM requirements.
    3. Sort goals and requirements to eliminate duplicates.
    4. Document your outputs in the CXM Stakeholder Presentation Template.

    Example: Parsing Requirements from SWOT Analysis

    Weakness: Customer service inaccessible in real-time through website or mobile application.

    Goal: Increase the ubiquity of access to customer service knowledgebase and agents through a web portal or mobile application.

    Strategic Requirement: Provide a live chat portal that matches the customer with the next available and qualified agent.

    Inventory your current CXM application portfolio

    Applications are the bedrock of technology enablement for CXM. Review your current application portfolio to identify what is working well and what isn’t.

    Understand Your CXM Application Portfolio With a Four-Step Approach

    Build the CXM Application Inventory →Assess Usage and Satisfaction →Map to Business Processes and Determine Dependencies →Determine Grow/Maintain/ Retire for Each Application

    When assessing the CXM applications portfolio, do not cast your net too narrowly; while CRM and MMS applications are often top of mind, applications for digital asset management and social media management are also instrumental for ensuring a well-integrated CX.

    Identify dependencies (either technical or licensing) between applications. This dependency tracing will come into play when deciding which applications should be grown (invested in), which applications should be maintained (held static), and which applications should be retired (divested).

    Info-Tech Insight

    Shadow IT is prominent here! When building your application inventory, ensure you involve Marketing, Sales, and Service to identify any “unofficial” SaaS applications that are being used for CXM. Many organizations fail to take a systematic view of their CXM application portfolio beyond maintaining a rough inventory. To assess the current state of alignment, you must build the application inventory and assess satisfaction metrics.

    Understand which of your organization’s existing enterprise applications enable CXM

    Review the major enterprise applications in your organization that enable CXM and align your requirements to these applications (net-new or existing). Identify points of integration to capture the big picture.

    The image shows a graphic titled Example: Integration of CRM, SMMP, and ERP. It is a flow chart, with icons defined by a legend on the right side of the image

    Info-Tech Insight

    When assessing the current application portfolio that supports CXM, the tendency will be to focus on the applications under the CXM umbrella, relating mostly to marketing, sales, and customer service. Be sure to include systems that act as input to, or benefit due to outputs from, CRM or similar applications. Examples of these systems are ERP systems, ECM (e.g. SharePoint) applications, and more.

    Assess CXM application usage and satisfaction

    Having a portfolio but no contextual data will not give you a full understanding of the current state. The next step is to thoroughly assess usage patterns as well as IT, management, and end-user satisfaction with each application.

    Example: Application Usage & Satisfaction Assessment

    Application Name Level of Usage IT Satisfaction Management Satisfaction End-User Satisfaction Potential Business Impact
    CRM (e.g. Salesforce) Medium High Medium Medium High
    CRM (e.g. Salesforce) Low Medium Medium High Medium
    ... ... ... ... ... ...

    Info-Tech Insight

    When evaluating satisfaction with any application, be sure to consult all stakeholders who come into contact with the application or depend on its output. Consider criteria such as ease of use, completeness of information, operational efficiency, data accuracy, etc.

    Use Info-Tech’s Application Portfolio Assessment to gather end-user feedback on existing CXM applications

    2.2.3 Application Portfolio Assessment: End-User Feedback

    Info-Tech’s Application Portfolio Assessment: End-User Feedback diagnostic is a low-effort, high-impact program that will give you detailed report cards on end-user satisfaction with an application. Use these insights to identify problems, develop action plans for improvement, and determine key participants.

    Application Portfolio Assessment: End-User Feedback is an 18-question survey that provides valuable insights on user satisfaction with an application by:

    • Performing a general assessment of the application portfolio that provides a full view of the effectiveness, criticality, and prevalence of all relevant applications.
    • Measuring individual application performance with open-ended user feedback surveys about the application, organized by department to simplify problem resolution.
    • Providing targeted department feedback to identify end-user satisfaction and focus improvements on the right group or line of business.

    INFO-TECH DIAGNOSTIC

    Activity: Inventory your CXM applications, and assess application usage and satisfaction

    2.2.4 1 hour

    Input

    • List of CXM applications

    Output

    • Complete inventory of CXM applications
    • CXM Stakeholder Presentation Template

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. List all existing applications that support the creation, management, and delivery of your customer experience.
    2. Identify which processes each application supports (e.g. content deployment, analytics, service delivery, etc.).
    3. Identify technical or licensing dependencies (e.g. data models).
    4. Assess the level of application usage by IT, management, and internal users (high/medium/low).
    5. Assess the satisfaction with and performance of each application according to IT, management, and internal users (high/medium/low). Use the Info-Tech Diagnostic to assist.

    Example: CXM Application Inventory

    Application Name Deployed Date Processes Supported Technical and Licensing Dependencies
    Salesforce June 2018 Customer relationship management XXX
    Hootsuite April 2019 Social media listening XXX
    ... ... ... ...

    Conduct a VRIO analysis to identify core competencies for CXM applications

    A VRIO analysis evaluates the ability of internal resources and capabilities to sustain a competitive advantage by evaluating dimensions of value, rarity, imitability, and organization. For critical applications like your CRM platform, use a VRIO analysis to determine their value.

    Is the resource or capability valuable in exploiting an opportunity or neutralizing a threat? Is the resource or capability rare in the sense that few of your competitors have a similar capability? Is the resource or capability costly to imitate or replicate? Is the organization organized enough to leverage and capture value from the resource or capability?
    NO → → → COMPETITIVE DISADVANTAGE
    YES NO→ → → COMPETITIVE EQUALITY/PARITY
    YES YES NO→ → TEMPORARY COMPETITIVE ADVANTAGE
    YES YES YES NO→ UNUSED COMPETITIVE ADVANTAGE
    YES YES YES YES LONG-TERM COMPETITIVE ADVANTAGE

    (Strategic Management Insight, 2013)

    Activity: Conduct a VRIO analysis on your existing application portfolio

    2.2.5 30 minutes

    Input

    • Inventory of existing CXM applications (output of Activity 2.2.4)

    Output

    • Completed VRIO analysis
    • Strategic CXM requirements
    • CXM Stakeholder Presentation Template

    Materials

    • VRIO Analysis model
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Evaluate each CXM application inventoried in Activity 2.2.4 by answering the four VRIO questions in sequential order. Do not proceed to the following question if “no” is answered at any point.
    2. Record the results. The state of your organization’s competitive advantage, based on each resource/capability, will be determined based on the number of questions with a “yes” answer. For example, if all four questions are answered positively, then your organization is considered to have a long-term competitive advantage.
    3. Document your outputs in the CXM Stakeholder Presentation Template.

    If you want additional support, have our analysts guide your through this phase as part of an Info-Tech workshop

    2.2.1; 2.2.2 Conduct a SWOT Analysis

    Our facilitator will use a small-team approach to delve deeply into each area, identifying enablers (strengths and opportunities) and challenges (weaknesses and threats) relating to the CXM strategy.

    2.2.3; 2.2.4 Inventory your CXM applications, and assess usage and satisfaction

    Working with your core team, the facilitator will assist with building a comprehensive inventory of CXM applications that are currently in use and with identifying adjacent systems that need to be identified for integration purposes. The facilitator will work to identify high and low performing applications and analyze this data with the team during the workshop exercise.

    2.2.5 Conduct a VRIO analysis

    The facilitator will take you through a VRIO analysis to identify which of your internal technological competencies ensure, or can be leveraged to ensure, your competitiveness in the CXM market.

    Step 2.3: Create an Application Portfolio

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities

    • Shortlist and prioritize business processes for improvement and reengineering
    • Map current CXM processes
    • Identify business process owners and assign job responsibilities
    • Identify user interaction channels to extract strategic requirements
    • Aggregate and develop strategic requirements
    • Determine gaps in current and future state processes
    • Build the CXM application portfolio

    Outcomes

    CXM application portfolio map

    • Shortlist of relevant business processes
    • Current state map
    • Business process ownership assignment
    • Channel map
    • Complete list of strategic requirements

    Understand business process mapping to draft strategy requirements for marketing, sales, and customer service

    The interaction between sales, marketing, and customer service is very process-centric. Rethink sales and customer-centric workflows and map the desired workflow, imbedding the improved/reengineered process into the requirements.

    Using BPM to Capture Strategic Requirements

    Business process modeling facilitates the collaboration between the business and IT, recording the sequence of events, tasks performed, who performed them, and the levels of interaction with the various supporting applications.

    By identifying the events and decision points in the process and overlaying the people that perform the functions, the data being interacted with, and the technologies that support them, organizations are better positioned to identify gaps that need to be bridged.

    Encourage the analysis by compiling an inventory of business processes that support customer-facing operations that are relevant to achieving the overall organizational strategies.

    Outcomes

    • Operational effectiveness
    • Identification, implementation, and maintenance of reusable enterprise applications
    • Identification of gaps that can be addressed by acquisition of additional applications or process improvement/ reengineering

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Create a Comprehensive BPM Strategy for Successful Process Automation blueprint for further assistance in taking a BPM approach to your sales-IT alignment.

    Leverage the APQC framework to help define your inventory of sales, marketing, and service processes

    APQC’s Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.

    OPERATING PROCESSES
    1.0 Develop Vision and Strategy 2.0 Develop and Manage Products and Services 3.0 Market and Sell Products and Services 4.0 Deliver Products and Services 5.0 Manage Customer Service
    MANAGEMENT AND SUPPORT SERVICES
    6.0 Develop and Manage Human Capital
    7.0 Manage Information Technology
    8.0 Manage Financial Resources
    9.0 Acquire, Construct, and Manage Assets
    10.0 Manage Enterprise Risk, Compliance, and Resiliency
    11.0 Manage External Relationships
    12.0 Develop and Manage Business Capabilities

    (APQC, 2011)

    MORE ABOUT APQC

    • APQC serves as a high-level, industry-neutral enterprise model that allows organizations to see activities from a cross-industry process perspective.
    • Sales processes have been provided up to Level 3 of the APQC framework.
    • The APQC Framework can be accessed through APQC’s Process Classification Framework.
    • Note: The framework does not list all processes within a specific organization, nor are the processes that are listed in the framework present in every organization.

    Understand APQC’s “Market and Sell Products and Services” framework

    3.0 Market and Sell Products

    3.1 Understand markets, customers, and capabilities

    • 3.1.1 Perform customer and market intelligence analysis
    • 3.1.2 Evaluate and prioritize market opportunities

    3.2 Develop marketing strategy

    • 3.2.1 Define offering and customer value proposition
    • 3.2.2 Define pricing strategy to align to value proposition
    • 3.2.3 Define and manage channel strategy

    3.3 Develop sales strategy

    • 3.3.1 Develop sales forecast
    • 3.3.2 Develop sales partner/alliance relationships
    • 3.3.3 Establish overall sales budgets
    • 3.3.4 Establish sales goals and measures
    • 3.3.5 Establish customer management measures

    3.4 Develop and manage marketing plans

    • 3.4.1 Establish goals, objectives, and metrics by products by channels/segments
    • 3.4.2 Establish marketing budgets
    • 3.4.3 Develop and manage media
    • 3.4.4 Develop and manage pricing
    • 3.4.5 Develop and manage promotional activities
    • 3.4.6 Track customer management measures
    • 3.4.7 Develop and manage packaging strategy

    3.5 Develop and manage sales plans

    • 3.5.1 Generate leads
    • 3.5.2 Manage customers and accounts
    • 3.5.3 Manage customer sales
    • 3.5.4 Manage sales orders
    • 3.5.5 Manage sales force
    • 3.5.6 Manage sales partners and alliances

    Understand APQC’s “Manage Customer Service” framework

    5.0 Manage Customer Service

    5.1 Develop customer care/customer service strategy

    • 5.1.1 Develop customer service segmentation
      • 5.1.1.1 Analyze existing customers
      • 5.1.1.2 Analyze feedback of customer needs
    • 5.1.2 Define customer service policies and procedures
    • 5.1.3 Establish service levels for customers

    5.2 Plan and manage customer service operations

    • 5.2.1 Plan and manage customer service work force
      • 5.2.1.1 Forecast volume of customer service contacts
      • 5.2.1.2 Schedule customer service work force
      • 5.2.1.3 Track work force utilization
      • 5.2.1.4 Monitor and evaluate quality of customer interactions with customer service representatives

    5.2 Plan and 5.2.3.1 Receive customer complaints 5.2.3.2 Route customer complaints 5.2.3.3 Resolve customer complaints 5.2.3.4 Respond to customer complaints manage customer service operations

    • 5.2.2 Manage customer service requests/inquiries
      • 5.2.2.1 Receive customer requests/inquiries
      • 5.2.2.2 Route customer requests/inquiries
      • 5.2.2.3 Respond to customer requests/inquiries
    • 5.2.3 Manage customer complaints
      • 5.2.3.1 Receive customer complaints
      • 5.2.3.2 Route customer complaints
      • 5.2.3.3 Resolve customer complaints
      • 5.2.3.4 Respond to customer complaints

    Leverage the APQC framework to inventory processes

    The APQC framework provides levels 1 through 3 for the “Market and Sell Products and Services” framework. Level 4 processes and beyond will need to be defined by your organization as they are more granular (represent the task level) and are often industry-specific.

    Level 1 – Category - 1.0 Develop vision and strategy (10002)

    Represents the highest level of process in the enterprise, such as manage customer service, supply chain, financial organization, and human resources.

    Level 2 – Process Group - 1.1 Define the business concept and long-term vision (10014)

    Indicates the next level of processes and represents a group of processes. Examples include perform after sales repairs, procurement, accounts payable, recruit/source, and develop sales strategy.

    Level 3 – Process - 1.1.1 Assess the external environment (10017)

    A series of interrelated activities that convert input into results (outputs); processes consume resources and require standards for repeatable performance; and processes respond to control systems that direct quality, rate, and cost of performance.

    Level 4 – Activity - 1.1.1.1 Analyze and evaluate competition (10021)

    Indicates key events performed when executing a process. Examples of activities include receive customer requests, resolve customer complaints, and negotiate purchasing contracts.

    Level 5 – Task - 12.2.3.1.1 Identify project requirements and objectives (11117)

    Tasks represent the next level of hierarchical decomposition after activities. Tasks are generally much more fine grained and may vary widely across industries. Examples include create business case and obtain funding, and design recognition and reward approaches.

    Info-Tech Insight

    Define the Level 3 processes in the context of your organization. When creating a CXM strategy, concern yourself with the interrelatedness of processes across existing departmental silos (e.g. marketing, sales, customer service). Reserve the analysis of activities (Level 4) and tasks (Level 3) for granular work initiatives involved in the implementation of applications.

    Use Info-Tech’s CXM Business Process Shortlisting Tool to prioritize processes for improvement

    2.3.1 CXM Business Process Shortlisting Tool

    The CXM Business Process Shortlisting Tool can help you define which marketing, sales, and service processes you should focus on.

    Working in concert with stakeholders from the appropriate departments, complete the short questionnaire.

    Based on validated responses, the tool will highlight processes of strategic importance to your organization.

    These processes can then be mapped, with requirements extracted and used to build the CXM application portfolio.

    INFO-TECH DELIVERABLE

    The image shows a screenshot of the Prioritize Your Business Processes for Customer Experience Management document, with sample information filled in.

    Activity: Define your organization’s top-level processes for reengineering and improvement

    2.3.2 1 hour

    Input

    • Shortlist business processes relating to customer experience (output of Tool 2.3.1)

    Output

    • Prioritized list of top-level business processes by department

    Materials

    • APQC Framework
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory all business processes relating to customer experience.
    2. Customize the impacted business units and factor weightings on the scorecard below to reflect the structure and priorities of your organization.
    3. Using the scorecard, identify all processes essential to your customer experience. The scorecard is designed to determine which processes to focus on and to help you understand the impact of the scrutinized process on the different customer-centric groups across the organization.

    The image shows a chart with the headings Factor, Check If Yes, repeated. The chart lists various factors, and the Check if Yes columns are left blank.

    This image shows a chart with the headings Factor, Weights, and Scores. It lists factors, and the rest of the chart is blank.

    Current legend for Weights and Scores

    F – Finance

    H – Human Resources

    I – IT

    L – Legal

    M – Marketing

    BU1 – Business Unit 1

    BU2 – Business Unit 2

    Activity: Map top-level business processes to extract strategic requirements for the CXM application portfolio

    2.3.3 45 minutes

    Input

    • Prioritized list of top-level business processes (output of Activity 2.3.2)

    Output

    • Current state process maps
    • CXM Strategy Stakeholder Presentation

    Materials

    • APQC Framework
    • Whiteboard
    • Markers
    • Sticky notes

    Participants

    • Project Team

    Instructions

    1. List all prioritized business processes, as identified in Activity 2.3.2. Map your processes in enough detail to capture all relevant activities and system touchpoints, using the legend included in the example. Focus on Level 3 processes, as explained in the APQC framework.
    2. Record all of the major process steps on sticky notes. Arrange the sticky notes in sequential order.
    3. On a set of different colored sticky notes, record all of the systems that enable the process. Map these system touchpoints to the process steps.
    4. Draw arrows in between the steps to represent manual entry or automation.
    5. Identify effectiveness and gaps in existing processes to determine process technology requirements.
    6. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Create a Comprehensive BPM Strategy for Successful Process Automation blueprint for further assistance in taking a BPM approach to your sales-IT alignment.

    Info-Tech Insight

    Analysis of the current state is important in the context of gap analysis. It aids in understanding the discrepancies between your baseline and the future state vision, and ensures that these gaps are documented as part of the overall requirements.

    Example: map your current CXM processes to parse strategic requirements (customer acquisition)

    The image shows an example of a CXM process map, which is formatted as a flow chart, with a legend at the bottom.

    Activity: Extract requirements from your top-level business processes

    2.3.4 30 minutes

    Input

    • Current state process maps (output of Activity 2.3.3)

    Output

    • Requirements for future state mapping

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Discuss the current state of priority business processes, as mapped in Activity 2.3.3.
    2. Extract process requirements for business process improvement by asking the following questions:
    • What is the input?
    • What is the output?
    • What are the underlying risks and how can they be mitigated?
    • What conditions should be met to mitigate or eliminate each risk?
    • What are the improvement opportunities?
    • What conditions should be met to enable these opportunities?
    1. Break business requirements into functional and non-functional requirements, as outlined on this slide.

    Info-Tech Insight

    The business and IT should work together to evaluate the current state of business processes and the business requirements necessary to support these processes. Develop a full view of organizational needs while still obtaining the level of detail required to make informed decisions about technology.

    Establish process owners for each top-level process

    Identify the owners of the business processes being evaluated to extract requirements. Process owners will be able to inform business process improvement and assume accountability for reengineered or net-new processes going forward.

    Process Owner Responsibilities

    Process ownership ensures support, accountability, and governance for CXM and its supporting processes. Process owners must be able to negotiate with business users and other key stakeholders to drive efficiencies within their own process. The process owner must execute tactical process changes and continually optimize the process.

    Responsibilities include the following:

    • Inform business process improvement
    • Introduce KPIs and metrics
    • Monitor the success of the process
    • Present process findings to key stakeholders within the organization
    • Develop policies and procedures for the process
    • Implement new methods to manage the process

    Info-Tech Insight

    Identify the owners of existing processes early so you understand who needs to be involved in process improvement and reengineering. Once implemented, CXM applications are likely to undergo a series of changes. Unstructured data will multiply, the number of users may increase, administrators may change, and functionality could become obsolete. Should business processes be merged or drastically changed, process ownership can be reallocated during CXM implementation. Make sure you have the right roles in place to avoid inefficient processes and poor data quality.

    Use Info-Tech’s Process Owner Assignment Guide to aid you in choosing the right candidates

    2.3.5 Process Owner Assignment Guide

    The Process Owner Assignment Guide will ensure you are taking the appropriate steps to identify process owners for existing and net-new processes created within the scope of the CXM strategy.

    The steps in the document will help with important considerations such as key requirements and responsibilities.

    Sections of the document:

    1. Define responsibilities and level of commitment
    2. Define job requirements
    3. Receive referrals
    4. Hold formal interviews
    5. Determine performance metrics

    INFO-TECH DELIVERABLE

    Activity: Assign business process owners and identify job responsibilities

    2.3.6 30 minutes

    Input

    • Current state map (output of Activity 2.3.3)

    Output

    • Process owners assigned
    • CXM Strategy Stakeholder Presentation

    Materials

    Participants

    • Project Team

    Instructions

    1. Using Info-Tech’s Process Owner Assignment Guide, assign process owners for each process mapped out in Activity 2.3.3. To assist in doing so, answer the following questions
    • What is the level of commitment expected from each process owner?
    • How will the process owner role be tied to a formal performance appraisal?
    • What metrics can be assigned?
    • How much work will be required to train process owners?
    • Is there support staff available to assist process owners?
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Choose the channels that will make your target customers happy – and ensure they’re supported by CXM applications

    Traditional Channels

    Face-to-Face is efficient and has a positive personalized aspect that many customers desire, be it for sales or customer service.

    Telephony (or IVR) has been a mainstay of customer interaction for decades. While not fading, it must be used alongside newer channels.

    Postal used to be employed extensively for all domains, but is now used predominantly for e-commerce order fulfillment.

    Web 1.0 Channels

    Email is an asynchronous interaction channel still preferred by many customers. Email gives organizations flexibility with queuing.

    Live Chat is a way for clients to avoid long call center wait times and receive a solution from a quick chat with a service rep.

    Web Portals permit transactions for sales and customer service from a central interface. They are a must-have for any large company.

    Web 2.0 Channels

    Social Media consists of many individual services (like Facebook or Twitter). Social channels are exploding in consumer popularity.

    HTML5 Mobile Access allows customers to access resources from their personal device through its integrated web browser.

    Dedicated Mobile Apps allow customers to access resources through a dedicated mobile application (e.g. iOS, Android).

    Info-Tech Insight

    Your channel selections should be driven by customer personas and scenarios. For example, social media may be extensively employed by some persona types (i.e. Millennials) but see limited adoption in other demographics or use cases (i.e. B2B).

    Activity: Extract requirements from your channel map

    2.3.7 30 minutes

    Input

    • Current state process maps (output of Activity 2.3.3)

    Output

    • Channel map
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech examples
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory which customer channels are currently used by each department.
    2. Speak with the department heads for Marketing, Sales, and Customer Service and discuss future channel usage. Identify any channels that will be eliminated or added.
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Business Unit Channel Use Survey

    Marketing Sales Customer Service
    Current Used? Future Use? Current Used? Future Use? Current Used? Future Use?
    Email Yes Yes No No No No
    Direct Mail Yes No No No No No
    Phone No No Yes Yes Yes Yes
    In-Person No No Yes Yes Yes No
    Website Yes Yes Yes Yes Yes Yes
    Social Channels No Yes Yes Yes No Yes

    Bring it together: amalgamate your strategic requirements for CXM technology enablement

    Discovering your organizational requirements is vital for choosing the right business-enabling initiative, technology, and success metrics. Sorting the requirements by marketing, sales, and service is a prudent mechanism for clarification.

    Strategic Requirements: Marketing

    Definition: High-level requirements that will support marketing functions within CXM.

    Examples

    • Develop a native mobile application while also ensuring that resources for your web presence are built with responsive design interface.
    • Consolidate workflows related to content creation to publish all brand marketing from one source of truth.
    • Augment traditional web content delivery by providing additional functionality such as omnichannel engagement, e-commerce, dynamic personalization, and social media functionality.

    Strategic Requirements: Sales

    Definition: High-level requirements that will support sales functions within CXM.

    Examples

    • Implement a system that reduces data errors and increases sales force efficiency by automating lead management workflows.
    • Achieve end-to-end visibility of the sales process by integrating the CRM, inventory, and order processing and shipping system.
    • Track sales force success by incorporating sales KPIs with real-time business intelligence feeds.

    Strategic Requirements: Customer Service

    Definition: High-level requirements that will support customer service functions within CXM.

    Examples

    • Provide a live chat portal that connects the customer, in real time, with the next available and qualified agent.
    • Bridge the gap between the source of truth for sales with customer service suites to ensure a consistent, end-to-end customer experience from acquisition to customer engagement and retention.
    • Use customer intelligence to track customer journeys in order to best understand and resolve customer complaints.

    Activity: Consolidate your strategic requirements for the CXM application portfolio

    2.3.8 30 minutes

    Input

    • Strategic CXM requirements (outputs of Activities 2.1.5, 2.1.6, and 2.2.2)

    Output

    • Aggregated strategic CXM requirements
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Aggregate strategic CXM requirements that have been gathered thus far in Activities 2.1.5, 2.1.6, and 2.2.2, 2.3.5, and 2.3.7.
    2. Identify and rectify any obvious gaps in the existing set of strategic CXM requirements. To do so, consider the overall corporate and CXM strategy: are there any objectives that have not been addressed in the requirements gathering process?
    3. De-duplicate the list. Prioritize the aggregated/augmented list of CXM requirements as “high/critical,” “medium/important,” or “low/desirable.” This will help manage the relative importance and urgency of different requirements to itemize respective initiatives, resources, and the time in which they need to be addressed. In completing the prioritization of requirements, consider the following:
    • Requirements prioritization must be completed in collaboration with all key stakeholders (across the business and IT). Stakeholders must ask themselves:
      • What are the consequences to the business objectives if this requirement is omitted?
      • Is there an existing system or manual process/workaround that could compensate for it?
      • What business risk is being introduced if a particular requirement cannot be implemented right away?
  • Document your outputs in the CXM Strategic Stakeholder Presentation Template.

    • Info-Tech Insight

    Strategic CXM requirements will be used to prioritize specific initiatives for CXM technology enablement and application rollout. Ensure that IT, the business, and executive management are all aligned on a consistent and agreed upon set of initiatives.

    Burberry digitizes the retail CX with real-time computing to bring consumers back to the physical storefront

    CASE STUDY

    Industry Consumer Goods, Clothing

    Source Retail Congress, 2017

    Burberry London

    Situation

    Internally, Burberry invested in organizational alignment and sales force brand engagement. The more the sales associate knew about the brand engagement and technology-enabled strategy, the better the store’s performance. Before the efforts went to building relationships with customers, Burberry built engagement with employees.

    Burberry embraced “omnichannel,” the hottest buzzword in retailing to provide consumers the most immersive and intuitive brand experience within the store.

    Technology Strategy

    RFID tags were attached to products to trigger interactive videos on the store’s screens in the common areas or in a fitting room. Consumers are to have instant access to relevant product combinations, ranging from craftsmanship information to catwalk looks. This is equivalent to the rich, immediate information consumers have grown to expect from the online shopping experience.

    Another layer of Burberry’s added capabilities includes in-memory-based analytics to gather and analyze data in real-time to better understand customers’ desires. Burberry builds customer profiles based on what items the shoppers try on from the RFID-tagged garments. Although this requires customer privacy consent, customers are willing to provide personal information to trusted brands.

    This program, called “Customer 360,” assisted sales associates in providing data-driven shopping experiences that invite customers to digitally share their buying history and preferences via their tablet devices. As the data is stored in Burberry’s customer data warehouse and accessed through an application such as CRM, it is able to arm sales associates with personal fashion advice on the spot.

    Lastly, the customer data warehouse/CRM application is linked to Burberry’s ERP system and other custom applications in a cloud environment to achieve real-time inventory visibility and fulfillment.

    Burberry digitizes the retail CX with real-time computing to bring consumers back to the physical storefront (cont'd)

    CASE STUDY

    Industry Consumer Goods, Clothing

    Source Retail Congress, 2017

    Burberry London

    Situation

    Internally, Burberry invested in organizational alignment and sales force brand engagement. The more the sales associate knew about the brand engagement and technology-enabled strategy, the better the store’s performance. Before the efforts went to building relationships with customers, Burberry built engagement with employees.

    Burberry embraced “omnichannel,” the hottest buzzword in retailing to provide consumers the most immersive and intuitive brand experience within the store.

    The Results

    Burberry achieved one of the most personalized retail shopping experiences. Immediate personal fashion advice using customer data is only one component of the experience. Not only are historic purchases and preference data analyzed, a customer’s social media posts and fashion industry trend data is proactively incorporated into the interactions between the sales associate and the customer.

    Burberry achieved CEO Angela Ahrendts’ vision of “Burberry World,” in which the brand experience is seamlessly integrated across channels, devices, retail locations, products, and services.

    The organizational alignment between Sales, Marketing, and IT empowered employees to bring the Burberry brand to life in unique ways that customers appreciated and were willing to advocate.

    Burberry is now one of the most beloved and valuable luxury brands in the world. The brand tripled sales in five years, became one of the leading voices on trends, fashion, music, and beauty while redefining what top-tier customer experience should be both digitally and physically.

    Leverage both core CRM suites and point solutions to create a comprehensive CXM application portfolio

    The debate between best-of-breed point solutions versus comprehensive CRM suites is ongoing. There is no single best answer. In most cases, an effective portfolio will include both types of solutions.

    • When the CRM market first evolved, vendors took a heavy “module-centric” approach – offering basic suites with the option to add a number of individual modules. Over time, vendors began to offer suites with a high degree of out-of-the-box functionality. The market has now witnessed the rise of powerful point solutions for the individual business domains.
    • Point solutions augment, rather than supplant, the functionality of a CRM suite in the mid-market to large enterprise context. Point solutions do not offer the necessary spectrum of functionality to take the place of a unified CRM suite.
    • Point solutions enhance aspects of CRM. For example, most CRM vendors have yet to provide truly impressive social media capabilities. An organization seeking to dominate the social space should consider purchasing a social media management platform to address this deficit in their CRM ecosystem.

    Customer Relationship Management (CRM)

    Social Media Management Platform (SMMP)

    Field Sales/Service Automation (FSA)

    Marketing Management Suites

    Sales Force Automation

    Email Marketing Tools

    Lead Management Automation (LMA)

    Customer Service Management Suites

    Customer Intelligence Systems

    Don’t adopt multiple point solutions without a genuine need: choose domains most in need of more functionality

    Some may find that the capabilities of a CRM suite are not enough to meet their specific requirements: supplementing a CRM suite with a targeted point solution can get the job done. A variety of CXM point solutions are designed to enhance your business processes and improve productivity.

    Sales

    Sales Force Automation: Automatically generates, qualifies, tracks, and contacts leads for sales representatives, minimizing time wasted on administrative duties.

    Field Sales: Allows field reps to go through the entire sales cycle (from quote to invoice) while offsite.

    Sales Compensation Management: Models, analyzes, and dispenses payouts to sales representatives.

    Marketing

    Social Media Management Platforms (SMMP): Manage and track multiple social media services, with extensive social data analysis and insight capabilities.

    Email Marketing Bureaus: Conduct email marketing campaigns and mine results to effectively target customers.

    Marketing Intelligence Systems: Perform in-depth searches on various data sources to create predictive models.

    Service

    Customer Service Management (CSM): Manages the customer support lifecycle with a comprehensive array of tools, usually above and beyond what’s in a CRM suite.

    Customer Service Knowledge Management (CSKM): Advanced knowledgebase and resolution tools.

    Field Service Automation (FSA): Manages customer support tickets, schedules work orders, tracks inventory and fleets, all on the go.

    Info-Tech Insight

    CRM and point solution integration is critical. A best-of-breed product that poorly integrates with your CRM suite compromises the value generated by the combined solution, such as a 360-degree customer view. Challenge point solution vendors to demonstrate integration capabilities with CRM packages.

    Refer to your use cases to decide whether to add a dedicated point solution alongside your CRM suite

    Know your end state and what kind of tool will get you there. Refer to your strategic requirements to evaluate CRM and point solution feature sets.

    Standalone CRM Suite

    Sales Conditions: Need selling and lead management capabilities for agents to perform the sales process, along with sales dashboards and statistics.

    Marketing or Communication Conditions: Need basic campaign management and ability to refresh contact records with information from social networks.

    Member Service Conditions: Need to keep basic customer records with multiple fields per record and basic channels such as email and telephony.

    Add a Best-of-Breed or Point Solution

    Environmental Conditions: An extensive customer base with many different interactions per customer along with industry specific or “niche” needs. Point solutions will benefit firms with deep needs in specific feature areas (e.g. social media or field service).

    Sales Conditions: Lengthy sales process and account management requirements for assessing and managing opportunities – in a technically complex sales process.

    Marketing Conditions: Need social media functionality for monitoring and social property management.

    Customer Service Conditions: Need complex multi-channel service processes and/or need for best-of-breed knowledgebase and service content management.

    Info-Tech Insight

    The volume and complexity of both customers and interactions have a direct effect on when to employ just a CRM suite and when to supplement with a point solution. Check to see if your CRM suite can perform a specific business requirement before deciding to evaluate potential point solutions.

    Use Info-Tech’s CXM Portfolio Designer to create an inventory of high-value customer interaction applications

    2.3.9 CXM Portfolio Designer

    The CXM Portfolio Designer features a set of questions geared toward understanding your needs for marketing, sales, and customer service enablement.

    These results are scored and used to suggest a comprehensive solution-level set of enterprise applications for CXM that can drive your application portfolio and help you make investment decisions in different areas such as CRM, marketing management, and customer intelligence.

    Sections of the tool:

    1. Introduction
    2. Customer Experience Management Questionnaire
    3. Business Unit Recommendations
    4. Enterprise-Level Recommendations

    INFO-TECH DELIVERABLE

    Understand the art of the possible and how emerging trends will affect your application portfolio (1)

    Cloud

    • The emergence and maturation of cloud technologies has broken down the barriers of software adoption.
    • Cloud has enabled easy-to-implement distributed sales centers for enterprises with global or highly fragmented workforces.
    • Cloud offers the agility, scalability, and flexibility needed to accommodate dynamic, evolving customer requirements while minimizing resourcing strain on IT and sales organizations.
    • It is now easier for small to medium enterprises to acquire and implement advanced sales capabilities to compete against larger competitors in a business environment where the need for business agility is key.
    • Although cost and resource reduction is a prominent view of the impact of cloud computing, it is also seen as an agile way to innovate and deliver a product/service experience that customers are looking for – the key to competitive differentiation.

    Mobile

    • Smartphones and other mobile devices were adopted faster than the worldwide web in the late 1990s, and the business and sales implications of widespread adoption cannot be ignored – mobile is changing how businesses operate.
      • Accenture’s Mobility Research Report states that 87% of companies in the study have been guided by a formal mobility strategy – either one that spans the enterprise or for specific business functions.
    • Mobile is now the first point of interaction with businesses. With this trend, gaining visibility into customer insights with mobile analytics is a top priority for organizations.
    • Enterprises need to develop and optimize mobile experiences for internal salespeople and customers alike as part of their sales strategy – use mobile to enable a competitive, differentiated sales force.
    • The use of mobile platforms by sales managers is becoming a norm. Sales enablement suites should support real-time performance metrics on mobile dashboards.

    Understand the art of the possible and how emerging trends will affect your application portfolio (2)

    Social

    • The rise of social networking brought customers together. Customers are now conversing with each other over a wide range of community channels that businesses neither own nor control.
      • The Power Shift: The use of social channels empowered customers to engage in real-time, unstructured conversations for the purpose of product/service evaluations. Those who are active in social environments come to wield considerable influence over the buying decisions of other prospects and customers.
    • Organizations need to identify the influencers and strategically engage them as well as developing an active presence in social communities that lead to sales.
    • Social media does have an impact on sales, both B2C and B2B. A study conducted in 2012 by Social Centered Selling states that 72.6% of sales people using social media as part of their sales process outperformed their peers and exceeded their quota 23% more often (see charts at right).

    The image shows two bar graphs, the one on top titled Achieving Quota: 2010-2012 and the one below titled Exceeding Quota: 2010-2012.

    (Social Centered Learning, n.d.)

    Understand the art of the possible and how emerging trends will affect your application portfolio (3)

    Internet of Things

    • Definition: The Internet of Things (IoT) is the network of physical objects accessed through the internet. These objects contain embedded technology to interact with internal states or the external environment.
    • Why is this interesting?
      • IoT will make it possible for everybody and everything to be connected at all times, processing information in real time. The result will be new ways of making business and sales decisions supported by the availability of information.
      • With ubiquitous connectivity, the current product design-centric view of consumers is changing to one of experience design that aims to characterize the customer relationship with a series of integrated interaction touchpoints.
      • The above change contributes to the shift in focus from experience and will mean further acceleration of the convergence of customer-centric business functions. IoT will blur the lines between marketing, sales, and customer service.
      • Products or systems linked to products are capable of self-operating, learning, updating, and correcting by analyzing real-time data.
      • Take for example, an inventory scale in a large warehouse connected to the company’s supply chain management (SCM) system. When a certain inventory weight threshold is reached due to outgoing shipments, the scale automatically sends out a purchase requisition to restock inventory levels to meet upcoming demand.
    • The IoT will eventually begin to transform existing business processes and force organizations to fundamentally rethink how they produce, operate, and service their customers.

    The image shows a graphic titled The Connected Life by 2020, and shows a number of statistics on use of connected devices over time.

    For categories covered by existing applications, determine the disposition for each app: grow it or cut it loose

    Use the two-by-two matrix below to structure your optimal CXM application portfolio. For more help, refer to Info-Tech’s blueprint, Use Agile Application Rationalization Instead of Going Big Bang.

    1

    0

    Richness of Functionality

    		 INTEGRATE RETAIN
    1
    REPLACE REPLACE OR ENHANCE

    0

    Degree of Integration

    Integrate: The application is functionally rich, so spend time and effort integrating it with other modules by building or enhancing interfaces.

    Retain: The application satisfies both functionality and integration requirements, so it should be considered for retention.

    Replace/Enhance: The module offers poor functionality but is well integrated with other modules. If enhancing for functionality is easy (e.g. through configuration or custom development), consider enhancement or replace it.

    Replace: The application neither offers the functionality sought nor is it integrated with other modules, and thus should be considered for replacement.

    Activity: Brainstorm the art of the possible, and build and finalize the CXM application portfolio

    2.3.10 1-2 hours

    Input

    • Process gaps identified (output of Activity 2.3.9)

    Output

    • CXM application portfolio
    • CXM Strategy Stakeholder Presentation

    Materials

    Participants

    • Project Team

    Instructions

    1. Review the complete list of strategic requirements identified in the preceding exercises, as well as business process maps.
    2. Identify which application would link to which process (e.g. customer acquisition, customer service resolution, etc.).
    3. Use Info-Tech’s CXM Portfolio Designer to create an inventory of high-value customer interaction applications.
    4. Define rationalization and investment areas.
    5. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Brainstorming the Art of the Possible

    Application Gap Satisfied Related Process Number of Linked Requirements Do we have the system? Priority
    LMA
    • Lead Generation
    • Social Lead Management
    • CRM Integration
    		Sales 8 No Business Critical
    Customer Intelligence
    • Web Analytics
    • Customer Journey Tracking
    		Customer Service 6 Yes Business Enabling
    ... ... ... ... ... ...

    Use Info-Tech’s comprehensive reports to make granular vendor selection decisions

    Now that you have developed the CXM application portfolio and identified areas of new investment, you’re well positioned to execute specific vendor selection projects. After you have built out your initiatives roadmap in phase 3, the following reports provide in-depth vendor reviews, feature guides, and tools and templates to assist with selection and implementation.

    Info-Tech Insight

    Not all applications are created equally well for each use case. The vendor reports help you make informed procurement decisions by segmenting vendor capabilities among major use cases. The strategic requirements identified as part of this project should be used to select the use case that best fits your needs.

    If you want additional support, have our analyst guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.3.2; 2.3.3 Shortlist and map the key top-level business processes

    Based on experience working with organizations in similar verticals, the facilitator will help your team map out key sample workflows for marketing, sales, and customer service.

    2.3.6 Create your strategic requirements for CXM

    Drawing on the preceding exercises, the facilitator will work with the team to create a comprehensive list of strategic requirements that will be used to drive technology decisions and roadmap initiatives.

    2.3.10 Create and finalize the CXM application portfolio

    Using the strategic requirements gathered through internal, external, and technology analysis up to this point, a facilitator will assist you in assembling a categorical technology application portfolio to support CXM.

    Step 2.4: Develop Deployment Best Practices

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Develop a CXM integration map
    • Develop a mitigation plan for poor quality customer data
    • Create a framework for end-user adoption of CXM applications

    Outcomes:

    • CXM application portfolio integration map
    • Data quality preservation plan
    • End-user adoption plan

    Develop an integration map to specify which applications will interface with each other

    Integration is paramount: your CXM application portfolio must work as a unified face to the customer. Create an integration map to reflect a system of record and the exchange of data.

    • CRM
      • ERP
      • Telephony Systems (IVR, CTI)
      • Directory Services
      • Email
      • Content Management
      • Point Solutions (SMMP, MMS)

    The points of integration that you’ll need to establish must be based on the objectives and requirements that have informed the creation of the CXM application portfolio. For instance, achieving improved customer insights would necessitate a well-integrated portfolio with customer interaction point solutions, business intelligence tools, and customer data warehouses in order to draw the information necessary to build insight. To increase customer engagement, channel integration is a must (i.e. with robust links to unified communications solutions, email, and VoIP telephony systems).

    Info-Tech Insight

    If the CXM application portfolio is fragmented, it will be nearly impossible to build a cohesive view of the customer and deliver a consistent customer experience. Points of integration (POIs) are the junctions between the applications that make up the CXM portfolio. They are essential to creating value, particularly in customer insight-focused and omnichannel-focused deployments. Be sure to include enterprise applications that are not included in the CXM application portfolio. Popular systems to consider for POIs include billing, directory services, content management, and collaboration tools.

    After identifying points of integration, profile them by business significance, complexity, and investment required

    • After enumerating points of integration between the CRM platform and other CXM applications and data sources, profile them by business significance and complexity required to determine a rank-ordering of priorities.
    • Points of integration that are of high business significance with low complexity are your must do’s – these are your quick wins that deliver maximum value without too much cost. This is typically the case when integrating a vendor-to-vendor solution with available native connectors.
    • On the opposite end of the spectrum are your POIs that will require extensive work to deliver but offer negligible value. These are your should not do’s – typically, these are niche requests for integration that will only benefit the workflows of a small (and low priority) group of end users. Only accommodate them if you have slack time and budget built into your implementation timeline.

    The image shows a square matrix with Point of Integration Value Matrix in the centre. On the X-axis is Business Significance, and on the Y-axis is POI complexity. In the upper left quadrant is Should Not Do, upper right is Should Do, lower left is Could Do, and lower right is Must do.

    "Find the absolute minimum number of ‘quick wins’ – the POIs you need from day one that are necessary to keep end users happy and deliver value." – Maria Cindric, Australian Catholic University Source: Interview

    Activity: Develop a CXM application integration map

    2.4.1 1 hour

    Input

    • CXM application portfolio (output of Activity 2.3.10)

    Output

    • CXM application portfolio integration map
    • CXM Strategy Stakeholder Presentation

    Materials

    • Sticky notes
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. On sticky notes, record the list of applications that comprise the CXM application portfolio (built in Activity 2.3.10) and all other relevant applications. Post the sticky notes on a whiteboard so you can visualize the portfolio.
    2. Discuss the key objectives and requirements that will drive the integration design of the CXM application portfolio.
    3. As deemed necessary by step 2, rearrange the sticky notes and draw connecting arrows between applications to reflect their integration. Allow the point of the arrow to indicate direction of data exchanges.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Mapping the Integration of CXM Applications

    The image shows several yellow rectangles with text in them, connected by arrows.

    Plug the hole and bail the boat – plan to be preventative and corrective with customer data quality initiatives

    Data quality is king: if your customer data is garbage in, it will be garbage out. Enable strategic CXM decision making with effective planning of data quality initiatives.

    Identify and Eliminate Dead Weight

    Poor data can originate in the firm’s system of record, which is typically the CRM system. Custom queries, stored procedures, or profiling tools can be used to assess the key problem areas.

    Loose rules in the CRM system lead to records of no significant value in the database. Those rules need to be fixed, but if changes are made before the data is fixed, users could encounter database or application errors, which will reduce user confidence in the system.

    • Conduct a data flow analysis: map the path that data takes through the organization.
    • Use a mass cleanup to identify and destroy dead weight data. Merge duplicates either manually or with the aid of software tools. Delete incomplete data, taking care to reassign related data.
    • COTS packages typically allow power users to merge records without creating orphaned records in related tables, but custom-built applications typically require IT expertise.

    Create and Enforce Standards & Policies

    Now that the data has been cleaned, protect the system from relapsing.

    Work with business users to find out what types of data require validation and which fields should have changes audited. Whenever possible, implement drop-down lists to standardize values and make programming changes to ensure that truncation ceases.

    • Truncated data is usually caused by mismatches in data structures during either one-time data loads or ongoing data integrations.
    • Don’t go overboard on assigning required fields – users will just put key data in note fields.
    • Discourage the use of unstructured note fields: the data is effectively lost unless it gets subpoenaed.
    • To specify policies, use Info-Tech’s Master Data Record Tool.

    Profile your customer and sales-related data

    Applications are a critical component of how IT supports Sales, but IT also needs to help Sales keep its data current and accurate. Conducting a sales data audit is critical to ensure Sales has the right information at the right time.

    Info-Tech Insight

    Data is king. More than ever, having accurate data is essential for your organization to win in hyper-competitive marketplaces. Prudent current state analysis looks at both the overall data model and data architecture, as well as assessing data quality within critical sales-related repositories. As the amount of customer data grows exponentially due to the rise of mobility and the Internet of Things, you must have a forward-looking data model and data marts/customer data warehouse to support sales-relevant decisions.

    • A current state analysis for sales data follows a multi-step process:
      • Determine the location of all sales-relevant and customer data – the sales data inventory. Data can reside in applications, warehouses, and documents (e.g. Excel and Access files) – be sure to take a holistic approach.
    • For each data source, assess data quality across the following categories:
      • Completeness
      • Currency (Relevancy)
      • Correctness
      • Duplication
    • After assessing data quality, determine which repositories need the most attention by IT and Sales. We will look at opportunities for data consolidation later in the blueprint.

    INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Develop a Master Data Management Strategy and Roadmap blueprint for further reference and assistance in data management for your sales-IT alignment.

    Activity: Develop a mitigation plan for poor quality customer data

    2.4.2 30 minutes

    Input

    • List of departments involved in maintenance of CXM data

    Output

    • Data quality preservation plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Inventory a list of departments that will be interacting directly with CXM data.
    2. Identify data quality cleansing and preservation initiatives, such as those in previous examples.
    3. Assign accountability to an individual in the department as a data steward. When deciding on a data steward, consider the following:
    • Data stewards are designated full-time employees who serve as the go-to resource for all issues pertaining to data quality, including keeping a particular data silo clean and free of errors.
    • Data stewards are typically mid-level managers in the business (not IT), preferably with an interest in improving data quality and a relatively high degree of tech-savviness.
    • Data stewards can sometimes be created as a new role with a dedicated FTE, but this is not usually cost effective for small and mid-sized firms.
    • Instead, diffuse the steward role across several existing positions, including one for CRM and other marketing, sales, and service applications.
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • Example: Data Steward Structure

    Department A

    • Data Steward (CRM)
    • Data Steward (ERP)

    Department B

    • Data Steward (All)

    Department C

    • Data Steward (All)

    Determine if a customer data warehouse will add value to your CXM technology-enablement strategy

    A customer data warehouse (CDW) “is a subject-oriented, integrated, time-variant, non-volatile collection of data used to support the strategic decision-making process across marketing, sales, and service. It is the central point of data integration for customer intelligence and is the source of data for the data marts, delivering a common view of customer data” (Corporate Information Factory, n.d.).

    Analogy

    CDWs are like a buffet. All the food items are in the buffet. Likewise, your corporate data sources are centralized into one repository. There are so many food items in a buffet that you may need to organize them into separate food stations (data marts) for easier access.

    Examples/Use Cases

    • Time series analyses with historical data
    • Enterprise level, common view analyses
    • Integrated, comprehensive customer profiles
    • One-stop repository of all corporate information

    Pros

    • Top-down architectural planning
    • Subject areas are integrated
    • Time-variant, changes to the data are tracked
    • Non-volatile, data is never over-written or deleted

    Cons

    • A massive amount of corporate information
    • Slower delivery
    • Changes are harder to make
    • Data format is not very business friendly

    Activity: Assess the need for a customer data warehouse

    2.4.3. 30 minutes

    Input

    • List of data sources
    • Data inflows and outflows

    Output

    • Data quality preservation plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Create a shortlist of customer data sources.
    2. Profile the integration points that are necessary to support inflows and outflows of customer data.
    3. Ask the following questions around the need for a CDW based on these data sources and points of integration:
    • What is the volume of customer information that needs to be stored? The greater the capacity, the more likely that you should build a dedicated CDW.
    • How complex is the data? The more complex the data, the greater the need for a CDW.
    • How often will data interchange happen between various applications and data sources? The greater and more frequent the interchange, the greater the need for a CDW.
    • What are your organizational capabilities for building a CDW? Do you have the resources in-house to create a CDW at this time?
  • Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    • INFO-TECH OPPORTUNITY

    Refer to Info-Tech’s Build an Agile Data Warehouse blueprint for more information on building a centralized and integrated data warehouse.

    Create a plan for end-user training on new (or refocused) CXM applications and data quality processes

    All training modules will be different, but some will have overlapping areas of interest.

    – Assign Project Evangelists – Analytics Training – Mobile Training

    Application Training

    • Customer Service - Assign Project Evangelists – Analytics Training – Mobile Training
      • Focus training on:
        • What to do with inbound tickets.
        • Routing and escalation features.
        • How to use knowledge management features effectively.
        • Call center capabilities.
    • Sales – Assign Project Evangelists – Analytics Training – Mobile Training
      • Focus training on:
        • Recording of opportunities, leads, and deals.
        • How to maximize sales with sales support decision tree.
    • Marketing - Assign Project Evangelists – Analytics Training
      • Focus training on:
        • Campaign management features.
        • Social media monitoring and engagement capabilities.
    • IT
      • Focus training on:
        • Familiarization with the software.
        • Software integration with other enterprise applications.
        • The technical support needed to maintain the system in the future.

    Info-Tech Insight

    Train customers too. Keep the customer-facing sales portals simple and intuitive, have clear explanations/instructions under important functions (e.g. brief directions on how to initiate service inquiries), and provide examples of proper uses (e.g. effective searches). Make sure customers are aware of escalation options available to them if self-service falls short.

    Ensure adoption with a formal communication process to keep departments apprised of new application rollouts

    The team leading the rollout of new initiatives (be they applications, new governance structures, or data quality procedures) should establish a communication process to ensure management and users are well informed.

    CXM-related department groups or designated trainers should take the lead and implement a process for:

    • Scheduling application platform/process rollout/kick-off meetings.
    • Soliciting preliminary input from the attending groups to develop further training plans.
    • Establishing communication paths and the key communication agents from each department who are responsible for keeping lines open moving forward.

    The overall objective for inter-departmental kick-off meetings is to confirm that all parties agree on certain key points and understand alignment rationale and new sales app or process functionality.

    The kick-off process will significantly improve internal communications by inviting all affected internal IT groups, including business units, to work together to address significant issues before the application process is formally activated.

    The kick-off meeting(s) should encompass:

    • Target business-user requirements
    • The high-level application overview
    • Tangible business benefits of alignment
    • Special consideration needs
    • Other IT department needs
    • Target quality of service (QoS) metrics

    Info-Tech Insight

    Determine who in each department will send out a message about initiative implementation, the tone of the message, the medium, and the delivery date.

    Construct a formal communication plan to engage stakeholders through structured channels

    Tangible Elements of a Communications Plan

    • Stakeholder Group Name
    • Stakeholder Description
    • Message
    • Concerns Relative to Application Maintenance
    • Communication Medium
    • Role Responsible for Communication
    • Frequency
    • Start and End Date

    Intangible Elements of a Communications Plan

    • Establish biweekly meetings with representatives from sales functional groups, who are tasked with reporting on:
      • Benefits of revised processes
      • Metrics of success
      • Resource restructuring
    • Establish a monthly interdepartmental meeting, where all representatives from sales and IT leadership discuss pressing bug fixes and minor process improvements.
    • Create a webinar series, complete with Q&A, so that stakeholders can reference these changes at their leisure.

    Info-Tech Insight

    Every piece of information that you give to a stakeholder that is not directly relevant to their interests is a distraction from your core message. Always remember to tailor the message, medium, and timing accordingly.

    Carry the CXM value forward with linkage and relationships between sales, marketing, service, and IT

    Once the sales-IT alignment committees have been formed, create organizational cadence through a variety of formal and informal gatherings between the two business functions.

    • Organizations typically fall in one of three maturity stages: isolation, collaboration, or synergy. Strive to achieve business-technology synergy at the operational level.
    • Although collaboration cannot be mandated, it can be facilitated. Start with a simple gauge of the two functions’ satisfaction with each other, and determine where and how inter-functional communication and synergy can be constructed.

    Isolation

    The image shows four shapes, with the words IT, Sales, Customer Service, and Marketing in them.

    • Point solutions are implemented on an ad-hoc basis by individual departments for specific projects.
    • Internal IT is rarely involved in these projects from beginning to end.

    Collaboration

    The image features that same four shapes and text from the previous image, but this time they are connected by dotted lines.

    • There is a formal cross-departmental effort to integrate some point solutions.
    • Internal IT gets involved to integrate systems and then support system interactions.

    Synergy

    The image features the same shapes and text from previous instances, except the shapes are now connect by solid lines and the entire image is surrounded by dotted lines.

    • Cross-functional, business technology teams are established to work on IT-enabled revenue generation initiatives.
    • Team members are collocated if possible.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    2.4.1 Develop a CXM application integration map

    Using the inventory of existing CXM-supporting applications and the newly formed CXM application portfolio as inputs, your facilitator will assist you in creating an integration map of applications to establish a system of record and flow of data.

    2.4.2 Develop a mitigation plan for poor quality customer data

    Our facilitator will educate your stakeholders on the importance of quality data and guide you through the creation of a mitigation plan for data preservation.

    2.4.3 Assess the need for a customer data warehouse

    Addressing important factors such as data volume, complexity, and flow, a facilitator will help you assess whether or not a customer data warehouse for CXM is the right fit for your organization.

    Phase 3

    Finalize the CXM Framework

    Build a Strong Technology Foundation for Customer Experience Management

    Phase 3 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Finalize the CXM Framework

    Proposed Time to Completion: 1 week

    Step 3.1: Create an Initiative Rollout Plan

    Start with an analyst kick-off call:

    • Discuss strategic requirements and the associated application portfolio that has been proposed.

    Then complete these activities…

    • Initiatives prioritization

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Step 3.2: Confirm and Finalize the CXM Blueprint

    Review findings with analyst:

    • Discuss roadmap and next steps in terms of rationalizing and implementing specific technology-centric initiatives or rollouts.

    Then complete these activities…

    • Confirm stakeholder strategy presentation

    With these tools & templates:

    • CXM Strategy Stakeholder Presentation Template

    Phase 3 Results & Insights:

    • Initiatives roadmap

    Step 3.1: Create an Initiative Rollout Plan

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Create a risk management plan
    • Brainstorm initiatives for CXM roadmap
    • Identify dependencies and enabling projects for your CXM roadmap
    • Complete the CXM roadmap

    Outcomes:

    • Risk management plan
    • CXM roadmap
      • Quick-win initiatives

    A CXM technology-enablement roadmap will provide smooth and timely implementation of your apps/initiatives

    Creating a comprehensive CXM strategy roadmap reduces the risk of rework, misallocation of resources, and project delays or abandonment.

    • People
    • Processes
    • Technology
    • Timeline
    • Tasks
    • Budget

    Benefits of a Roadmap

    1. Prioritize execution of initiatives in alignment with business, IT, and needs.
    2. Create clearly defined roles and responsibilities for IT and business stakeholders.
    3. Establish clear timelines for rollout of initiatives.
    4. Identify key functional areas and processes.
    5. Highlight dependencies and prerequisites for successful deployment.
    6. Reduce the risk of rework due to poor execution.

    Implement planning and controls for project execution

    Risk Management

    • Track risks associated with your CXM project.
    • Assign owners and create plans for resolving open risks.
    • Identify risks associated with related projects.
    • Create a plan for effectively communicating project risks.

    Change Management

    • Brainstorm a high-level training plan for various users of the CXM.
    • Create a communication plan to notify stakeholders and impacted users about the tool and how it will alter their workday and performance of role activities.
    • Establish a formal change management process that is flexible enough to meet the demands for change.

    Project Management

    • Conduct a post-mortem to evaluate the completion of the CXM strategy.
    • Design the project management process to be adaptive in nature.
    • Communication is key to project success, whether it is to external stakeholders or internal project team members..
    • Review the project’s performance against metrics and expectations.

    INFO-TECH OPPORTUNITIES

    Optimize the Change Management Process

    You need to design a process that is flexible enough to meet demand for change and strict enough to protect the live environment from change-related incidents.

    Create Project Management Success

    Investing time up front to plan the project and implementing best practices during project execution to ensure the project is delivered with the planned outcome and quality is critical to project success.

    Activity: Create a risk management plan

    3.1.1 45 minutes

    Input

    • Inventory of risks

    Output

    • Risk management plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Create a list of possible risks that may hamper the progress of your CXM project.
    2. Classify risks as strategy-based, related to planning, or systems-based, related to technology.
    3. Brainstorm mitigation strategies to overcome each listed risk.
    4. On a score of 1 to 3, determine the impact of each risk on the success of the project.
    5. On a score of 1 to 3, determine the likelihood of the occurrence for each risk.
    6. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Constructing a Risk Management Plan

    Risk Impact Likelihood Mitigation Effort
    Strategy Risks Project over budget
    • Detailed project plan
    • Pricing guarantees
    Inadequate content governance
    System Risks Integration with additional systems
    • Develop integration plan and begin testing integration methods early in the project
    .... ... ... ...

    Likelihood

    1 – High/ Needs Focus

    2 – Can Be Mitigated

    3 - Unlikely

    Impact

    1 - High Risk

    2 - Moderate Risk

    3 - Minimal Risk

    Prepare contingency plans to minimize time spent handling unexpected risks

    Understanding technical and strategic risks can help you establish contingency measures to reduce the likelihood that risks will occur. Devise mitigation strategies to help offset the impact of risks if contingency measures are not enough.

    Remember

    The biggest sources of risk in a CXM strategy are lack of planning, poorly defined requirements, and lack of governance.

    Apply the following mitigation tips to avoid pitfalls and delays.

    Risk Mitigation Tips

    • Upfront planning
    • Realistic timelines
    • Resource support
    • Change management
    • Executive sponsorship
    • Sufficient funding
    • Expectation setting
    1. Project Starts
    • Expectations are high
  • Project Workload Increases
    • Expectations are high
  • Pit of Despair
    • Why are we doing this?
  • Project Nears Close
    • Benefits are being realized
  • Implementation is Completed
    • Learning curve dip
  • Standardization & Optimization
    • Benefits are high

    • Identify factors to complete your CXM initiatives roadmap

    Completion of initiatives for your CXM project will be contingent upon multiple variables.

    Defining Dependencies

    Initiative complexity will define the need for enabling projects. Create a process to define dependencies:

    1. Enabling projects: complex prerequisites.
    2. Preceding tasks: direct and simplified assignments.

    Establishing a Timeline

    • Assign realistic timelines for each initiative to ensure smooth progress.
    • Use milestones and stage gates to track the progress of your initiatives and tasks.

    Defining Importance

    • Based on requirements gathering, identify the importance of each initiative to your marketing department.
    • Each initiative can be ranked high, medium, or low.

    Assigning Ownership

    • Owners are responsible for on-time completion of their assigned initiatives.
    • Populate a RACI chart to ensure coverage of all initiatives.

    Complex....Initiative

    • Enabling Project
      • Preceding Task
      • Preceding Task
    • Enabling Project
      • Preceding Task
      • Preceding Task

    Simple....Initiative

    • Preceding Task
    • Preceding Task
    • Preceding Task

    Activity: Brainstorm CXM application initiatives for implementation in alignment with business needs

    3.1.2 45 minutes

    Input

    • Inventory of CXM initiatives

    Output

    • Prioritized and quick-win initiatives
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. As a team, identify and list CXM initiatives that need to be addressed.
    2. Plot the initiatives on the complexity-value matrix to determine priority.
    3. Identify quick wins: initiatives that can realize quick benefits with little effort.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Importance-Capability Matrix

    The image shows a matrix, with Initiative Complexity on the X-axis, and Business Value on the Y-axis. There are circle of different sizes in the matrix.

    Pinpoint quick wins: high importance, low effort initiatives.

    The size of each plotted initiative must indicate the effort or the complexity and time required to complete.
    Top Right Quadrant Strategic Projects
    Top Left Quadrant Quick Wins
    Bottom Right Quadrant Risky Bets
    Bottom Left Quadrant Discretionary Projects

    Activity: Identify any dependencies or enabling projects for your CXM roadmap

    3.1.3 1 hour

    Input

    • Implementation initiatives
    • Dependencies

    Output

    • CXM project dependencies

    Materials

    • Sticky notes
    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Using sticky notes and a whiteboard, have each team member rank the compiled initiatives in terms of priority.
    2. Determine preceding tasks or enabling projects that each initiative is dependent upon.
    3. Determine realistic timelines to complete each quick win, enabling project, and long-term initiative.
    4. Assign an owner for each initiative.

    Example: Project Dependencies

    Initiative: Omnichannel E-Commerce

    Dependency: WEM Suite Deployment; CRM Suite Deployment; Order Fulfillment Capabilities

    Activity: Complete the implementation roadmap

    3.1.4 30 minutes

    Input

    • Implementation initiatives
    • Dependencies

    Output

    • CXM Roadmap
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Establish time frames to highlight enabling projects, quick wins, and long-term initiatives.
    2. Indicate the importance of each initiative as high, medium, or low based on the output in Activity 3.1.2.
    3. Assign each initiative to a member of the project team. Each owner will be responsible for the execution of a given initiative as planned.
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Example: Importance-Capability Matrix

    Importance Initiative Owner Completion Date
    Example Projects High Gather business requirements. Project Manager MM/DD/YYYY
    Quick Wins
    Long Term Medium Implement e-commerce across all sites. CFO & Web Manager MM/DD/YYYY

    Importance

    • High
    • Medium
    • Low

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1.1 Create a risk management plan

    Based on the workshop exercises, the facilitator will work with the core team to design a priority-based risk mitigation plan that enumerates the most salient risks to the CXM project and addresses them.

    3.1.2; 3.1.3; 3.1.4 Identify initiative dependencies and create the CXM roadmap

    After identifying dependencies, our facilitators will work with your IT SMEs and business stakeholders to create a comprehensive roadmap, outlining the initiatives needed to carry out your CXM strategy roadmap.

    Step 3.2: Confirm and Finalize the CXM Blueprint

    Phase 1

    1.1 Create the Project Vision

    1.2 Structure the Project

    Phase 2

    2.1 Scan the External Environment

    2.2 Assess the Current State of CXM

    2.3 Create an Application Portfolio

    2.4 Develop Deployment Best Practices

    Phase 3

    3.1 Create an Initiative Rollout Plan

    3.2 Confirm and Finalize the CXM Blueprint

    Activities:

    • Identify success metrics
    • Create a stakeholder power map
    • Create a stakeholder communication plan
    • Complete and present CXM strategy stakeholder presentation

    Outcomes:

    • Stakeholder communication plan
    • CXM strategy stakeholder presentation

    Ensure that your CXM applications are improving the performance of targeted processes by establishing metrics

    Key Performance Indicators (KPIs)

    Key performance indicators (KPIs) are quantifiable measures that demonstrate the effectiveness of a process and its ability to meet business objectives.

    Questions to Ask

    1. What outputs of the process can be used to measure success?
    2. How do you measure process efficiency and effectiveness?

    Creating KPIs

    Specific

    Measurable

    Achievable

    Realistic

    Time-bound

    Follow the SMART methodology when developing KPIs for each process.

    Adhering to this methodology is a key component of the Lean management methodology. This framework will help you avoid establishing general metrics that aren’t relevant.

    Info-Tech Insight

    Metrics are essential to your ability to measure and communicate the success of the CXM strategy to the business. Speak the same language as the business and choose metrics that relate to marketing, sales, and customer service objectives.

    Activity: Identify metrics to communicate process success

    3.2.1 1 hour

    Input

    • Key organizational objectives

    Output

    • Strategic business metrics
    • CXM Strategy Stakeholder Presentation

    Materials

    • Whiteboard
    • Markers

    Participants

    • Project Team

    Instructions

    1. Recap the major functions that CXM will focus on (e.g. marketing, sales, customer service, web experience management, social media management, etc.)
    2. Identify business metrics that reflect organizational objectives for each function.
    3. Establish goals for each metric (as exemplified below).
    4. Document your outputs in the CXM Strategy Stakeholder Presentation Template.
    5. Communicate the chosen metrics and the respective goals to stakeholders.

    Example: Metrics for Marketing, Sales, and Customer Service Functions

    Metric Example
    Marketing Customer acquisition cost X% decrease in costs relating to advertising spend
    Ratio of lifetime customer value X% decrease in customer churn
    Marketing originated customer % X% increase in % of customer acquisition driven by marketing
    Sales Conversion rate X% increase conversion of lead to sale
    Lead response time X% decrease in response time per lead
    Opportunity-to-win ratio X% increase in monthly/annual opportunity-to-win ratio
    Customer Service First response time X% decreased time it takes for customer to receive first response
    Time-to-resolution X% decrease of average time-to-resolution
    Customer satisfaction X% improvement of customer satisfaction ratings on immediate feedback survey

    Use Info-Tech’s Stakeholder Power Map Template to identify stakeholders crucial to CXM application rollouts

    3.2.2 Stakeholder Power Map Template

    Use this template and its power map to help visualize the importance of various stakeholders and their concerns. Prioritize your time according to the most powerful and most impacted stakeholders.

    Answer questions about each stakeholder:

    • Power: How much influence does the stakeholder have? Enough to drive the project forward or into the ground?
    • Involvement: How interested is the stakeholder? How involved is the stakeholder in the project already?
    • Impact: To what degree will the stakeholder be impacted? Will this significantly change how they do their job?
    • Support: Is the stakeholder a supporter of the project? Neutral? A resistor?

    Focus on key players: relevant stakeholders who have high power, should have high involvement, and are highly impacted.

    INFO-TECH DELIVERABLE

    Stakeholder Power Map Template

    Use Info-Tech’s Stakeholder Communication Planning Template to document initiatives and track communication

    3.2.3 Stakeholder Communication Planning Template

    Use the Stakeholder Communication Planning Template to document your list of initiative stakeholders so you can track them and plan communication throughout the initiative.

    Track the communication methods needed to convey information regarding CXM initiatives. Communicate how a specific initiative will impact the way employees work and the work they do.

    Sections of the document:

    1. Document the Stakeholder Power Map (output of Tool 3.2.2).
    2. Complete the Communicate Management Plan to aid in the planning and tracking of communication and training.

    INFO-TECH DELIVERABLE

    Activity: Create a stakeholder power map and communication plan

    3.2.4 1 hour

    Input

    • Stakeholder power map

    Output

    • Stakeholder communication plan
    • CXM Strategy Stakeholder Presentation

    Materials

    • Info-Tech’s Stakeholder Communication Planning Template
    • Info-Tech’s Stakeholder Power Map Template

    Participants

    • Project Team

    Instructions

    1. Using Info-Tech’s Stakeholder Power Map Template, identify key stakeholders for ensuring the success of the CXM strategy (Tool 3.2.2).
    2. Using Info-Tech’s Stakeholder Communication Plan Template, construct a communication plan to communicate and track CXM initiatives with all CXM stakeholders (Tool 3.2.3).
    3. Document your outputs in the CXM Strategy Stakeholder Presentation Template.

    Use Info-Tech’s CXM Strategy Stakeholder Presentation Template to sell your CXM strategy to the business

    3.2.5 CXM Strategy Stakeholder Presentation Template

    Complete the presentation template as indicated when you see the green icon throughout this deck. Include the outputs of all activities that are marked with this icon.

    Info-Tech has designed the CXM Strategy Stakeholder Presentation Template to capture the most critical aspects of the CXM strategy. Customize it to best convey your message to project stakeholders and to suit your organization.

    The presentation should be no longer than one hour. However, additional slides can be added at the discretion of the presenter. Make sure there is adequate time for a question and answer period.

    INFO-TECH DELIVERABLE

    After the presentation, email the deck to stakeholders to ensure they have it available for their own reference.

    Activity: Determine the measured value received from the project

    3.2.6 30 minutes

    Input

    • Project Metrics

    Output

    • Measured Value Calculation

    Materials

    • Workbook

    Participants

    • Project Team

    Instructions

    1. Review project metrics identified in phase 1 and associated benchmarks.
    2. After executing the CXM project, compare metrics that were identified in the benchmarks with the revised and assess the delta.
    3. Calculate the percentage change and quantify dollar impact (i.e. as a result of increased customer acquisition or retention).

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.2.4 Create a stakeholder power map and communication plan

    An analyst will walk the project team through the creation of a communication plan, inclusive of project metrics and their respective goals. If you are planning a variety of CXM initiatives, track how the change will be communicated and to whom. Determine the employees who will be impacted by the change.

    Insight breakdown

    Insight 1

    • IT must work in lockstep with Marketing, Sales, and Customer Service to develop a comprehensive technology-enablement strategy for CXM.
    • As IT works with its stakeholders in the business, it must endeavor to capture and use the voice of the customer in driving strategic requirements for CXM portfolio design.
    • IT must consider the external environment, customer personas, and internal processes as it designs strategic requirements to build the CXM application portfolio.

    Insight 2

    • The cloud is bringing significant disruption to the CXM space: to maintain relevancy, IT must become deeply involved in ensuring alignment between vendor capabilities and strategic requirements.
    • IT must serve as a trusted advisor on technical implementation challenges related to CXM, such as data quality, integration, and end-user training and adoption.
    • IT is responsible for technology enablement and is an indispensable partner in this regard; however, the business must ultimately own the objectives and communication strategy for customer engagement.

    Insight 3

    • When crafting a portfolio for CXM, be aware of the art of the possible: capabilities are rapidly merging and evolving to support new interaction channels. Social, mobile, and IoT are disrupting the customer experience landscape.
    • Big data and analytics-driven decision making is another significant area of value. IT must allow for true customer intelligence by providing an integration framework across customer-facing applications.

    Summary of accomplishment

    Knowledge Gained

    • Voice of the Customer for CXM Portfolio Design
    • Understanding of Strategic Requirements for CXM
    • Customer Personas and Scenarios
    • Environmental Scan
    • Deployment Considerations
    • Initiatives Roadmap Considerations

    Processes Optimized

    • CXM Technology Portfolio Design
    • Customer Data Quality Processes
    • CXM Integrations

    Deliverables Completed

    • Strategic Summary for CXM
    • CXM Project Charter
    • Customer Personas
    • External and Competitive Analysis
    • CXM Application Portfolio

    Bibliography

    Accenture Digital. “Growing the Digital Business: Accenture Mobility Research 2015.” Accenture. 2015. Web.

    Afshar, Vala. “50 Important Customer Experience Stats for Business Leaders.” Huffington Post. 15 Oct. 2015. Web.

    APQC. “Marketing and Sales Definitions and Key Measures.” APQC’s Process Classification Framework, Version 1.0.0. APQC. Mar. 2011. Web.

    CX Network. “The Evolution of Customer Experience in 2015.” Customer Experience Network. 2015. Web.

    Genesys. “State of Customer Experience Research”. Genesys. 2018. Web.

    Harvard Business Review and SAS. “Lessons From the Leading Edge of Customer Experience Management.” Harvard Business School Publishing. 2014. Web.

    Help Scout. “75 Customer Service Facts, Quotes & Statistics.” Help Scout. n.d. Web.

    Inmon Consulting Services. “Corporate Information Factory (CIF) Overview.” Corporate Information Factory. n.d. Web

    Jurevicius, Ovidijus. “VRIO Framework.” Strategic Management Insight. 21 Oct. 2013. Web.

    Keenan, Jim, and Barbara Giamanco. “Social Media and Sales Quota.” A Sales Guy Consulting and Social Centered Selling. n.d. Web.

    Malik, Om. “Internet of Things Will Have 24 Billion Devices by 2020.” Gigaom. 13 Oct. 2011. Web.

    McGovern, Michele. “Customers Want More: 5 New Expectations You Must Meet Now.” Customer Experience Insight. 30 July 2015. Web.

    McGinnis, Devon. “40 Customer Service Statistics to Move Your Business Forward.” Salesforce Blog. 1 May 2019. Web.

    Bibliography

    Reichheld, Fred. “Prescription for Cutting Costs”. Bain & Company. n.d. Web.

    Retail Congress Asia Pacific. “SAP – Burberry Makes Shopping Personal.” Retail Congress Asia Pacific. 2017. Web.

    Rouse, Margaret. “Omnichannel Definition.” TechTarget. Feb. 2014. Web.

    Salesforce Research. “Customer Expectations Hit All-Time High.” Salesforce Research. 2018. Web.

    Satell, Greg. “A Look Back at Why Blockbuster Really Failed and Why It Didn’t Have To.” Forbes. 5 Sept. 2014. Web.

    Social Centered Learning. “Social Media and Sales Quota: The Impact of Social Media on Sales Quota and Corporate Review.” Social Centered Learning. n.d. Web.

    Varner, Scott. “Economic Impact of Experience Management”. Qualtrics/Forrester. 16 Aug. 2017. Web.

    Wesson, Matt. “How to Use Your Customer Data Like Amazon.” Salesforce Pardot Blog. 27 Aug. 2012. Web.

    Winterberry Group. “Taking Cues From the Customer: ‘Omnichannel’ and the Drive For Audience Engagement.” Winterberry Group LLC. June 2013. Web.

    Wollan, Robert, and Saideep Raj. “How CIOs Can Support a More Agile Sales Organization.” The Wall Street Journal: The CIO Report. 25 July 2013. Web.

    Zendesk. “The Impact of Customer Service on Customer Lifetime Value 2013.” Z Library. n.d. Web.

    Service Desk

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    • byline: Your service desk is the face of your company when clients and staff need something. Make it work!
    The service desk is typically the first point of contact for clients and staff who need something. Make sure your team is engaged, involved, knowledgeable, and gives excellent customer service.

    The Importance of Clear Communication During an IT Incident

    IT incidents—such as outages, software bugs, or security alerts—are a routine part of managing business technology. The effectiveness of incident management depends not only on technical resolution but also on how clearly the situation is communicated across the organization.

    Distinguishing Technical Issues from Business Impact

    It’s important that communication during an IT incident separates technical details from business impact.

    Technical communications focus on the nature of the incident, technical root cause, and steps to resolution.
    Business communications address what the incident means for users, customers, and ongoing operations.
    Tactical vs. Strategic Impact
    A key aspect of effective communication is differentiating between tactical and strategic impact:

    Tactical Impact

    This refers to the immediate, short-term effects of the incident. For example, a payment processing outage might delay customer transactions or require manual workarounds. Tactical impact is about “what’s happening right now,” how it disrupts daily operations, and what steps are being taken to restore service.

    Strategic Impact

    This concerns whether the incident has any meaningful effect on the organization’s long-term goals, strategic initiatives, or overall direction. In most cases, IT incidents do not affect strategic objectives. Communication should make it clear to leadership and stakeholders if an incident is limited to tactical impact, helping to avoid unnecessary escalation or concern.

    Tailoring Communication to Audience Levels

    1. Technical Teams
    “The payment gateway service is returning intermittent 503 errors due to a backend database lock. We are currently restarting the affected services and monitoring log files for additional errors. No data loss has been detected, and all failed transactions are being queued for reprocessing.”

    2. Business Operations
    “We are experiencing a temporary issue with our payment processing system. Some transactions may be delayed. Our IT team is actively working on a resolution, and we expect normal operations to resume within the hour. In the meantime, please inform customers of the delay and assure them that no payments have been lost.”

    3. Executive Leadership
    “There is a temporary disruption in our payment processing system that is affecting transaction completion for some customers. The issue is strictly tactical and does not have any impact on our strategic initiatives or financial targets. The technical team is addressing the problem, and we anticipate full resolution shortly. No long-term risk or reputational impact is expected.”

    Best Practices

    Segment communications by audience and need.
    Be explicit about whether an incident has any strategic impact—most do not.
    Use plain language for non-technical stakeholders, focusing on what matters to them.
    Provide timely updates and clarify as the situation evolves.

    Clear communication during IT incidents means more than just relaying facts—it means ensuring that all audiences understand the scope of the impact, especially the difference between tactical disruptions and strategic threats. Consistently making this distinction helps manage expectations, reduces unnecessary concern, and supports more effective incident management.

     

     

     

    Tymans Group Consulting

    IT resilience, carefree entrepreneurship.

    Discover and implement all the ingredients that make your IT perform fast and rock solid.

    Yes, I want stable and performant IT Operations

    We are multidisciplinary infrastructure and IT Operations experts.
    We bring passion, focus, and results to our work and your company.

    TY innovates resilience embedding in your organization

    Let's have a chat

    • TY as your advisor

      This gives you our expertise on tap. Do you have an issue? Call us. You want to have a sparring partner to solve a problem? Call us. Do you need a sounding board? Call us.

      TY provides advisory services as well as traditional consulting. We also execute study and revision services for your policies, standards, procedures, and guidelines to ensure compliance with DORA, NIS2 and corporate requirements of both your own company and that of your clients. And we also check against our internal best ways of working.

      Book a conversation

    • Focused Consulting and Implementing

      This is where you have our undivided attention, and we work with you one on one until resolution. Note that there is a waiting period for this service at this time.

      If you are interested, please first book a call so that we can determine if we are a good fit together.

      Book a conversation

    What our relations tell us

    • Citigroup Manager

      As a technical consultant, Gert is an All-Star performer...  He has got many wins under his belt... His willingness to work hard, knowledge of regional systems (especially Tokyo) and Microsoft Office is well respected within the Group 

    • Sandra

      Tx for all the efforts done! Great Job! And good luck for the ones amongst you that still need to work tomorrow Grtz Sandra VB

    • Patrick A.

      Hi Gert, I'm busy documenting .... Thanks for your real friendly and careful, yet effective support :-) Patrick A.

    • Lucie VH

      During my vacation, Gert took over the management of a number of ongoing problems. Even before I actually left for my trip, he took action and proposed a number of improvements. Gert coordinated between the different stakeholders and PTA's and resolved a number of acute issues. And he did this in a very pleasant, yet effective way.

    • Dawn

      No worries. It only freaked me out for a few minutes, then I saw that the system had blocked them from doing any real damage. Thanks for the cleanup and extra measures, though! As always, you rock!

    • After a successful DRP

      Thanks for all the efforts done ans special Tx Gert for Coordinating this again!

    • A CIO

      Yet again Gert, Thanks for handling this in such a top way!

    • A Sales Manager

      Awesome Gert, I will let the team know we can close this issue!

    • Investment bank manager

      Flexibility, Adaptability, problem Solving are Gert's strong points, Exceptionally beneficial in "crisis." I can attest that Gert will always see a problem through. if he needs to hand it off, it will aways have good handoff notes. His business knowledge is good and will part of the next project.

    • Wall Street Performance Review

      As with the classes for SFC, Gert organised formal classes for all of the Research IT teams.... I would class this job as well done, given everything that was going on with Rsearch IT. 

    • Stuart B on Gert Taeymans

      Excellent technical resource. Quick help on issues and provide explanations to regional teams. Often covers for us in the evenings or when things get particularly busy.

    • Asia support to roll out global system

      Gert time in Japan was a great success. He really helped the IT group through a really difficult tume during the roll out of {the global research publishing system} and had to cover all the bases that had not been properly coverd by the previous person in Japan. Gert's visit also coincided with Stuart's joining into the Asia IT Research group. Gert was very flexible  in the hours that he worked and the lenght of time he was out in Tokyo (in the end more than 4 weeks.)

      The feedback from both the users and the IT group was VERY positive on Gertt's contribution. He was more than capabable to put across technical points to the IT team, in their language.

    • IT Director

      Gert is a knowledgeable individual who takes on additional responsibility... rapidly addressng end-user issues and developing custom solutions when needed.

    Benefits of working with Tymans Group

    • We focus on actual deliverables

      TY delivers on the IT resilience what and how. Get actionable IT, management, governance, and productivity research, insights, blueprints with templates, easy-to-use tools, and clear instructions to help you execute effectively and become IT resilient.

    • Get insights from top IT professionals

      Our TY network base constantly informs us about our IT resilience research and validates it through client experiences. TY adds to that by applying this research to real-world situations in Belgium, the Netherlands, Germany, Europe and the US.

    • Data-driven insights

      It is tempting to use your gut instinct. Don't. Everything TY does, is data-driven. From our research to our interactions with you, we use an analytical approach to help you move forward with your key IT resilience projects.

    Frequently asked questions

    • How does Tymans Group IT Operations advisory work?

      TY believes strongly in leveraging technology and personal delivery. That is why TY uses one on one calling sessions using Teams and Zoom. When needed I do on site delivery.

      Every advisory option has a set number of interactive contact points in addition to email and chat options. Every contact request is answered by me personally. 

      Through the use of technology, I ensure that instead of you having to drive to your coach, the coach “comes” to you!

    • What are Tymans Group advisory service timings?

      TY is available on European time from 09:00 until 17:00 and US EST 09:00-17:00 (depending on already booked appointments). 

    • How much to Tymans Group programs cost?

      While this is a difficult question to answer, let's give it a shot.

      Ideally I work value-based. But this is more for well-defined projects where the ROI is quantifiable rather than qualifiable.

      Often advisory services are a discovery and we obtain results together. You may even only need an experienced sounding board. This type of pricing starts from €4,500.

    • Does Tymans Group have a "pick your brain" option?

      By popular demand, yes, I added this. It is not the cheapest way to use me, but it may be the most effective for you.

    • How are Tymans Group advisory services delivered?

      TY believes strongly in leveraging technology and personal delivery. That is why TY uses one on one calling sessions using Teams and Zoom. When needed I do on site delivery.

      This way I ensure that instead of you having to drive to your coach, the coach “comes” to you!

      You are allowed to record the sessions and use them internally in your organization, including as part of your internal training. You are not allowed to resell these without a resale agreement.

    • Tymans Group is delivered online via calls? Isn't on-site better?

      Interestingly, in the majority of advisory services the answer is no.

      Purely on-site automatically limits the time we can spend together. Thus, typically, the interactions are of a shorter duration. Even when this is done over a longer timeframe, like 5 to 10 days, this is really too short for effective advising, coaching and mentoring. 

      We stay away from accelerated programs, where I can send a lot of information, and most of it will not stick.

      Terry Sejnowski  a neuroscientist, actually states that cramming does not help you remember. It gets you, maybe, through the next exam, but the information is not retained. The way to integrate and remember information is to spread out the study and repeat. This is called the spacing effect.

      This is why I employ the online delivery method. When you record our sessions, you can come back and again repeat it, note down your questions and fire them off to me. I respond and you go back into the talk. Then you apply, possibly fail, and come back again until it succeeds, and then you make it your own.

      That is why time-pressured, on-site delivery does not work. Our method makes you effective because you internalized the material and feedback. This can then be rounded-off by on-site finalization.

      10-15 years ago, this was not possible, as the web-based tools were simply not fast enough. Today, unless you are taking classes like carpentry or other topics that require on-site delivery, online delivery is the way to go.

    • Can I pay by wire transfer?

      We actually prefer wire transfer. It cuts down on the financial fees and it is the norm in the European Union. Our US customer can also use this feature and pay into our US bank.

    • Where is Tymans Group located?

      Tymans Group has two locations:

      In Europe, Belgium and in Greenville, DE, United States, 

      The HQ is in Belgium.

    • Does this work for less than 25 employees?

      Resilience is not size-dependent. That said, if you are supplying critical services to financial services firms, you may not have a choice. In that case, be prepared to up your game. Call TY in this case. We can help you fulfill third-party requirements, such as the DORA regulation.

      In other cases, if you plan to grow your company beyond 25 employees, then yes. Start with the basics, though. Make sure you have a good understanding of your current challenges. Schedule a chat with me to determine the right baseline.

      If you are just starting out and want to ensure that your company's processes are correct right out of the gate, it's better to give me a call. We can start you off in the right direction without spending too much.

      Our guides are only available to existing advisory clients. Let's chat informally if we are a fit for you.

    • I'm a small business owner, can I do all this by myself?

      Our guides are only available to existing advisory clients.

      But also see the above question about company size and target clients. If you have fewer than 25 employees and you are not supplying critical services to financial institutions, then maybe some of our guides are not for you. We can still help you organize your resilience, but it may be more cost-effective to use only our TY Advisory services.

      Once you grow beyond 25 employees, you will benefit from our processes. Just implement what you need. How do you know what you require? You probably already have an inkling of what is lacking in your organization. If you are unsure, please get in touch with us.

      In short, the answer is yes, and TY can help you. Once you know what you are looking for, that guide allows you to handle it yourself. If you require help selecting the right guide, please get in touch with us.

    • Do you provide refunds?

      Before buying the DIY guides, available only to existing advisory clients,, please refer to the free Executive Summary when available. If there is no Executive summary available, please contact me with any questions you have. 

      As these are downloadable products, I cannot provide any refunds, but I will help you with any exchange where you have a good reason. 

    • I bought the wrong item

      If you bought the wrong item, please contact me and we'll be happy to provide an alternative item.

    • I want more assistance

      Yes, more assistance is available.  Tymans Group can provide you with any assistance you require within the parameters of your contract.

      Per-guide assistance ranges from a single phone or video consultation to guided implementation or a workshop. Alternatively we can go to do-it-for-you implementation or even full-time consulting.

      Note that our guides are only available to existing advisory clients.

      Please contact me for a talk.

    I want more information to become more resilient.

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    Cybersecurity in Healthcare 2024

    Healthcare cybersecurity is a major concern for healthcare organizations and patients alike. In 2024, the healthcare industry faces several cybersecurity challenges, including the growing threat of ransomware, the increasing use of mobile devices in healthcare, and the need to comply with new regulations.

    Continue reading

    Optimize Your Software Selection Process: Why 5 and 30 Are the Magic Numbers

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    • Parent Category Name: Selection & Implementation
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    • Software selection takes forever. The process of choosing even the smallest apps can drag on for years: sometimes in perpetuity. Software selection teams are sprawling, leading to scheduling slowdowns and scope creep. Moreover, cumbersome or ad hoc selection processes lead to business-driven software selection.

    Our Advice

    Critical Insight

    • Maximize project effectiveness with a five-person team. Project satisfaction and effectiveness is stagnant or decreases once the team grows beyond five people.
    • Tight project timelines are critical. Keep stakeholders engaged with a defined application selection timeline that moves the project forward briskly – 30 days is optimal.
    • Empower both IT and end users with a standardized selection process to consistently achieve high satisfaction coming out of software selection projects.

    Impact and Result

    • Shatter stakeholder expectations with truly rapid application selections.
    • Put the “short” back in shortlist by consolidating the vendor shortlist up-front and reducing downstream effort.
    • Identify high-impact software functionality by evaluating fewer use cases.
    • Lock in hard savings and do not pay list price by using data-driven tactics.

    Optimize Your Software Selection Process: Why 5 and 30 Are the Magic Numbers Research & Tools

    Discover the Magic Numbers

    Increase project satisfaction with a five-person core software selection team that will close out projects within 30 days.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Optimize Your Software Selection Process: Why 5 and 30 Are the Magic Numbers Storyboard

    1. Align and eliminate elapsed time

    Ensure a formal selection process is in place and make a concerted effort to align stakeholder calendars.

    2. Reduce low-impact activities

    Reduce time spent watching vendor dog and pony shows, while reducing the size of your RFPs or skipping them entirely.

    3. Focus on high-impact activities

    Narrow the field to four contenders prior to in-depth comparison and engage in accelerated enterprise architecture oversight.

    4. Use these rapid and essential selection tools

    Focus on key use cases rather than lists of features.

    • The Software Selection Workbook
    • The Vendor Evaluation Workbook
    • The Guide to Software Selection: A Business Stakeholder Manual

    5. Engage Two Viable Vendors in Negotiation

    Save more by bringing two vendors to the final stage of the project and surfacing a consolidated list of demands prior to entering negotiation.

    [infographic]

    Further reading

    Optimize Your Software Selection Process: Why 5 and 30 Are the Magic Numbers

    Select your applications better, faster, and cheaper.

    How to Read This Software Selection Insight Primer

    1. 43,000 Data Points

      2. This report is based on data gathered from a survey of 43,000 real-world IT practitioners.

    2. Aggregating Feedback

      3. The data is compiled from SoftwareReviews (a sister company of Info-Tech Research Group), which collects and aggregates feedback on a wide variety of enterprise technologies.

    3. Insights Backed by Data

      4. The insights, charts, and graphs in this presentation are all derived from data submitted by real end users.

    The First Magic Number Is Five

    The optimal software selection team comprises five people

    • Derived from 43,000 data points. Analysis of thousands of software selection projects makes it clear a tight core selection team accelerates the selection process.
    • Five people make up the core team. A small but cross-functional team keeps the project moving without getting bogged down on calendar alignment and endless back-and-forth.
    • It is a balancing act. Having too few stakeholders on the core selection team will lead to missing valuable information, while having too many will lead to delays and politically driven inefficiencies.

    There Are Major Benefits to Narrowing the Selection Team Size to Five

    Limit the risk of ineffective “decision making by committee”

    Expedite resolution of key issues and accelerate crucial decisions

    Achieve alignment on critical requirements

    Streamline calendar management

    Info-Tech Insight

    Too many cooks spoil the broth: create a highly focused selection team that can devote the majority of its time to the project while it’s in flight to demonstrate faster time to value.

    Arm Yourself With Data to Choose the Right Plays for Selection

    Software selection takes forever. The process of choosing even the smallest apps can drag on for years: sometimes in perpetuity.

    Organizations keep too many players on the field, leading to scheduling slowdowns and scope creep.

    Keeping the size of the core selection team down, while liaising with more stakeholders and subject matter experts (SMEs), leads to improved results.

    Maximize project effectiveness with a five-person team. Project satisfaction and effectiveness are stagnant or decrease once the team grows beyond five people.

    Cumbersome or ad hoc selection processes lead to business-driven software selection.

    Increase stakeholder satisfaction by using a consistent selection framework that captures their needs while not being a burden.

    Empower both IT and end users with a standardized selection process to consistently achieve high satisfaction coming out of software selection projects.

    The image contains a graph that is titled: A compact selection team can save you weeks. The graph demonstrates time saved with a five person team in comparison to larger teams.

    Project Satisfaction and Effectiveness Are Stagnant Once the Team Grows Beyond Five People

    The image contains a graph to demonstrate project satisfaction and effectiveness being stagnant with a team larger than five.
    • There is only a marginal difference in selection effectiveness when more people are involved, so why include so many? It only bogs down the process!
    • Full-time resourcing: At least one member of the five team members must be allocated to the selection initiative as a full-time resource.

    Info-Tech Insight

    It sounds natural to include as many players as possible in the core selection group; however, expanding the group beyond five people does not lead to an increase in satisfaction. Consider including a general stakeholder feedback working session instead.

    Shorten Project Duration by Capping the Selection Team at Five People

    However, it is important to make all stakeholders feel heard

    The image contains a graph to demonstrate that an increase in time and effort connects with an increase in total number of people involved.

    Exclusion is not the name of the game.

    • Remember, we are talking about the core selection team.
    • Help stakeholders understand their role in the project.
    • Educate stakeholders about your approach to selection.
    • Ensure stakeholders understand why the official selection team is being capped at five people.
    • Soliciting requirements and feedback from a broader array of stakeholders is still critical.

    Large Organizations Benefit From Compact Selection Teams Just as Much as Small Firms

    Think big even if your organization is small

    Small organizations

    Teams smaller than five people are common due to limited resources.

    Medium organizations

    Selection project satisfaction peaks with teams of fewer than two people. Consider growing the team to about five people to make stakeholders feel more included with minimal drops in satisfaction.

    Large organizations

    Satisfaction peaks when teams are kept to three to five people. With many SMEs available, it is critical to choose the right players for your team.

    The image contains a multi bar graph to demonstrate the benefits of compact selection teams depending on the size of the company, small, medium, or large.

    Keep the Core Selection Team to Five People Regardless of the Software Category

    Smaller selection teams yield increased satisfaction across software categories

    Info-Tech Insight

    Core team size remains the same regardless of the application being selected. However, team composition will vary depending on the end users being targeted.

    Think beyond application complexity

    • Our instinct is to vary the size of the core selection team based on perceived application complexity.
    • The data has demonstrated that a small team yields increased satisfaction for applications across a wide array of application complexity profiles.
    • The real differentiator for complex applications will be the number of stakeholders that the core selection team liaise with, particularly for defining strong requirements.

    The image contains a graph to demonstrate satisfaction across software categories increases with smaller selection teams.

    The Second Magic Number Is 30

    Finish the project while stakeholders are still fully engaged in order to maximize satisfaction

    • 30- to 60-day project timelines are critical. Keep stakeholders engaged with a defined application selection timeline that moves the project forward briskly.
    • Strike while the iron is hot. Deliver applications in a timely manner after the initial request. Don’t let IT become the bottleneck for process optimization.
    • Minimize scope creep: As projects drag on in perpetuity, the scope of the project balloons to something that cannot possibly achieve key business objectives in a timely fashion.

    Aggressively Timeboxing the Project Yields Benefits Across Multiple Software Categories

    After four weeks, stakeholder satisfaction is variable

    The image contains a graph to demonstrate that aggressively timeboxing the project yields benefits across multiple software categories.
    Only categories with at least 1,000 responses were included in the analysis.

    Achieve peak satisfaction by allotting 30 days for an application selection project.

    • Spending two weeks or less typically leads to higher levels of satisfaction for each category because it leaves more time for negotiation, implementation, and making sure everything works properly (especially if there is a time constraint).
    • Watch out for the “satisfaction danger zone” once project enters the 6- to 12-week mark. Completing a selection in four weeks yields greater satisfaction.

    Spend Your Time Wisely to Complete the Selection in 30 Days

    Save time in the first three phases of the selection project

    Awareness

    Education & Discovery

    Evaluation

    Reduce Time

    Reduce Time

    Reduce Time
    ↓ ↓ ↓

    Save time duplicating existing market research. Save time and maintain alignment with focus groups.

    Save time across tedious demos and understanding the marketplace.

    Save time gathering detailed historical requirements. Instead, focus on key issues.

    Info-Tech Insight – Awareness

    Timebox the process of impact analysis. More time should be spent performing the action than building a business case.

    Info-Tech Insight – Education

    Save time duplicating existing market research. Save time and maintain alignment with focus groups.

    Info-Tech Insight – Evaluation

    Decision committee time is valuable. Get up to speed using third-party data and written collateral. Use committee time to conduct investigative interviews instead. Salesperson charisma and marketing collateral quality should not be primary selection criteria. Sadly, this is the case far too often.

    Limit Project Duration to 30 Days Regardless of the Application Being Selected

    Timeboxing application selection yields increased satisfaction across software categories

    The image contains a graph to demonstrate selection effort in weeks by satisfaction. The graph includes informal and formal methods on the graph across the software categories.

    Info-Tech Insight

    Office collaboration tools are a great case study for increasing satisfaction with decreased time to selection. Given the sharp impetus of COVID-19, many organizations quickly selected tools like Zoom and Teams, enabling remote work with very high end-user satisfaction.

    There are alternative approaches for enterprise-sized applications:

    • New applications that demand rigorous business process improvement efforts may require allotting time for prework before engaging in the 30-day selection project.
    • To ensure that IT is using the right framework, understand the cost and complexity profile of the application you’re looking to select.

    The Data Also Shows That There Are Five Additional Keys to Improving Your Selection Process

    1. ALIGN & ELIMINATE ELAPSED TIME
    • Ensure a formal selection process is in place.
    • Balance the core selection team’s composition.
    • Make a concerted effort to align stakeholder calendars.
    2. REDUCE TIME SPENT ON LOW-IMPACT ACTIVITIES
    • Reduce time spent on internet research. Leverage hard data and experts.
    • Reduce RFP size or skip RFPs entirely.
    • Reduce time spent watching vendor dog and pony shows.
    3. FOCUS ON HIGH- IMPACT ACTIVITIES
    • Narrow the field to four contenders prior to in-depth comparison.
    • Identify portfolio overlap with accelerated enterprise architecture oversight.
    • Focus on investigative interviews and proof of concept projects.
    4. USE RAPID & ESSENTIAL ASSESSMENT TOOLS
    • Focus on key use cases, not lists of features.
    • You only need three essential tools: Info-Tech’s Vendor Evaluation Workbook, Software Selection Workbook, and Business Stakeholder Manual.
    5. ENGAGE TWO VIABLE VENDORS IN NEGOTIATION
    • Save more during negotiation by selecting two viable alternatives.
    • Surface a consolidated list of demands prior to entering negotiation.
    • Communicate your success with the organization.

    1. Align & Eliminate Elapsed Time

    ✓ Ensure a formal selection process is in place.

    ✓ Reduce time by timeboxing the project to 30 days.

    ✓ Align the calendars of the five-person core selection team.

    Improving Your IT Department’s Software Selection Capability Yields Big Results

    Time spent building a better process for software selection is a great investment

    • Enterprise application selection is an activity that every IT department must embark on, often many times per year.
    • The frequency and repeatability of software selection means it is an indispensable process to target for optimization.
    • A formal process is not always synonymous with a well-oiled process.
    • Even if you have a formal selection process already in place, it’s imperative to take a concerted approach to continuous improvement.

    It is critical to improve the selection process before formalizing

    Leverage Info-Tech’s Rapid Application Selection Framework to gain insights on how you can fine-tune and accelerate existing codified approaches to application selection.

    Before Condensing the Selection Team, First Formalize the Software Selection Process

    Software selection processes are challenging

    Vendor selection is politically charged, requiring Procurement to navigate around stakeholder biases and existing relationships.

    Stakeholders

    The process is time consuming and often started too late. In the absence of clarity around requirements, it is easy to default to looking at price instead of best functional and architectural fit.

    Timing

    Defining formal process and methodology

    Formal selection methodologies are repeatable processes that anybody can consistently follow to quickly select new technology.

    Repeatable

    The goal of formalizing the approach is to enable IT to deliver business value consistently while also empowering stakeholders to find tools that meet their needs. Remember! A formal selection process is synonymous with a bureaucratic, overblown approach.

    Driving Value

    Most Organizations Are Already Using a Formal Software Selection Methodology

    Don’t get left behind!

    • A common misconception for software selection is that only large organizations have formal processes.
    • The reality is that organizations of all sizes are making use of formal processes for software selection.
    • Moreover, using a standardized method to evaluate new technology is most likely common practice among your competitors regardless of their size.
    • It is important to remember that the level of rigor for the processes will vary based not only on project size but also on organization size.
    Only categories with at least 1,000 responses were included in the analysis.

    The image contains a double bar graph that compares the sizes of companies using formal or informal evaluation and selection methodology.

    Use a Formal Evaluation and Selection Methodology to Achieve Higher Satisfaction

    A formal selection process does not equal a bloated selection process

    • No matter what process is being used, you should consider implementing a formal methodology to reduce the amount of time required to select the software. This trend continues across different levels of software (commodity, complex, and enterprise).
    • It is worth noting that using a process can actually add more time to the selection process, so it is important to know how to use it properly.
    • Don’t use just one process: you should use a combination, but don’t use more than three when selecting your software.
    The image contains a double bar graph to demonstrate the difference between formal and informal evaluation to achieve a higher satisfaction.

    Hit a Home Run With Your Business Stakeholders

    Use a data-driven approach to select the right application vendor for their needs – fast

    The image contains a screenshot of the data-drive approach. The approach includes: awareness, education & discovery, evaluation, selection, negotiation & configuration.

    Investing time improving your software selection methodology has big returns.

    Info-Tech Insight

    Not all software selection projects are created equal – some are very small; some span the entire enterprise. To ensure that IT is using the right framework, understand the cost and complexity profile of the application you’re looking to select. The Rapid Application Selection Framework approach is best for commodity and mid-tier enterprise applications; selecting complex applications is better handled by the methodology described in Implement a Proactive and Consistent Vendor Selection Process.

    Lock Down the Key Players Before Setting Up the Relevant Timeline

    You are the quarterback of your selection team

    Don’t get bogged down “waiting for the stars to align” in terms of people’s availability: if you wait for the perfect alignment, the project may never get done.

    If a key stakeholder is unavailable for weeks or months due to PTO or other commitments, don’t jeopardize project timelines to wait for them to be free. Find a relevant designate that can act in their stead!

    You don’t need the entire team on the field at once. Keep certain stakeholders on the bench to swap in and out as needed.

    Info-Tech Insight

    Assemble the key stakeholders for project kick-off to synchronize the application selection process and limit elapsed time. Getting all parties on the same page increases output satisfaction and eliminates rework. Save time and get input from key stakeholders at the project kick-off.

    Assemble a Cross-Functional Team for Best Results

    A blend of both worlds gets the best of both worlds from domain expertise (technical and business)

    The image contains a graph labelled: Likeliness to recommend. It is described in the text below.

    How to manage the cross-functional selection team:

    • There should be a combination of IT and businesspeople involved in the selection process, and ideally the ratio would be balanced.
    • No matter what you are looking for, you should never include more than five people in the selection process.
    • You can keep key stakeholders and other important individuals informed with what is going on, but they don’t necessarily have to be involved in the selection process.

    Leverage a Five-Person Team With Players From Both IT and the Business

    For maximum effectiveness, assign at least one resource to the project on a full-time basis

    IT Leader

    Technical IT

    Business Analyst/ Project Manager

    Business Lead

    Process Expert

    This team member is an IT director or CIO who will provide sponsorship and oversight from the IT perspective.

    This team member will focus on application security, integration, and enterprise architecture.

    This team member elicits business needs and translates them into technology requirements.

    This team member will provide sponsorship from the business needs perspective.

    This team member will contribute their domain-specific knowledge around the processes that the new application supports.

    Info-Tech Insight

    It is critical for the selection team to determine who has decision rights. Organizational culture will play the largest role in dictating which team member holds the final say for selection decisions.

    Ensure That Your Project Has the Right Mix of the Core Team and Ancillary Stakeholders

    Who is involved in selecting the new application?

    • Core selection team:
      • The core team ideally comprises just five members.
      • There will be representatives from IT and the specific business function that is most impacted by the application.
      • The team is typically anchored by a business analyst or project management professional.
      • This is the team that is ultimately accountable for ensuring that the project stays on track and that the right vendor is selected.
    • Ancillary stakeholders:
      • These stakeholders are brought into the selection project on an as-needed basis. They offer commentary on requirements and technical know-how.
      • They will be impacted by the project outcome but they do not bear ultimate accountability for selecting the application.
    The image contains an outer circle that lists Ancillary Stakeholders, and an inner selection team that lists core selection teams.

    Tweak the Team Composition Based on the Application Category in Question

    All applications are different. Some categories may require a slightly different balance of business and IT users.

    When to adjust the selection team’s business to IT ratio:

    • Increase the number of business stakeholders for customer-centric applications like customer relationship management and customer service management.
    • Keep projects staffed with more technical resources when selecting internal-facing tools like network monitoring platforms, next-generation firewalls, and endpoint protection systems.
    The image contains a graph to demonstrate how to tweak the team composition based on the application category.

    When to adjust the selection team’s business to IT ratio:

    • Increase the number of business stakeholders for customer-centric applications like customer relationship management and customer service management.
    • Keep projects staffed with more technical resources when selecting internal-facing tools like network monitoring platforms, next-generation firewalls, and endpoint protection systems.

    Balance the Selection Team With Decision Makers and Front-Line Resources

    Find the right balance!

    • Make sure to include key decision makers to increase the velocity of approvals.
    • However, it is critical to include the right number of front-line resources to ensure that end-user needs are adequately reflected in the requirements and decision criteria used for selection.

    The image contains a graph on the team composition with number of decision makers involved.

    Info-Tech Insight

    When selecting their software, organizations have an average of two to four business and IT decision makers/influencers on the core selection team.

    Optimize Meeting Cadence to Complete Selection in 30 Days

    Project Cadence:

    • Execute approximately one phase per week.
    • Conduct weekly checkpoints to move through your formal selection framework.
    • Allot two to four hours per touchpoint.

    The image contains a calendar with the five phases spread put over five weeks.

    Info-Tech Insight

    Use weekly touchpoints with the core selection team to eliminate broken telephone. Hold focus groups and workshops to take a more collaborative, timely, and consensus-driven approach to zero in on critical requirements.

    2. Reduce Time Spent on Low-Impact Activities

    ✓ Reduce time spent on internet research. Leverage hard data and experts.

    ✓ Reduce RFP size or skip RFPs entirely.

    ✓ Reduce time spent watching vendor dog and pony shows.

    Reduce Time Spent on Internet Research by Leveraging Hard Data and Experts

    REDUCE BIAS

    Taking a data-driven approach to vendor selection ensures that decisions are made in a manner that reduces human bias and exposure to misaligned incentives.

    SCORING MODELS

    Create a vendor scoring model that uses several different scored criteria (alignment to needs, alignment to architecture, cost, relationship, etc.) and weight them.

    AGGREGATE EXPERIENCES

    When you leverage services such as SoftwareReviews, you’re relying on amalgamated data from hundreds of others that have already been down this path: benefit from their experience!

    PEER-DRIVEN INSIGHTS

    Formally incorporate a review of Category Reports from SoftwareReviews into your vendor selection process to take advantage of peer-driven expert insights.

    Contact Us

    Info-Tech is just a phone call away. Our expert analysts can guide you to successful project completion at no additional cost to you.

    Bloated RFPs Are Weighing You Down

    Avoid “RFP overload” – parse back deliverables for smaller projects

    1. Many IT and procurement professionals are accustomed to deliverable-heavy application selection projects.
    2. Massive amounts of effort is spent creating onerous RFIs, RFPs, vendor demo scripts, reference guides, and Pugh matrices – with only incremental (if any) benefits.
    3. For smaller projects, focus on creating a minimum viable RFP that sketches out a brief need statement and highlights three or four critical process areas to avoid RFP fatigue.

    Draft a lightweight RFI (or minimum viable RFP) to give vendors a snapshot of your needs while managing effort

    An RFI or MV-RFP is a truncated RFP document that highlights core use cases to vendors while minimizing the amount of time the team has to spend building it.

    You may miss out on the right vendor if:

    • The RFP is too long or cumbersome for the vendor to respond.
    • Vendors believe their time is better spent relationship selling.
    • The RFP is unclear and leads them to believe they won’t be successful.
    • The vendor was forced to guess what you were looking for.

    How to write a successful RFI/MV-RFP:

    • Expend your energy relative to the complexity of the required solution or product you’re seeking.
    • A good MV-RFP is structured as follows: a brief description of your organization, business context, and key requirements. It should not exceed a half-dozen pages in length.
    • Be transparent.
    • This could potentially be a long-term relationship, so don’t try to trick suppliers.
    • Be clear in your expectations and focus on the key aspects of what you’re trying to achieve.

    Use the appropriate Info-Tech template for your needs (RFI, RFQ, or RFP). The Request for Information Template is best suited to the RASF approach.

    If Necessary, Make Sure That You Are Going About RFPs the Right Way

    RFPs only add satisfaction when done correctly

    The image contains a graph to demonstrate RFP and satisfaction.

    Info-Tech Insight

    Prescriptive yet flexible: Avoid RFP overload when selecting customer experience–centric applications, but a formal approach to selection is still beneficial.

    When will an RFP increase satisfaction?

    • Satisfaction is increased when the RFP is used in concert with a formal selection methodology. An RFP on its own does not drive significant value.
    • RFPs that focus on an application’s differentiating features lead to higher satisfaction with the selection process.
    • Using the RFP to evaluate mandatory or standard and/or mandatory features yields neutral results.

    Reduce Time Spent Watching Vendor Dog and Pony Shows

    Salesperson charisma and marketing collateral quality should not be primary selection criteria. Sadly, this is the case far too often.

    Use data to take control back from the vendor

    • Taking a data-driven approach to vendor selection ensures that decisions are made in a manner that reduces human bias and exposure to misaligned incentives.
    • When you leverage services such as SoftwareReviews, you’re relying on amalgamated data from hundreds of others that have already been down this path: benefit from their collective experience!

    Kill the “golf course effect” and eliminate stakeholder bias

    • A leading cause of selection failure is human bias. While rarely malicious, the reality is that decision makers and procurement staff can become unduly biased over time by vendor incentives. Conference passes, box seats, a strong interpersonal relationship – these are all things that may be valuable to a decision maker but have no bearing on the efficacy of an enterprise application.
    • A strong selection process mitigates human bias by using a weighted scoring model and basing decisions on hard data: cost, user satisfaction scores, and trusted third-party data from services such as SoftwareReviews.

    Conduct a Day of Rapid-Fire Investigative Interviews

    Zoom in on high-value use cases and answers to targeted questions

    Make sure the solution will work for your business

    Give each vendor 60 to 90 minutes to give a rapid-fire presentation. We suggest the following structure:

    • 20 minutes: company introduction and vision
    • 20 minutes: one high-value scenario walkthrough
    • 20-40 minutes: targeted Q&A from the business stakeholders and procurement team

    To ensure a consistent evaluation, vendors should be asked analogous questions, and a tabulation of answers should be conducted.

    How to challenge the vendors in the investigative interview

    • Change the visualization/presentation.
    • Change the underlying data.
    • Add additional data sets to the artifacts.
    • Collaboration capabilities.
    • Perform an investigation in terms of finding BI objects and identifying previous changes and examine the audit trail.

    Rapid-Fire Vendor Investigative Interview

    Invite vendors to come onsite (or join you via videoconference) to demonstrate the product and to answer questions. Use a highly targeted demo script to help identify how a vendor’s solution will fit your organization’s particular business capability needs.

    Spend Your Time Wisely and Accelerate the Process

    Join the B2B software selection r/evolution

    Awareness

    Education & Discovery

    Evaluation

    Selection

    Negotiation & Configuration

    Reduce Time

    Reduce Time

    Reduce Time

    Reduce Time

    Reduce Time

    ↓

    		↓↓

    ↑

    ↑

    Save time
    duplicating existing market research. Save time and maintain alignment with focus groups.

    Save time across tedious demos and understanding the marketplace.

    Save time gathering detailed historical requirements. Instead, focus on key issues.

    Use your time to validate how the solution will handle mission-critical requirements.

    Spend time negotiating with two viable alternatives to reduce price by up to 50%.

    Use a tier-based model to accelerate commodity and complex selection projects.

    Eliminate elapsed process time with focus groups and workshops.

    3. Focus on High-Impact Activities

    ✓ Narrow the field to four contenders prior to in-depth comparison.

    ✓ Identify portfolio overlap with accelerated enterprise architecture oversight.

    ✓ Focus on investigative interviews and proof of concept projects.

    Narrow the Field to a Maximum of Four Contenders

    Focus time spent on the players that we know can deliver strong value

    1. ACCELERATE SELECTION

    Save time by exclusively engaging vendors that support the organization’s differentiating requirements.

    2. DECISION CLARITY

    Prevent stakeholders from getting lost in the weeds with endless lists of vendors.

    3.CONDENSED DEMOS

    Limiting the project to four contenders allows you to stack demos/investigative interviews into the same day.

    4. LICENSING LEVERAGE

    Keep track of key differences between vendor offerings with a tight shortlist.

    Rapid & Effective Selection Decisions

    Consolidating the Vendor Shortlist Up-Front Reduces Downstream Effort

    Put the “short” back in shortlist!

    • Radically reduce effort by narrowing the field of potential vendors earlier in the selection process. Too many organizations don’t funnel their vendor shortlist until nearing the end of the selection process. The result is wasted time and effort evaluating options that are patently not a good fit.
    • Leverage external data (such as SoftwareReviews) and expert opinion to consolidate your shortlist into a smaller number of viable vendors before the investigative interview stage and eliminate time spent evaluating dozens of RFP responses.
    • Having fewer RFP responses to evaluate means you will have more time to do greater due diligence.

    Rapid Enterprise Architecture Evaluations Are High-Impact Activities

    When accelerating selection decisions, finding the right EA is a balancing act

    • Neglecting enterprise architecture as a shortcut to save time often leads to downstream integration problems and decreases application satisfaction.
    • On the other hand, overly drawn out enterprise architecture evaluations can lead to excessively focusing on technology integration versus having a clear and concise understanding of critical business needs.

    Info-Tech Insight

    Targeting an enterprise architecture evaluation as part of your software selection process that does not delay the selection while also providing sufficient insight into platform fit is critical.

    Key activities for rapid enterprise architecture evaluation include:

    1. Security analysis
    2. Portfolio overlap review + integration assessment
    3. Application standards check

    The data confirms that it is worthwhile to spend time on enterprise architecture

    • Considering software architecture fit up-front to determine if new software aligns with the existing application architecture directly links to greater satisfaction.
    • Stakeholders are most satisfied with their software value when there is a good architectural platform fit.
    • Stakeholders that ranked Architectural Platform Fit lower during the selection process were ultimately more unsatisfied with their software choice.

    The image contains a screenshot of data to demonstrate that it is worthwhile to spend time on enterprise architecture.

    Identify Portfolio Overlap With an Accelerated Enterprise Architecture Assessment

    Develop a clear view of any overlap within your target portfolio subset and clear rationalization/consolidation options

    • Application sprawl is a critical pain point in many organizations. It leads to wasted time, money, and effort as IT (and the business) maintain myriad applications that all serve the same functional purpose.
    • Opportunities are missed to consolidate and streamline associated business process management, training, and end-user adoption activities.
    • Identify which applications in your existing architecture serve a duplicate purpose: these applications are the ones you will want to target for consolidation.
    • As you select a new application, identify where it can be used to serve the goal for application rationalization (i.e. can we replace/retire existing applications in our portfolio by standardizing the new one?).

    Keep the scope manageable!

    • Highlight the major functional processes that are closely related to the application you’re selecting and identify which applications support each.
    • The template below represents a top-level view of a set of customer experience management (CXM) applications. Identify linkages between sets of applications and if they’re uni- or bi-directional.
    The image contains a screenshot of images that demonstrate portfolio overlap with an accelerated enterprise architecture assessment.

    Rapidly Evaluate the Security & Risk Profile for a Right-Sized Enterprise Architecture Evaluation

    There are four considerations for determining the security and risk profile for the new application

    1. Financial Risk
    • Consider the financial impact the new application has on the organization.
      • How significant is the investment in technology?
    • If this application fails to meet its business goals and deliver strong return on investment, will there be a significant amount of financial resources to mitigate the problem?
  • Data Sensitivity Risk
    • Understand the type of data that will be handled/stored by the application.
      • For example, a CRM will house customer personally identifiable information (PII) and an ECM will store confidential business documentation.
    • Determine the consequences of a potential breach (i.e. legal and financial).
  • Application Vulnerability Risk
    • Consider whether the application category has a historically strong security track record.
      • For example, enterprise cloud storage solutions may have a different level of vulnerability than an HRIS platform.
  • Infrastructure Risk
    • Determine whether the new application requires changes to infrastructure or additional security investments to safeguard expanded infrastructure.
    • Consider the ways in which the changes to infrastructure increase the vectors for security breaches.

    Spend More Time Validating Key Issues With Deep Technical Assessments

    The image contains a screenshot of an image of an iceberg. The top part of the iceberg is above water and labelled 40%. The rest of the iceberg is below water and is labelled 60%.

    Conversations With the Vendor

    • Initial conversations with the vendor build alignment on overall application capabilities, scope of work, and pricing.

    Pilot Projects and Trial Environments

    • Conduct a proof of concept project to ensure that the application satisfies your non-functional requirements.
    • Technical assessments not only demonstrate whether an application is compatible with your existing systems but also give your technical resources the confidence that the implementation process will be as smooth as possible.
    • Marketing collateral glosses over actual capabilities and differentiation. Use unbiased third-party data and detailed system training material.

    4. Use Rapid & Essential Assessment Tools

    ✓ Focus on key use cases, not lists of features.

    ✓ You only need three essential tools:

    1. Info-Tech’s Vendor Evaluation Workbook
    2. The Software Selection Workbook
    3. A Business Stakeholder Manual

    Focus on Key Use Cases, Not an Endless Laundry List of Table Stakes Features

    Focus on Critical Requirements

    Failure to differentiate must-have and nice-to-have use cases leads to applications full of non-critical features.

    Go Beyond the Table Stakes

    Accelerate the process by skipping common requirements that we know that every vendor will support.

    Streamline the Quantity of Use Cases

    Working with a tighter list of core use cases increases time spent evaluating the most impactful functionality.

    Over-Customization Kills Projects

    Eliminating dubious “sacred cow” requirements reduces costly and painful platform customization.

    Only Make Use of Essential Selection Artifacts

    Vendor selection projects often demand extensive and unnecessary documentation

    The Software Selection Workbook

    Work through the straightforward templates that tie to each phase of the Rapid Application Selection Framework, from assessing the business impact to requirements gathering.

    The image contains a screenshot of The Software Selection Workbook.

    The Vendor Evaluation Workbook

    Consolidate the vendor evaluation process into a single document. Easily compare vendors as you narrow the field to finalists.

    The image contains a screenshot of The Vendor Evaluation Workbook.

    The Guide to Software Selection: A Business Stakeholder Manual

    Quickly explain the Rapid Application Selection Framework to your team while also highlighting its benefits to stakeholders.

    The image contains a screenshot of The Guide to Software Selection: A Business Stakeholder Manual.

    Software Selection Engagement

    Five advisory calls over a five-week period to accelerate your selection process

    • Expert analyst guidance over five weeks on average to select and negotiate software.
    • Save money, align stakeholders, speed up the process, and make better decisions.
    • Use a repeatable, formal methodology to improve your application selection process.
    • Better, faster results, guaranteed, included in membership.
    The image contains a screenshot of the calendar over 30 days that outlines the five calls.

    Click here to book your selection engagement

    Software Selection Workshop

    With 40 hours of advisory assistance delivered online, select better software, faster.

    • 40 hours of expert analyst guidance.
    • Project and stakeholder management assistance.
    • Save money, align stakeholders, speed up the process, and make better decisions.
    • Better, faster results, guaranteed; $20K standard engagement fee.
    The image contains a screenshot of the calendar over 30 days that outlines the five calls.

    CLICK HERE TO BOOK YOUR WORKSHOP ENGAGEMENT

    5. Select Two Viable Options & Engage Both in Negotiation

    ✓ Save more during negotiation by selecting two viable alternatives.

    ✓ Surface a consolidated list of demands prior to entering negotiation.

    ✓ Communicate your success with the organization.

    Save More During Negotiation by Selecting Two Viable Alternatives

    VENDOR 1

    Build in a realistic plan B that allows you to apply leverage to the incumbent or primary vendor of choice.

    VENDOR 2

    If the top contender is aware that they do not have competition, they will be less inclined to make concessions.

    Maintain momentum with two options

    • Should you realize that the primary contender is no longer a viable option (i.e. security concerns), keeping a second vendor in play enables you to quickly pivot without slowing down the selection project.

    Secure best pricing by playing vendors off each other

    • Vendors are more likely to give concessions on the base price once they become aware that a direct competitor has entered the evaluation.

    Truly commit to a thorough analysis of alternatives

    • By evaluating competitive alternatives, you’ll get a more comprehensive view on market standards for a solution and be able to employ a range of negotiation tactics.

    Focus on 5-10 Specific Contract Change Requests

    Accelerate negotiation by picking your battles

    ANALYZE

    DOCUMENT

    CONSOLIDATE

    PRESENT
    • Parse the contract, order form, and terms & conditions for concerning language.
    • Leverage expertise from internal subject matter experts in addition to relevant legal council.
    • Document all concerns and challenges with the language in the vendor contract in a single spreadsheet.
    • Make vendors more receptive to your cause by going one step beyond writing what the change should be. Provide the reasoning behind the change and even the relevant context.
    • Identify the change requests that are most important for the success of the selection project.
    • Compile a list of the most critical change requests.
    • Consider including nice-to-have requests that you can leverage as strategic concessions.
    • Present the consolidated list of critical change requests to the vendor rather than sharing the entire range of potential changes to the contract.
    • Make sure to include context and background for each request.
    • Eliminate potential delays by proactively establishing a timeline for the vendor’s response.

    Share Stories of Cost Savings With the Organization

    Secure IT’s seat at the table

    Hard cost savings speak louder than words. Executive leadership will see IT as the go-to team for driving business value quickly, yet responsibly.

    Build hype around the new software

    Generate enthusiasm by highlighting the improved user experience provided by the new software that was has just been selected.

    Drive end-user adoption

    Position the cost savings as an opportunity to invest in onboarding. An application is only as valuable as your employees’ ability to effectively use it.

    Keep the process rolling

    Use the momentum from the project and its successful negotiation to roll out the accelerated selection approach to more departments across the organization.

    Overall: The Magic Number Saves You Time and Money

    Software selection takes forever. The process of choosing even the smallest apps can drag on for years: sometimes in perpetuity.

    Organizations keep too many players on the field, leading to scheduling slowdowns and scope creep.

    Keeping the size of the core selection team down, while liaising with more stakeholders and subject matter experts (SMEs), leads to improved results.

    Maximize project effectiveness with a five-person team. Project satisfaction and effectiveness are stagnant or decrease once the team grows beyond five people.

    Cumbersome or ad hoc selection processes lead to business-driven software selection.

    Increase stakeholder satisfaction by using a consistent selection framework that captures their needs while not being a burden.

    Empower both IT and end users with a standardized selection process to consistently achieve high satisfaction coming out of software selection projects.

    The image contains a graph that is titled: A compact selection team can save you weeks. The graph demonstrates time saved with a five person team in comparison to larger teams.

    Key Takeaways for Improving Your Selection Process

    1. ALIGN & ELIMINATE ELAPSED TIME
    • Ensure a formal selection process is in place and reduce time by timeboxing the project to 30 days.
    • Align the calendars of the five-person core selection team to maximize efficiency.

    2. REDUCE TIME SPENT ON LOW-IMPACT ACTIVITIES
    • Go beyond the table stakes and accelerate the process by skipping common requirements that we know that every vendor will support.
    • Only make use of essential selection artifacts.

    3. FOCUS ON HIGH- IMPACT ACTIVITIES
    • Skip the vendor dog and pony shows with investigative interviews.
    • Minimize time spent on novel-sized RFPs; instead highlight three or four critical process areas.

    4. USE RAPID & ESSENTIAL ASSESSMENT TOOLS
    • Consolidating the vendor shortlist up-front reduces downstream effort.
    • Application sprawl is a critical pain point in many organizations that leads to wasted time and money.

    5. ENGAGE TWO VIABLE VENDORS IN NEGOTIATION
    • Build in a realistic plan B that allows you to apply leverage to the incumbent or primary vendor of choice.
    • Pick your battles and focus on 5-10 specific contract change requests.

    Appendix

    This study is based on a survey of 43,000 real-world IT practitioners.

    • SoftwareReviews (a sister company of Info-Tech Research Group) collects and aggregates feedback on a wide variety of enterprise technologies.
    • The practitioners are actual end users of hundreds of different enterprise application categories.
    • The following slides highlight the supplementary data points from the comprehensive survey.

    Methodology

    A comprehensive study based on the responses of thousands of real-world practitioners.

    Qualitative & Secondary

    Using comprehensive statistical techniques, we surveyed what our members identified as key drivers of success in selecting enterprise software. Our goal was to determine how organizations can accelerate selection processes and improve outcomes by identifying where people should spend their time for the best results.

    Large-n Survey

    To determine the “Magic Numbers,” we used a large-n survey: 40,000 respondents answered questions about their applications, selection processes, organizational firmographics, and personal characteristics. We used this data to determine what drives satisfaction not only with the application but with the selection process itself.

    Quantitative Drill-Down

    We used the survey to narrow the list of game-changing practices. We then conducted additional quantitative research to understand why our respondents may have selected the responses they did.

    Debunk Machine Learning Endpoint Security Solutions

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    • Parent Category Name: Endpoint Security
    • Parent Category Link: /endpoint-security
    • Threat actors are more innovative than ever before and developing sophisticated methods of endpoints attacks capable of avoiding detection with traditional legacy anti-virus software.
    • Legacy anti-virus solutions rely on signatures and hence fail at detecting memory objects, and new and mutating malware.
    • Combined with the cybersecurity talent gap and the sheer volume of endpoint attacks, organizations need endpoint security solutions capable of efficiently and accurately blocking never-before-seen malware types and variants.

    Our Advice

    Critical Insight

    • Don’t make machine learning a goal in itself. Think of how machine learning can help you achieve your goals.
    • Determine your endpoint security requirements and goals prior to shopping around for a vendor. Vendors can easily suck you into a vortex of marketing jargon and sell you tools that your organization does not need.
    • Machine learning alone is not a solution to catching malware. It is a computational method that can generalize and analyze large datasets, and output insights quicker than a human security analyst.

    Impact and Result

    • Consider deploying an endpoint protection technology that leverages machine learning into your existing endpoint security strategy to counteract against the unknown and to quickly sift through the large volumes of data.
    • Understand how machine learning methods can help drive your organization’s security goals.
    • Identify vendors that utilize machine learning in their endpoint security products.
    • Understand use cases of where machine learning in endpoint security has been successful.

    Debunk Machine Learning Endpoint Security Solutions Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should consider machine learning in endpoint security solutions, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Demystify machine learning concepts

    Understand basic machine learning concepts used in endpoint security.

    • Debunk Machine Learning Endpoint Security Solutions – Phase 1: Demystify Machine Learning Concepts

    2. Evaluate vendors that leverage machine learning

    Determine feature requirements to evaluate vendors.

    • Debunk Machine Learning Endpoint Security Solutions – Phase 2: Evaluate Vendors That Leverage Machine Learning
    • Endpoint Protection Request for Proposal
    [infographic]

    Understand the Difference Between Backups and Archives

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    • You don’t understand the difference between a backup and an archive or when to use one or the other.
    • Data is not constant. It is ever-changing and growing. How do you protect it?
    • You just replaced an application that was in use since day one, and even though you have a fully functional replacement, you would like to archive that original application just in case.
    • You want to save money, so you use your backup solution to archive data, but you know that is not ideal. What is the correct solution?

    Our Advice

    Critical Insight

    Keep in mind that backups are for recovery while archives are for discovery. Backups and archives are often confused but understanding the differences can result in significant savings of time and money. Backing up and archiving may be considered IT tasks, but recovery and discovery are capabilities the business wants and is willing to pay for.

    Impact and Result

    Archives and backups are not the same, and there is a use case for each. Sometimes minor adjustments may be required to make the use case work. Understanding the basics of backups and archives can lead to significant savings at a monetary and effort level.

    Understand the Difference Between Backups and Archives Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand the Difference Between Backups and Archives

    What is the difference between a backup and a data archive? When should I use one over the other? They are not the same and confusing the two concepts could be expensive.

    • Understand the Difference Between Backups and Archives Storyboard
    [infographic]

    Further reading

    Understand the Difference Between Backups and Archives

    They are not the same, and confusing the two concepts could be expensive

    Analyst Perspective

    Backups and archives are not interchangeable, but they can complement each other.

    Photo of P.J. Ryan, Research Director, Infrastructure & Operations, Info-Tech Research Group.

    Backups and archives are two very different operations that are quite often confused or misplaced. IT and business leaders are tasked with protecting corporate data from a variety of threats. They also must conform to industry, geographical, and legal compliance regulations. Backup solutions keep the data safe from destruction. If you have a backup, why do you also need an archive? Archive solutions hold data for a long period of time and can be searched. If you have an archive, why do you also need a backup solution? Backups and archives used to be the same. Remember when you would keep the DAT tape in the same room as the argon gas fire suppression system for seven years? Now that's just not feasible. Some situations require a creative approach or a combination of backups and archives.

    Understand the difference between archives and backups and you will understand why the two solutions are necessary and beneficial to the business.

    P.J. Ryan
    Research Director, Infrastructure & Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge
    • You don’t understand the difference between a backup and an archive or when to use one over the other.
    • Data is not constant. It is ever-changing and growing. How do you protect it?
    • You just replaced an application that had been in use since day one, and even though you have a fully functional replacement, you would like to archive that original application just in case.
    • You want to save money, so you use your backup solution to archive data, but you know that is not ideal. What is the correct solution?
    		 Common Obstacles
    • Storage costs can be expensive, as can some backup and archiving solutions.
    • Unclear requirements definition to decide between backups or archives.
    • Historically, people referred to archiving as tossing something into a box and storing it away indefinitely. Data archiving has a different meaning.
    • Executives want retired applications preserved but do not provide reasons or requirements.
    		 Info-Tech’s Approach
    • Spend wisely. Why spend money on an archive solution when a backup will suffice? Don’t leave money on the table.
    • Be creative and assess each backup or archive situation carefully. A custom solution may be required.
    • Backup your production data for the purpose of restoring it and adhere to the 3-2-1 rule of backups (Naviko.com).
    • Archive your older data to an alternate storge platform to save space, allow for searchability, and provide retention parameters.

    Info-Tech Insight

    Keep in mind that backups are for recovery while archives are for discovery. Backups and archives are often confused but understanding the differences can result in significant savings of time and money. Backing up and archiving may be considered IT tasks but recovery and discovery are capabilities the business wants and is willing to pay for.

    Archive

    What it IS

    A data archive is an alternate location for your older, infrequently accessed production data. It is indexed and searchable based on keywords. Archives are deleted after a specified period based on your retention policy or compliance directives.

    		 What it IS NOT

    Archives are not an emergency copy of your production data. They are not any type of copy of your production data. Archives will not help you if you lose your data or accidentally delete a file. Archives are not multiple copies of production data from various recovery points.

    		Why use it

    Archives move older data to an alternate location. This frees up storage space for your current data. Archives are indexed and can be searched for historical purposes, compliance reasons, or in the event of a legal matter where specific data must be provided to a legal team.

    Tips & Tricks – Archiving

    • Archiving will move older data to an alternate location. This will free up storage space in the production environment.
    • Archiving solutions index the data to allow for easier searchability. This will aid in common business searches as well as assist with any potential legal searches.
    • Archiving allows companies to hold onto data for historical purposes as well as for specific retention periods in compliance with industry and regional regulations such as SOX, GDPR, FISMA, as well as others (msp360.com).

    Backup

    What it IS

    A backup is a copy of your data from a specific day and time. It is primarily used for recovery or restoration if something happens to the production copy of data. The restore will return the file or folder to the state it was in at the time of the backup.

    Backups occur frequently to ensure the most recent version of data is copied to a safe location.

    A typical backup plan makes a copy of the data every day, once a week, and once a month. The data is stored on tapes, disk, or using cloud storage.

    		 What it IS NOT

    Backups are not designed for searching or discovery. If you backup your email and must go to that backup in search of all email pertaining to a specific topic, you must restore the full backup and then search for that specific topic or sender. If you kept all the monthly backups for seven years, that will mean repeating that process 84 times to have a conclusive search, assuming you have adequate storage space to restore the email database 84 times.

    Backups do not free up space.

    		 Why use it

    Backups protect your data in the event of disaster, deletion, or accidental damage. A good backup strategy will include multiple backups on different media and offsite storage of at least one copy.

    Tips & Tricks – Backups

    • Production data should be backed up on a regular basis, ideally once a day or more frequently if possible.
    • Backups are intended to restore data when it gets deleted, over-written, or otherwise compromised. Most restore requests are from the last 24 to 48 hours, so it may be advantageous to keep a backup readily available on disk for a quick restore when needed.
    • Some vendors and industry subject matter experts advocate the use of a 3-2-1 rule when it comes to backups:
      • Keep three copies of your production data
      • In at least two separate locations (some advocate two different formats), and
      • One copy should be offsite (nakivo.com)

    Cold Storage

    • Cold storage refers to a storage option offered by some cloud vendors. In the context of the discussion between backups and archives, it can be an option for a dedicated backup solution for a specific period. Cost is low and the data is protected from destruction.
    • If an app has been replaced and all data transferred to the replacement solution but for some reason the company wishes to hold onto the data, you want a backup, not an archive. Extract the data, convert it into MongoDB or a similar solution, and drop it into cheap cloud storage (cold storage) for less than $5 per TB/month.

    Case Study

    Understanding the difference between archives and backups could save you a lot of time and money

    INDUSTRY: Manufacturing | SOURCE: Info-Tech Research

    Understanding the difference between an archive and a backup was the first step in solving their challenge.

    A leading manufacturing company found themselves in a position where they had to decide between archiving or doing nothing.

    The company had completed several acquisitions and ended up with multiple legacy applications that had been merged or migrated into replacement solutions. These legacy applications were very important to the original companies and although the data they held had been migrated to a replacement solution, executives felt they should hold onto these applications for a period of time, just in case.

    Some of the larger applications were archived using a modern archiving solution, but when it came to the smaller applications, the cost to add them to the archiving solution greatly exceeded the cost to just keep them running and maintain the associated infrastructure.

    A research advisor from Info-Tech Research Group joined a call with the manufacturing company and discussed their situation. The difference between archives and backups was explained and through the course of the conversation it was discovered that the solution was a modified backup. The application data had already been preserved through the migration, so data could be accessed in the production environment. The requirement to keep the legacy application up and running was not necessary but in compliance with the request to keep the information, the data could be exported from the legacy application into a non-sequential database, compressed, and stored in cloud-based cold storage for less than five dollars per terabyte per month. The manufacturing company’s staff realized that they could apply this same approach to several of their legacy applications and save tens of thousands of dollars in the process.

    Understand the Difference Between Backups and Archives

    Backups

    		 Backups are for recovery. A backup is a snapshot copy of production data at a specific point in time. If the production data is lost, destroyed, or somehow compromised, the data can be restored from the backup.

    Archives

    		 Archives are for discovery. It is production data that is moved to an alternate location to free up storage space, allow the data to be searchable, and still hold onto the data for historical or compliance purposes.

    Info-Tech Insight

    Archives and backups are not the same, and there is a use case for each. Sometimes minor adjustments may be required to make the use case work. Understanding the basics of backups and archives can lead to significant savings at a monetary and effort level.

    Additional Guidance

    Production data should be backed up.

    The specific backup solution is up to the business.

    		 Production data that is not frequently accessed should be archived.

    The specific solution to perform and manage the archiving of the data is up to the business

    • Archived data should also be backed up at least once.
    		 If the app has been replaced and all data transferred, you want a backup not an archive if you want to keep the data.
    • Short term – fence it off.
    • Long term – extract into Mongo then drop it into cheap cloud storage.

    Case Study

    Using tape backups as an archive solution could result in an expensive discovery and retrieval exercise.

    INDUSTRY: Healthcare | SOURCE: Zasio Enterprises Inc.

    “Do not commingle archive data with backup or disaster recovery tapes.”

    A court case in the United States District Court for the District of Nevada involving Guardiola and Renown Health in 2015 is a good example of why using a backup solution to solve an archiving challenge is a bad idea.

    Renown Health used a retention policy that declared any email older than six months of age as inactive and moved that email to a backup tape. Renown Health was ordered by the court to produce emails from a period of time in the past. Renown estimated that it would cost at least $248,000 to produce those emails, based on the effort involved to restore data from each tape and search for the email in question. Renown Health argued that this long and expensive process would result in undue costs.

    The court reviewed the situation and ruled against Renown Health and ordered them to comply with the request (Zasio.com).

    A proper archiving solution would have provided a quick and low-cost method to retrieve the emails in question.

    Backups and archives are complementary to each other

    • Archives are still production data, but the data does not change. A backup is recommended for the archived data, but the frequency of the backups can be lowered.
    • Backups protect you if a disaster strikes by providing a copy of the production data that was compromised or damaged. Archives allow you to access older data that may have just been forgotten, not destroyed or compromised. Archives could also protect you in a legal court case by providing data that is older but may prove your argument in court.

    Archives and backups are not the same.

    Backups copy your data. Archives move your data. Backups facilitate recovery. Archives facilitate discovery.

    Archive Backup
    Definition Move rarely accessed (but still production) data to separate media. Store a copy of frequently used data on a separate media to ensure timely operational recovery.
    Use Case Legal discovery, primary storage reduction, compliance requirements, and audits. Accidental deletion and/or corruption of data, hardware/software failures.
    Method Disk, cloud storage, appliance. Disk, backup appliance, snapshots, cloud.
    Data Older, rarely accessed production data. Current production data.

    Is it a backup or archive?

    • You want to preserve older data for legal and compliance reasons, so you put extra effort into keeping your tape backups safe and secure for seven years. That’s a big mistake that may cost you time and money. You want an archive solution.
    • You replace your older application and migrate all data to the new system, but you want to hold onto the old data, just in case. That’s a backup, not an archive.
    • A long serving senior executive recently left the company. You want to preserve the contents of the executive's laptop in case it is needed in the future. That’s a backup.

    Considerations When Choosing Between Solutions

    1

    Backup or archive?

    2

    What are you protecting?

    3

    Why are you protecting data?

    4

    Solution

    Backup

    Backup and/or archive.
    Additional information required.
    Column 3 may help

    Archive

    Device

    Data

    Application

    Operational Environment

    Operational recovery

    Disaster recovery

    Just in case

    Production storage space reduction

    Retention and preservation

    Governance, risk & compliance

    Backup

    Archive

    Related Info-Tech Research

    Stock image of light grids and flares. Establish an Effective Data Protection Plan

    Give data the attention it deserves by building a strategy that goes beyond backup.
    Stock image of old fuse box switches. Modernize Enterprise Storage

    Current and emerging storage technologies are disrupting the status quo – prepare your infrastructure for the exponential rise in data and its storage requirements.
    Logo for 'Software Reviews' and their information on 'Compare and Evaluate: Data Archiving.'
    Sample of Info-Tech's 'Data Archiving Policy'. Data Archiving Policy

    Bibliography

    “Backup vs. archiving: Know the difference.” Open-E. Accessed 05 Mar 2022.Web.

    G, Denis. “How to build retention policy.” MSP360, Jan 3, 2020. Accessed 10 Mar 2022.

    Ipsen, Adam. “Archive vs Backup: What’s the Difference? A Definition Guide.” BackupAssist, 28 Mar 2017. Accessed 04 Mar 2022.

    Kang, Soo. “Mitigating the expense of E-discovery; Recognizing the difference between back-ups and archived data.” Zasio Enterprises, 08 Oct 2015. Accessed 3 Mar 2022.

    Mayer, Alex. “The 3-2-1 Backup Rule – An Efficient Data Protection Strategy.” Naviko. Accessed 12 Mar 2022.

    “What is Data-Archiving?” Proofpoint. Accessed 07 Mar 2022.

    Start Making Data-Driven People Decisions

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    • Ninety-one percent of IT leaders believe that analytics is important for talent management but 59% use no workforce analytics at all, although those who use analytics are much more effective than those who don't.
    • The higher the level of analytics used, the higher the level of effectiveness of the department as a whole.

    Our Advice

    Critical Insight

    • You don't need advanced metrics and analytics to see a return on people data. Begin by getting a strong foundation in place and showing the ROI on a pilot project.
    • Complex analyses will never make up for inadequate data quality. Spend the time up front to audit and improve data quality if necessary, no matter which stage of analytics proficiency you are at.
    • Ensure you collect and analyze only data that is essential to your decision making. More is not better, and excess data can detract from the overall impact of analytics.

    Impact and Result

    • Build a small-scale foundational pilot, which will allow you to demonstrate feasibility, refine your costs estimate, and show the ROI on people analytics for your budgeting meeting.
    • Drive organizational change incrementally by identifying and communicating with the stakeholders for your people analytics pilot.
    • Choose basic analytics suitable for organizations of all sizes and understand the building blocks of data quality to support more further analytics down the line.

    Start Making Data-Driven People Decisions Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should strategically apply people analytics to your IT talent management.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Define the problem and apply the checklist

    From choosing the right data for the right problem to evaluating your progress toward data-driven people decisions, follow these steps to build your foundation to people analytics.

    • Start Making Data-Driven People Decisions – Phase 1: Define the Problem and Apply the Checklist
    • People Analytics Strategy Template
    • Talent Metrics Library
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    Manage Your Chromebooks and MacBooks

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    • Parent Category Name: End-User Computing Devices
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    Windows is no longer the only option. MacBooks and Chromebooks are justified, but now you have to manage them.

    • If you have modernized your end-user computing strategy, you may have Windows 10 devices as well as MacBooks.
    • Virtual desktop infrastructure (VDI) and desktop as a service (DaaS) are becoming popular. Chromebooks may be ideal as a low-cost interface into DaaS for your employees.
    • Managing Chromebooks can be particularly challenging as they grow in popularity in the education sector.

    Our Advice

    Critical Insight

    Managing end-user devices may be accomplished with a variety of solutions, but many of those solutions advocate integration with a Microsoft-friendly solution to take advantage of features such as conditional access, security functionality, and data governance.

    Impact and Result

    • Many solutions are available to manage end-user devices, and they come with a long list of options and features. Clarify your needs and define your requirements before you purchase another endpoint management tool. Don’t purchase capabilities that you may never use.
    • Use the associated Endpoint Management Selection Tool spreadsheet to identify your desired endpoint solution features and compare vendor solution functionality based on your desired features.

    Manage Your Chromebooks and MacBooks Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Manage Your Chromebooks and MacBooks deck – MacBooks and Chromebooks are growing in popularity in enterprise and education environments, and now you have to manage them.

    Explore options, guidance and some best practices related to the management of Chromebooks and MacBooks in the enterprise environment and educational institutions. Our guidance will help you understand features and options available in a variety of solutions. We also provide guidance on selecting the best endpoint management solution for your own environment.

    • Manage Your Chromebooks and MacBooks Storyboard

    2. Endpoint Management Selection Tool – Select the best endpoint management tool for your environment. Build a table to compare endpoint management offerings in relation to the features and options desired by your organization.

    This tool will help you determine the features and options you want or need in an endpoint management solution.

    • Endpoint Management Selection Tool
    [infographic]

    Further reading

    Manage Your Chromebooks and MacBooks

    Financial constraints, strategy, and your user base dictate the need for Chromebooks and MacBooks – now you have to manage them in your environment.

    Analyst Perspective

    Managing MacBooks and Chromebooks is similar to managing Windows devices in many ways and different in others. The tools have many common features, yet they struggle to achieve the same goals.

    Until recently, Windows devices dominated the workplace globally. Computing devices were also rare in many industries such as education. Administrators and administrative staff may have used Windows-based devices, but Chromebooks were not yet in use. Most universities and colleges were Windows-based in offices with some flavor of Unix in other areas, and Apple devices were gaining some popularity in certain circles.

    That is a stark contrast compared to today, where Chromebooks dominate the classrooms and MacBooks and Chromebooks are making significant inroads into the enterprise environment. MacBooks are also a common sight on many university campuses. There is no doubt that while Windows may still be the dominant player, it is far from the only one in town.

    Now that Chromebooks and MacBooks are a notable, if not significant, part of the education and enterprise environments, they must be afforded the same considerations as Windows devices in those environments when it comes to management. The good news is that there is no lack of available solutions for managing these devices, and the endpoint management landscape is continually evolving and improving.

    This is a picture of P.J. Ryan, Research Director, Infrastructure & Operations, Info-Tech Research Group

    P.J. Ryan
    Research Director, Infrastructure & Operations
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • You modernized your end-user computing strategy and now have Windows 10 devices as well as MacBooks.
    • Virtual desktop infrastructure (VDI) and desktop as a service (DaaS) are becoming popular. Chromebooks would be ideal as a low-cost interface into DaaS for your employees.
    • You are responsible for the management of all the new Chromebooks in your educational district.
    • Windows is no longer the only option. MacBooks and Chromebooks are justified, but now you have to manage them.

    Common Obstacles

    • Endpoint management solutions typically do a great job at managing one category of devices, like Windows or MacBooks, but they struggle to fully manage alternative endpoints.
    • Multiple solutions to manage multiple devices will result in multiple dashboards. A single view would be better.
    • One solution may not fit all, but multiple solutions is not desirable either, especially if you have Windows devices, MacBooks, and Chromebooks.

    Info-Tech's Approach

    • Use the tools at your disposal first – don't needlessly spend money if you don't have to. Many solutions can already manage other types of devices to some degree.
    • Use the integration capabilities of endpoint management tools. Many of them can integrate with each other to give you a single interface to manage multiple types of devices while taking advantage of additional functionality.
    • Don't purchase capabilities you will never use. Using 80% of a less expensive tool is economically smarter than using 10% of a more expensive tool.

    Info-Tech Insight

    Managing end-user devices may be accomplished with a variety of solutions, but many of those solutions advocate integration with a Microsoft-friendly solution to take advantage of features such as conditional access, security functionality, and data governance.

    Insight Summary

    Insight 1

    Google Admin Console is necessary to manage Chromebooks, but it can be paired with other tools. Implementation partnerships provide solutions to track the device lifecycle, track the repair lifecycle, sync with Google Admin Console as well as PowerSchool to provide a more complete picture of the user and device, and facilitate reminders to return the device, pay fees if necessary, pick up a device when a repair is complete, and more.

    Insight 2

    The Google Admin Console allows admins to follow an organizational unit (OU) structure very similar to what they may have used in Microsoft's Active Directory environment. This familiarity makes the task of administering Chromebooks easier for admins.

    Insight 3

    Chromebook management goes beyond securing and manipulating the device. Controls to protect the students while online, such as Safe Search and Safe Browsing, should also be implemented.

    Insight 4

    Most companies choose to use a dedicated MacBook management tool. Many unified endpoint management (UEM) tools can manage MacBooks to some extent, but admins tend to agree that a MacBook-focused endpoint management tool is best for MacBooks while a Windows-based endpoint management tool is best for Windows devices.

    Insight 5

    Some MacBook management solutions advocate integration with Windows UEM solutions to take advantage of Microsoft features such as conditional access, security functionality, and data governance. This approach can also be applied to Chromebooks.

    Chromebooks

    Chromebooks had a respectable share of the education market before 2020, but the COVID-19 pandemic turbocharged the penetration of Chromebooks in the education industry.

    Chromebooks are also catching the attention of some decision makers in the enterprise environment.

    "In 2018, Chromebooks represented an incredible 60 percent of all laptop or tablet devices in K-12 -- up from zero percent when the first Chromebook launched during the summer break in 2011."
    – "Will Chromebooks Rule the Enterprise?" Computerworld

    "Chromebooks were the best performing PC products in Q3 2020, with shipment volume increasing to a record-high 9.4 million units, up a whopping 122% year-on-year."
    – Android Police

    "Until the pandemic, Chrome OS' success was largely limited to U.S. schools. Demand in 2020 appears to have expanded beyond that small but critical part of the U.S. PC market."
    – Geekwire

    "In addition to running a huge number of Chrome Extensions and Apps at once, Chromebooks also run Android, Linux and Windows apps."
    – "Will Chromebooks Rule the Enterprise?" Computerworld

    Managing Chromebooks

    Start with the Google Admin Console (GAC)

    GAC is necessary to initially manage Chrome OS devices.

    GAC gives you a centralized console that will allow you to:

    • Create organizational units
    • Add your Chromebook devices
    • Add users
    • Assign users to devices
    • Create groups
    • Create and assign policies
    • Plus more

    GAC can facilitate device management with features such as:

    • Control admin permissions
    • Encryption and update settings
    • App deployment, screen timeout settings
    • Perform a device wipe if required
    • Audit user activity on a device
    • Plus more

    Device and user addition, group and organizational unit creation and administration, applying policies to devices and users – does all this remind you of your Active Directory environment?

    GAC lets you administer users and devices with a similar approach.

    Managing Chromebooks

    Use Active Directory to manage Chromebooks.

    • Enable Active Directory (AD) management from within GAC and you will be able to integrate your Chromebook devices with your AD environment.
    • Devices will be visible in both the GAC and AD environment.
    • Use Windows Group Policy to manage devices and to push policies to users and devices.
    • Users can use their AD username and password to sign into Chromebook devices.
    • GAC can still be used for devices that are not synced with AD.

    Chromebooks can also be managed through these approved partners:

    • Cisco Meraki
    • Citrix XenMobile
    • IBM MaaS360
    • ManageEngine Mobile Device Manager Plus
    • VMware Workspace ONE

    Source: Google

    You must be running the Chrome Enterprise Upgrade and have any licenses required by the approved partner to take advantage of this management option. The partner admin policies supersede GAC.

    If you stop using the approved partner admin console to manage your devices, the polices and settings in GAC will immediately take over the devices.

    Microsoft still has the market share when it comes to device sales, and many administrators are already familiar with Microsoft's Active Directory. Google took advantage of that familiarity when it designed the Google Admin Console structure for users, groups, and organizational units.

    Chromebook Deployment

    Chromebook deployment becomes a challenge when device quantities grow. The enrollment process can be time consuming, and every device must be enrolled before it can be used by an employee or a student. Many admins enlist their full IT teams to assist in the short term. Some vendor partners may assist with distribution options if staffing levels permit. Recent developments from Google have opened additional options for device enrollment beyond the manual enrollment approach.

    Enrolling Chromebooks comes down to one of two approaches:

    1. Manually enrolling one device at a time
      • Users can assist by entering some identifying details during the enrollment if permitted.
      • Some third-party solutions exist, such as USB drives to reduce repetitive keystrokes or hubs to facilitate manually enrolling multiple Chromebooks simultaneously.
    2. Google's Chrome Enterprise Upgrade or the Chrome Education Upgrade
      • This allows you to let your users enroll devices after they accept the end-user license agreement.
      • You can take advantage of Google's vendor partner program and use a zero-touch deployment method where the Chromebook devices automatically receive the assigned policies, apps, and settings as soon as the device is powered on and an authorized user signs in.
      • The Enterprise Upgrade and the Education Upgrade do come with an annual cost per device, which is currently less than US$50.
      • The Enterprise and Education Upgrades come with other features as well, such as enhanced security.

    Chromebooks are automatically assigned to the top-level organizational unit (OU) when enrolled. Devices can be manually moved to another OU, but admins can also create enrollment policies to place newly enrolled devices in a specific OU or have the device locate itself in the same OU as the user.

    Chromebooks in Education

    GAC is also used with Education-licensed devices

    Most of the settings and features previously mentioned are also available for Education-licensed devices and users. Enterprise-specific features will not be available to Education licenses. (Active Directory integration with Education licenses, for example, is accomplished using a different approach)

    • Groups, policies, administrative controls, app deployment and management, adding devices and users, creating organizational units, and more features are all available to Education Admins to use.

    Education device policies and settings tend to focus more on protecting the students with controls such as:

    • Disable incognito mode
    • Disable location tracking
    • Disable external storage devices
    • Browser based protections such as Safe Search or Safe Browsing
    • URL blocking
    • Video input disable for websites
    • App installation prevention, auto re-install, and app blocking
    • Forced re-enrollment to your domain after a device is wiped
    • Disable Guest Mode
    • Restrict who can sign in
    • Audit user activity on a device

    When a student takes home a Chromebook assigned to them, that Chromebook may be the only computer in the household. Administrative polices and settings must take into account the fact that the device may have multiple users accessing many different sites and applications when the device is outside of the school environment.

    Chromebook Management Extended

    An online search for Chromebook management solutions will reveal several software solutions that augment the capabilities of the Google Admin Console. Many of these solutions are focused on the education sector and classroom and student options, although the features would be beneficial to enterprises and educational organizations alike.

    These solutions assist or augment Chromebook management with features such as:

    • Ability to sync with Google Admin Console
    • Ability to sync with student information systems, such as PowerSchool
    • Financial management, purchase details, and chargeback
    • Asset lifecycle management
    • 1:1 Chromebook distribution management
    • Repair programs and repair process management
    • Check-out/loan program management
    • Device distribution/allocation management, including barcode reader integration
    • Simple learning material distribution to the classroom for teachers
    • Facilitate GAC bulk operations
    • Manage inventory of non-IT assets such as projectors, TVs, and other educational assets
    • Plus more

    "There are many components to managing Chromebooks. Schools need to know which student has which device, which school has which device, and costs relating to repairs. Chromebook Management Software … facilitates these processes."
    – VIZOR

    MacBooks

    • MacBooks are gaining popularity in the Enterprise world.
    • Some admins claim MacBooks are less expensive in the long run over Windows-based PCs.
    • Users claim less issues when using a MacBook, and overall, companies report increased retention rates when users are using MacBooks.

    "Macs now make up 23% of endpoints in enterprises."
    – ComputerWeekly.com

    "When given the choice, no less than 72% of employees choose Macs over PCs."
    – "5 Reasons Mac is a must," Jamf

    "IBM says it is 3X more expensive to manage PCs than Macs."
    – Computerworld

    "74% of those who previously used a PC for work experienced fewer issues now that they use a Mac"
    – "Global Survey: Mac in the Enterprise," Jamf

    "When enterprise moves to Mac, staff retention rates improve by 20%. That's quite a boost! "
    – "5 Reasons Mac is a must," Jamf

    Managing MacBooks

    Can your existing UEM keep up?

    Many Windows unified endpoint management (UEM) tools can manage MacBooks, but most companies choose to use a dedicated MacBook management tool.

    • UEM tools that are primarily Windows focused do not typically go deep enough into the management capabilities of non-Windows devices.
    • Admins have noted limitations when it comes to using Windows UEM tools, and reasons they prefer a dedicated MacBook management solution include:
      • Easier to use
      • Faster response times when deploying settings and policies
      • Better control over notification settings and lock screen settings.
      • Easier Apple Business Manager (ABM) integration and provisioning.
    • Note that not every UEM will have the same limitations or advantages. Functionality is different between vendor products.

    Info-Tech Insight

    Most Windows UEM tools are constantly improving, and it is only a matter of time before they rival many of the dedicated MacBook management tools out there.

    Admins tend to agree that a Windows UEM is best for Windows while an Apple-based UEM is best for Apple devices.

    Managing MacBooks

    The market for "MacBook-first" management solutions includes a variety of players of varying ages such as:

    • Jamf
    • Kandji
    • Mosyle
    • SimpleMDM
    • Others

    MacBook-focused management tools can provide features such as:

    • Encryption and update settings
    • App deployment and lifecycle management
    • Remote device wipe, scan, shutdown, restart, and lock
    • Zero touch deployment and support
    • Location tracking
    • Browser content filtering
    • Enable, hide/block, or disable built-in features
    • Configure Wi-Fi, VPN, and certificate-based settings
    • Centralized dashboard with device and app listings as well as individual details
    • Data restrictions
    • Plus more

    Unified endpoint management (UEM) solutions that can provide MacBook management to some degree include (but are not limited to):

    • Intune
    • Ivanti
    • Endpoint Central
    • WorkspaceOne

    Dedicated solutions advocate integration with UEM solutions to take advantage of conditional access, security functionality, and data governance features.

    Jamf and Microsoft entered into a collaboration several years ago with the intention of making the MacBook management process easier and more secure.

    Microsoft Intune and Jamf Pro: Better together to manage and secure Macs
    Microsoft Conditional Access with Jamf Pro ensures that company data is only accessed by trusted users, on trusted devices, using trusted apps. Jamf extends this Enterprise Mobile + Security (EMS) functionality to Mac, iPhone and iPad.
    – "Microsoft Intune and Jamf Pro," Jamf

    Endpoint Management Selection Tool
    Activity

    There are many solutions available to manage end-user devices, and they come with a long list of options and features. Clarify your needs and define your requirements before you purchase another endpoint management tool. Don't purchase capabilities that you may never use.

    Use the Endpoint Management Selection Tool to identify your desired endpoint solution features and compare vendor solution functionality based on your desired features.

    1. List out the desired features you want in an endpoint solution for your devices and record those features in the first column. Use the features provided, or add your own and edit or delete the existing ones if necessary.
    2. List your selected endpoint management solution vendors in each of the columns in place of "Vendor 1," "Vendor 2," etc.
    3. Fill out the spreadsheet by changing the corresponding desired feature cell under each vendor to a "yes" or "no" based on your findings while investigating each vendor solution.
    4. When you have finished your investigation, review your spreadsheet to compare the various offerings and pros and cons of each vendor.
    5. Select your endpoint management solution.

    Endpoint Management Selection Tool

    In the first column, list out the desired features you want in an endpoint solution for your devices. Use the features provided if desired, or add your own and edit or delete the existing ones if necessary. As you look into various endpoint management solution vendors, list them in the columns in place of "Vendor 1," "Vendor 2," etc. Use the "Desired Feature" list as a checklist and change the values to "yes" or "no" in the corresponding box under the vendors' names. When complete, you will be able to look at all the features and compare vendors in a single table.

    Desired Feature Vendor 1 Vendor 2 Vendor 3
    Organizational unit creation Yes No Yes
    Group creation Yes Yes Yes
    Ability to assign users to devices No Yes Yes
    Control of administrative permissions Yes Yes Yes
    Conditional access No Yes Yes
    Security policies enforced Yes No Yes
    Asset management No Yes No
    Single sign-on Yes Yes Yes
    Auto-deployment No Yes No
    Repair lifecycle tracking No Yes No
    Application deployment Yes Yes No
    Device tracking Yes Yes Yes
    Ability to enable encryption Yes No Yes
    Device wipe Yes No Yes
    Ability to enable/disable device tracking No No Yes
    User activity audit No No No

    Related Info-Tech Research

    this is a screenshot from Info-Tech's Modernize and Transform Your End-User Computing Strategy.

    Modernize and Transform Your End-User Computing Strategy
    This project helps support the workforce of the future by answering the following questions: What types of computing devices, provisioning models, and operating systems should be offered to end users? How will IT support devices? What are the policies and governance surrounding how devices are used? What actions are we taking and when? How do end-user devices support larger corporate priorities and strategies?

    Best Unified Endpoint Management (UEM) Software 2022 | SoftwareReviews
    Compare and evaluate unified endpoint management vendors using the most in-depth and unbiased buyer reports available. Download free comprehensive 40+ page reports to select the best unified endpoint management software for your organization.

    Best Enterprise Mobile Management (EMM) Software 2022 | (softwarereviews.com)
    Compare and evaluate enterprise mobile management vendors using the most in-depth and unbiased buyer reports available. Download free comprehensive 40+ page reports to select the best enterprise mobile management software for your organization.

    Bibliography

    Bridge, Tom. "Macs in the enterprise – what you need to know". Computerweekly.com, TechTarget. 27 May 2022. Accessed 12 Aug. 2022.
    Copley-Woods, Haddayr. "5 reasons Mac is a must in the enterprise". Jamf.com, Jamf. 28 June 2022. Accessed 16 Aug. 2022.
    Duke, Kent. "Chromebook sales skyrocketed in Q3 2020 with online education fueling demand." androidpolice.com, Android Police. 16 Nov 2020. Accessed 10 Aug. 2022.
    Elgin, Mike. "Will Chromebooks Rule the Enterprise? (5 Reasons They May)". Computerworld.com, Computerworld. 30 Aug 2019. Accessed 10 Aug. 2022.
    Evans, Jonny. "IBM says it is 3X more expensive to manage PCs than Macs". Computerworld.com, Computerworld. 19 Oct 2016. Accessed 23 Aug. 2022.
    "Global Survey: Mac in the Enterprise". Jamf.com, Jamf. Accessed 16 Aug. 2022.
    "How to Manage Chromebooks Like a Pro." Vizor.cloud, VIZOR. Accessed 10 Aug. 2022.
    "Manage Chrome OS Devices with EMM Console". support.google.com, Google. Accessed 16 Aug. 2022.
    Protalinski, Emil. "Chromebooks outsold Macs worldwide in 2020, cutting into Windows market share". Geekwire.com, Geekwire. 16 Feb 2021. Accessed 22 Aug. 2022.
    Smith, Sean. "Microsoft Intune and Jamf Pro: Better together to manage and secure Macs". Jamf.com, Jamf. 20 April 2022. Accessed 16 Aug. 2022.

    Build a More Effective Brand Architecture

    • Buy Link or Shortcode: {j2store}571|cart{/j2store}
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    • Parent Category Link: /marketing-solutions

    Neglecting to maintain the brand architecture can have the following consequences:

    • Inconsistent branding across product lines, services, and marketing communications.
    • Employee confusion regarding product lines, services, and brand structure.
    • Difficulties in launching new products or services or integrating acquired brands.
    • Poor customer experience in navigating the website or understanding the offerings.
    • Inability to differentiate from competitors.
    • Weak brand equity and a lack of brand loyalty.

    Our Advice

    Critical Insight

    Brand architecture is the way a company organizes and manages its portfolio of brands to achieve strategic goals. It encompasses the relationships between brands, from sub-brands to endorsed brands to independent brands, and how they interact with each other and with the master brand. With a clear brand architecture, businesses can optimize their portfolio, enhance their competitive position, and achieve sustainable growth and success in the long run.

    Impact and Result

    Establishing and upholding a well-defined brand architecture is critical to achieve:

    • Easy recognition and visibility
    • Consistent branding
    • Operational efficiency
    • Customer loyalty
    • Ability to easily adapt to changes
    • Competitive differentiation
    • Distinctive brand image
    • Business success

    Build a More Effective Brand Architecture Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build a More Effective Brand Architecture Storyboard – Develop a brand architecture that supports your business goals, clarifies your brand portfolio, and enhances your overall brand equity.

    We recommend a two-step approach that involves defining or reimagining the brand architecture. This means choosing the right strategy by analyzing the current brand portfolio, identifying the core brand elements, and determining and developing the structure that fits with the brand and business goals. A well-thought-out brand architecture also facilitates the integration of new brands and new product launches.

    • Build a More Effective Brand Architecture Storyboard

    2. Brand Architecture Strategy Template – The brand architecture template is a tool for creating a coherent brand identity.

    Create a brand identity that helps you launch new products and services, prepare for acquisitions, and modify your brand strategy. Allocate resources more effectively and identify new opportunities for growth. A brand architecture can provide insights into how different brands fit together and contribute to the overall brand strategy.

    • Brand Architecture Strategy Template

    Infographic

    Workshop: Build a More Effective Brand Architecture

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Brand Mind Mapping

    The Purpose

    The brand mind mapping workshop is an exercise that helps with visualizing brand architecture and improving coherence and effectiveness in brand portfolio management.

    Key Benefits Achieved

    This exercise can help businesses:

    Allocate their resources more effectively.

    Identify new opportunities for growth.

    Gain a competitive advantage in their market.

    Activities

    1.1 Brand Mind Mapping

    Outputs

    Visual representation of the brand architecture and its various components

    Further reading

    Build a More Effective Brand Architecture

    Strategically optimize your portfolio to increase brand recognition and value.

    Analyst perspective

    Brand Architecture

    Nathalie Vezina, Marketing Research Director, SoftwareReviews Advisory

    Nathalie Vezina
    Marketing Research Director
    SoftwareReviews Advisory

    This blueprint highlights common brand issues faced by companies, such as inconsistencies in branding and sub-branding due to absent or inadequate planning and documentation or non-compliance with the brand architecture. It emphasizes the importance of aligning or modifying the company's brand strategy with the existing architecture to create a consistent brand when launching new products, services, or divisions or preparing for acquisitions.

    Changing the brand architecture can be challenging, as it often requires significant resources, time, and effort. Additionally, there may be resistance from stakeholders who have become attached to the existing brand architecture and may not see the value in making changes. However, it's important for companies to address suboptimal brand architecture to ensure consistency and clarity in brand messaging and support business growth and success.

    This blueprint guides brand leaders on building and updating their brand architecture for optimal clarity, consistency, adaptability, and efficiency.

    Executive summary

    Your Challenge Common Obstacles SoftwareReviews’ Approach
    A company's brand architecture can help brand managers build a stronger brand that supports the company's goals and increases brand value. Failing to maintain the brand architecture can have the following consequences:
    • Inconsistent branding across product lines, services, and marketing communications
    • Employee confusion regarding product lines, services, and brand structure.
    • Difficulties in launching new products or services or integrating acquired brands.
    • Poor customer experience in navigating the website or understanding the offerings.
    • Inability to differentiate from competitors.
    • Weak brand equity and a lack of brand loyalty.
    		 Establishing and maintaining a clear brand architecture can pose significant issues for brand leaders. Despite these obstacles, defining the brand architecture can yield substantial benefits for businesses. Common constraints are:
    • Lack of knowledge on the subject, resulting in difficulties securing buy-in from stakeholders.
    • Siloed teams and competing priorities.
    • Limited resources and time constraints.
    • Resistance to change from employees or customers.
    • Inconsistent execution and adherence to brand guidelines.
    • Lack of communication and coordination when acquiring new brands.
    		 With focused and effective efforts and guidance, brand leaders can define or reimagine their brand architecture. Developing and maintaining a clear and consistent brand architecture involves:
    • Defining the brand architecture strategy.
    • Analyzing the current brand portfolio and identifying the core brand elements.
    • Determining and developing the proper brand structure.
    • Updating brand guidelines and messaging.
    • Rolling out the brand architecture across touchpoints and assets.
    • Facilitating the integration of new brands.
    • Monitoring and adjusting the architecture as needed for relevance to business goals.

    "[B]rand architecture is like a blueprint for a house...the foundation that holds all the pieces together, making sure everything fits and works seamlessly."
    Source: Verge Marketing

    The basics of brand architecture

    The significance of brand hierarchy organization

    Brand architecture is the hierarchical organization and its interrelationships. This includes shaping the brand strategy and structuring the company's product and service portfolio.

    A well-designed brand architecture helps buyers navigate a company's product offerings and creates a strong brand image and loyalty.

    A company's brand architecture typically includes three levels:

    • Master or parent brand
    • Sub-brands
    • Endorsed brands

    Choosing the right architecture depends on business strategy, products and services, and target audience. It should be reviewed periodically as the brand evolves, new products and services are launched, or new brands are acquired.

    "A brand architecture is the logical, strategic, and relational structure for your brands, or put another way, it is the entity's 'family tree' of brands, sub-brands, and named products."
    Source: Branding Strategy Insider

    Enhancing a company's brand hierarchy for better business outcomes

    Maximize brand strategy with a well-defined and managed brand architecture.

    Align brand architecture with business goals
    A well-defined brand architecture aligned with business objectives contributes to building brand recognition, facilitating brand extension, and streamlining brand portfolio management. In addition, it improves marketing effectiveness and customer experience.
    With a clear and consistent brand architecture, companies can strengthen their brand equity, increase awareness and loyalty, and grow in their competitive environment.

    Effectively engage with the desired buyers
    A clear and consistent brand architecture enables companies to align their brand identity and value proposition with the needs and preferences of their target audience, resulting in increased customer loyalty and satisfaction.
    Establishing a unique market position and reinforcing brand messaging and positioning allows companies to create a more personalized and engaging customer experience, driving business growth.

    Maintain a competitive edge
    An effective brand architecture allows companies to differentiate themselves from their competitors by establishing their unique position in the market. It also provides a structured framework for introducing new products or services under the same brand, leveraging the existing one.
    By aligning their brand architecture with their business objectives, companies can achieve sustainable growth and outperform their competitors in the marketplace.

    "A well-defined brand architecture provides clarity and consistency in how a brand is perceived by its audience. It helps to create a logical framework that aligns with a brand's overall vision and objectives."
    Source: LinkedIn

    Pitfalls of neglecting brand guidelines

    Identifying the negative effects on business and brand value.

    Deficient brand architecture can manifest in various ways.

    Here are some common symptoms:

    • Lack of clarity around the brand's personality and values
    • Inconsistent messaging and branding
    • Inability to differentiate from competitors
    • Weak brand identity
    • Confusion among customers and employees
    • Difficulty launching new products/services or integrating acquired brands
    • Lack of recognition and trust from consumers, leading to potential negative impacts on the bottom line

    Brand architecture helps to ensure that your company's brands are aligned with your business goals and objectives, and that they work together to create a cohesive and consistent brand image.

    The most common obstacles in developing and maintaining a clear brand architecture

    Establishing and maintaining a clear brand architecture requires the commitment of the entire organization and a collaborative effort.

    Lack of stakeholder buy-in > Resistance to change

    Siloed teams > Inconsistent execution

    Limited resources > Lack of education and communication

    Types of brand architectures

    Different approaches to structuring brand hierarchy

    Brand architecture is a framework that encompasses three distinct levels, each comprising a different type of branding strategy.

    Types of brand architectures

    Examples of types of brand architectures

    Well-known brands with different brand and sub-brands structures

    Examples of types of brand architectures

    Pros and cons of each architecture types

    Different approaches to organizing a brand portfolio

    The brand architecture impacts the cohesiveness, effectiveness, and market reach. Defining or redefining organization changes is crucial for company performance.

    Branded House Endorsed Brands House of Brands
    Other Designations
    • "Monolithic brands"
    • "Sub-brands"
    • "Freestanding brands"
    Description
    • Single brand name for all products/services
    • Creates a unique and powerful image that can easily be identified
    • The master brand name endorses a range of products/services marketed under different sub-brands
    • Decentralized brands
    • Can target diverse markets with separate brand names for each product/service
    Marketing & Comms
    • Highly efficient
    • Eliminates split branding efforts by product/service
    • Product differentiation and tailoring messages to specific customer segments are limited
    • Each brand has its unique identity
    • Benefit from the support and resources of the master brand
    • Allows for unique branding and messaging per products/services for specific customer segments
    • Can experiment with different offerings and strategies
    Impact on Sales
    • Good cross-selling opportunities by leveraging a strong brand name
    • Benefit from the master brand's credibility, building customer trust and increasing sales
    • Tailored marketing to specific segments can increase market share and profitability
    • Creates competitive advantage and builds loyalty
    Cost Effectiveness
    • Cost-effective
    • No separate branding efforts per product/service
    • Lack of economy of scale
    • Fragmentation of resources and duplication of effort
    • Lack of economy of scale
    • Fragmentation of resources and duplication of effort
    Reputation and Image
    • More control over the brand image, messages, and perception, leading to strong recognition
    • Increased vulnerability to negative events can damage the entire brand, products/services offered
    • Mitigated risk, protecting the master brand's reputation and financial performance
    • Negative events with one brand can damage the master and other brands, causing a loss of credibility
    • Reduced risk, safeguarding the master brand's reputation and financial performance
    • Each brand builds its own equity, enhancing the company's financial performance and value
    Consistency
    • Ensures consistency with the company's brand image, values, and messaging
    • Helps build trust and loyalty
    • Inconsistent branding and messaging can cause confusion and misunderstandings
    • Unclear link between master/endorsed brands
    • Reduces trust and brand loyalty
    • Difficult to establish a clear and consistent corporate identity
    • Can reduce overall brand recognition and loyalty

    Brand naming decision tree

    Create a naming process for brand alignment and resonance with the target audience

    To ensure a chosen name is effective and legally/ethically sound, consider the ease of pronunciation/spelling, the availability for registration of brand/domain name, any negative connotations/associations in any language/culture, and potential legal/ethical issues.

    Brand naming decision tree

    To ensure a chosen name is effective and legally/ethically sound, consider the ease of pronunciation/spelling, the availability for registration of brand/domain name, any negative connotations/associations in any language/culture, and potential legal/ethical issues.

    Advantages of defining brand architecture

    Maximize your brand potential with a clear architecture strategy.

    Clear offering

    Adaptability

    Consistent branding

    Competitive differentiation

    Operational efficiency

    Strong brand identity

    Customer loyalty

    Business success

    "Responding to external influences, all brands must adapt and change over time. A clear system can aid in managing the process, ensuring that necessary changes are implemented effectively and efficiently."
    Source: The Branding Journal

    SoftwareReviews' brand architecture creation methodology

    Develop and Implement a Robust Brand Architecture

    Phase Steps

    		 Step 1 Research and Analysis
    1.1 Define brand architecture strategy
    1.2 Brand audit
    1.3 Identify brand core elements

    Step 2 Development and Implementation
    2.1 Determine brand hierarchy
    2.2 Develop or update brand guidelines
    2.3 Roll out brand architecture
    Phase Outcomes
    • Brand current performance is assessed
    • Issues are highlighted and can be addressed
    • Brand structure is developed and implemented across touchpoints and assets
    • Adjustments are made on an ongoing basis for consistency and relevance to business goals

    Insight summary

    Brand Architecture: Organize and manage your portfolio of brands
    Brand architecture is the way a company organizes and manages its portfolio of brands to achieve strategic goals. It encompasses the relationships between brands, from sub-brands to endorsed brands to independent brands, and how they interact with each other and with the master brand. With a clear brand architecture, businesses can optimize their portfolio, enhance their competitive position, and achieve sustainable growth and success in the long run.

    Aligning brand architecture to business strategy
    Effective brand architecture aligns with the company's business strategy, marketing objectives, and customer needs. It provides clarity and coherence to the brand portfolio, helps customers navigate product offerings, and maximizes overall equity of the brand.

    Choosing between three types of brand architecture
    A company's choice of brand architecture depends on factors like product range, target markets, and strategic objectives. Each approach, Branded House, Endorsed, or House of Brands, has its own pros and cons, and the proper option relies on the company's goals, resources, and constraints.

    A logical brand hierarchy for more clarity
    The order of importance of brands in the portfolio, including the relationships between the master and sub-brands, and the positioning of each in the market is fundamental. A clear and logical hierarchy helps customers understand the value proposition of each brand and reduces confusion.

    A win-win approach
    Clear brand architecture can help customers easily navigate and understand the product offering, reinforce the brand identity and values, and improve customer loyalty and retention. Additionally, it can help companies optimize their marketing strategies, streamline their product development and production processes, and maximize their revenue and profitability.

    Brand architecture, an ongoing process
    Brand architecture is not a one-time decision but an ongoing process that requires regular review and adjustment. As business conditions change, companies may need to revise their brand portfolio, brand hierarchy, or brand extension and acquisition strategies to remain competitive and meet customer needs.

    Brand architecture creation tools

    This blueprint comes with tools to help you develop your brand architecture.

    Brand Architecture Toolkit

    This kit includes a Brand Architecture Mini-Audit, a Brand Architecture template, and templates for Brand Matrix, Ecosystem, and Development Strategy.

    Use this kit to develop a strong brand architecture that aligns with your business goals, clarifies your brand portfolio, and enhances overall brand equity.

    Brand Architecture Toolkit

    Brand Architecture

    Develop a robust brand architecture that supports your business goals, clarifies your brand portfolio, and enhances your overall brand equity.

    "A brand architecture is the logical, strategic, and relational structure for your brands, or put another way, it is the entity's 'family tree' of brands, sub-brands, and named products."
    Source: Branding Strategy Insider

    Consequences of Neglected Brand Guidelines

    When a company neglects its brand architecture and guidelines, it can result in a number of negative consequences, such as:

    • Lack of clarity around the brand's personality and values
    • Inconsistent messaging and branding
    • Inability to differentiate from competitors
    • Weak brand identity
    • Confusion among customers and employees
    • Difficulty launching new products/services or integrating acquired brands
    • Lack of recognition and trust from consumers, leading to potential negative impacts on the bottom line.

    Benefits of SoftwareReviews' Methodology

    By following SoftwareReviews' methodology to develop and maintain a brand architecture, businesses can:

    • Establish a unique market position and stand out from competitors
    • Ensure that marketing efforts are focused and effective
    • Create personalized and engaging customer experiences
    • Reinforce messaging and positioning
    • Increase customer loyalty and satisfaction
    • Build brand recognition and awareness

    Marq, formerly Lucidpress, surveyed over 400 brand management experts and found that "if the brand was consistent, revenue would increase by 10-20%."

    Methodology for Defining Brand Architecture

    Who benefits from this research?

    This research is designed for:

    • Organizations that value their brand and want to ensure that it is communicated effectively and consistently across all touchpoints.
    • Business owners, marketers, brand managers, creative teams, and anyone involved in the development and implementation of brand strategy.

    This research will also assist:

    • Sales and customer experience teams
    • Channel partners
    • Buyers

    This research will help you:

    • Establish a unique market position and stand out from competitors.
    • Create a more personalized and engaging customer experience.
    • Ensure that marketing efforts are focused and effective.
    • Reinforce brand messaging and positioning.

    This research will help them:

    • Increase customer loyalty and satisfaction
    • Build brand recognition and awareness
    • Drive business growth and profitability.

    SoftwareReviews offers various levels of support to best suit your needs

    DIY Toolkit
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."     		Guided Implementation
    "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."    		 Workshop
    "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."    		 Consulting
    "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."
    Included Within Advisory Membership Optional Add-Ons

    Guided Implementation

    What does a typical GI on this topic look like?

    Research & Analysis
    Call #1: Discuss brand architecture strategy (define objectives, scope and stakeholders). Call #3: Identify core brand components and ensure they align with the brand strategy. Call #5: Develop or update brand guidelines. Optional Calls:
    • Brand Diagnostic
    • Brand Strategy and Tactics
    • Brand Voice Guidelines
    • Asset Creation and Management
    • Brand Messaging
    Call #2: Conduct a brand audit. Call #4: Define and document the brand hierarchy. Call #6: Roll out the brand architecture and monitoring.

    A Guided Implementation (GI) is a series of calls with a SoftwareReviews Marketing Analyst to help implement our best practices in your organization.

    Your engagement managers will work with you to schedule analyst calls.

    Brand Mind Mapping Workshop Overview

    Total duration: 3-4 hours

    Activities
    Visually map out the different elements of your brand portfolio, including corporate brands, sub-brands, product brands, and their relationships with each other.

    The workshop also aims to explore additional elements, such as brand expansions, acquisitions, and extensions, and brand attributes and positioning.

    Deliverables
    Get a mind map that represents the brand architecture and its various components, which can be used to evaluate and improve the overall coherence and effectiveness of the brand portfolio. The mind map can also provide insights into how different brands fit together and contribute to the overall brand strategy.

    Participants

    • Business owners
    • Head of Branding and anyone involved with the brand strategy

    Tools

    • Brand Architecture Template, slides 7 and 8

    Brand Mind Mapping

    Contact your account representative for more information
    workshops@infotech.com | 1-888-670-8889

    Get started!

    Develop a brand architecture that supports your business goals, clarifies your brand portfolio, and enhances your overall brand equity.

    Develop and Implement a Robust Brand Architecture

    Step 1 Research and Analysis
    1.1 Define architecture strategy
    1.2 Perform brand audit
    1.3 Identify brand core elements

    Step 2 Development and Implementation
    2.1 Determine brand hierarchy
    2.2 Develop or update brand guidelines
    2.3 Roll out brand architecture

    Phase Outcome

    • Brand current performance is assessed
    • Issues are highlighted and can be addressed
    • Brand structure is developed and implemented across touchpoints and assets
    • Adjustments made on an ongoing basis for consistency and relevance to business goals

    Develop and implement a robust brand architecture

    Steps 1.1, 1.2 & 1.3 Define architecture strategy, audit brand, and identify core elements.

    Total duration: 2.5-4.5 hours

    Objective
    Define brand objectives (hierarchy, acquired brand inclusion, product distinction), scope, and stakeholders. Analyze the brand portfolio to identify gaps or inconsistencies. Identify brand components (name, logo, tagline, personality) and align them with the brand and business strategy.

    Output
    By completing these steps, you will assess your current brand portfolio and evaluate its consistency and alignment with the overall brand strategy.

    Participants

    • Business owners
    • Head of Branding and anyone involved with the brand strategy

    Tools

    • Diagnose Brand Health to Improve Business Growth Blueprint (optional)
    • Brand Awareness Strategy Template (optional)

    1.1 Define Brand Architecture Strategy
    (60-120 min.)

    Define

    Define brand objectives (hierarchy, inclusion of an acquired brand, product distinction), scope, and stakeholders.

    1.2 Conduct Brand Audit
    (30-60 min.)

    Assess

    Assess the state of your brand architecture using the "Brand architecture mini-audit checklist," slide 9 of the Brand Architecture Strategy Template. Check the boxes that correspond to the state of your brand architecture. Those left unchecked represent areas for improvement.

    For a more in-depth analysis of your brand performance, follow the instructions and use the tools provided in the Diagnose Brand Health to Improve Business Growth blueprint (optional).

    1.3 Identify Core Brand Elements
    (60-90 min.)

    Identify

    Define brand components (name, logo, tagline, personality). Align usage with strategy. You can develop your brand strategy, if not already existing, using the Brand Awareness Strategy Template (optional).

    Tip!

    Continuously monitor and adjust your brand architecture - it's not static and should evolve over time. You can also adapt your brand strategy as needed to stay relevant and competitive.

    Develop and implement a robust brand architecture

    Steps 2.1. 2.2 & 2.3 Develop brand hierarchy, guidelines, and rollout architecture.

    Total duration: 3.5-5.5 hours

    Objective
    Define your brand structure and clarify the role and market position of each. Create concise brand expression guidelines, implement them across all touchpoints and assets, and adjust as needed to stay aligned with your business goals.

    Output
    This exercise will help you establish and apply your brand structure, with a plan for ongoing updates and adjustments to maintain consistency and relevance.

    Participants

    • Business owners
    • Head of Branding and anyone involved with the brand strategy

    Tools

    • Brand Architecture Template
    • Brand Voice Guidelines
    • Brand Messaging Template
    • Asset Creation and Management List Template

    2.1 Determine Brand Hierarchy
    (30-60 min.)

    Analyze & Document

    In the Brand Architecture Strategy Template, complete the brand matrix, ecosystem, development strategy matrix, mind mapping, and architecture, to develop a strong brand architecture that aligns with your business goals and clarifies your brand portfolio and market position.

    2.2 Develop/Update Brand Guidelines
    (120-180 min.)

    Develop/Update

    Develop (or update existing) clear, concise, and actionable brand expression guidelines using the Brand Voice Guidelines and Brand Messaging Template.

    2.2 Rollout Brand Architecture
    Preparation (60-90 min.)

    Create & Implement

    Use the Asset Creation and Management List Template to implement brand architecture across touchpoints and assets.

    Monitor and Adjust

    Use slide 8, "Brand Strategy Development Matrix," of the Brand Architecture Strategy Template to identify potential and future brand development strategies to build or enhance your brand based on your current brand positioning and business goals. Monitor, and adjust as needed, for relevance to the brand and business strategy.

    Tip!

    Make your brand architecture clear and simple for your target audience, employees, and stakeholders. This will avoid confusion and help your audience understand your brand structure.

    Prioritizing clarity and simplicity will communicate your brand's value proposition effectively and create a strong brand that resonates with your audience and supports your business goals.

    Related SoftwareReviews research

    Diagnose Brand Health to Improve Business Growth

    Have a significant and well-targeted impact on business success and growth by knowing how your brand performs, identifying areas of improvement, and making data-driven decisions to fix them.

    • Increase brand awareness and equity.
    • Build trust and improve customer retention and loyalty.
    • Achieve higher and faster growth.

    Accelerate Business Growth and Valuation by Building Brand Awareness

    Successfully build awareness and help the business grow. Stand out from the competition and continue to grow in a sustainable way.

    • Get a clear understanding of the buyer's needs and your key differentiator.
    • Achieve strategy alignment and readiness.
    • Create and manage assets.

    Bibliography

    "Brand Architecture: Definition, Types, Strategies, and Examples." The Branding Journal, 2022.

    "Brand Architecture: What It Is and How to Build Your Brand's Framework." HubSpot, 2021.

    "Brand Architecture Framework." Verge Marketing, 2021.

    "Brand consistency-the competitive advantage and how to achieve it." Marq/Lucidpress, 2021.

    "Building brands for growth: A fresh perspective." McKinsey & Company. Accessed on 31 March 2023.

    Daye, Derrick. "Brand Architecture Strategy Guide." Branding Strategy Insider, The Blake Project, 13 May 2021.

    Todoran, Adrian. "Choosing the Perfect Brand Architecture Strategy for Your Business." LinkedIn, 2023.

    Design an Enterprise Architecture Strategy

    • Buy Link or Shortcode: {j2store}580|cart{/j2store}
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    • Parent Category Name: Strategy & Operating Model
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    • The enterprise architecture (EA) team is constantly challenged to articulate the value of its function.
    • The CIO has asked the EA team to help articulate the business value the team brings.
    • Traceability from the business goals and vision to the EA contributions often does not exist.
    • Also, clients often struggle with complexity, priorities, and agile execution.

    Our Advice

    Critical Insight

    • EA can deliver many benefits to an organization. However, to increase the likelihood of success, the EA group needs to deliver value to the business and cannot be seen solely as IT.
    • Support from the organization is needed.
    • An EA strategy anchored in a value proposition will ensure that EA focuses on driving the most critical outcomes in support of the organization’s enterprise strategy.
    • As agility is not just for project execution, architects need to understand ways to deliver their guidance to influence project execution in real time, to enable the enterprise agility, and to enhance their responsiveness to changing conditions.

    Impact and Result

    • Create an EA value proposition based on enterprise needs that clearly articulates the expected contributions of the EA function.
    • Establish the EA fundamentals (vision and mission statement, goals and objectives, and principles) needed to position the EA function to deliver the promised value proposition.
    • Identify the services that EA has to provide to the organization to deliver on the promised value proposition.

    Design an Enterprise Architecture Strategy Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Design an Enterprise Architecture Strategy Deck – A guide to help you define services that your EA function will provide to the organization.

    Establish an effective EA function that will realize value for the organization with an EA strategy.

    • Design an Enterprise Architecture Strategy – Phases 1-4

    2. EA Function Strategy Template – A communication tool to secure the approval of the EA strategy from organizational stakeholders.

    Use this template to document the outputs of the EA strategy and to communicate the EA strategy for approval by stakeholders.

    • EA Function Strategy Template

    3. Stakeholder Power Map Template – A template to help visualize the importance of various stakeholders and their concerns.

    Identify and prioritize the stakeholders that are important to your IT strategy development effort.

    • Stakeholder Power Map Template

    4. PESTLE Analysis Template – A template to help you complete and document a PESTLE analysis.

    Use this template to analyze the effect of external factors on IT.

    • PESTLE Analysis Template

    5. EA Value Proposition Template – A template to communicate the value EA can provide to the organization.

    Use this template to create an EA value proposition that explicitly communicates to stakeholders how an EA function can contribute to addressing their needs.

    • EA Value Proposition Template

    6. EA Goals and Objectives Template – A template to identify the EA goals that support the identified promises of value from the EA value proposition.

    Use this template to help set goals for your EA function based on the EA value proposition and identify objectives to measure the progression towards those EA goals.

    • EA Goals and Objectives Template

    7. EA Principles Template – A template to identify the universal EA principles relevant to your organization.

    Use this template to define relevant universal EA principles and create new EA principles to guide and inform IT investment decisions.

    • EA Principles Template – EA Strategy

    8. EA Service Planning Tool – A template to identify the EA services your organization will provide to deliver on the EA value proposition.

    Use this template to identify the EA services relevant to your organization and then define how those services will be accessed.

    • EA Service Planning Tool
    [infographic]

    Workshop: Design an Enterprise Architecture Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Map the EA Contributions to Business Goals

    The Purpose

    Show an example of traceability.

    Key Benefits Achieved

    Members have a real-world example of traceability between business goals and EA contributions.

    Activities

    1.1 Start from the business goals of the organization.

    1.2 Document business and IT drivers.

    1.3 Identify EA contributions that help achieve the business goals.

    Outputs

    Business goals documented.

    Business and IT drivers documented.

    Identified EA contributions and traced them to business goals.

    2 Determine the Role of the Architect in the Agile Ceremonies of the Organization

    The Purpose

    Create an understanding about role of architect in Agile ceremonies.

    Key Benefits Achieved

    Understanding of the role of the EA architect in Agile ceremonies.

    Activities

    2.1 Document the Agile ceremony used in the organization (based on SAFe or other Agile approaches).

    2.2 Determine which ceremonies the system architect will participate in.

    2.3 Determine which ceremonies the solution architect will participate in.

    2.4 Determine which ceremonies the enterprise architect will participate in.

    2.5 Determine architect syncs, etc.

    Outputs

    Documented the Agile ceremonial used in the organization (based on SAFe or other Agile approaches).

    Determined which ceremonies the system architect will participate in.

    Determined which ceremonies the solution architect will participate in.

    Determined which ceremonies the enterprise architect will participate in.

    Determined architect syncs, etc.

    Further reading

    Design an Enterprise Architecture Strategy

    Develop a strategy that fits the organization’s maturity and remains adaptable to unforeseen future changes.

    EXECUTIVE BRIEF

    Build a right-size enterprise architecture strategy

    Enterprise Architecture Strategy
    Business & IT Strategy
    • Organizational Goals and Objectives
    • Business Drivers
    • Environment and Industry Trends
    • EA Capabilities and Services
    • Business Architecture
    • Data Architecture
    • Application Architecture
    • Integration Architecture
    • Innovation
    • Roles and Organizational Structure
    • Security Architecture
    • Technology Architecture
    • Integration Architecture
    • Insight and Knowledge
    • EA Operating Model
    		 Unlock the Value of Architecture
    • Increased Business and IT Alignment
    • Robust, Flexible, Scalable, Interoperable, Extensible and Reliable Solutions
    • Timely/Agile Service Delivery and Operations
    • Cost-Effective Solutions
    • Appropriate Risk Management to Address the Risk Appetite
    • Increased Competitive Advantage
    Current Environment
    • Business and IT Challenges
    • Opportunities
    • Enterprise Architecture Maturity

    Enterprise Architecture – Thought Model

    A thought model built around 'Enterprise Architecture', represented by a diagram on a cross-section of a ship which will be explained in the next slide. It begins with an arrow that says 'Organizational goals are the driving force and the ultimate goal' pointing to a bubble titled 'Organization' containing 'Analysis', 'Decisions', 'Actions'. An blue arrow on the right side with one '$' is labelled 'Iterations' and connects 'Organization' to 'Enterprise Architecture', 'Enterprise architecture creates new business value'. A green arrow on the left side with five '$' is labelled 'Goals' and connects back to 'Organization'. A the bottom, a bubble titled 'External forces, pressures, trends, data, etc.' has a blue arrow on the right side with one '$' connecting back to 'Enterprise Architecture'. Another blue arrow representing an output is labelled 'Outcomes' and originates from 'Enterprise Architecture'.

    Enterprise Architecture Capabilities

    A diagram on a cross-section of a ship representing 'Enterprise Architecture', including a row of process arrows beneath the ship pointing forward all labelled 'Agile iteration' and one airborne arrow above the stern pointing forward labelled 'Business Strategy'. Overlaid on the ship, starting at the back, are 'EA Strategy', 'EA Operating Model', 'Enterprise Principles, Methods, etc.', 'Foundational enterprise decisions: Business, Data/Apps, Technology, Integration, Security', 'Enterprise Reference Architecture', 'Goals, Value Chain, Capability, Business Processes', 'Enterprise Governance (e.g., Standard Mgmt.)', 'Domain Arch', 'Data & App Architecture', 'Security Architecture', 'Infrastructure: Cloud, Hybrid, etc.', at the very front is 'Implementation', and running along the bottom from back to front is 'Operations, Monitoring, and Continuous Improvement'.

    Analyst Perspective

    Enterprise architecture (EA) needs to be right-sized for the needs of the organization.

    Photo of Milena Litoiu, Principal/Senior Director, Enterprise Architecture, Info-Tech Research Group

    Enterprise architecture is NOT a one-size-fits-all endeavor. It needs to be right-sized to the needs of the organization.

    Enterprise architects are boots on the ground and part of the solution; in addition, they need to have a good understanding of the corporate strategy, vision, and goals and have a vested interest on the optimization of the outcomes for the enterprise. They also need to anticipate the moves ahead, to be able to determine future trends and how they will impact the enterprise.

    Milena Litoiu
    Principal/Senior Director, Enterprise Architecture
    Info-Tech Research Group

    Analyst Perspective

    EA provides business options based on a deep understanding of the organization.

    “Enterprise architects need to think about and consider different areas of expertise when formulating potential business options. By understanding the context, the puzzle pieces can combine to create a positive business outcome that aligns with the organization’s strategies. Sometimes there will be missing pieces; leveraging what you know to create an outline of the pieces and collaborating with others can provide a general direction.”

    Jean Bujold
    Senior Workshop Delivery Director
    Info-Tech Research Group

    “The role of enterprise architecture is to eliminate misalignment between the business and IT and create value for the organization.”

    Reddy Doddipalli
    Senior Workshop Director, Research
    Info-Tech Research Group

    “Every transformation journey is an opportunity to learn: ‘Tell me and I forget. Teach me and I remember. Involve me and I learn.’ Benjamin Franklin.”

    Graham Smith
    Senior Lead Enterprise Architect and Independent Consultant

    Develop an enterprise architecture strategy that:

    • Helps the organization make decisions that are hard to change in a complex environment.
    • Fits the current organization’s maturity and remains flexible and adaptable to unforeseen future changes.

    Executive Summary

    Your Challenge

    We need to make decisions today for an unknown future. Decisions are influenced by:

    • Changes in the environment you operate in.
    • Complexity of both the business and IT landscapes.
    • IT’s difficulty in keeping up with business demands and remaining agile.
    • Program/project delivery pressure and long-term planning needs.
    • Other internal and external factors affecting your enterprise.

    Common Obstacles

    Decisions are often made:

    • Without a clear understanding of the business goals.
    • Without a holistic understanding; sometimes in conflict with one another.
    • That hinder the continuity of the organization.
    • That prevent value optimization at the enterprise level.

    The more complex an organization, the more players involved, the more difficult it is to overcome these obstacles.

    Info-Tech’s Approach

    • Is a holistic, top-down approach, from the business goals all the way to implementation.
    • Has EA act as the canary in the coal mine. EA will identify and mitigate risks in the organization.
    • Enables EA to provide an essential service rather than be an isolated kingdom or an ivory tower.
    • Acknowledges that EA is a balancing act among competing demands.
    • Makes decisions using guiding principles and guardrails, to create a flexible architecture that can evolve and expand, enabling enterprise agility.

    Info-Tech Insight

    There is no “right architecture” for organizations of all sizes, maturities, and cultural contexts. The value of enterprise architecture can only be measured against the business goals of a single organization. Enterprise architecture needs to be right-sized for your organization.

    Info-Tech insight summary on arch. agility

    Continuous innovation is of paramount importance in achieving and maintaining competitive advantage in the marketplace.

    Business engagement

    It is important to trace architectural decisions to business goals. As business goals evolve, architecture should evolve as well.

    As new business input is provided during Agile cycles, architecture is continuously evolving.

    		EA fundamentals

    EA fundamentals will shape how enterprise architects think and act, how they engage with the organization, what decisions they make, etc.

    Start small and lean and evolve as needed.

    Continuously align strategy with delivery and operations.

    Architects should establish themselves as business partners as well as implementation/delivery leaders.

    		Enterprise services

    Definitions of enterprise services should start from the business goals of the organization and the capabilities IT needs to perform for the organization to survive in the marketplace.

    Continuous delivery and continuous innovation are the two facets of architecture.

    Tactical insight

    Your current maturity should be reflected as a baseline in the strategy.

    		Tactical insight

    Take Agile/opportunistic steps toward your strategic North star.

    		Tactical insight

    EA services differ based on goals, maturity, and the Agile appetite of the enterprise.

    From the best industry experts

    “The trick to getting value from enterprise architecture is to commit to the long haul.”

    Jeanne W. Ross, MIT CISR
    Co-author of Enterprise Architecture as Strategy: Creating a Foundation for Business Execution,
    Harvard Business Press, 2006.

    Typical EA maturity stages

    A line chart that moves through multiple stages titled 'Enterprise Architecture Maturity Stages (MIT CISR)' The five stages of the chart, starting on the left, are 'Business Silos', 'Standardized Technology', 'Optimized Core', 'Business Componentization', and 'Digital Ecosystem'. 'The trick to getting value from enterprise architecture is to commit to the long haul.' The line begins at the bottom left of the chart and gradually creates a stretched S shape to the top right. Points along the line, respective to the aforementioned stages, are 'Locally Optimal Business Solutions', 'Technology Infrastructure Platform', 'Digitized Process Platform', 'Repository of Reusable Business Components', 'Components Connecting with Partners' Components', and at the end of the line, outside of the chart is 'Strategic Business Value from Technology'. Percentages along the bottom, respective to the aforementioned stages, read 20%, 36%, 45%, 7%, 2%. Percentages are rough approximations based on findings reported in Mocker, M., Ross, J.W., Beath, C.M., 'How Companies Use Digital Technologies to Enhance Customer Offerings--Summary of Survey Findings,' MIT CISR Working Paper No. 434, Feb. 2019. Copyright MIT, 2019.

    Enterprise Architecture maturity

    A maturity ladder visualization for 'Enterprise Architecture' with five color-coded levels. From the bottom up, the colors and designations are Red: 'Unstable', Orange: 'Firefighter', Yellow: 'Trusted Operator', Blue: 'Business Partner', and Green: 'Innovator'. Beside the visualization at the bottom it says 'EA is here', then an arrow in the direction of the top where it says 'EA needs to be here'.
    • Innovator – Transforms the Business
      Reliable Technology Innovation
    • Business Partner – Expands the Business
      Effective Use of Enterprise Architecture in all Business Projects, Enterprise Architecture Is Strategically Engaged
    • Trusted Operator – Optimizes the Business
      Enterprise Architecture Provides Business, Data, Application & Technology Architectures for All IT Projects
    • Firefighter – Supports the Business
      Reliable Architecture for Some Practices/Projects
    • Unstable – Struggles to Support
      Inability to Provide Reliable Architectures

    Info-Tech Insight

    There is no “absolute maturity” for organizations of all sizes, maturities, and cultural contexts. The maturity of enterprise architecture can only be measured against the business goals of the organization.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Session 1 Session 2 Session 3 Session 4 Session 5
    Activities
    Identify organizational needs and landscape

    1.0 Interview stakeholders to identify business and technology needs

    1.1 Review organization perspective, including business needs, challenges, and strategic directions

    1.2 Conduct PESTLE analysis to identify business and technology trends

    1.3 Conduct SWOT analysis to identify business and technology internal perspective

    Create the EA value proposition

    2.1 Identify and prioritize EA stakeholders

    2.2 Create business and technology drivers from needs

    2.3 Define the EA value proposition

    2.4 Identify EA maturity and target

    Define the EA fundamentals

    3.1 Define the EA goals and objectives

    3.2 Determine EA scope

    3.3 Create a set of EA principles

    3.4. Define the need of a methodology/agility

    3.5 Create the EA vision and mission statement

    Identify the EA framework and communicate the EA strategy

    4.1 Define initial EA operating model and governance mechanism

    4.2 Define the activities and services the EA function will provide, derived from business goals

    4.3 Determine effectiveness measures

    4.4 Create EA roadmap and next steps

    4.5 Build communication plan for stakeholders

    Next Steps and Wrap-Up (offsite)

    5.1 Generate workshop report

    5.2 Set up review time for workshop report and to discuss next steps

    Outcomes
    1. Stakeholder insights
    2. Organizational needs, challenges, and direction summary
    3. PESTLE & SWOT analysis
    1. Stakeholder power map
    2. List of business and technology drivers with associated pains
    3. Set of EA contributions articulating the promises of value in the EA value proposition
    4. EA maturity assessment
    1. EA scope
    2. List of EA principles
    3. EA vision statement
    4. EA mission statement
    5. Statement about role of enterprise architect relative to agility
    1. EA capabilities mapped to business goals of the organization
    2. List of EA activities and services the EA function is committed to providing
    3. KPI definitions
    4. EA roadmap
    5. EA communication plan
    1. Completed workshop report on EA strategy with roadmap, recommendations, and outcomes from workshop

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is 8 to 12 calls over the course of 4 to 6 months.

    While variations depend on the maturity of the organization as well as its aspirations, these are some typical steps:

      Phase 1

    • Call #1: Explore the role of EA in your organization.

      • Phase 2

    • Call #2: Identify and prioritize stakeholders.
    • Call #3: Use a PESTLE analysis to identify business and technology needs.
    • Call #4: Prepare for stakeholder interviews.
    • Call #5: Discuss your EA value proposition.

      • Phase 3

    • Call #5: Understand the importance of EA fundamentals.
    • Call #6: Define the relevant EA services and their contributions to the organization.
    • Call #7: Measure EA effectiveness.

      • Phase 4

    • Call #8: Build your EA roadmap and communication plan.
    • Call #9: Discuss the EA role relative to agility.
    • Call #10: Summarize results and plan next steps.

    Design an Enterprise Architecture Strategy

    Phase 1

    Explore the Role of Enterprise Architecture

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture
      •

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    Define the role of the group and different roles inside the enterprise architecture competency.

    This phase involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Enterprise architecture optimizes the outcomes of the entire organization

    Corporate Strategy –› Enterprise Architecture Strategy

    Info-Tech Insight

    Enterprise architecture needs to have input from the corporate strategy of the organization. Similarly, EA governance needs to be informed by corporate governance. If this is not the case, it is like planning and governing with your eyes closed.

    Existing EA functions vary in the value they achieve due to their level of maturity

    EA Functions
    Operationalized
    • EA function is operationalized and operates as an effective core function.
    • Effectively aligns the business and IT through governance, communication, and engagement.
    		 –––› Common EA value
    Decreased cost Reduced risk
    Emerging
    • Emerging but limited ad hoc EA function.
    • Limited by lack of alignment to the business and IT.
    		 –x–› Cut through complexity Increased agility
    (Source: Booz & Co., 2009)

    Benefits of enterprise architecture

    1. Focuses on business outcomes (business centricity)
    2. Provides traceability of architectural decisions to/from business goals
    3. Provides ways to measure results
    4. Provides consistency across different lines of business: establishes a common vocabulary, reducing inconsistencies
    5. Reduces duplications, creating additional efficiencies at the enterprise level
    6. Presents an actionable migration to the strategy/vision, through short-term milestones/steps

    Benefits of enterprise architecture continued

    1. Done right, increases agility
    2. Done right, reduces costs
    3. Done right, mitigates risks
    4. Done right, stimulates innovation
    5. Done right, helps achieve the stated business goals (e.g. customer satisfaction) and improves the enterprise agility.
    6. Done right, enhances competitive advantage of the enterprise

    Qualities of a well-established and practical enterprise architecture

    1. Objective
    2. Impartial
    3. Credible
    4. Practical
    5. Measurable
      6. (Source: University of Toronto, 2021)

    Role of the enterprise architecture

    • Primarily to set up guardrails for the enterprise, so Agile teams work independently in a safe, ready-to-integrate environment
    • Establish strategy
    • Establish priorities
    • Continuously innovate
    • Establish enterprise standards and enterprise guardrails to guide Solution/Domain/Portfolio Architectures
    • Align with and be informed by the organization’s direction

    Members of the Architecture Board:

    • Chief (Business) Strategist
    • Lead Enterprise Architect
    • Business SME from each major domain
    • IT SME from each major domain
    • Operational & Infrastructure SME
    • Security & Risk Officer
    • Process Management
    • Other relevant stakeholders

    For enterprise architecture to contribute, EA must address the organizational vision and goals

    External Factors –› Layers of a Business Model
    (Organization)         		–› Architecture Supported Transformation
    Industry Changes Business Strategy
    Competition Value Streams
    (Business Outcomes)
    Regulatory Impacts Business Capability Maps
    • Security
    Workforce Impacts Execution
    • Policies
    • Processes
    • People
    • Information
    • Applications
    • Technology

    Info-Tech Insight

    External forces can affect the organization as a whole; they need to be included as part of the holistic approach for enterprise architecture.

    How does EA provide value?

    Business and Technology Drivers – A set of statements created from business and technology needs. Gathered from information sources, it communicates improvements needed.

    • Vision, Aspirations, Long-Term Goals – Vision, aspirations, long term goals

      • EA Contributions – EA contributions that will alleviate obstructions. Removing the obstructions will allow EA to help satisfy business and technology needs.

        • Promise of Value – A statement that depicts a concrete benefit that the EA practice can provide for the organization in response to business and technology drivers.

    Info-Tech Insight

    Enterprise architecture needs to create and be part of a culture where decisions are made through collaboration while focusing on enterprise-wide efficiencies (e.g. reduced duplication, reusability, enterprise-wide cost minimization, overall security, comprehensive risk mitigation, and any other cross-cutting concerns) to optimize corporate business goals.

    The EA function scope is influenced by the EA value proposition and previously developed EA fundamentals

    Establish the EA function scope by using the EA value proposition and EA fundamentals that have already been developed. After defining the EA function scope, refer back to these statements to ensure it accurately reflects the EA value proposition and EA fundamentals.

    EA value proposition

    +

    EA vision statement
    EA mission statement
    EA goals and objectives

    		—›
    Influences

    Organizational coverage

    Architectural domains

    Depth

    Time horizon

    		—›
    Defines     		EA function scope

    EA team characteristics

    Create the optimal EA strategy by including personnel who understand a broad set of topics in the organization

    The team assembled to create the EA strategy will be defined as the “EA strategy creation team” in this blueprint.

    • Someone who has been in the organization for a long time and has built strong relationships with key stakeholders. This individual can exert influence and become the EA strategy sponsor.
    • An individual who understands how the different technology components in the organization support its business operations.
    • Someone in the organization who can communicate IT concepts to business managers in a language the business understands.
    • An individual with a strategy background or perspective on the organization. This individual will understand where the organization is headed.
    • Any individuals who feel an acute pain as a result of poorly made investment decisions. They can be champions of EA strategy in their respective functions.

    EA skills and competencies

    Apart from business know-how, the EA team should have the following skills

    • Architectural thinking
    • Analytical
    • Trusted, credible
    • Can handle complexity
    • Can change perspectives
    • Can learn fast (business and technology)
    • Independent and steadfast
    • Not afraid to go against the stream
    • Able to understand problems of others with empathy
    • Able to estimate scaling on design decisions such as model patterns
    • Intrinsic capability to identify where relevant details are
    • Able to identify root causes quickly
    • Able to communicate complex issues clearly
    • Able to negotiate and come up with acceptable solutions
    • Can model well
    • Able to change perspectives (from business to implementation and operational perspectives).

    Use of enterprise architecture methodologies

    Balance EA methodologies with Agile approaches

    Using an enterprise architecture methodology is a good starting point to achieving a common understanding of what that is. Often, organizations agree to "tailor" methodologies to their needs.

    The use of lean/Agile approaches will increase efficiency beyond traditional methodologies.

    Use of EA methodologies vs. Agile methods

    When to use what?

    • Use an existing methodology to structure your thinking and establish a common vocabulary to communicate basic concepts, processes, and approaches.
    • Customize the methodology to your needs; make it as lean as possible.
    • Execute in an Agile way, but keep in mind the thoughtful checks recommended by your end-to-end methodology.
    • Clarify goals.
    • Have good measures and metrics in place.
    • Continuously monitor progress, fit for purpose, etc.
    • Highlight risks, roadblocks, etc.
    • Get support.
    • Communicate vision, goals, key decisions, etc.
    • Iterate.

    Business strategy first, EA strategy second, and EA operating model third

    Corporate Strategy
    “Why does our enterprise exist in the market?”
    EA Strategy
    “What does EA need to be and do to support the enterprise’s ability to meet its goals? What is EA’s value proposition?”     		Business & IT Operating Culture
    “How does the organization’s culture and structure influence the EA operating model?”
    EA Operating Model
    How does EA need to operate on a daily basis to deliver the value proposition?”

    High-level perspective

    Creating an effective practice involves many moving parts.

    A visual of the many moving parts in an effective practice; there are 6 smaller circles in a large circle, an input arrow labelled 'Environment', an output arrow labelled 'Results', and a thin arrow connecting 'Results' back to 'Environment'. Of the circles, 'Leadership' is in the center, connected to each of the others, while 'Culture', 'Strategy', 'Core Processes', 'Structure', and 'Systems' create a cycle. (Source: The Center for Organizational Design)

    • Environment. Influences that are external to the organization, such as customer perceptions, changing needs, and changes in technology, and the organization’s ability to adjust to them.
    • Strategy. The business strategy defines how the organization adds value and acts as the rudder to direct the organization. Organizational strategy defines the character of the organization, what it wants to be, its values, its vision, its mission, etc.
    • Core Process. The flow of work through the organization.
    • Structure. How people are organized around business processes. Includes reporting structures, boundaries, roles, and responsibilities. The structure should assist the organization with achieving its goals rather than hinder its performance.
    • Systems. Interrelated sets of tasks or activities that help organize and coordinate work.
    • Culture. The personality of the organization: its leadership style, attitudes, habits, and management practices. Culture measures how well philosophy is translated into practice.
    • Results. Measurement of how well the organization achieved its goals.
    • Leadership. Brings the organization together by providing vision and strategy; designing, monitoring, and nurturing the culture; and fostering agility.

    The answer to the strategic planning entity dilemma is enterprise architecture

    Enterprise architecture is a discipline that defines the structure and operation of an organization. The intent of enterprise architecture is to determine how an organization can most effectively achieve its current and future objectives.

    Vision, goals, and aspirations as well internal and external pressures

    Business current state

    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    		 Enterprise Architecture

    IT current state

    • IT asset management
    • Database services
    • Application development

    Business target state

    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • Existing capability
    • New capability

    IT target state

    • IT asset management
    • Database services
    • Application development
    • Business analytics
    Complex, overlapping, contradictory world of humans vs. logical binary world of IT
    EA is a planning tool to help achieve the corporate business goals

    EA spans across all the domains of architecture

    Business architecture is the cornerstone that sets the foundation for all other architectural domains: security, data, application, and technology.

    A flow-like diagram titled 'Enterprise Architecture' beginning with 'Digital Architecture' and 'Business Architecture', which feeds into 'Security Architecture', which feeds into both 'Data Architecture' and 'Application Architecture', which both feed into 'Technology Architecture: Infrastructure'.

    “An enterprise architecture practice is both difficult and costly to set up. It is normally built around a process of peer review and involves the time and talent of the strategic technical leadership of an enterprise.” (The Open Group Architecture Framework, 2018)

    Enterprise architecture deployment continuum

    A diagram visualizing the Enterprise architecture deployment continuum with two continuums, 'Level of Embedding' and 'EA Value', assigning terms to EA deployments based on where they fall. On the left is an 'Ivory Tower' configuration: EA' is separated from the 'BU's but is still controlling them. Level of Embedding: 'Centralized', EA Value: 'Dictatorship'. In the center is a 'Balanced' configuration: 'EA' is spread across and connected to each 'BU'. Level of Embedding: 'Federated', EA Value: 'Democracy'. On the right is a 'Siloed' configuration: Each 'BU' has its own separate 'EA'. Level of Embedding: 'Decentralized', EA Value: 'Abdication of enterprise role'.

    Info-Tech Insight

    The primary question during the design of the EA operating model is how to integrate the EA function with the rest of the business.

    If the EA practice functions on its own, you end up with ivory tower syndrome and a dictatorship.

    If you totally embed the EA function within business units it will become siloed with no enterprise value.

    Organizations need to balance consistency at the enterprise level with creativity from the grass roots.

    Enterprise vs. Program/Portfolio/Domain

    Enterprise vs. Program/Portfolio/Domain. Image depicts where Enterprise Scope overlaps Program/Portfolio Scope. Enterprise Scope includes Business Architecture. Program/Portfolio Scope includes Business Requirements, Business Process, and Solutions Architecture. Overlap between scope includes Technology Architecture, Data Architecture, and Applications Architecture.

    Info-Tech Insight

    Decisions at the enterprise level apply across multiple programs/portfolios/solutions and represent the guardrails set for all to play within.

    Decide on the degree of centralization

    Larger organizations with multiple domains/divisions or business units will need to decide which architecture functions will be centralized and which, if any, will be decentralized as they plan to scope their EA program. What are the core functions to be centralized for the EA to deliver the greatest benefits?

    Typically, we see a need to have a centralized repository of reusable assets and standards across the organization, while other approaches/standards can operate locally.

    Centralization

    • Allows for more strategic planning
    • Visibility into standards and assets across the organization promotes rationalization and cost savings
    • Ensures enterprise-wide assets are used
    • More strategic sourcing of vendors and resellers
    • Can centrally negotiate pricing for better deals
    • Easier to manage risk and prepare for audits
    • Greater coordination of resources
    • Derives benefits from enterprise decisions, e.g. integration…

    Decentralization

    • May allow for more innovation
    • May be easier to demonstrate local compliance if the organization is geographically decentralized
    • May be easier to procure software if offices are in different countries
    • Deployment and installation of software on user devices may be easier

    EA strategy

    What is the role of enterprise architecture vis-à-vis business goals?

    • What needs to be done?
    • Who needs to be involved?
    • When?
    • Where?
    • Why?
    • How?

    Top-down approach starting from the goals of the organization

      What the Business Sees...
    • Business Goals
      • Value Streams
          What the CxO Sees...
        • Capabilities
            What the App Managers See...
          • Processes
            • Applications
                What the Program Managers See...
              • Programs/Projects

    Info-Tech Insight

    Being able to answer the deceptively simple question “How am I doing?” requires traceability to and from the business goals to be achieved all the way to applications, to infrastructure, and ultimately, to the funded initiatives (portfolios, programs, projects, etc.).

    Measure EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function spans across three main dimensions:

    1. The delivery of EA-enabled business outcomes that are most important to the enterprise.
    2. The alignment between the business and the technology from a planning perspective.
    3. Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).

    Corporate Business Goals

    • Reduction in operating costs
    • Decreased regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure

    EA Contributions

    • Alignment of IT investments to business strategy
    • Achievement of business results directly linked to IT involvement
    • Application and platform rationalization
    • Standards in place
    • Flexible architecture
    • Better integration
    • Higher organizational satisfaction with technology-enabled services and solutions

    Measurements

    • Cost reductions based on application and platform rationalization
    • Time and cost reductions due to standardization
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase in customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    Info-Tech Insight

    Organizations must create clear and smart KPIs (key performance indicators) across the board.

    From corporate strategy to enterprise architecture

    A model connecting 'Enterprise Architecture' with 'Corporate Strategy' through 'EA Services' and 'EA Strategy'.

    Info-Tech Insight

    In the absence of a corporate strategy, enterprise architecture is missing its North Star.

    However, enterprise architects can partner with the business strategists to build the needed vision.

    Traceability to and from business corporate business goals to EA contributions (sample)

    A model connecting 'Enterprise Architecture' with 'Corporate Goals' through 'EA Contributions'.

    Enterprise architecture journey

    The enterprise architecture journey, from left to right: 'Business Goals' and 'EA Maturity Assessment', 'EA Strategy', 'Industry-Specific Capability Model' and 'Customized to the Organization's Needs', 'EA Operating Model' and 'EA Governance', 'Business Architecture' and 'EA Tooling', 'Data Architecture' and 'Application Architecture', 'Infrastructure Architecture'.

    Agile architecture principles

    Agile architecture principles:
    • Fast learning cycle
    • Explore alternatives
    • Create environment for decentralized ideation and innovation

    According to the Scaled Agile Framework, three of the most applicable principles for the architectural professions refer to the following:

    1. "Fast learning cycle" refers to learning cycles that allow for quick reiterations as well as the opportunity to fail fast to learn fast.
    2. "Explore alternatives" refers to the exploration phase and also to the need to make tough decisions and balance competing demands.
    3. "Create environment for decentralized ideation and innovation" ensures that no one has a monopoly on innovation. Moreover, EA needs to invite ideas from various stakeholders (from the business to operations as well as implementers, etc.).

    Architecture roles in lean enterprises

    Typical architecture roles in modern/Agile lean enterprises

    • System Architect
    • Solution Architect
    • Enterprise Architect

    Depth vs. strategy focus

    Typical architect roles

    A graph with different architect roles mapped onto it. Axes are 'Low Strategic Impact' to 'High Strategic Impact' and 'Breadth' to 'Depth'. 'Enterprise Architect' has the highest strategic impact and most breadth. 'Technical/System Architect' has the lowest strategic impact and most depth. 'Solution Architect' sits in the middle of both axes.

    Architecture roles continued

    The three architect roles from above and their impacts on the list of 'Common Domains' to the right. 'Enterprise Architect's impact is 'Across Value Streams', 'Solution Architect's impact is 'Across Systems', 'Technical/System Architect's impact is 'Single System'. Adapted from Scaled Agile.

    Common Domains

    Business Architecture

    Information Architecture

    Application Architecture

    Technical Architecture

    Integration Architecture

    Security Architecture

    Others

    Info-Tech Insight

    All architects are boots on the ground and play in the solutioning space. What differs is their decisions’ impact (the enterprise architect’s decisions affects all domains and solutions).

    SAFe definitions of the Enterprise/Solution and System Architect roles can be found here.

    The role of the Enterprise Architect is detailed here.

    Collaboration models across the enterprise

    A collaboration model with 'Enterprise Architecture' at the top consisting of a 'Chief Enterprise Architect', 'Enterprise Architects', and 'EA Concerns across solutions': 'Architect A', 'Architect B', and 'Architect C'. Each lettered Architect is connected to their respective 'Solution Architect (A-C)' which runs their respective 'Delivery Team (A-C)' with 'Other Team Members'.(Adapted from Disciplined Agile)

    There are both formal and informal collaborations between enterprise architects and solution architects across the enterprise.

    Info-Tech Insight

    Enterprise architects should collaborate with solutions architects to create the best solutions at the enterprise level and to provide guidance across the board.

    Architect roles in SAFe

    According to Scale Agile Framework 5 for Lean Enterprises:

    • The system architect participates in the Essential SAFe
    • Solution architects and system architects participate in Large Solution
    • The enterprise architect participates in the Portfolio SAFe
    • Enterprise, solution, and system architects are all involved in Full SAFe

    Please check the SAFe Scaled Agile site for detailed information on the approach.

    Architect roles and their participation in Agile events (see likely events and a typical calendar)

    Info-Tech Insight

    A clear commitment for architects to achieve and support agility is needed. Architects should not be in an ivory tower; they should be hands on and engaged in all relevant Agile ceremonies, like the pre- and post-program increment (PI) planning, etc.

    Architect syncs are also required to ensure the needed collaboration.

    Architect participation in Agile ceremonies, according to SAFe:

    Architecture runway (at scale)

    Info-Tech Insight

    Architecting for scale, modularity, and extensibility is key for the architecture to adapt to changing conditions and evolve.

    Proactively address NFRs; architect for performance and security.

    Continuously refine the solution intent.

    For large solutions, longer foundational architectural runways are needed.

    Having an intentional continuous improvement/continuous development (CI/CD) pipeline to continuously release, test, and monitor is key to evolving large and complex systems.

    Parallel continuous exploration/integration/deployment

    A cycle titled DevOps containing three smaller cycles labelled 'Continuous Explorations', 'Continuous Integration', and 'Continuous Deployment'.

    Info-Tech Insight

    Architects need to help make some fundamental decisions, e.g. help define the environment that best supports continuous innovation or exploration and continuous integration, deployment, and delivery.

    Typical strategic enterprise architecture involvement

    Enterprise Architect —DRIVES–› Enterprise Architecture Strategy

    Enterprise Architecture Strategy
    • Application Strategy
    • Business Strategy
    • Data Strategy
    • Implementation Strategy
    • Infrastructure Strategy
    • Inter-domain Collaboration
    • Integration Strategy
    • Operations Strategy
    • Security Strategy
      • (Adapted from Scaled Agile)

    The EA statement relative to agility

    The enterprise architecture statement relative to agility specifies the architects’ responsibilities as well as the Agile protocols they will participate in. This statement will guide every architect’s participation in planning meetings, pre- and post-PI, various syncs, etc. Use simple and concise terminology; speak loudly and clearly.

    Strong EA statement relative to agility has the following characteristics:

    • Describes what different architect roles do to achieve the vision of the organization
    • In an agile way
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Specific
    • Concise

    Sample EA statement relative to agility

    • Create strategies that provide guardrails for the organization, provide standards, reusable assets, accelerators, and other decisions at the enterprise level that support agility.
    • Participate in pre-PI and post-PI planning activities, architect syncs, etc.

    A clear statement can include additional details surrounding the enterprise architect’s role relative to agility

    Below is a sample of connecting keywords to form an enterprise architect role statement, relative to agility.

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture in an agile way.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture and provide guidance and accelerators.

    Target enterprise structure in an agile way – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles
    • Standards and reusable assets
    • Continuous exploration, integration, and deployment

    Traditional vs. Agile approaches

    Traditional Enterprise Architecture Next-Generation Enterprise Architecture
    Scope: Technology focused Business transformation (scope includes both business and technology)
    Bottom up Top down
    Inside out Outside In
    Point to point; difficult to change Expandable, extensible, evolvable
    Control-based: Governance intensive; often over-centralized Guidance-based: Collaboration and partnership-driven based on accepted guardrails
    Big up-front planning Incremental/dynamic planning; frequent changes
    Functional siloes and isolated projects, programs, and portfolios Enterprise-driven outcome optimization (across value streams)

    Info-Tech Insight

    The role of the architecture in Lean (Agile) approaches is to set up the needed guardrails and ensure a safe environment where everyone can be effective and creative.

    Design an Enterprise Architecture Strategy

    Phase 2

    Create the EA Value Proposition

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition
      •

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    • Identify and prioritize EA stakeholders.
    • Create business and technology drivers from stakeholder information.
    • Identify business pains and technology drivers.
    • Define EA contributions to alleviate the pains.
    • Create promises of value to fully articulate the value proposition.

    This phase involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Step 2.1

    Define the Business and Technology Drivers

    Activities
    • 2.1.1 Use a stakeholder power map to identify and prioritize EA stakeholders
    • 2.1.2 Conduct a PESTLE analysis
    • 2.1.3 Review strategic planning documents
    • 2.1.4 Conduct EA stakeholder interviews

    This step will walk you through the following activities:

    • Learn the five-step process to create an EA value proposition.
    • Uncover business and technology needs from stakeholders.

    This step involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    An understanding of your organization’s EA needs.

    Create the Value Proposition

    Step 2.1 Step 2.2

    Value proposition is an important step in the creation of the EA strategy

    Creating an EA value proposition should be the first step to realizing a healthy EA function. The EA value proposition demonstrates to organizational stakeholders the importance of EA in helping to realize their needs.

    Five steps towards the successful articulation of EA value proposition:

    1. Identify and prioritize stakeholders. The EA function must know to whom to communicate the value proposition.
    2. Construct business and technology drivers. Drivers are derived from the needs of the business and IT. Needs come from the analysis of external factors, strategic documents, and interviewing stakeholders. Helping stakeholders and the organization realize their needs demonstrates the value of EA.
    3. Discover pains that prevent driver realization. There are always challenges that obstruct drivers of the organization. Find out what they are to get closer to showing the value of EA.
    4. Brainstorm EA contributions. Pains that obstruct drivers have now been identified. To demonstrate EA’s value, think about how EA can help to alleviate those pains. Create statements that show how EA’s contribution will be able to overcome the pain to show the value of EA.
    5. Derive promises of value. Complete the articulation of value for the EA value proposition by stating how realizing the business or technology will provide in terms of value for the organization. Speak with the stakeholders to discover the value that can be achieved.

    Info-Tech Insight

    EA can deliver many benefits to an organization. To increase the likelihood of success, each EA group needs to commit to delivering value to their organization based on the current operating environment and the desired direction of the enterprise. An EA value proposition will articulate the group’s promises of value to the enterprise.

    The foundation of an optimal EA value proposition is laid by defining the right stakeholders

    All stakeholders need to know how the EA function can help them. Provide the stakeholders with an understanding of the EA strategy’s impact on the business by involving them.

    A stakeholder map can be a powerful tool to help identify and prioritize stakeholders. A stakeholder map is a visual sketch of how various stakeholders interact with your organization, with each other, and with external audience segments.

    An example stakeholder map with the 'Key players' quadrant highlighted, it includes 'CEO', 'CIO', and the modified position of 'CFO' after being engaged.

    “Stakeholder management is critical to the success of every project in every organization I have ever worked with. By engaging the right people in the right way in your project, you can make a big difference to its success…and to your career.” (Rachel Thompson, MindTools)

    2.1.1 Use a stakeholder power map to identify and prioritize EA stakeholders

    2 hours

    Input: Expertise from the EA strategy creation team

    Output: An identified and prioritized set of stakeholders for the EA function to target

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    1. A stakeholder power map helps to visualize the importance of various stakeholders and their concerns so you can prioritize your time according to the most powerful and most impacted stakeholders.
    2. Evaluate each stakeholder in terms of power, Involvement, impact, and support.
      • Power: How much influence does the stakeholder have? Enough to drive the project forward or into the ground?
      • Involvement: How interested is the stakeholder? How involved is the stakeholder in the project already?
      • Impact: To what degree will the stakeholder be impacted? Will this significantly change how they do their job?
      • Support: Is the stakeholder a supporter of the project? Neutral? A resistor?
    3. Map each stakeholder to an area on the Power Map Template.
    4. Ask yourself if the power map looks accurate. Is there someone who has no involvement in EA strategy development but should?
    5. Some stakeholders may have influence over others. For example, a COO who highly values the opinion of the Director of Operations would be influenced by that director. Draw an arrow from one stakeholder to another to signify this relationship.

    Download the Stakeholder Power Map Template for more detailed instructions on completing this activity.

    Each stakeholder will have a set of needs that will influence the final EA value proposition

    All stakeholders will have a set of needs they would like to address. Take those needs and translate them into business and technology drivers. Drivers help clearly articulate to stakeholders, and the EA function, the stakeholder needs to be addressed.

    Business Driver

    Business drivers are internal or external business conditions, changing business capabilities, and changing market trends that impact the way EA operates and provides value to the enterprise.

    Examples:

    Ensure corporate compliance with legislation pertaining to data and security (e.g. regulated oil fields).

    Enable the automation and digitization of internal processes and services to business stakeholders.

    Technology Driver

    Technology drivers are internal or external technology conditions or factors that are not within the control of the EA group that impact the way that the EA group operates and provides value to the enterprise.

    Examples:

    Establish standards and policies for enabling the organization to take advantage of cloud and mobile technologies.

    Reduce the frequency of shadow IT by lowering the propensity to make business–technology decisions in isolation.

    (Source: The Strategic CFO, 2013)

    Gather information from stakeholders to begin the process of distilling business and technology drivers

    Review information sources, then analyze them to derive business and technology drivers. Information sources are not targeted towards EA stakeholders. Analyze the information sources to create drivers that are relevant to EA stakeholders.

    Information Sources Drivers (Examples)

    PESTLE Analysis

    Strategy Documents

    Stakeholder Interviews

    SWOT Analysis

    		—›

    Analysis

    		 —›

    Help the organization align technology investments with corporate strategy

    Ensure corporate compliance with legislation.

    Increase the organization’s speed to market.

    Business and Technology Needs

    By examining information sources, the EA team will come across a set of business and technology needs. Through analysis, these needs can be synthesized into drivers.

    The PESTLE analysis will help you uncover external factors impacting the organization

    PESTLE examines six perspectives for external factors that may impact business and technology needs. Below are prompting questions to facilitate a PESTLE analysis working session.

    Political
    • Will a change in government (at any level) affect your organization?
    • Do inter-government or trade relations affect you?
    • Are there shareholder needs or demands that must be considered?
    • How are your costs changing (moving off-shore, fluctuations in markets, etc.)?
    • Do currency fluctuations have an effect on your business?
    • Can you attract and pay for top-quality talent (e.g. desirable location, reasonable cost of living, changes to insurance requirements)?
    		 Economic
    Social
    • What are the demographics of your customers and/or employees?
    • What are the attitudes of your customers and/or staff (e.g. do they require social media, collaboration, transparency of costs)?
    • What is the general lifecycle of an employee (i.e. is there high turnover)?
    • Is there a market of qualified staff?
    • Is your business seasonal?
    • Do you require constant technology upgrades (e.g. faster network, new hardware)?
    • What is the appetite for innovation within your industry/business?
    • Are there demands for increasing data storage, quality, BI, etc.?
    • Are you looking to cloud technologies?
    • What is the stance on bring your own device?
    • Are you required to do a significant amount of development work in-house?
    		 Technological
    Legal
    • Are there changes to trade laws?
    • Are there changes to regulatory requirements (i.e. data storage policies, privacy policies)?
    • Are there union factors that must be considered?
    • Is there a push towards being environmentally friendly?
    • Does the weather have any effect on your business (hurricanes, flooding, etc.)?
    		 Environmental

    2.1.2 Conduct a PESTLE analysis

    2 hours

    Input: Expertise from EA strategy creation team

    Output: Identified set of business and technology needs from PESTLE

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    1. Begin conducting the PESTLE analysis by breaking the participants into groups. Divide the six different perspectives amongst the groups.
    2. Ask each group to begin to derive business and technology needs from their assigned perspectives. Use some of the areas noted below along with the questions on the previous slide to derive business and technology needs.
      • Political: Examine taxes, environmental regulations, and zoning restrictions.
      • Economic: Examine interest rates, inflation rate, exchange rates, the financial and stock markets, and the job market.
      • Social: Examine gender, race, age, income, disabilities, educational attainment, employment status, and religion.
      • Technological: Examine servers, computers, networks, software, database technologies, wireless capabilities, and availability of Software as a Service.
      • Legal: Examine trade laws, labor laws, environmental laws, and privacy laws.
      • Environmental: Examine green initiatives, ethical issues, weather patterns, and pollution.
    3. Ask each group to take into account the following questions when deriving business and technology needs:
      • Will business components require any changes to address the factor?
      • Will information technology components changes be needed to address any factor?
    4. Have each team record its findings. Have each team present its list and have remaining teams give feedback and additional suggestions. Record any changes in this step.

    Download the PESTLE Analysis Template to assist with completing this activity.

    Strategic planning documents can provide information regarding the direction of the organization

    Some organizations (and business units) create an authoritative strategy document. These documents contain corporate aspirations and outline initiatives, reorganizations, and shifts in strategy. From these documents, a set of business and technology needs can be generated.

    Overt Statements

    • Corporate objectives and initiatives are often explicitly stated in these documents. Look for statements that begin with phrases such as “Our corporate objectives are…”
    • Remember that different organizations use different terminology; if you cannot find the word goal or objective then look for “pillar,” “imperative,” “theme,” etc.

    Turn these statements to business and technology needs by:

    Asking the following:
    • Is there a need from a business perspective to address these objectives, initiatives, and shifts in strategy?
    • Is there a need from a technology perspective to address these objectives, initiatives, and shifts in strategy?

    Covert Statements

    • Some corporate objectives and initiatives will be mentioned in passing and will require clarification. For example: “As we continue to penetrate new markets, we will be diversifying our manufacturing geography to simplify distribution.”

    2.1.3 Review strategic planning documents

    2 hours

    Input: Strategic documents in the organization

    Output: Identified set of business and technology needs from documents

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the identification process of business and technology needs from strategic documents with the following steps:

    1. Work with the EA strategy creation team to identify the strategic documents within the organization. Look for documents with any of the following content:
      • Corporate strategy document
      • Business unit strategy documents
      • Annual general reports
    2. Gather the strategic documents into one place and call a meeting with the EA strategy creation team to identify the business and technology needs in those documents.
    3. Pick one document and look through its contents. Look for future-looking words such as:
      • We will be…
      • We are planning to…
      • We will need…
    4. Consider those portions of the document with future-looking words and ask the following:
      • Will business components require any changes to address these objectives?
      • Will information technology components changes be needed to address these objectives?
    5. Record the business and technology needs identified in step 4. As well, record any questions you may have regarding the document contents for stakeholders to validate later.
    6. Move to the next document once complete. Complete steps 3-5 for the remaining strategy documents.

    Stakeholder interviews will help you collect primary data and will shed light on stakeholder priorities and challenges

    In this interview process, you will be asking EA stakeholders questions that uncover their business and technology needs. You will also be able to ask follow-up questions to get a better understanding of abstract or complex concepts from the strategy document review and PESTLE analysis.

    EA Stakeholders:

    • Stakeholders may not think of their business and technology needs. But stakeholders will often explicitly state their objectives and initiatives.
    • Objectives often result in risks, opportunities, and annoyances:
      • Risks: Potential damage associated with pursuing an objective or initiative.
      • Opportunities: Potential gains that could be leveraged when capturing objectives and initiatives.
      • Annoyances: Roadblocks that could hinder the pursuit of objectives and initiatives.
    • Ask stakeholders questions on these areas to discern their business and technology needs.

    Risks + Opportunities + Annoyances –› Business and Technology Needs

    2.1.4 Conduct EA stakeholder interviews

    4-8 hours

    Input: Expertise from the EA stakeholders

    Output: Business and technology needs for EA stakeholders

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, Identified EA stakeholders

    1. Schedule an interview with each of the stakeholders that were identified as key stakeholders in the Stakeholder Power Map.
    2. Meet with the key EA stakeholders and start business and technology needs gathering. Schedule each identified key stakeholder for an interview.
    3. When a stakeholder arrives for their interview, ask the following questions and record the answers to help uncover needs. Be sure to record which stakeholder answered the question. Further, record any future stakeholders that agree.
      • What are the current strengths of your organization?
      • What are the current weaknesses of your organization?
      • What is the number 1 risk you need to prevent?
      • What is the number 1 opportunity you want to capitalize on?
      • What is the number 1 annoying pet peeve you want to remove?
      • How would you prioritize these risks, opportunities, and annoyances?
    4. Recorded answer example: “We can’t see what the other departments are doing; when we spend a lot of money to invest in something, we later find out the capability is already within the company.”
    5. After completing each interview, verify with each stakeholder that you have captured their business and technology needs. Continue the interview process until all identified key stakeholders have been interviewed.
    6. Capture all inputs into a SWOT (strengths, weaknesses, opportunities, and threats) format.

    Step 2.2

    Define Your Value Proposition

    Activities
    • 2.2.1 Create a set of business and technology drivers from business and technology needs
    • 2.2.2 Identify the pains associated with the business and technology drivers
    • 2.2.3 Identify the EA contributions that can address the pains
    • 2.2.4 Create promises of value to shape the EA value proposition

    This step will walk you through the following activities:

    • Use business and technology drivers to determine EA’s role in your organization.

    This step involves the following participants:

    • CIO
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    A value proposition document that ties the value of the EA function to stakeholder needs.

    Create the EA Value Proposition

    Step 2.1 Step 2.2

    Synthesize the collected data into business and technology drivers

    Two triangles labelled 'Business needs' and 'Technology needs' point to a cloud labelled 'Analysis', which connects to the driver attributes on the right via a dotted line.

    There are several key attributes that a driver should have.

    Driver Key Attributes
    • A succinct statement.
    • Begins with “action words” to communicate a call to action (e.g. Support, Help, Enable).
    • Written in a language understood by all parties involved.
    • Communicates a need for improvement or prevention.

    “The greatest impact of enterprise architecture is the strategic impact. Put the mission and the needs of the organization first.” (Matthew Kern, Clear Government Solutions)

    2.2.1 Create a set of business and technology drivers from business and technology needs

    3 hours

    Input: Expertise from EA strategy creation team

    Output: A set of business and technology drivers

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Meet with the EA strategy creation team and follow the steps below to begin the process of synthesizing the business and technology needs into drivers.

    1. Lay out the documented business and technology needs your team gathered from PESTLE analysis, strategy document reviews, and stakeholder interviews.
    2. Assess the documented business and technology needs to see if there are common themes. Consolidate those similar business and technology needs by crafting one driver for them. For example:
      • PESTLE: Influx of competitors in the marketplace causing tighter margins.
      • Document review: Improve investment quality and their value to the organization.
      • Stakeholder interview: “We can’t see what the other departments are doing; when we spend a lot of money to invest in something, we later find out the capability is already within the company.”
      • Consolidated business driver example: Help the organization align investments with the corporate strategy and departmental priorities.
    3. As well, synthesize the business and technology needs that cannot be consolidated.
    4. Verify the completed list of drivers with stakeholders. This is to ensure you have fully captured their needs.

    Download the EA Value Proposition Template to record your findings in this activity.

    When addressing business and technology drivers, an organization can expect obstacles

    A pain is an obstacle that business stakeholders will face when attempting to address business and technology drivers. Identify the pains associated with each driver so that EA’s contributions can be linked to resolving obstacles to address business needs.

    Business and Technology Drivers

    ›

    Pains
    Created by assessing information sources. A sentence that states the nature of the pain and how the pain stops the organization from addressing the drivers.
    Examples:
    • Business driver: Help the organization align investments with the corporate strategy and departmental priorities.
    • Technology driver: Improve the organization’s technology responsiveness and increase speed to market.
    		 Examples:
    • Business driver pains: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    • Technology driver pains: Ineffective application development requiring delays decreases the speed to market.

    2.2.2 Identify the pains associated with the business and technology drivers

    2 hours

    Input: Expertise from EA strategy creation team and EA stakeholders

    Output: An associated pain that obstructs each identified driver

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Call a meeting with the EA strategy creation team and any available stakeholders to identify the pains that obstruct addressing the business and technology drivers.

    Take each driver and ask the questions below to the EA strategy creation team and to any EA stakeholders who are available. Record the answers to identify the pains when realizing the drivers.

    1. What are your challenges in performing the activity or process today?
    2. What other business activities/processes will be impacted/improved if we solve this?
    3. What compliance/regulatory/policy concerns do we need to consider in any solution?
    4. What are the steps in the process/activity?

    Take the recorded answers and follow the steps below to create the pain statements:

    1. Answers to the questions above can be long, unfocused, or spoken in a casual manner. To turn the answer into pains, refine the recorded answers into a succinct sentence that captures its meaning.
      • Recorded answer example: “I feel like there needs to be a holistic view of the organization. If we had a tool to see all the capabilities across the business, then we can figure out what investments should be prioritized.”
      • Example of pain statement: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    2. When the list of pains has been written out, verify with the stakeholders that you have fully captured their pains.

    Download the EA Value Proposition Template to record your findings in this activity.

    The identified pains can be alleviated by a set of EA contributions

    Set the foundations for the value proposition by brainstorming the EA contributions that can alleviate the pains.

    Business and technology drivers produce:

    Pains

    		 —›
    EA contributions produce:

    Value by alleviating pains
    Pains

    Obstructions to addressing business and technology drivers. Stakeholders will face these pains.

    Examples
    • Business driver pains: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
    EA contributions

    Activities the EA function can perform to help alleviate the pains. Demonstrates the contributions the EA function can make to business value.

    Examples:
    • Business driver EA contributions: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.

    Enterprise architecture functions can provide a diverse set of contributions to any organization – Sample

    EA contribution category EA contribution details
    Define business capabilities and processes As-is and target business capabilities and processes are documented and understood by both IT and the business.
    Design information flows and services Information flows and services effectively support business capabilities and processes.
    Analyze gaps and identify project opportunities Create informed project identification, scope definition, and project portfolio management.
    Optimize technology assets Greater homogeneity and interoperability between tangible and intangible technology assets.
    Create and maintain technology standards Decrease development, integration, and support efforts. Reduce complexity and improve interoperability.
    Rationalize technology assets Tangible and intangible technology assets are rationalized to adequately and efficiently support information flows and services.

    2.2.3 Identify the EA contributions that can address the pains

    2 hours

    Input: Expertise from EA strategy creation team

    Output: EA contributions that addresses the pains that were identified

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Gather with the EA strategy creation team, take each pain, then ask and record the answers to the questions below to identify the EA contributions that would solve the pains:

    1. What activities can the EA practice conduct to overcome the pain?
    2. What are the core EA models that can help accurately define the problem and assist in finding appropriate resolutions?
    3. What are the general EA benefits that can be associated with solving this pain?

    Answers to the questions above will generate a list of activities EA can do to help alleviate the pains. Use the following steps to complete this activity:

    1. Create a stronger tie between the EA contributions and pains by linking the EA contribution statement to the pain.
      • Example of pain statement: Lack of holistic view of business capabilities obstructs the organization from aligning investments with corporate strategy and departmental priorities.
      • Example of EA contributions statement: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.
    2. Verify with the stakeholders that they understand the EA contributions have been written out and how those contributions address the pains.

    Download the EA Value Proposition Template to record your findings in this activity.

    EA promises of value articulate EA’s commitment to the organization

    • Business Goals and Technology Drivers
      A set of statements created from business and technology needs. Gathered from information sources, it communicates improvements needed.

      • Value Streams, Aspirations, Long-Term Goals
        Value streams, aspirations, long-term goals

        • EA Contributions
          EA contributions that will alleviate the obstructions. Removing the obstructions will allow EA to help satisfy business and technology needs.

          • Promise of Value
            A statement that depicts a concrete benefit the EA practice can provide for the organization in response to business and technology drivers.
            Communicate the statements in a language that stakeholders understand to complete the articulation of EA’s value proposition.

    2.2.4 Create promises of value to shape the EA value proposition

    2 hours

    Input: Expertise from EA strategy creation team and EA stakeholders

    Output: Promises of value for each business and technology driver

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, EA stakeholders

    Now that the EA contributions have been identified, identify the promises of value to articulate the value proposition.

    Take each driver, then ask and record the answers to the questions below to identify the promises of value when realizing the drivers:

    1. What does amazing look like if we solve this perfectly?
    2. What other business activities/processes will be impacted/improved if we solve this?
    3. What measures of success/change should we use to prove value of the effort (KPIs/ROI)?

    Take the recorded answers and follow the steps below to create the promises of value.

    1. Answers to the questions above can be long, unfocused, or spoken in a casual manner. To turn the answer into a promise of value, refine the recorded answer into a succinct sentence that captures its meaning.
      • Business driver example: Help the organization align investments with the corporate strategy and departmental priorities.
      • Recorded answer example: “If this would be solved perfectly, we would have a very easy time planning investments and investment planning hours can be spent doing other activities.”
      • Promises of value example: Increase the number of investments that have a direct tie to corporate strategy.
    2. When the promises of value have been written out, verify with the stakeholders that you have fully captured their ideas.

    Download the EA Value Proposition Template to record your findings in this activity.

    Design an Enterprise Architecture Strategy

    Phase 3

    Build the EA Fundamentals

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals
      •

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval

    This phase will walk you through the following activities:

    • Create an EA vision statement and an EA mission statement.
    • Create EA goals, define EA objectives, and link them to EA goals.
    • Define the EA function scope dimensions.
    • Create a set of EA principles for your organization.
    • Discuss current methodology.

    This phase involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Step 3.1

    Realize the Importance of EA Fundamentals

    Activities
    • 3.1.1 Create the EA vision statement
    • 3.1.2 Create the EA mission statement
    • 3.1.3 Create EA goals
    • 3.1.4 Define EA objectives and link them to EA goals
    • 3.1.5 Record the details of each EA objective

    This step will walk you through the following activities:

    • Define and document the fundamentals that guide the EA function.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Vision and mission statements for the EA function.
    • A set of EA goals and a set of objectives to track progression toward those goals.
    Build the EA Fundamentals
    Step 3.1 Step 3.2

    EA fundamentals guide the EA function

    EA fundamentals include a vision statement, a mission statement, goals and objectives, and principles. They are a set of documented statements that guide the EA function. The fundamentals guide the EA function in terms of its strategy and decision making.

    EA vision statement EA mission statement

    EA fundamentals
    EA goals and objectives EA principles

    Info-Tech Insight

    Treat the critical elements of the EA group the same way as you would a business. Create a directional foundation for EA and define the vision, mission, goals, principles, and scope necessary to deliver on the established value proposition.

    The EA vision statement articulates the aspirations of the EA function

    The enterprise architecture vision statement communicates a desired future state of the EA function. The statement is expressed in the present tense. It seeks to articulate the desired role of the EA function and how the EA function will be perceived.

    Strong EA vision statements have the following characteristics:

    • Describe a desired future
    • Focus on ends, not means
    • Communicate promise
    • Concise, no unnecessary words
    • Compelling
    • Achievable
    • Inspirational
    • Memorable

    Sample EA vision statements:

    • To be a trusted partner for both the business and IT, driving enterprise effectiveness, efficiency, and agility at [Company Name].
    • To be a trusted partner and advisor to both the business and IT, contributing to business-IT alignment and cost reduction at [Company Name].
    • To create distinctive value and accelerate [Company Name]’s transformation.

    The EA mission statement articulates the purpose of the EA function

    The enterprise architecture mission statement specifies the team’s purpose or “reason of being.” The mission should guide each day’s activities and decisions. The mission statements use simple and concise terminology, speak loudly and clearly, and generate enthusiasm for the organization.

    Strong EA mission statements have the following characteristics:

    • Articulates EA function purpose and reason for existence
    • Describes what the EA function does to achieve its vision
    • Defines who the customers of the EA function are
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Inspirational
    • Memorable
    • Concise

    Sample EA mission statements:

    • Define target enterprise architecture for [Company Name], identify solution opportunities, inform IT investment management, and direct solution development, acquisition, and operation compliance.
    • Synergize with both the business and IT to define and help realize [Company Name]’s target enterprise architecture that enables the business strategy and optimizes IT assets, resources, and capabilities.

    The EA vision and mission statements become relevant to EA stakeholders when linked to the promises of value

    The process for constructing the enterprise architecture vision statement and enterprise architecture mission statement is articulated below.

    Promises of value Derive keywords Construct draft statements Reference test criteria Finalize statements
    Derive the a set of keywords from the promises of value to accurately capture their essence. Create the initial statement using the keywords. Check the initial statement against a set of test criteria to ensure their quality. Finalize the statement after referencing the initial statement against the test criteria.

    Derive keywords from promises of value to begin the vision and mission statement creation process

    Develop keywords by summarizing the promises of value that were derived from drivers into one word that will take on the essence of the promise. See examples below:

    Business and technology drivers Promises of value Keywords
    Help the organization align investments with the corporate strategy and departmental priorities. Increase the number of investments that have a direct tie to corporate strategy. Business
    Support the rapid growth and development of the company through fiscal planning, project planning, and technology sustainability. Ensure budgets and projects are delivered on time with the assistance of technology. IT-Enabled
    Reduce the duplication and work effort to build and deploy technology solutions across the entire organization. Aim to reduce the number of redundant applications in the organization to streamline processes and save costs. Catalyst
    Improve the organization’s technology responsiveness and increase speed to market. Reduce the number of days required in the SDLC for all core business support projects. Value delivery

    An inspirational vision statement is greater than the sum of the individual words

    Ensure the sentence is cohesive and captures additional value outside of the keywords. The statement as a whole should be greater than the sum of the parts. Expand upon the meaning of the words, if necessary, to communicate the value. Below is an example of a finished vision statement.

    Sample

    Be a catalyst for IT-enabled business value delivery.

    Catalyst – We will continuously interact with the business and IT to accelerate and improve results.

    IT-enabled – We will ensure the optimal use of technology in enabling business capabilities to achieve business objectives.

    Business – We will be perceived as a business-focused unit that understands [Company name]’s business priorities and required business capabilities.

    Value delivery – EA’s value will be recognized by both business and IT stakeholders. We will track and market EA’s contribution to business value organization-wide.

    A clear mission statement can include additional details surrounding the EA team’s desired and expected value

    Likewise, below is a sample of connecting keywords together to form an EA mission statement:

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture.

    Target enterprise structure – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles and standards

    3.1.1 Create the EA vision statement

    1 hour

    Input: Identified promises of value, Vision statement test criteria

    Output: EA function vision statement

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of the EA vision statement by following the steps below:

    1. Gather the EA strategy creation team and have the promises of value from the EA value proposition laid out.
    2. Select one promise of value and work with the team to identify one word that captures the essence of that promise of value.
    3. Continue to the next promise of value until all of the promises of value have a keyword identified.
    4. Have the identified set of keywords laid out and see if any of their meanings are similar and can be consolidated together. Consolidate similar meaning keywords.
    5. Create the initial draft of the EA vision statement by linking the keywords together.
    6. Check the initial draft of the vision statement against the test criteria below. Ask the team if the vision statement satisfies each of the test criteria.
      • Do you find this vision exciting?
      • Is the vision clear, compelling, and easy to grasp?
      • Does this vision somehow connect to the core purpose?
      • Will this vision be exciting to a broad base of people in the organization, not just those within the EA team?
    7. Make changes to the initial draft to satisfy the test criteria. Socialize the EA vision statement with EA stakeholders to make sure it captures their needs.

    3.1.2 Create the EA mission statement

    1 hour

    Input: Identified promises of value, Mission statement test criteria

    Output: EA function mission statement

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of the EA mission statement by following the steps below:

    1. Gather the EA strategy creation team and have the promises of value from the EA value proposition laid out.
    2. Select one promise of value and work with the team to identify one word that captures the essence of that promise of value.
    3. Continue to the next promise of value until all of the promises of value have a keyword identified.
    4. Have the identified set of keywords laid out, and see if any of their meanings are similar and can be consolidated together. Consolidate similar meaning keywords.
    5. Create the initial draft of the EA mission statement by linking the keywords together.
    6. Check the initial draft of the mission statement against the following test criteria below. Ask the team if the mission statement satisfies each of the test criteria.
      • Do you find this purpose personally inspiring?
      • Does the purpose help you to decide what activities to not pursue, to eliminate from consideration? Is this purpose authentic – something true to what the organization is all about – not merely words on paper that sound nice?
      • Would this purpose be greeted with enthusiasm rather than cynicism by a broad base of people in the organization?
    7. Make changes to the initial draft to satisfy the test criteria. Socialize the EA mission statement with EA stakeholders to make sure it captures their needs.

    EA goals demonstrate the achievement of success of the EA function

    Enterprise architecture goals define specific desired outcomes of an EA function. EA goals are important because they establish the milestones the EA function can strive toward to deliver their promises of value.

    Inform EA goals by examining:

    Promises of value

    		 —›
    EA goals produce:

    Targets and milestones
    Promises of value

    Produce EA strategic outcomes that can be classified into four categories. The four categories are:

    • Business performance
    • IT performance
    • Customer value
    • Risk management
    EA goals

    Support the strategic outcomes. EA goals can be strategic or operational:

    • EA strategic goals support the strategic outcomes.
    • EA operational goals help measure the architecture capability quality and supporting processes.

    3.1.3 Create EA goals

    2 hours

    Input: Identified promises of value

    Output: EA goals

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the creation of EA goals by following the steps below:

    1. Gather the EA strategy creation team and the identified promises of value from Phase 2, Create the EA Value Proposition.
    2. Open the EA Goals and Objectives Template and examine the list of default EA goals already within the template.
    3. Take the identified promises of value and discuss with the team if any of the EA goals in the template relate to the promises of value. Record the related EA goal and promise of value. See example below:
      • Promises of value example: Increase the number of investments that have a direct tie to corporate strategy.
      • Related EA goal example: Alignment of IT and business strategy.
    4. Repeat step 3 until all identified promises of value have been examined in relation to the EA goals in the template.
    5. If there are promises of value that are not related to an EA goal in the template, create EA goals to relate to those promises of value. Keep in mind that EA goals need to support the strategic outcomes produced by the promises of value. Record the EA goals in the template and document the related promises of value.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    Starting with COBIT, select the appropriate objectives to track EA goals – Sample

    Below are examples of EA goals and the objectives that track their performance:

    IT performance-oriented goals Objectives
    Alignment of IT and business strategy
    • Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by X percent in the fiscal year.
    • Improve stakeholder satisfaction with planned function and services portfolio scope by X percent in the fiscal year.
    • Increase the percentage of IT value drivers mapped to business value drivers by X percent in the next fiscal year.
    Increase in IT agility
    • Improve business executive satisfaction with IT’s responsiveness to new requirements by X percent in the fiscal year.
    • Increase the number of critical business processes supported by up-to-date infrastructure and applications in the next three years.
    • Lower the average time to turn strategic IT objectives into agreed-upon and approved initiatives.
    Optimization of IT assets, resources, and capabilities
    • Increase the frequency of capability maturity and cost optimization assessments.
    • Improve the frequency of reporting for assessment result trends.
    • Raise the satisfaction levels of business and IT executives with IT-related costs and capabilities by X percent.

    3.1.4 Define EA objectives and link them to EA goals

    2 hours

    Input: Defined EA goals

    Output: EA objectives linked to EA goals

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the process of defining EA objectives and linking them to EA goals using the following steps:

    1. Gather the EA strategy creation team and open the EA Goals and Objectives Template.
    2. Have the goals laid out, and refer to the objectives already in the EA Goals and Objectives Template. Examine if any of them will fit the goals your team has created.
    3. If some of the goals your team has created do not fit with the objectives in the template, begin the process of creating new objectives. Remember, EA objectives are SMART metrics that help track the progress toward the EA goals.
    4. Create an EA objective and check if it is SMART by asking some of the questions below:
      • Specific: Is the objective specific to the goal? Is the objective clear to anyone who has basic knowledge of the goal?
      • Measurable: Is it possible to figure out how far the team would be away from completing the objective?
      • Agreed Upon: Does everyone involved agree the objective is the correct way to measure progress?
      • Realistic: Can the objective be met within the availability of resources, knowledge, and time?
      • Time Based: Is there a time-bound component to the goal?
    5. Continue to create new objectives until each goal has an objective linked to it.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    For each of the objectives, determine how they will be collected, reported, and implemented

    Add details to the enterprise architecture objectives previously defined to increase their clarity to stakeholders.

    EA objective detail category Description
    Unit of measure
    • The unit in which the objective will be presented.
    Calculation formula
    • The formula by which the objective will be calculated.
    Objective baseline, status, and target
    • Baseline: The state of the objective at the start of measurement.
    • Status: The current state of the measurement.
    • Target: The target state the measurement should reach.
    Data collection
    • Responsible: The individual responsible for collecting the data.
    • Source: Where the data originates.
    • Frequency: How often the data will be collected to calculate the objective.
    Reporting
    • Target Audience: The people the objective will be presented to.
    • Method: The method used to present the data collected on the objective (e.g. report, presentation).
    • Frequency: How often the data will be presented to the target audience.

    3.1.5 Record the details of each EA objective

    2 hours

    Input: Defined list of EA objectives

    Output: Increased detail into each defined EA objective

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Record the details of each EA objective. Use the following steps below to assist with recording the details:

    1. Gather the EA strategy creation team, and open the EA Goals and Objectives Template.
    2. Select one objective that has been identified and discuss the formula for calculating the objective and in what units the objective will be recorded. Record the information in the “Calculation formula” and “Unit of measure” columns in the template once they have been agreed upon.
    3. Using the same objective, move to the “Data Collection” portion of the template. Discuss and record the following: the source of the data that generates the objective, the frequency of reporting on the objective, and the person responsible for reporting the objective.
    4. Move to the “Reporting” portion of the template. Discuss and record the target audience for the objective and the reporting frequency and method to those audiences.
    5. Examine the “Objective baseline,” “Objective status,” and “Objective target” columns. Record any measurement you may currently have in the “Objective baseline” column. Record what you would like the objective measurement to be in the “Objective target” column. Note: Keep track of the progression towards the target in the “Objective status” column in the future.
    6. Select the next objective and complete steps 2–5 for that measure. Continue this process until you have recorded details for all objectives.

    Download the EA Goals and Objectives Template to assist with completing this activity.

    Step 3.2

    Finalize the EA Fundamentals

    Activities
    • 3.2.1 Define the organizational coverage dimension of the EA function scope
    • 3.2.2 Define the architectural domains and depth dimension
    • 3.2.3 Define the time horizon dimension
    • 3.2.4 Create a set of EA principles for your organization
    • 3.2.5 Add the rationale and implications to the principles
    • 3.2.6 Operationalize the EA principles
    • 3.2.7 Discuss the need for classical methodology and/or a combination including Agile practices

    This step will walk you through the following activities:

    • Define the EA function scope dimensions.
    • Create a set of EA principles.
    • Discuss the organization’s current methodology, if any, and whether it works for the business.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Defined scope of the EA function.
    • A set of EA principles for your organization.
    • A decision on traditional vs. Agile methodology or a blend of both.

    Build the EA Fundamentals

    Step 3.1 Step 3.2

    A clear EA function scope defines the EA sandbox

    The EA function scope constrains the promises of value the EA function will deliver on by taking into account factors across four dimensions. The EA function scope ensures that the EA function is not stretched beyond its current/planned means and capabilities when delivering the promised value. The four dimensions are illustrated below:

    Organizational coverage
    Determine the focus of the enterprise architecture effort in terms of specific business units, functions, departments, capabilities, or geographical areas.     		Depth
    Determine the appropriate level of detail to be captured, based on the intended use of the enterprise architecture and the contingent decisions to be made.

    EA Scope
    Architectural Domains
    Determine the EA domains (business, data, application, infrastructure, security) that are appropriate to address stakeholder concerns and architecture requirements.     		Time horizon
    Determine the target-state architecture’s objective time period.

    The EA function scope is influenced by the EA value proposition and previously developed EA fundamentals

    Establish the EA function scope by using the EA value proposition and EA fundamentals that have been developed. After defining the EA function scope, refer back to these statements to ensure the EA function scope accurately reflects the EA value proposition and EA fundamentals.

    EA value proposition

    +

    EA vision statement
    EA mission statement
    EA goals and objectives

    		—›
    Influences

    Organizational coverage

    Architectural domains

    Depth

    Time horizon

    		—›
    Defines     		EA function scope

    EA scope – Organizational Coverage

    The organizational coverage dimension of EA scope determines the focus of enterprise architecture effort in the organization. Coverage can be determined by specific business units, functions, departments, capabilities, or geographic areas. Info-Tech has typically seen two types of coverage based on the size of the organization.

    Small and medium-size enterprise

    Indicators: Full-time employees dedicated to manage its data and IT infrastructure. Individuals are IT generalists and may have multiple roles.

    Recommended coverage: Typically, for small and medium-size businesses, the organizational coverage of architecture work is the entire enterprise. (Source: The Open Group, 2018)

    Large enterprise

    Indicators: Dedicated full-time IT staff with expertise to manage specific applications or parts of the IT infrastructure.

    Recommended coverage: For large enterprises, it is often necessary to develop a number of architectures focused on specific business segments and/or geographies. In this federated model, an overarching enterprise architecture should be established to ensure interoperability and conformance to overarching EA principles. (Source: DCIG, 2011)

    EA objectives track the progression towards the target set by EA goals

    Enterprise architecture objectives are specific metrics that help measure and monitor progress towards achieving an EA goal. Objectives are SMART.

    EA goals —› EA objectives
    • EA strategic goals:
      • Business performance
      • IT performance
      • Customer value
      • Risk management
    • EA operational goals
    • Specific
    • Measurable
    • Agreed upon
    • Realistic
    • Time bound
    (Source: Project Smart, 2014)

    Download the EA Goals and Objectives Template to see examples between the relationship of EA goals to objectives.

    Measure the EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function is influenced by the following:

    • The delivery of EA-enabled business outcomes that are most important to the enterprise.
    • The alignment between the business and IT from a planning perspective.
    • Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).
    Corporate Business Goals Measurements
    • Reduction in operating costs
    • Decrease in regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure
    • Cost reductions based on application and platform rationalization
    • Standard-based solutions
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    3.2.1 Define the organizational coverage dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Organizational coverage dimension of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the organizational coverage of the EA function scope using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when defining the EA function scope organizational coverage.
    3. Consider how much of the organization the EA function would need to cover. Refer to the gathered materials to assist with your decision. For example:
      • EA mission statement: Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture.
      • Implications on organizational coverage: If the purpose of the EA function is to help optimize, transform, and innovate with target-state architecture mapping, then the scope should cover the entire organization. Only by mapping the entire organization’s architecture can the EA function assist with optimizing, transforming, and innovating.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on organization coverage as shown in step 3.
    5. Discuss with the team and select the organizational coverage level that best fits the documented implications for all the gathered materials. Refer back to the gathered materials and make any changes necessary to ensure they support the selected organizational coverage.

    EA scope – Architectural Domains

    A complete enterprise architecture should address all five architectural domains. The five architectural domains are business, data, application, infrastructure, and security.

    Enterprise Architecture
    —› Data Architecture
    Business Architecture —› Infrastructure Architecture
    Security Architecture
    —› Application Architecture

    “The realities of resource and time constraints often mean there is not enough time, funding, or resources to build a top-down, all-inclusive architecture encompassing all four architecture domains. Build architecture domains with a specific purpose in mind.” (The Open Group, 2018)

    Each architectural domain creates a different view of the organization

    Below are the definitions of different domains of enterprise architecture (Info-Tech perspective; others can be identified as well, e.g. Integration Architecture).

    Business Architecture

    Business architecture is a means of demonstrating the business value of subsequent architecture work to key stakeholders and the return on investment to those stakeholders from supporting and participating in the subsequent work. Business architecture defines the business strategy, governance, organization, and key business processes.

    Data Architecture

    Describes the structure of an organization’s logical and physical data assets and data management resources.

    Application Architecture

    Provides a blueprint for the individual applications to be deployed, their interactions, and their relationships to the core business processes of the organization.

    Infrastructure Architecture

    Represents the sum of hardware, software, and telecommunications-related IT capability associated with a particular enterprise. It is concerned with the synergistic operations and management of the devices in the organization.

    Security Architecture

    Provides an unified security design that addresses the necessities and potential risks involved in a certain scenario or environment. It also specifies when and where to apply security controls.
    (Sources: The Open Group, 2018; IT Architecture Journal, 2014; Technopedia, 2016)

    EA scope – Depth

    EA scope depth defines the architectural detail for each EA domain that the organization has selected to pursue. The level of depth is broken down into four levels. The level of depth the organization decides to pursue should be consistent across the domains.

    Contextual
    • Helps define the organization scope, and examines external and internal requirements and their effect on the organization. For example, enterprise governance.
    Conceptual
    • High-level representations of the organization or what the organization wants to be. For example, business strategy, IT strategy.
    Logical
    • Models that define how to implement the representation in the conceptual stage. For example, identifying the business gaps from the current state to the target state defined by the business strategy.
    Physical
    • The technology and physical tools used to implement the representation created in the logical stage. For example, business processes that need to be created to bridge the gaps identified and reach the target stage.
    (Source: Zachman International, 2011) Business Architecture Data Architecture Application Architecture Infrastructure Architecture Security Architecture

    Each architectural depth level contains a set of key artifacts

    The graphic below depicts examples of the key artifacts that each domain of architecture would produce at each depth level.

    Contextual Enterprise Governance
    Conceptual Business strategy Business objects Use-case models Technology landscaping Security policy
    Logical Business capabilities Data attribution Application integration Network/ hardware topology Security standards
    Physical Business process Database design Application design Configuration management Security configuration
    Business Architecture Data Architecture Application Architecture Infrastructure Architecture Security Architecture

    3.2.2 Define the architectural domains and depth dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Architectural domain and depth dimensions of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the EA function scope for your organization using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives that your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when defining the architectural domains and depth of the EA function scope.
    3. Consider the architectural domains and the depth those domains need to reach. Refer to the gathered materials to assist with your decision. For example:
      • Promise of value: Increase the number of IT investments with a direct tie to business strategy.
      • Implications on architectural domains: The EA function will need business architecture. Business architecture generates business capability mapping, which will anticipate what IT investments are needed for the future.
      • Implications on depth: Depth for business architecture needs to reach a logical level to encompass business capabilities.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on architectural domains and depth as shown in step 3.
    5. Discuss with the team and select the architectural domains and the depth for each domain that best fits the documented implication. Refer back to the gathered materials and make any changes necessary to ensure they support the selected architectural domains and depth.

    EA scope – Time Horizon

    The EA scope time horizon dictates how long to plan for the architecture.

    It is important that the EA team’s work has an appropriate planning horizon while avoiding two extremes:

    1. A planning horizon that is too short focuses on immediate operational goals and strategic quick wins, missing the “big picture,” and fails to support the achievement of strategic long-term enterprise goals.
    2. A planning horizon that is too long is at a higher risk of becoming irrelevant.

    Target the same strategic planning horizon as your business. Additionally, consider the following recommendations:

    Planning Horizon: 1 year 2-3 years 5 years
    Recommended under the following conditions:
    • Corporate strategy is not stable and frequently changes direction (typical for small and some mid-sized companies).
    • There will be a major update of the corporate strategy in one year.
    • The company will be acquired by or merged with another company in one year.
    • The business' strategic plan spans the next two to three years, and corporate strategy is moderately stable within this time frame (typical for mid-sized and some large companies).
    • The business' strategic plan spans the next five years and corporate strategy is very stable (typical for large companies).

    3.2.3 Define the time horizon dimension of the EA function scope

    2 hours

    Input: EA value proposition, Previously defined EA fundamentals

    Output: Time horizon dimension of EA scope defined

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Define the EA function scope for your organization using the following steps below:

    1. Gather the EA strategy creation team. As well, gather the EA value proposition, the EA vision and mission statements, and the EA goals and objectives your team has already created.
    2. Ask the team to read each of the documents gathered in the previous step. This ensures the concepts are fresh in the team members’ minds when crafting the EA function scope.
    3. Consider the time horizons of the EA function scope. Refer to the gathered materials to assist with your decision. For example:
      • EA Objective: Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by 30% in the next 3 years.
      • Implications on time horizon: Because it will take 3 years to measure the success of these EA objectives, the time horizon may need to be 3 years.
    4. Work with the EA strategy creation team to examine all the gathered materials and document the implications on time horizon as shown in step 3.
    5. Discuss with the team and select the time horizon that best fits the documented implication. Refer back to the gathered materials and make any changes necessary to ensure they support the selected architectural time horizon.

    EA principles capture the EA value proposition essence and provide guidance for the decisions that impact architecture

    EA principles are shared, long-lasting beliefs that guide the use of IT in constructing, transforming, and operating the enterprise by informing and restricting target-state enterprise architecture design, IT investment portfolio management, solution development, and procurement decisions.

    EA value proposition Influences
    —›     		EA Principles Guide and inform
    —›     		Decisions on the Use of IT Direct and control
    ‹—     		Specific Domain Policies
    ‹———————

    What decisions should be made?     		————— ————— —————
    How should decisions be made?     		————— ————— —————————›
    Who has the accountability and authority to make decisions?

    EA principles must be carefully constructed to make sure they are adhered to and relevant

    Info-Tech has identified a set of characteristics that EA principles should possess. Having these characteristics ensures the EA principles are relevant and followed in the organization.

    Approach focused EA principles are focused on the approach, i.e. how the enterprise is built, transformed, and operated, as apposed to what needs to be built, which is defined by both functional and non-functional requirements.
    Business relevant Create EA principles specific to the organization. Tie EA principles to the organization’s priorities and strategic aspirations.
    Long lasting Build EA principles that will withstand the test of time.
    Prescriptive Inform and direct decision making with EA principles that are actionable. Avoid truisms, general statements, and observations.
    Verifiable If compliance can’t be verified, the principle is less likely to be followed.
    Easily digestible EA principles must be clearly understood by everyone in IT and by business stakeholders. EA principles aren’t a secret manuscript of the EA team. EA principles should be succinct; wordy principles are hard to understand and remember.
    Followed Successful EA principles represent a collection of beliefs shared among enterprise stakeholders. EA principles must be continuously “preached” to all stakeholders to achieve and maintain buy-in.

    In organizations where formal policy enforcement works well, EA principles should be enforced through appropriate governance processes.

    Review ten universal EA principles to determine if your organization wishes to adopt them

    1. Enterprise value focus We aim to provide maximum long-term benefits to the enterprise as a whole while optimizing total costs of ownership and risks.
    2. Fit for purpose We maintain capability levels and create solutions that are fit for purpose without over-engineering them.
    3. Simplicity We choose the simplest solutions and aim to reduce operational complexity of the enterprise.
    4. Reuse › buy › build We maximize reuse of existing assets. If we can’t reuse, we procure externally. As a last resort, we build custom solutions.
    5. Managed data We handle data creation, modification, and use enterprise-wide in compliance with our data governance policy.
    6. Controlled technical diversity We control the variety of technology platforms we use.
    7. Managed security We manage security enterprise-wide in compliance with our security governance policy.
    8. Compliance to laws and regulations We operate in compliance with all applicable laws and regulations.
    9. Innovation We seek innovative ways to use technology for business advantage.
    10. Customer centricity We deliver best experiences to our customers with our services and products.

    3.2.4 Create a set of EA principles for your organization

    2 hours

    Input: Info-Tech’s ten universal EA principles, Identified promises of value

    Output: A defined set of EA principles for your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Create a set of EA principles for your organization using the steps below:

    1. Gather the EA strategy creation team, download the EA Principles Template – EA Strategy, and have the identified promises of value opened.
    2. Select one universal principle and relate it to the promises of value by discussing with the EA strategy creation team. If there is a relation, record “Yes” in the template on the slide “Select the applicability of 10 universally accepted EA principles.” See example below:
      • Universal principle: Enterprise value focus – We aim to provide maximum long-term benefits to the enterprise as a whole while optimizing total costs of ownership and risks.
      • Related promise of value example: Increase the number of investments that have a direct tie with corporate strategy.
    3. Continue the process in step 2 until all ten universal EA principles have been examined. If there is a universal principle that is unrelated to a promise of value, discuss with the team whether the principle still needs to be included. If the principle is not included, record “No” in the template on the slide “Select the applicability of 10 universally accepted EA principles.”
    4. If there are any promises of value that are not captured by the universally accepted EA principles, the team may choose to create new principles. Create the new principles in the format below and record them in the template.
      • Name: The name of the principle, in a few words.
      • Statement: A sentence that expands on the “Name” section and explains what the principle achieves.

    Download the EA Principles Template – EA Strategy to document this step.

    Organizational stakeholders are more likely to follow EA principles when a rationale and an implication are provided

    After defining the set of EA principles, ensure they are all expanded upon with a rationale and implications. The rationale and implications ensure principles are more likely to be followed because they communicate why the principles are important and how they are to be used.

    Name
    • The name of the EA principle, in a few words.
    Statement
    • A sentence that expands on the “Name” section and explains what the principle achieves.
    Rationale
    • Describes the business benefits and reasoning for establishing the principle.
    • Explicitly links the principle to business/IT vision, mission, priorities, goals, or strategic aspirations (strategic themes).
    Implications
    • Describe when and how the principle is to be applied.
    • Communicate this section with “must” sentences.
    • Refer to domain-specific policies that provide detailed, domain-specific direction on how to apply the principle.

    3.2.5 Add the rationale and implications to the principles that have been created

    2 hours

    Input: Identified set of EA principles

    Output: EA principles that have rationale and implications

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Add the rationale and implication of each EA principle that your organization has selected using the following steps:

    1. Gather the EA strategy creation team and open the EA Principles Template – EA Strategy.
    2. Examine the EA Principles Template – EA Strategy. Look for the detailed descriptions of all the applicable EA universal principles, and discuss with the team whether the pre-populated rationale and implications need to be changed.
    3. Make sure all the rationale and implication sections of the applicable universal EA principles have been examined. Record the changes on the slide devoted to each principle in the template.
    4. Examine any new principles created outside of the universal EA principles. Create the rationale and implication sections for each of those principles. Use the slide “Review the rationale and implications for the applicable universal principles” in the EA Principles Template – EA Strategy to assist with this step.

    Download the EA Principles Template – EA Strategy to document this step.

    3.2.6 Operationalize the EA principles to ensure they are used when decisions are being made

    1-2 hours

    Input: Defined set of EA principles

    Output: EA principles are successfully operationalized

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin to operationalize the EA principles by reviewing the proposed principles with business and technology leadership to secure their approval.

    1. Publish the list of principles, their rationale, and their implications.
    2. Include the principles in any existing policies that guide decision making for the use of technology within the business.
    3. Provide existing governance bodies with the authority to enforce adherence to principles, and communicate the waiver process.
    4. Ensure that project-level teams are aware of the principles and have at least one champion guiding the decisions of the team.

    Review a use case for the utilization of EA principles – Sample

    After operationalizing the EA principles for your organization, the organization can now use those principles to guide and inform its IT investment decisions. Below is an example of a scenario where EA principles were used to guide and inform an IT investment decision.

    Organization wants to provision an application but it needs to decide how to do so, and it considers the relevant EA principles:

    • Reuse › buy › build
    • Managed security
    • Innovation

    The organization has decided to go with a specialized vendor, even though it normally prefers to reuse existing components. The vendor has experience in this domain, understands the data security implications, and can help the organization mitigate risk. Lastly, the vendor is known for providing new solutions on a regular basis and is a market leader, making it more likely to provide the organization with innovative solutions.

    An oil and gas company created EA fundamentals to guide the EA function

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    As an enterprise architecture function starting from ground zero, the organization did not have the EA fundamentals in place to guide the EA function. Further, the organization also did not possess an EA function scope to define the boundaries of the EA function.

    Due to the lack of EA scope, the EA function did not know which part of the organization to provide contributions toward. A lack of EA fundamentals caused confusion regarding the future direction of the EA function.

    Solution

    Info-Tech worked with the EA team to define the different components of the EA fundamentals. This included EA vision and mission statements, EA goals and objectives, and EA principles.

    Additionally, Info-Tech worked with the EA team to define the EA function scope.

    These EA strategy components were created by examining the needs of the business. The components were aligned with the identified needs of the EA stakeholders.

    Results

    The defined EA function scope helped set out the responsibilities of the enterprise architecture function to the organization.

    The EA vision and mission statements and EA goals and objectives were used to guide the direction of the EA function. These fundamentals helped the EA function improve its maturity and deliver on its promises.

    The EA principles were used in IT review boards to guide the decisions on IT investments in the organization.

    3.2.7 Discuss the need for a classical methodology and/or a combination including Agility practices

    1 hour

    Input: Existing methodologies

    Output: Decisions about need of agility, ceremonies, and protocols to be used

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Add the rationale and implication of adopting an Agile methodology and/or a combination with a traditional methodology.

    1. Is there an EA methodology adopted by the organization? Is there a classical one, or is it purely Agile?
    2. What would need to happen to address the business goals of the organization (e.g. is there a need to be more agile?)? Do you need to have more decisions centralized (e.g. to adopt certain standards, security controls)?
    3. Where on the decentralization continuum does your organization need to be?
    4. What role would Enterprise Architects have (would they need to be part of existing ceremonies? Would they need to blend traditional and agile processes?)?
    5. If a customized methodology is required, identify this as an item to be included as part of the EA roadmap (can be run as a Agile Enterprise Operating Model workshop).

    Design an Enterprise Architecture Strategy

    Phase 4

    Design the EA Services

    Phase 1

    • 1.1 Explore a general EA strategy approach
    • 1.2 Introduce Agile EA architecture

    Phase 2

    • 2.1 Define the business and technology drivers
    • 2.2 Define your value proposition

    Phase 3

    • 3.1 Realize the importance of EA fundamentals
    • 3.2 Finalize the EA fundamentals

    Phase 4

    • 4.1 Select relevant EA services
    • 4.2 Finalize the set of services and secure approval
      •

    This phase will walk you through the following activities:

    • Select relevant EA services
    • Finalize the set of services and secure approval

    This phase involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Step 4.1

    Select Relevant EA Services

    Activities
    • 4.1.1 Select the EA services relevant to your organization
    • 4.1.2 Identify if your organization needs additional services outside of the recommended list
    • 4.1.3 Complete all of the service catalog fields for each service to show the organization how each can be consumed

    This step will walk you through the following activities:

    • Communicate a definition of EA services.
    • Link services to the previously identified EA contributions.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • A defined set of services the EA function will provide.
    • An EA service catalog that demonstrates to the organization how each provided service can be accessed and consumed.

    Design the EA Services

    Step 3.1 Step 3.2

    The definition of EA services will allow the group to communicate how they can add value to EA stakeholders

    Enterprise architecture services are a set of activities the enterprise architecture function provides for the organization. EA services are important because the services themselves provide a set of benefits for the organization.

    Enterprise Architecture Services

    • A means of delivering value to the business by facilitating outcomes service consumers want to achieve.
    • EA services are defined from the business perspective using business language.
    • EA services are designed to enable required business activities.

    Viewing the EA function from a service perspective resolves the following pains:

    • Business users don’t know how EA can assist them.
    • Business users don’t know how to request access to a service with multiple sources of information available.
    • EA has no way of managing expectations for their users, which tend to inflate.
    • EA does not have a holistic view of all the services they need to provide.

    Link EA services to the previously identified EA contributions

    Previously identified EA contributions can be linked to EA services, which helps the EA function identify a set of EA services that are important to business stakeholders. Further, linking the EA contributions to EA services can define for the EA function the services they need to provide.

    Demonstrate EA service value by linking them to EA contributions

    1. EA stakeholders generate drivers
    2. Drivers have pains that obstruct them
    3. Pains are alleviated by EA contributions
    4. EA contributions help define the EA services needed

      • EA Contributions
        Example EA contribution: Business capability mapping shows the business capabilities of the organization and the technology that supports those capabilities in the current and target state. This provides a view for the set of investments that are needed by the organization, which can then be prioritized.

        • EA Services
          Example EA service: Target-state business capability mapping

    4.1.1 Select the EA services relevant to your organization

    2 hours

    Input: Previously identified EA contributions from the EA value proposition

    Output: A set of EA services selected for the organization from Info-Tech’s defined set of EA services

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Begin the selection of EA services relevant to your organization by following the steps below:

    1. Gather the EA strategy creation team, and the list of identified EA contributions that the team formulated during Phase 2.
    2. Open the EA Service Planning Tool, select one sub-service, and read its definition.
    3. Based on the definition of the sub-service, refer back to the identified list of EA contributions and check if there is an identified EA contribution that matches the service.
      • If the EA service definitions matches one of the identified EA contributions, then that EA service is relevant to the organization. If there is no match, then the EA service may not be relevant to the organization.
    4. Highlight the sub-service if it is relevant. Add a checkmark beside the EA contribution if it is addressed by a sub-service.
    5. Select the next sub-service and repeat steps 2-4. Continue down the list of sub-services in the EA Service Planning Tool until all sub-services have been examined.

    Download the EA Service Planning Tool to assist with this activity.

    4.1.2 Identify if your organization needs additional services outside of the recommended list

    2 hours

    Input: Expertise from the EA strategy creation team, Previously defined EA contributions

    Output: A defined set of EA services outside the list Info-Tech has recommended

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Identify if services outside of the recommended list in the EA Service Planning Tool are relevant to your organization by using the steps below:

    1. Gather the EA strategy creation team and the list of EA contributions with checkmarks for contributions addressed by EA services.
    2. Take the list of unaddressed EA contributions and select one EA contribution in the list. Assess whether an EA service is required to address the EA contribution. Ask the group the following:
      • Can the EA practice provide the service now?
      • Does providing this EA service line up with the previously defined EA function scope and EA fundamentals?
    3. Decide if a service needs to be provided for that contribution. If yes, give the service a name and a definition.
    4. Then, decide if the service fits into one of the service categories in the EA Service Planning Tool. If there is no fit, create another service category. Define the new service category as well.
    5. Continue to the next unaddressed EA contribution and repeat steps 2-4. Repeat this process until all unaddressed EA contributions have been assessed.

    Download the EA Service Planning Tool to assist with this activity.

    Create the EA service catalog to demonstrate to the organization how each service can be accessed and used

    The EA service catalog is an important communicator to the business. It shifts the technology-oriented view of EA to services that show direct benefit to the business. It is a tool that communicates and provides clarity to the business about the EA services that are available and how those services can assist them.

    Define the services to show value Define the service catalog to show how to use those services
    Already defined
    • EA service categories
    • The services needed by the EA stakeholders in each EA service category
    Need to define
    • Should EA deliver this service?
    • Service triggers
    • Service provider
    • Service requestor

    Info-Tech Insight

    The EA group must provide the organization with a list of services it will provide to demonstrate value. This will help the team manage expectations and the workload while giving organizational stakeholders a clear understanding of how to engage EA and what lies outside of EA’s involvement.

    4.1.3 Complete all the service catalog fields for each service to show the organization how each can be consumed

    4 hours

    Input: Expertise from the EA strategy creation team

    Output: Service details for each EA service in your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Complete the details for each relevant EA service in the EA Service Planning Tool by using the following steps:

    1. Gather the EA strategy creation team, and open the EA Service Planning Tool.
    2. Select one of the services you have defined as relevant and begin the process of defining the service. Define the following fields:
      • Should EA deliver this service? Should the EA team provide this service? (Yes/No)
      • Service trigger: What trigger will signal the need for the service?
      • Service provider: Who in the EA team will provide the service?
      • Service requestor: Who outside of the EA team has requested this service?
    3. Have the EA strategy creation team discuss and define each of the fields for the service above. Record the decisions in the corresponding columns of the EA Service Planning Tool.
    4. Select the next required EA service, and repeat steps 2 and 3. Repeat the process until all required EA services have their details defined.

    Download the EA Service Planning Tool to assist with this activity.

    Step 4.2

    Finalize the Set of Services and Secure Approval

    Activities
    • 4.2.1 Secure approval for your organization’s EA strategy
    • 4.2.2 Map the EA contributions to business goals
    • 4.2.3 Quantify the EA effectiveness
    • 4.2.4 Determine the role of the architect in the Agile ceremonies of the organization

    This step will walk you through the following activities:

    • Present the EA strategy to stakeholders.
    • Determine service details for each EA service in your organization.

    This step involves the following participants:

    • CIO
    • EA Team
    • IT Leaders
    • Business Leaders

    Outcomes of this step

    • Secured approval for your organization’s EA strategy.
    • Measure effectiveness of EA contributions.

    Design the EA Services

    Step 4.1 Step 4.2

    Present the EA strategy to stakeholders to secure approval of the finalized EA strategy

    For the EA strategy to be successfully executed, it must be approved by the EA stakeholders. Securing their approval will increase the likelihood of success in the execution of the EA operating model.

    Outputs that make up the EA strategy —› Present outputs to EA strategy stakeholders
    • Business and technology drivers
    • EA function value proposition

    • EA vision statement
    • EA mission statement
    • EA goals and objectives
    • EA scope
    • EA principles

    • EA function services
    • Identified and prioritized EA stakeholders.








    • The checkmark symbol represents the outputs this blueprint assists with creating.

    4.2.1 Secure approval of your organization’s EA strategy

    1 hour

    Input: Completed EA Function Strategy Template, Expertise from EA strategy creation team

    Output: Approval of the EA strategy

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team, Key EA stakeholders

    Use the following steps to assist with securing approval for your organization’s EA strategy:

    1. Call a meeting between the EA strategy creation team and the identified key EA stakeholders. Key stakeholders were defined in activity 2.1.1.
    2. Open the completed EA Function Strategy Template. Use it to help you discuss the merits of the EA strategy with the key stakeholders.
    3. Discuss with the stakeholders any concerns and modifications they wish to make to the strategy. If detailed questions are asked, refer to the other templates created as a part of this blueprint. Record those concerns and address them at a later time.
    4. After presenting the EA strategy, ask the stakeholders for approval. If stakeholders do not approve, refer back to the concerns documented in step 3 and inquire if addressing the concerns will result in approval.
    5. If applicable, address stakeholder concerns with the EA strategy.
    6. Once EA strategy has been approved, publish the EA strategy to ensure there is a mutual understanding of what the EA function will provide to the organization. Move on to Info-Tech’s Define an EA Operating Model blueprint to begin executing upon the EA strategy.

    Use the EA Function Strategy Template to assist with this activity.

    4.2.2 Map the EA contributions to the business goals

    3 hours

    Input: Expertise from EA strategy creation team

    Output: Service details for each EA service in your organization

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Map EA contributions/services to the goals of the organization.

    1. Start from the business goals of the organization.
    2. Determine Business and IT drivers.
    3. Identify EA contributions that help achieve the business goals.

    Download the EA Service Planning Tool to assist with this activity.

    Trace EA drivers to business goals (sample)

    A model connecting 'Enterprise Architecture' with 'Corporate Goals' through 'EA Contributions'.

    4.2.3 Quantify the EA effectiveness

    1 hour

    Input: Expertise from EA strategy creation team

    Output: Defined KPIs (SMART)

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Use SMART key performance indicators (KPIs) to measure EA contributions vis-à-vis business goals.

    Measure the EA strategy effectiveness by tracking the benefits it provides to the corporate business goals

    The success of the EA function spans across three main dimensions:

    • The delivery of EA-enabled business outcomes that are most important to the enterprise.
    • The alignment between the business and IT from a planning perspective.
    • Improvements in the corporate business goals due to EA contributions (standardization, rationalization, reuse, etc.).
    Corporate Business GoalsEA ContributionsMeasurements
    • Reduction in operating costs
    • Decrease in regulatory compliance infractions
    • Increased revenue from existing channels
    • Increased revenue from new channels
    • Faster time to business value
    • Improved business agility
    • Reduction in enterprise risk exposure
    • Alignment of IT investments to business strategy
    • Achievement of business results directly linked to IT involvement
    • Application and platform rationalization
    • Standards in place
    • Flexible architecture
    • Better integration
    • Higher organizational satisfaction with technology-enabled services and solutions
    • Cost reductions based on application and platform rationalization
    • Standard based solutions
    • Time reduction for integration
    • Service reused
    • Stakeholder satisfaction with EA services
    • Increase customer satisfaction
    • Rework minimized
    • Lower cost of integration
    • Risk reduction
    • Faster time to market
    • Better scalability, etc.

    The oil and gas company began the EA strategy creation by crafting an EA value proposition

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    The oil and gas corporation faced a great challenge in communicating the role of enterprise architecture to the organization. Although it has the mandate from the CIO to create the EA function, there was no function in existence. Thus, few people in the organization understood EA.

    Because of this lack of understanding, the EA function was often undermined. The EA function was seen as an order taker that provided some services to the organization.

    Solution

    First, Info-Tech worked with the enterprise architecture team to define the EA stakeholders in the organization.

    Second, Info-Tech interviewed those stakeholders to identify their needs. The needs were analyzed and pains that would obstruct addressing those needs were identified.

    Lastly, Info-Tech worked with the team to identify common EA contributions that would solve those pains.

    Results

    Through this process, Info-Tech helped the team at the oil and gas company create a document that could communicate the value of EA. Specifically, the document could articulate the issues obstructing each stakeholder from achieving their needs and how enterprise architecture could solve them.

    With this value proposition, EA was able to demonstrate value to important stakeholders and set itself up for success in its future endeavors.

    The oil and gas company defined EA services to provide and communicate value to the organization

    CASE STUDY

    Industry: Oil & Gas
    Source: Info-Tech

    Challenge

    As a brand new enterprise architecture function, the EA function at the oil and gas corporation did not have a set of defined EA services. Because of this lack of EA services, the organization did not know what contributions EA could provide.

    Further, without the definition of EA services, the EA function did not set out explicit expectations to the business. This caused expectations from the business to be different from those of the EA function, resulting in friction.

    Solution

    Info-Tech worked with the EA function at the oil and gas corporation to define a set of EA services the function could provide.

    The Info-Tech team, along with the organization, assessed the business and technology needs of the stakeholder. Those needs acted as the basis for the EA function to create their initial services.

    Additionally, Info-Tech worked with the team to define the service details (e.g. service benefits, service requestor, service provider) to communicate how to provide services to the business.

    Results

    The defined EA services led the EA function to communicate what it could provide for the business. As well, the defined services clarified the level of expectation for the business.

    The EA team was able to successfully service the business on future projects, adding value through their expertise and knowledge of the organization’s systems. Because of the demonstrated value, EA has been given greater responsibility throughout the organization.

    4.2.4 Determine the role of the architect in the Agile ceremonies of the organization

    1 hour

    Input: Expertise from EA strategy creation team

    Output: Participation in Agile Pre- and Post-PI, Architect Syncs, etc.

    Materials: Note-taking materials, Whiteboard or flip chart, markers

    Participants: EA strategy creation team

    Document the involvement of the enterprise architect in your organization’s Agile ceremonies.

    1. Document the Agile ceremonial used in the organization (based on SAFe or other Agile approaches).
    2. Determine ceremonies the System Architect will participate in.
    3. Determine ceremonies the Solution Architect will participate in
    4. Determine ceremonies the Enterprise Architect will participate in.
    5. Determine Architect Syncs, etc.

    Note: Roles and responsibilities can be further defined as part of the Agile Enterprise Operating Model.

    The EA role relative to agility

    The enterprise architecture role relative to agility specifies the architecture roles as well as the agile protocols they will participate in.
    This statement will guide every architect’s participation in planning meetings, pre- and post-PI, syncs, etc. Use simple and concise terminology; speak loudly and clearly.

    A strong EA role statement relative to agility has the following characteristics:

    • Describes what different architect roles do to achieve the vision of the organization
    • In an agile way
    • Compelling
    • Easy to grasp
    • Sharply focused
    • Specific
    • Concise

    Sample EA mission relative to agility

    • Create strategies that provide guardrails for the organization, provide standards, reusable assets, accelerators, and other decisions at the enterprise level that support agility.
    • Participate in pre-PI and post-PI planning activities, architect syncs, etc.

    A clear statement can include additional details surrounding the Enterprise Architect role relative to agility

    Likewise, below is a sample of connecting keywords together to form an enterprise architect role statement, relative to agility.

    Optimize, transform, and innovate by defining and implementing the [Company]’s target enterprise architecture in an agile way.

    Optimize – We collaborate with the business to analyze and optimize business capabilities and business processes to enable the agile and efficient attainment of [Company name] business objectives.

    Transform – We support IT-enabled business transformation programs by building and maintaining a shared vision of the future-state enterprise and consistently communicating it to stakeholders.

    Innovate – We identify and develop new and creative opportunities for IT to enable the business. We communicate the art of the possible to the business.

    Defining and implementing – We engage with project teams early and guide solution design and selection to ensure alignment to the target-state enterprise architecture and provide guidance as well as accelerators.

    Target enterprise structure in an agile way – We analyze business needs and priorities and assess the current state of the enterprise. We build and maintain the target enterprise architecture blueprints that define:

    • Business capabilities and processes (business architecture)
    • Data, application, and technology assets that enable business capabilities and processes (technology architecture)
    • Architecture principles
    • Standards and reusable assets
    • Continuous exploration, integration, and deployment

    Move to the enterprise architecture operating model blueprint to execute your EA strategy

    Once approved, move on to Info-Tech’s Define an EA Operating Model blueprint to begin executing on the EA strategy.

    Enterprise architecture strategy

    This blueprint focuses on setting up an enterprise architecture function, with the goal of maximizing the likelihood of EA success. The blueprint puts into place the components that will align the EA function with the needs of the stakeholders, guide the decision making of the EA function, and define the services EA can provide to the organization.

    Agile enterprise architecture operating model

    An EA operating model helps you design and organize the EA function, ensuring adherence to architectural standards and delivery of EA services. This blueprint acts on the EA strategy by creating methods to engage, govern, and develop architecture as a part of the larger organization.

    Research contributors and experts

    Photo of Milena Litoiu, Senior Director Research and Advisory, Enterprise Architecture Milena Litoiu
    Senior Director Research and Advisory, Enterprise Architecture
    • Milena Litoiu is a Principal/Senior Manager of Enterprise Architecture. She is Master Certified with The Open Group and she sits on global architecture certification boards.
    • Other certifications include SABSA, CRISC, and Scaled Agile Framework. She started as a certified IT Architect at IBM and has over 25 years experience in this field.
    • Milena teaches enterprise architecture at the University of Toronto and led the development of the Enterprise Architecture Certificate (a course on EA fundamentals, one on EA development and Governance, and one on Trends going forward).
    • She has a Masters in Engineering, an executive MBA, and extensive experience in enterprise architecture as well as methodologies and tools.
    		 Photo of Lan Nguyen, IT Executive, Mentor, Managing Partner at CIOs Beyond Borders Group Lan Nguyen
    IT Executive, Mentor, Managing Partner at CIOs Beyond Borders Group
    • Lan Nguyen has a wealth of experience driving the EA strategy and the digital transformation success at the City of Toronto.
    • Lan is a university lecturer on topics like strategic leadership in the digital enterprise.
    • Lan is a Managing Partner at CIOs Beyond Borders Group.
    • Lan specializes in Partnership Development; Governance; Strategic Planning, Business Development; Government Relations; Business Relationship Management; Leadership Development; Organizational Agility and Change Management; Talent Management; Managed Services; Digital Transformation; Strategic Management of Enterprise IT; Shared Services; Service Quality Improvement, Portfolio Management; Community Development; and Social Enterprise.


    Photo of Dirk Coetsee, Director Research and Advisory, Enterprise Architecture, Data & Analytics Dirk Coetsee
    Director Research and Advisory, Enterprise Architecture, Data & Analytics
    • Dirk Coetsee is a Research & Advisory Director in the Data & Analytics practice. Dirk has over 25 years of experience in data management and architecture within a wide range of industries, especially Financial Services, Manufacturing, and Retail.
    • Dirk spearheaded data architecture at several organizations and was involved in enterprise data architecture, data governance, and data quality and analytics. He architected many operational data stores of ranging complexity and transaction volumes and was part of major enterprise data warehouse initiatives. Lately, he was part of projects that implemented big data, enterprise service bus, and micro services architectures. Dirk has an in-depth knowledge of industry models within the financial and retail spaces.
    • Dirk holds a BSc (Hons) in Operational Research and an MBA with specialization in Financial Services from the University of Pretoria, South Africa.
    		 Photo of Andy Neill, AVP, Enterprise Architecture, Data and Analytics Andy Neill
    AVP, Enterprise Architecture, Data and Analytics
    • Andy is AVP Data and Analytics and Chief Enterprise Architect at Info-Tech Research Group. Previous roles include leading the data architecture practice for Loblaw Companies Ltd, Shoppers Drug Mart and 360 Insights in Canada as well as leading architecture practices at Siemens consultancy, BBC, NHS, Ordnance Survey, and Houses of Parliament and Commons in the UK.
    • His responsibilities at Info-Tech include leading the data and analytics and enterprise architecture research practices and guiding the future of research and client engagement in that space.
    • Andy is the Product Owner for the Technical Counselor seat offering at Info-Tech, which gives world-class holistic support to our senior technical members.
    • He is also a instructor and content creator for the University of Toronto in the field of Enterprise Architecture.


    Photo of Wayne Filin-Matthews, Chief Enterprise Architect, ICMG Winner of Global Chief Enterprise Architect of the Year 2019 Wayne Filin-Matthews
    Chief Enterprise Architect, ICMG Winner of Global Chief Enterprise Architect of the Year 2019
    • Wayne is currently the EA Discipline Lead/Chief Enterprise Architect – Global Digital Transformation Office, COE at Dell Technologies.
    • He is a distinguished Motivator & Tech Lead as well as an influencer.
    • Wayne has led multiple Enterprise Architecture practices at the global level and has valuable contributions in this space managing and growing Enterprise Architecture and CTO practices across strategy, execution, and adoption parts of the IT lifecycle.
    		 Photo of Graham Smith, Experienced lead Enterprise Architect and Independent Consultant Graham Smith
    Experienced lead Enterprise Architect and Independent Consultant
    • Graham is an experienced lead enterprise architect specializing in digital and data transformation, with over 33 years of experience, spanning financial markets, media, information, insurance, and telecommunications sectors. Graham has successfully established and led large teams across India, China, Australia, Americas, Japan, and the UK.
    • He is currently working as an independent consultant in digital and data-led transformation and his work spans established businesses and start-ups alike.

    Thanks also go to all experts who contributed to previous versions of this document:

    • Zachary Curry, Director, Enterprise Architecture and Innovation, FMC Technologies
    • Pam Doucette, Director of Enterprise Architecture, Tufts Health Plan
    • Joe Evers, Consulting Principal, JcEvers Consulting Corp
    • Cameron Fairbairn, Enterprise Architect, Agriculture Financial Services Corporation (AFSC)
    • Michael Fulton, Chief Digital Officer & Senior IT Strategy & Architecture Consultant at CC and C Solutions
    • Tom Graves, Principal Consultant, Tetradian Consulting
    • (JB) Brahmaiah Jarugumilli, Consultant, Federal Aviation Administration – Enterprise Services Center
    • Huw Morgan, IT Research Executive, Enterprise Architect
    • Serge Parisien, Manager, Enterprise Architecture, Canada Mortgage & Housing Corporation

    Additional interviews were conducted but are not listed due to privacy and confidentiality requirements.

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    Lean IX website, Accessed July 2021.

    Litoiu, Milena. Course material from Information Technology 2690: Foundations of Enterprise Architecture, 2021, University of Toronto.

    Mocker, M., J.W. Ross, and C.M. Beath. “How Companies Use Digital Technologies to Enhance Customer Findings.” MIT CISR Working Paper No. 434, Feb. 2019. Qtd in Mayor, Tracy. “MIT expert recaps 30-plus years of enterprise architecture.” MIT Sloan, 10 Aug. 2020. Web.

    “Open Agile ArchitectureTM.” The Open Group, 2020. Accessed July 2021.

    “Organizational Design Framework – The Transformation Model.” The Center for Organizational Design, n.d. Accessed 1 Aug. 2020.

    Ross, Jeanne W. et al. Enterprise Architecture as Strategy: Creating a Foundation for Business Execution. Harvard Business School Press, 2006.

    Rouse, Margaret. “Enterprise Architecture (EA).” SearchCIO, June 2007. Accessed Nov. 2016.

    “SAFe 5 for Lean Enterprises.” Scaled Agile Framework, Scaled Agile, Inc. Accessed 2021.

    “Security Architecture.” Technopedia, updated 20 Dec. 2016. Accessed July 2021.

    “Software Engineering Institute.” Carnegie Mellon University, n.d. Web.

    “TOGAF 9.1.” The Open Group, 2011. Accessed Oct. 2016.

    “TOGAF 9.2.” The Open Group, 2018. Accessed July 2021.

    Thompson, Rachel. “Stakeholder Analysis: Winning Support for Your Projects.” MindTools, n.d. Accessed July 2021.

    Wendt, Jerome M. “Redefining ‘SMB’, ‘SME’ and ‘Large Enterprise.’” DCIG, 25 Mar. 2011. Accessed July 2021.

    Wilkinson, Jim. “Business Drivers.” The Strategic CFO, 23 July 2013. Accessed July 2021.

    Zachman, John. “Conceptual, Logical, Physical: It is Simple.” Zachman International, 2011. Accessed July 2021.

    Prepare for Negotiations More Effectively

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • IT budgets are increasing, but many CIOs feel their budgets are inadequate to accomplish what is being asked of them.
    • Eighty percent of organizations don’t have a mature, repeatable, scalable negotiation process.
    • Training dollars on negotiations are often wasted or ineffective.

    Our Advice

    Critical Insight

    • Negotiations are about allocating risk and money – how much risk is a party willing to accept at what price point?
    • Using a cross-functional/cross-insight team structure for negotiation preparation yields better results.
    • Soft skills aren’t enough and theatrical negotiation tactics aren’t effective.

    Impact and Result

    A good negotiation process can help:

    • Maximize budget dollars.
    • Improve vendor performance.
    • Enhance relationships internally and externally.

    Prepare for Negotiations More Effectively Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should create and follow a scalable process for preparing to negotiate with vendors, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Before

    Throughout this phase, the 12 steps for negotiation preparation are identified and reviewed.

    • Prepare for Negotiations More Effectively – Phase 1: Before
    • Before Negotiating Tool
    [infographic]

    Workshop: Prepare for Negotiations More Effectively

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 12 Steps to Better Negotiation Preparation

    The Purpose

    Improve negotiation preparation.

    Understand how to use the Info-Tech Before Negotiating Tool.

    Key Benefits Achieved

    A scalable framework for negotiation preparation will be created.

    The Before Negotiating Tool will be configured for the customer’s environment.

    Activities

    1.1 Establish specific negotiation goals and ranges.

    1.2 Identify and assess alternatives to a negotiated agreement.

    1.3 Identify and evaluate assumptions made by the parties.

    1.4 Conduct research.

    1.5 Identify and evaluate relationship issues.

    1.6 Identify and leverage the team structure.

    1.7 Identify and address leverage issues.

    1.8 Evaluate timeline considerations.

    1.9 Create a strategy.

    1.10 Draft a negotiation agenda.

    1.11 Draft and answer questions.

    1.12 Rehearse (informal and formal).

    Outputs

    Sample negotiation goals and ranges will be generated via a case study to demonstrate the concepts and how to use the Before Negotiating Tool (this will apply to each Planned Activity)

    Sample alternatives will be generated

    Sample assumptions will be generated

    Sample research will be generated

    Sample relationship issues will be generated

    Sample teams will be generated

    Sample leverage items will be generated

    Sample timeline issues will be generated

    A sample strategy will be generated

    A sample negotiation agenda will be generated

    Sample questions and answers will be generated

    Sample rehearsals will be conducted

    Improve IT Operations With AI and ML

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Many IT departments experience difficulty with meeting the business' expectations for service delivery on a regular basis.
    • Despite significant investment in improving various areas of IT operations, you still feel like you’re constantly firefighting.
    • To tackle these issues, businesses tend to invest in purchasing multiple solutions. This not only complicates their IT operations, but also, in some cases, deteriorates functionality.

    Our Advice

    Critical Insight

    • To leverage AI capabilities, you first need to assess the current state of your IT operations and know what your priorities are.
    • Contemplate use cases that will get the most benefit from automation and start with processes that you are relatively comfortable handling.
    • Analyze your initial plan to identify easy wins, then expand your AIOps.

    Impact and Result

    • Perform a current state assessment to spot which areas within your operations management are the least mature and causing you the most grief. Identify which functional areas within operations management need to be prioritized for improvement.
    • Make a shortlist of use cases that will get the most benefit from AI-based technology.
    • Prepare a plan to deploy AI capabilities to improve your IT operations.

    Improve IT Operations With AI and ML Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out about the latest improvements in AIOps and how these can help you improve your IT operations. Review Info-Tech’s methodology and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Assess the current state of IT operations management

    Identify where your organization currently stands in its operations management practices.

    • AIOps Project Summary Template
    • AIOps Prerequisites Assessment Tool

    2. Identify initiatives that align with operations requirements

    Recognize the benefits of AI and ML for your business. Determine the necessary roles and responsibilities for potential initiatives, then develop and assess your shortlist.

    • AIOps RACI Template
    • AIOps Shortlisting Tool

    3. Develop the AI roadmap

    Analyze your ROI for AIOps and create an action plan. Communicate your AI and ML initiatives to stakeholders to obtain their support.

    • AIOps ROI Calculator
    • AIOps Roadmap Tool
    • AIOps Communications Plan Template
    [infographic]

    Take Control of Infrastructure and Operations Metrics

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    • Parent Category Name: Operations Management
    • Parent Category Link: /i-and-o-process-management
    • Measuring the business value provided by IT is very challenging.
    • You have a number of metrics, but they may not be truly meaningful, contextual, or actionable.
    • You know you need more than a single metric to tell the whole story. You also suspect that metrics from different systems combined will tell an even fuller story.
    • You are being asked to provide information from different levels of management, for different audiences, conveying different information.

    Our Advice

    Critical Insight

    • Many organizations collect metrics to validate they are keeping the lights on. But the Infrastructure and Operations managers who are benefitting the most are taking steps to ensure they are getting the right metrics to help them make decisions, manage costs, and plan for change.
    • Complaints about metrics are often rooted in managers wading through too many individual metrics, wrong metrics, or data that they simply can’t trust.
    • Info-Tech surveyed and interviewed a number of Infrastructure managers, CIOs, and IT leaders to understand how they are leveraging metrics. Successful organizations are using metrics for everything from capacity planning to solving customer service issues to troubleshooting system failures.

    Impact and Result

    • Manage metrics so they don’t become time wasters and instead provide real value.
    • Identify the types of metrics you need to focus on.
    • Build a metrics process to ensure you are collecting the right metrics and getting data you can use to save time and make better decisions.

    Take Control of Infrastructure and Operations Metrics Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement a metrics program in your Infrastructure and Operations practice, review Info-Tech’s methodology, and understand the ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Gap analysis

    This phase will help you identify challenges that you want to avoid by implementing a metrics program, discover the main IT goals, and determine your core metrics.

    • Take Control of Infrastructure and Operations Metrics – Phase 1: Gap Analysis
    • Infra & Ops Metrics Executive Presentation

    2. Build strategy

    This phase will help you make an actionable plan to implement your metrics program, define roles and responsibilities, and communicate your metrics project across your organization and with the business division.

    • Take Control of Infrastructure and Operations Metrics – Phase 2: Build Strategy
    • Infra & Ops Metrics Definition Template
    • Infra & Ops Metrics Tracking and Reporting Tool
    • Infra & Ops Metrics Program Roles & Responsibilities Guide
    • Weekly Metrics Review With Your Staff
    • Quarterly Metrics Review With the CIO
    [infographic]

    Drive Business Value With a Right-Sized Project Gating Process

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    • Parent Category Name: Portfolio Management
    • Parent Category Link: /portfolio-management
    • Low sponsor commitment on projects.
    • Poor quality on completed projects.
    • Little to no visibility into the project portfolio.
    • Organization does not operationalize change .
    • Analyzing, fixing, and redeploying is a constant struggle. Even when projects are done well, they fail to deliver the intended outcomes and benefits.

    Our Advice

    Critical Insight

    • Stop applying a one-size-fits-all-projects approach to governance.
    • Engage the sponsor by shifting the accountability to the business so they can get the most out of the project.
    • Do not limit the gating process to project management – expand to portfolio management.

    Impact and Result

    • Increase Project Throughput: Do more projects by ensuring the right projects and right amount of projects are approved and executed.
    • Validate Project Quality: Ensure issues are uncovered and resolved with standard check points in the project.
    • Increase Reporting and Visibility: Easily compare progress of projects across the portfolio and report outcomes to leadership.
    • Reduce Resource Waste: Terminate low-value projects early and assign the right resources to approved projects.
    • Achieve Intended Project Outcomes: Keep the sponsor engaged throughout the gating process to achieve desired outcomes.

    Drive Business Value With a Right-Sized Project Gating Process Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should design a right-sized project gating process, review Info-Tech’s methodology, and understand the four ways we can support you.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Lay the groundwork for tailored project gating

    This phase will walk you through the following activities:

  • Understand the role of gating and why we need it.
  • Determine what projects will follow the gating process and how to classify them.
  • Establish the role of the project sponsor throughout the entire project lifecycle.

    • Drive Business Value With a Right-Sized Project Gating Process – Phase 1: Lay the Groundwork for Tailored Project Gating
    • Project Intake Classification Matrix
    • Project Sponsor Role Description Template

    2. Establish level 1 project gating

    This phase will help you customize Level 1 Project Gates with appropriate roles and responsibilities.

    • Drive Business Value With a Right-Sized Project Gating Process – Phase 2: Establish Level 1 Project Gating
    • Project Gating Strategic Template

    3. Establish level 2 project gating

    This phase will help you customize Level 2 Project Gates with appropriate roles and responsibilities.

    • Drive Business Value With a Right-Sized Project Gating Process – Phase 3: Establish Level 2 Project Gating

    4. Establish level 3 project gating

    This phase will help you customize Level 3 Project Gates with appropriate roles and responsibilities. It will also help you determine next steps and milestones for the adoption of the new process.

    • Drive Business Value With a Right-Sized Project Gating Process – Phase 4: Establish Level 3 Project Gating
    • Project Gating Reference Document
    [infographic]

    Workshop: Drive Business Value With a Right-Sized Project Gating Process

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Lay the Groundwork for Tailored Project Gating

    The Purpose

    Understand the role of gating and why we need it.

    Determine what projects will follow the gating process and how to classify them.

    Establish the role of the project sponsor throughout the entire project lifecycle.

    Key Benefits Achieved

    Get stakeholder buy-in for the process.

    Ensure there is a standard leveling process to determine size, risk, and complexity of requests.

    Engage the project sponsor throughout the portfolio and project processes.

    Activities

    1.1 Project Gating Review

    1.2 Establish appropriate project levels

    1.3 Define the role of the project sponsor

    Outputs

    Project Intake Classification Matrix

    Project Sponsor Role Description Template

    2 Establish Level 1 Project Gating

    The Purpose

    This phase will help you customize Level 1 Project Gates with appropriate roles and responsibilities.

    Key Benefits Achieved

    Create a lightweight project gating process for small projects.

    Activities

    2.1 Review level 1 project gating process

    2.2 Determine what gates should be part of your custom level 1 gating process

    2.3 Establish required artifacts for each gate

    2.4 Define the stakeholder’s roles and responsibilities at each gate

    Outputs

    Documented outputs in the Project Gating Strategic Template

    3 Establish Level 2 Project Gating

    The Purpose

    This phase will help you customize Level 2 Project Gates with appropriate roles and responsibilities.

    Key Benefits Achieved

    Create a heavier project gating process for medium projects.

    Activities

    3.1 Review level 2 project gating process

    3.2 Determine what gates should be part of your custom level 2 gating process

    3.3 Establish required artifacts for each gate

    3.4 Define the stakeholder’s roles and responsibilities at each gate

    Outputs

    4 Establish Level 3 Project Gating

    The Purpose

    This phase will help you customize Level 3 Project Gates with appropriate roles and responsibilities.

    Come up with a roadmap for the adoption of the new project gating process.

    Key Benefits Achieved

    Create a comprehensive project gating process for large projects.

    Activities

    4.1 Review level 3 project gating process

    4.2 Determine what gates should be part of your custom level 3 gating process

    4.3 Establish required artifacts for each gate

    4.4 Define the stakeholder’s roles and responsibilities at each gate

    4.5 Determine next steps and milestones for process adoption

    Outputs

    Documented outputs in the Project Gating Strategic Template

    Documented Project Gating Reference Document for all stakeholders

    Develop a COVID-19 Pandemic Response Plan

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    • Parent Category Name: DR and Business Continuity
    • Parent Category Link: /business-continuity
    • IT departments are being asked to rapidly ramp up work-from-home capabilities and other business process workarounds.
    • Crisis managers are experiencing a pandemic more severe than what they’ve managed in the past.
    • Organizations are scrambling to determine how they can keep their businesses running through this pandemic.

    Our Advice

    Critical Insight

    • Obstacles to working from home go beyond internet speed and needing a laptop. Business input is critical to uncover unexpected obstacles.
    • IT needs to address a range of issues from security risk to increased service desk demand from users who don’t normally work from home.
    • Resist the temptation to bypass IT processes – your future-self will thank you for tracking all those assets about to go out the door.

    Impact and Result

    • Start with crisis management fundamentals – identify crisis management roles and exercise appropriate crisis communication.
    • Prioritize business processes and work-from-home requirements. Not everyone can be set up on day one.
    • Don’t over-complicate your work-from-home deployment plan. A simple spreadsheet (see the Work-from-Home Requirements Tool) to track requirements can be very effective.

    Develop a COVID-19 Pandemic Response Plan Research & Tools

    Start here

    Stay up to date on COVID-19 and the resources available to you.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Develop a COVID-19 Pandemic Response Plan Storyboard

    1. Manage the pandemic crisis

    Identify key roles and immediate steps to manage this crisis.

    • Pandemic Response Plan Example

    2. Create IT’s plan to support the pandemic response plan

    Plan the deployment of a work-from-home initiative.

    • Work-From-Home Requirements Tool
    [infographic]

    Design and Build a User-Facing Service Catalog

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    • Parent Category Name: Service Management
    • Parent Category Link: /service-management
    • Business users don’t know what breadth of services are available to them.
    • It is difficult for business users to obtain useful information regarding services because they are often described in technical language.
    • Business users have unrealistic expectations of what IT can do for them.
    • There is no defined agreement on what is available, so the business assumes everything is.

    Our Advice

    Critical Insight

    • Define services from the business user’s perspective, not IT’s perspective.
      • A service catalog is of no use if a user looks at it and sees a significant amount of information that doesn’t apply to them.
    • Separate the enterprise services from the Line of Business (LOB) services.
      • This will simplify the process of documenting your service definitions and make it easier for users to navigate, which leads to a higher chance of user acceptance.

    Impact and Result

    • Our program helps you organize your services in a way that is relevant to the users, and practical and manageable for IT.
    • Our approach to defining and categorizing services ensures your service catalog remains a living document. You may add or revise your service records with ease.
    • Our program creates a bridge between IT and the business. Begin transforming IT’s perception within the organization by communicating the benefits of the service catalog.

    Design and Build a User-Facing Service Catalog Research & Tools

    Start here – read the Executive Brief

    Read our concise executive brief to understand why building a Service Catalog is a good idea for your business, and how following our approach will help you accomplish this difficult task.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Launch the project

    The Launch the Project phase will walk through completing Info-Tech's project charter template. This phase will help build a balanced project team, create a change message and communication plan, and achieve buy-in from key stakeholders.

    • Design & Build a User-Facing Service Catalog – Phase 1: Launch the Project
    • Service Catalog Project Charter

    2. Identify and define enterprise services

    The Identify and Define Enterprise Services phase will help to target enterprise services offered by the IT team. They are offered to everyone in the organization, and are grouped together in logical categories for users to access them easily.

    • Design & Build a User-Facing Service Catalog – Phase 2: Identify and Define Enterprise Services
    • Sample Enterprise Services

    3. Identify and define Line of Business (LOB) services

    After completing this phase, all services IT offers to each LOB or functional group should have been identified. Each group should receive different services and display only these services in the catalog.

    • Design & Build a User-Facing Service Catalog – Phase 3: Identify and Define Line of Business Services
    • Sample LOB Services – Industry Specific
    • Sample LOB Services – Functional Group

    4. Complete the Services Definition Chart

    Completing the Services Definition Chart will help the business pick which information to include in the catalog. This phase also prepares the catalog to be extended into a technical service catalog through the inclusion of IT-facing fields.

    • Design & Build a User-Facing Service Catalog – Phase 4: Complete Service Definitions
    • Services Definition Chart
    [infographic]

    Workshop: Design and Build a User-Facing Service Catalog

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Launch the Project

    The Purpose

    The purpose of this module is to help engage IT with business decision making.

    Key Benefits Achieved

    This module will help build a foundation for the project to begin. The buy-in from key stakeholders is key to having them take onus on the project’s completion.

    Activities

    1.1 Assemble the project team.

    1.2 Develop a communication plan.

    1.3 Establish metrics for success.

    1.4 Complete the project charter.

    Outputs

    A list of project members, stakeholders, and a project leader.

    A change message, communication strategy, and defined benefits for each user group.

    Metrics used to monitor the usefulness of the catalog, both from a performance and monetary perspective.

    A completed project charter to engage users in the initiative.

    2 Identify and Define Enterprise Services

    The Purpose

    The purpose of this module is to review services which are offered across the entire organization.

    Key Benefits Achieved

    A complete list of enterprise services defined from the user’s perspective to help them understand what is available to them.

    Activities

    2.1 Identify enterprise services used by almost everyone across the organization.

    2.2 Categorize services into logical groups.

    2.3 Define the services from the user’s perspective.

    Outputs

    A complete understanding of enterprise services for both IT service providers and business users.

    Logical groups for organizing the services in the catalog.

    Completed definitions in business language, preferably reviewed by business users.

    3 Identify and Define Line of Business (LOB) Services

    The Purpose

    The purpose of this module is to define the remaining LOB services for business users, and separate them into functional groups.

    Key Benefits Achieved

    Business users are not cluttered with LOB definitions that do not pertain to their business activities.

    Business users are provided with only relevant IT information.

    Activities

    3.1 Identify the LOBs.

    3.2 Determine which one of two methodologies is more suitable.

    3.3 Identify LOB services using appropriate methodology.

    3.4 Define services from a user perspective.

    Outputs

    A structured view of the different functional groups within the business.

    An easy to follow process for identifying all services for each LOB.

    A list of every service for each LOB.

    Completed definitions in business language, preferably reviewed by business users.

    4 Complete the Full Service Definitions

    The Purpose

    The purpose of this module is to guide the client to completing their service record definitions completely.

    Key Benefits Achieved

    This module will finalize the deliverable for the client by defining every user-facing service in novice terms.

    Activities

    4.1 Understand the components to each service definition (information fields).

    4.2 Pick which information to include in each definition.

    4.3 Complete the service definitions.

    Outputs

    A selection of information fields to be included in the service catalog.

    A selection of information fields to be included in the service catalog.

    A completed service record design, ready to be implemented with the right tool.

    Further reading

    Design and Build a User-Facing Service Catalog

    Improve user satisfaction with IT with a convenient menu-like catalog.

    Our understanding of the problem

    This Research Is Designed For:

    • CIOs
    • Directors and senior managers within IT and the business

    This Research Will Help You:

    • Articulate all of the services IT provides to the business in a language the business users understand.
    • Improve IT and business alignment through a common understanding of service features and IT support.

    This Research Will Help Them

    • Standardize and communicate how users request access to services.
    • Standardize and communicate how users obtain support for services.
    • Clearly understand IT’s role in providing each service.

    What is a service catalog?

    The user-facing service catalog is the go-to place for IT service-related information.

    The catalog defines, documents, and organizes the services that IT delivers to the organization. The catalog also describes the features of the services and how the services are intended to be used.

    The user-facing service catalog creates benefits for both the business and IT.

    For business users, the service catalog:

    1. Documents how to request access to the service, hours of availability, delivery timeframes, and customer responsibilities.
    2. Specifies how to obtain support for the services, support hours, and documentation.

    For IT, the service catalog:

    1. Identifies who owns the services and who is authorized to use the services.
    2. Specifies IT support requirements for the services, including support hours and documentation.

    What is the difference between a user-facing service catalog and a technical service catalog?

    This blueprint is about creating a user-facing service catalog written and organized in a way that focuses on the services from the business’ view.

    User facing

    User-friendly, intuitive, and simple overview of the services that IT provides to the business.

    The items you would see on the menu at a restaurant are an example of User Facing. The content is relatable and easy to understand.

    Technical

    Series of technical workflows, supporting services, and the technical components that are required to deliver a service.

    The recipe book with cooking instructions is an example of Technical Facing. This catalog is intended for the IT teams and is “behind the scene.”

    What is a service and what does it mean to be service oriented?

    The sum of the people, processes, and technologies required to enable users to achieve a business outcome is a Service.

    A service is used directly by the end users and is perceived as a coherent whole.

    Business Users →Service = Application & Systems + People & Processes

    Service Orientation is…

    • A focus on business requirements and business value, rather than IT driven motives.
    • Services are designed to enable required business activities.
    • Services are defined from the business perspective using business language.

    In other words, put on your user hat and leave behind the technical jargons!

    A lack of a published user-facing service catalog could be the source of many pains throughout your organization

    IT Pains

    • IT doesn’t understand all the services they provide.
    • Business users would go outside of IT for solutions, proliferating shadow IT.
    • Business users have a negative yet unrealistic perception of what IT is capable of.
    • IT has no way of managing expectations for their users, which tend to inflate.
    • There is often no defined agreement on services; the business assumes everything is available.

    Business Pains

    • Business users don’t know what services are available to them.
    • It is difficult to obtain useful information regarding a service because IT always talks in technical language.
    • Without a standard process in place, business users don’t know how to request access to a service with multiple sources of information available.
    • Receiving IT support is a painful, long process and IT doesn’t understand what type of support the business requires.

    An overwhelming majority of IT organizations still need to improve how they demonstrate their value to the business

    This image contains a pie chart with a slice representing 23% of the circle This image contains a pie chart with a slice representing 47% of the circle This image contains a pie chart with a slice representing 92% of the circle

    23% of IT is still viewed as a cost center.

    47% of business executives believe that business goals are going unsupported by IT.

    92% of IT leaders see the need to prove the business value of IT’s contribution.

    How a Service Catalog can help:

    Use the catalog to demonstrate how IT is an integral part of the organization and IT services are essential to achieve business objectives.

    Source: IT Communication in Crisis Report

    Transform the perception of IT by articulating all the services that are provided through the service catalog in a user-friendly language.

    Source: Info-Tech Benchmarking and Diagnostic Programs

    Increase IT-business communication and collaboration through the service catalog initiative. Move from technology focused to service-oriented.

    Source: IT Communication in Crisis Report

    Project Steps

    Phase 1 – Project Launch

    1.2 Project Team

    The team must be balanced between representatives from the business and IT.

    1.2 Communication Plan

    Communication plan to facilitate input from both sides and gain adoption.

    1.3 Identify Metrics

    Metrics should reflect the catalog benefits. Look to reduced number of service desk inquiries.

    1.4 Project Charter

    Project charter helps walk you through project preparation.

    This blueprint separates enterprise service from line of business service.

    This image contains a comparison between Enterprise IT Service and Line of Business Service, which will be discussed in further detail later in this blueprint.

    Project steps

    Phase 2 – Identify and Define Enterprise Services

    2.1 Identify the services that are used across the entire organization.

    2.2 Users must be able to identify with the service categories.

    2.3 Create basic definitions for enterprise services.

    Phase 3 – Identify and Define Line of Business Services

    3.1 Identify the different lines of business (LOBs) in the organization.

    3.2 Understand the differences between our two methodologies for identifying LOB services.

    3.3 Use methodology 1 if you have thorough knowledge of the business.

    3.4 Use methodology 2 if you only have an IT view of the LOB.

    Phase 4 – Complete Service Definitions

    4.1 Understand the different components to each service definition, or the fields in the service record.

    4.2 Identify which information to include for each service definition.

    4.3 Define each enterprise service according to the information and field properties.

    4.3 Define each LOB service according to the information and field properties.

    Define your service catalog in bundles to achieve better catalog design in the long run

    Trying to implement too many services at once can be overwhelming for both IT and the users. You don’t have to define and implement all of your services in one release of the catalog.

    Info-Tech recommends implementing services themselves in batches, starting with enterprise, and then grouping LOB services into separate releases. Why? It benefits both IT and business users:

    • It enables a better learning experience for IT – get to test the first release before going full-scale. In other words, IT gets a better understanding of all components of their deliverable before full adoption.
    • It is easier to meet customer agreements on what is to be delivered early, and easier to be able to meet those deadlines.
    This image depicts how you can use bundles to simplify the process of catalog design using bundles. The cycle includes the steps: Identify Services; Select a Service Bundle; Review Record Design; followed by a cycle of: Pick a service; Service X; Service Data Collection; Create Service Record, followed by Publish the bundle; Communicate the bundle; Rinse and Repeat.

    After implementing a service catalog, your IT will be able to:

    Use the service catalog to communicate all the services that IT provides to the business.

    Improve IT’s visibility within the organization by creating a single source of information for all the value creating services IT has to offer. The service catalog helps the business understand the value IT brings to each service, each line of business, and the overall organization.

    Concentrate more on high-value IT services.

    The service catalog contains information which empowers business users to access IT services and information without the help of IT support staff. The reduction in routine inquiries decreases workload and increases morale within the IT support team, and allows IT to concentrate on providing higher value services.

    Reduce shadow IT and gain control of services.

    Service catalog brings more control to your IT environment by reducing shadow IT activities. The service catalog communicates business requests responsively in a language the business users understand, thus eliminating the need for users to seek outside help.

    After implementing a service catalog, your business will be able to:

    Access IT services with ease.

    The language of IT is often confusing for the business and the users don’t know what to do when they have a concern. With a user-facing service catalog, business users can access information through a single source of information, and better understand how to request access or receive support for a service through clear, consistent, and business-relevant language.

    Empower users to self-serve.

    The service catalog enables users to “self-serve” IT services. Instead of calling the service desk every time an issue occurs, the users can rely on the service catalog for information. This simplified process not only reduces routine service requests, but also provides information in a faster, more efficient manner that increases productivity for both IT and the business.

    Gain transparency on the IT services provided.

    With every service clearly defined, business users can better understand the current support level, communicate their expectation for IT accountability, and help IT align services with critical business strategies.

    Leverage the different Info-Tech deliverable tools to help you along the way

    1. Project Charter

    A project charter template with a few samples completed. The project charter helps you govern the project progress and responsibilities.

    2. Enterprise Service Definitions

    A full list of enterprise definitions with features and descriptions pre-populated. These are meant to get you on your feet defining your own enterprise services, or editing the ones already there.

    3. Basic Line of Business Service Definitions

    Similar to the enterprise services deliverable, but with two separate deliverables focusing on different perspectives – functional groups services (e.g. HR and finance) and industry-specific services (e.g. education and government).

    Service Definitions & Service Record Design

    Get a taste of a completed service catalog with full service definitions and service record design. This is the final product of the service catalog design once all the steps and activities have been completed.

    The service catalog can be the foundation of your future IT service management endeavors

    After establishing a catalog of all IT services, the following projects are often pursued for other objectives. Service catalog is a precursor for all three.

    1. Technical Service Catalog

    Need an IT-friendly breakdown of each service?
    Keep better record of what technical components are required to deliver a service. The technical service catalog is the IT version of a user-facing catalog.

    2. Service-Based Costing

    Want to know how much each IT service is costing you?
    Get a better grip on the true cost of IT. Using service-based costing can help justify IT expenses and increase budgetary allotment.

    3. Chargeback

    Want to hold each business unit accountable for the IT services they use?
    Some business units abuse their IT services because they are thought to be free. Keep them accountable and charge them for what they use.

    The service catalog need not be expensive – organizations of all sizes (small, medium, large) can benefit from a service catalog

    No matter what size organization you may be, every organization can create a service catalog. Small businesses can benefit from the catalog the same way a large organization can. We have an easy step-by-step methodology to help introduce a catalog to your business.

    It is common that users do not know where to go to obtain services from IT… We always end up with a serious time-crunch at the beginning of a new school year. With automated on- and off-boarding services, this could change for the better. – Dean Obermeyer, Technology Coordinator, Los Alamos Public Schools

    CIO Call to Action

    As the CIO and the project sponsor, you need to spearhead the development of the service catalog and communicate support to drive engagement and adoption.

      Start

    1. Select an experienced project leader
    2. Identify stakeholders and select project team members with the project leader

      3. Throughout the project

    3. Attend or lead the project kick-off meeting
    4. Create checkpoints to regularly touch base with the project team

      5. Service catalog launch

    5. Communicate the change message from beginning to implementation

    Identify a project leader who will drive measurable results with this initiative

    The project leader acts on behalf of the CIO and must be a senior level staff member who has extensive knowledge of the organization and experiences marshalling resources.

    Influential & Impactful

    Developing a service catalog requires dedication from many groups within IT and outside of IT.
    The project leader must hold a visible, senior position and can marshal all the necessary resources to ensure the success of the project. Ability to exert impact and influence around both IT and the business is a must.

    Relationship with the Business

    The user-facing service catalog cannot be successful if business input is not received.
    The project leader must leverage his/her existing relationship with the business to test out the service definitions and the service record design.

    Results Driven

    Creating a service catalog is not an easy job and the project leader must continuously engage the team members to drive results and efficiency.
    The highly visible nature of the service catalog means the project leader must produce a high-quality outcome that satisfies the business users.

    Info-Tech’s methodology helps organization to standardize how to define services

    CASE STUDY A
    Industry Municipal Government
    Source Onsite engagement

    Municipal Government
    The IT department of a large municipal government in the United States provides services to a large number of customers in various government agencies.
    Service Catalog Initiative
    The municipal government allocated a significant amount of resources to answer routine inquiries that could have been avoided through user self-service. The government also found that they do not organize all the services IT provides, and they could not document and publish them to the customer. The government has already begun the service catalog initiative, but was struggling with how to identify services. Progress was slow because people were arguing amongst themselves – the project team became demoralized and the initiative was on the brink of failure.
    Results
    With Info-Tech’s onsite support, the government was able to follow a standardized methodology to identify and define services from the user perspective. The government was able to successfully communicate the initiative to the business before the full adoption of the service catalog.

    We’re in demos with vendors right now to purchase an ITSM tool, and when the first vendor looked at our finished catalog, they were completely impressed.- Client Feedback

    [We feel] very confident. The group as a whole is pumped up and empowered – they're ready to pounce on it. We plan to stick to the schedule for the next three months, and then review progress/priorities. - Client Feedback

    CASE STUDY B
    Industry Healthcare
    Source Onsite engagement

    Healthcare Provider
    The organization is a healthcare provider in Canada. It treats patients with medical emergencies, standard operations, and manages a faculty of staff ranging from nurses and clerks, to senior doctors. This organization is run across several hospitals, various local clinics, and research centers.
    Service Catalog Initiative
    Because the organization is publicly funded, it is subject to regular audit requirements – one of which is to have a service catalog in place.
    The organization also would like to charge back its clients for IT-related costs. In order to do this, the organization must be able to trace it back to each service. Therefore, the first step would be to create a user-facing service catalog, followed by the technical service catalog, which then allows the organization to do service-based costing and chargeback.
    Results
    By leveraging Info-Tech’s expertise on the subject, the healthcare provider was able to fast-track its service catalog development and establish the groundwork for chargeback abilities.

    "There is always some reticence going in, but none of that was apparent coming out. The group dynamic was very good. [Info-Tech] was able to get that response, and no one around the table was silent.
    The [expectation] of the participants was that there was a purpose in doing the workshop. Everybody knew it was for multiple reasons, and everyone had their own accountability/stakes in the development of it. Highly engaged."     - Client Feedback

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Launch the Project

    Identify Enterprise Services

    Identify Line of Business Services

    Complete Service Definitions

    Best-Practice Toolkit

    1.1 Assemble the project team.

    1.2 Develop a communication plan.

    1.3 Establish metrics for success.

    1.4 Complete the project charter.

    2.1 Identify services available organization-wide.

    2.2 Categorize services into logical groups.

    2.3 Define the services.

    3.1 Identify different LOBs.

    3.2 Pick one of two methodologies.

    3.3 Use method to identify LOB services.

    4.1 Learn components to each service definition.

    4.2 Pick which information to include in each definition.

    4.3 Define each service accordingly.

    Guided Implementations Identify the project leader with the appropriate skills.

    Assemble a well-rounded project team.

    Develop a mission statement and change messages.

    		Create a comprehensive list of enterprise services that are used across the organization.

    Create a categorization scheme that is based on the needs of the business users.

    Walk through the two Info-Tech methodologies and understand which one is applicable.

    Define LOB services using the appropriate methodology.

    Decide what should be included and what should be kept internal for the service record design.

    Complete the full service definitions.

    Onsite Workshop Phase 1 Results:

    Clear understanding of project objectives and support obtained from the business.

    		Phase 2 Results:

    Enterprise services defined and categorized.

    		Phase 3 Results:

    LOB services defined based on user perspective.

    		Phase 4 Results:

    Service record designed according to how IT wishes to communicate to the business.

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4
    Activities

    Launch the Project

    Identify Enterprise Services

    Identify Line of Business Services

    Complete Service Definitions

    1.1 Assemble the project team.

    1.2 Develop a communication plan.

    1.3 Establish metrics for success.

    1.4 Complete the project charter.

    2.1 Identify services available organization-wide.

    2.2 Categorize services into logical groups.

    2.3 Define the services.

    3.1 Identify different LOBs.

    3.2 Pick one of two methodologies.

    3.3 Use method to identify LOB services.

    4.1 Learn components to each service definition.

    4.2 Pick which information to include in each definition.

    4.3 Define each service accordingly.

    Deliverables
    • Service Catalog Project Charter
    • Enterprise Service Definitions
    • LOB Service Definitions – Functional groups
    • LOB Service Definitions – Industry specific
    • Service Definitions Chart

    PHASE 1

    Launch the Project

    Design & Build a User-Facing Service Catalog

    Step 1 – Create a project charter to launch the initiative

    1. Complete the Project Charter
    2. Create Enterprise Services Definitions
    3. Create Line of Business Services Definitions
    4. Complete Service Definitions

    This step will walk you through the following activities:

    • Develop a mission statement to obtain buy-ins from both IT and business stakeholders.
    • Assemble a well-rounded project team to increase the success of the project.
    • Identify and obtain support from stakeholders.
    • Create an impactful change message to the organization to promote the service catalog.
    • Determine project metrics to measure the effectiveness and value of the initiative.

    Step Insights

    • The project leader must have a strong relationship with the business, the ability to garner user input, and the authority to lead the team in creating a user-facing catalog that is accessible and understandable to the user.
    • Having two separate change messages prepared for IT and the business is a must. The business change message advocates how the catalog will make IT more accessible to users, and the IT message centers around how the catalog will make IT’s life easier through a standardized request process.

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Launch the project
    Proposed Time to Completion: 2 weeks
    Step 1.2: Create change messages

    Step 1.2: Create change messages

    Start with an analyst kick off call:

    • Identify the key objectives of creating a user-facing service catalog.
    • Identify the necessary members of the project team.

    Review findings with analyst:

    • Prioritize project stakeholders according to their involvement and influence.
    • Create a change message for IT and the business articulating the benefits.

    Then complete these activities…

  • Assemble a team with representatives from all areas of IT.
  • Identify the key project stakeholders.
  • Create a project mission statement.
    		•

    Then complete these activities…

  • Create a separate change message for IT and the business.
  • Determine communication methods and channels.
    		•

    With these tools & templates: Service

    Catalog Project Charter

    With these tools & templates:

    Service Catalog Project Charter

    Use Info-Tech’s Service Catalog Project Charter to begin your initiative

    1.1 Project Charter

    The following section of slides outline how to effectively use Info-Tech’s sample project charter.

    The Project Charter is used to govern the initiative throughout the project. IT should provide the foundation for project communication and monitoring.

    It has been pre-populated with information appropriate for Service Catalog projects. Please review this sample text and change, add, or delete information as required.

    Building the charter as a group will help you to clarify your key messages and help secure buy-in from critical stakeholders upfront.

    You may feel like a full charter isn’t necessary, and depending on your organizational size, it might not be. However, the exercise of building the charter is important none-the-less. No matter your current climate, some elements of communicating the value and plans for implementing the catalog will be necessary.

    The Charter includes the following sections:

    • Mission Statement
    • Project team members
    • Project stakeholders
    • Change message
    • Communication and organizational plan
    • Metrics

    Use Info-Tech’s Service Catalog Project Charter.

    Create a mission statement to articulate the purpose of this project

    The mission statement must be compelling because embarking on creating a service catalog is no easy task. It requires significant commitment from different people in different areas of the business.

    Good mission statements are directive, easy to understand, narrow in focus, and favor substance over vagueness.

    While building your mission statement, think about what it is intended to do, i.e. keep the project team engaged and engage others to adopt the service catalog. Included in the project charter’s mission statement section is a brief description of the goals and objectives of the service catalog.

    Ask yourself the following questions:

    1. What frustrations does your business face regarding IT services?
    2. f our company continues growing at this rate, will IT be able to manage service levels?
    3. How has IT benefited from consolidating IT services into a user perspective?

    Project Charter

    Info-Tech’s project charter contains two sample mission statements, along with additional tips to help you create yours.

    Tackle the project with a properly assembled team to increase the speed and quality in which the catalog will be created

    Construct a well-balanced project team to increase your chances of success.

    Project Leader

    Project leader will be the main catalyst for the creation of the catalog. This person is responsible for driving the whole initiative.

    Project Participants

    IT project participants’ input and business input will be pivotal to the creation of the catalog.

    Project Stakeholders

    The project stakeholders are the senior executives who have a vested interest in the service catalog. IT must produce periodic and targeted communication to these stakeholders.

    Increase your chances of success by creating a dynamic group of project participants

    Your project team will be a major success factor for your service catalog. Involvement from IT management and the business is a must.

    IT Team Member

    IT Service Desk Manager

    • The Service Desk team will be an integral part of the service catalog creation. Because of their client-facing work, service desk technicians can provide real feedback about how users view and request services.

    Senior Manager/Director of Application

    • The Application representative provides input on how applications are used by the business and supported by IT.

    Senior Manager/Director of Infrastructure

    • The infrastructure representative provides input on services regarding data storage, device management, security, etc.

    Business Team Member

    Business IT Liaison

    • This role is responsible for bridging the communication between IT and the business. This role could be fulfilled by the business relationship manager, service delivery manager, or business analyst. It doesn’t have to be a dedicated role; it could be part of an existing role.

    Business representatives from different LOBs

    • Business users need to validate the service catalog design and ensure the service definitions are user facing and relevant.

    Project Charter

    Input your project team, their roles, and relevant contact information into your project charter, Section 2.

    Identify the senior managers who are the stakeholders for the service catalog

    Obtain explicit buy-in from both IT and business stakeholders.

    The stakeholders could be your biggest champions for the service catalog initiative, or they could pull you back significantly. Engage the stakeholders at the start of the project and communicate the benefits of the service catalog to them to gain their approval.

    Stakeholders

    Benefits

    CIO
    • Improved visibility and perception for IT
    • Ability to better manage business expectation

    Manager of Service Desk

    • Reduced number of routine inquires
    • Respond to business needs faster and uniformly

    Senior Manager/Director of Application & Infrastructure

    • Streamlined and standardized request/support process
    • More effective communication with the business

    Senior Business Executives from Major LOBs

    • Self-service increases user productivity for business users
    • Better quality of services provided by IT

    Project Charter

    Document a list of stakeholders, their involvement in the process (why they are stakeholders), and their contact information in Section 3.

    Articulate the creation of the service catalog to the organization

    Spread the word of service catalog implementation. Bring attention to your change message through effective mediums and organizational changes.

    Key aspects of a communication plan

    The methods of communication (e.g. newsletters, email broadcast, news of the day, automated messages) notify users of implementation.

    In addition, it is important to know who will deliver the message (delivery strategy). Talking to the business leaders is very important, and you need IT executives to deliver the message. Work hard on obtaining their support as they are the ones communicating to their staff and could be your project champions.

    Recommended organizational changes

    The communication plan should consist of changes that will affect the way users interact with the catalog. Users should know of any meetings pertinent to the maintenance and improvement of the catalog, and ways to access the catalog (e.g. link on desktop/start menu).

    This image depicts the cycle of communicating change. the items in the cycle include: What is the change?; Why are we doing it?; How are we going to go about it?; What are we trying to achieve?; How often will we be updated?

    The Qualities of Leadership: Leading Change

    Project Charter

    Your communication plan should serve as a rough guide. Communication happens in several unpredictable happenstances, but the overall message should be contained within.

    Ensure you get the whole company on board for the service catalog with a well practiced change message

    The success of your catalog implementation hinges on the business’ readiness.

    One of the top challenges for organizations that are implementing a service catalog is the acceptance and adoption of the change. Effective planning for implementation and communication is pivotal. Ensure you create tailored plans for communication and understand how the change will impact staff.

    1. Draft your change message

      2. “Better Service, Better Value.” It is important to have two change messages prepared: one for the IT department and one for business users.
      Outline a few of the key benefits each user group will gain from adopting the service catalog (e.g. Faster, ease of use, convenient, consistent…)

    2. Address feedback

      3. Anticipate some resistances of service catalog adoption and prepare responses. These may be the other benefits which were not included in the change message (e.g. IT may be reluctant to think in business language.)

    3. Conduct training sessions

      4. Host lunch & learns to demonstrate the value of the service catalog to both business and IT user groups.
      These training sessions also serve as a great way to gather feedback from users regarding style and usability.

    Project Charter

    Pick your communication medium, and then identify your target audience. You should have a change message for each: the IT department and the business users. Pay careful consideration to wording and phrasing with regard for each.

    Track metrics throughout the project to keep stakeholders informed

    In order to measure the success of your service catalog, you must establish baseline metrics to determine how much value the catalog is creating for your business.

    1. Number of service requests via the service catalog

      2. The number of service catalog requests should be carefully monitored so that it does not fluctuate too greatly. In general, the number of requests via the service catalog should increase, which indicates a higher level of self-serve.

    2. Number of inquiry calls to the service desk

      3. The number of inquiry calls should decrease because customers are able to self-serve routine IT inquiries that would otherwise have gone through the service desk.

    3. Customer satisfaction – specific questions

      4. The organization could adopt the following sample survey questions:
      From 0-5: How satisfied are you with the functionality of the service catalog? How often do you turn to the service catalog first to solve IT problems?

    4. Number of non-standard requests

      5. The number of non-standard requests should decrease because a majority of services should eventually be covered in the service catalog. Users should be able to solve nearly any IT related problem through navigating the service catalog.

    Metric Description Current Metric Future Goal
    Number of service requests via the Service Catalog
    Number of inquiry calls to the service desk
    Customer Satisfaction – specific question
    Number of non-standard requests

    Use metrics to monitor the monetary improvements the service catalog creates for the business

    When measuring against your baseline, you should expect to see the following two monetary improvements:

    1. Improved service desk efficiency

      2. (# of routine inquiry calls reduced) x (average time for a call) x (average service desk wage)

      Routine inquiries often take up a significant portion of the service desk’s effort, and the majority of them can be answered via the service catalog, thus reducing the amount of time required for a service desk employee to engage in routine solutions. The reduction in routine inquiries allows IT to allocate resources to high-value services and provide higher quality of support.

    Example

    Originally, the service desk of an organization answers 850 inquiries per month, and around 540 of them are routine inquiries requesting information on when a service is available, who they can contact if they want to receive a service, and what they need to do if they want access to a service, etc.

    IT successfully communicated the introduction of the service catalog to the business and 3 months after the service catalog was implemented, the number of routine inquiries dropped to 60 per month. Given that the average time for IT to answer the inquiry is 10 minutes (0.167 hour) and the hourly wage of a service desk technician is $25, the monthly monetary cost saving of the service catalog is:

    (540 – 60) x 0.167 x 25 = $2004.00

    • Reduced expense by eliminating non-standard requests

    (Average additional cost of non-standard request) x (Reduction of non-standard request)
    +
    (Extra time IT spends on non-standard request fulfilment) x (Average wage)

    Non-standard requests require a lot of time, and often a lot of money. IT frequently incurs additional cost because the business is not aware of how to properly request service or support. Not only can the service catalog standardize and streamline the service request process, it can also help IT define its job boundary and say no to the business if needed.

    Example

    The IT department of an organization often finds itself dealing with last-minute, frustrating service requests from the business. For example, although equipment requests should be placed a week in advance, the business often requests equipment to be delivered the next day, leaving IT to pay for additional expedited shipping costs and/or working fanatically to allocate the equipment. Typically, these requests happen 4 times a month, with an additional cost of $200.00. IT staff work an extra 6 hours per each non-standard request at an hourly wage of $30.00.

    With the service catalog, the users are now aware of the rules that are in place and can submit their request with more ease. IT can also refer the users to the service catalog when a non-standard request occurs, which helps IT to charge the cost to the department or not meet the terms of the business.

    The monthly cost saving in this case is:

    $200.00 x 4 + 6 hours x 30 = $980.00

    Create your project charter for the service catalog initiative to get key stakeholders to buy in

    1.1 2-3 hours

    The project charter is an important document to govern your project process. Support from the project sponsors is important and must be documented. Complete the following steps working with Info-Tech’s sample Project Charter.

    1. The project leader and the core project team must identify key reasons for creating a service catalog. Document the project objectives and benefits in the mission statement section.
    2. Identify and document your project team. The team must include representatives from the Infrastructure, Applications, Service desk, and a Business-IT Liaison.
    3. Identify and document your project stakeholders. The stakeholders are those who have interest in seeing the service catalog completed. Stakeholders for IT are the CIO and management of different IT practices. Stakeholders for the business are executives of different LOBs.
    4. Identify your target audience and choose the communication medium most effective to reach them. Draft a communication message hitting all key elements.
      Info-Tech’s project charter contains sample change messages for the business and IT.
    5. Develop a strategy as to how the change message will be distributed, i.e. the communication and organizational change plan.
    6. Use the metrics identified as a base to measure your service catalog’s implementation. If you have identified any other objectives, add new metrics to monitor your progress from the baseline to reaching those objectives.
    7. Sign and date the project charter to officiate commitment to completing the project and reaching your objectives. Have the signed and dated charter available to members of the project team.

    INPUT

    • A collaborative discussion between team members

    OUTPUT

    • Thorough briefing for project launch
    • A committed team

    Materials

    • Communication message and plan
    • Metric tracking

    Participants

    • Project leader
    • Core project team

    Obtain buy-in from business users at the beginning of the service catalog initiative

    CASE STUDY A
    Industry Government
    Source Onsite engagement

    Challenge

    The nature of government IT is quite complex: there are several different agencies located in a number of different areas. It is extremely important to communicate the idea of the service catalog to all the users, no matter the agency or location.

    The IT department had yet to let business leaders of the various agencies know about the initiative and garner their support for the project. This has proven to be prohibitive for gaining adoption from all users.

    Solution

    The IT leaders met and identified all the opportunities to communicate the service catalog to the business leaders and end users.

    To meet with the business leaders, IT leaders hosted a service level meeting with the business directors and managers. They adopted a steering committee for the continuation of the project.

    To communicate with business users, IT leaders published announcements on the intranet website before releasing the catalog there as well.

    Results

    Because IT communicated the initiative, support from business stakeholders was obtained early and business leaders were on board shortly after.

    IT also managed to convince key business stakeholders to become project champions, and leveraged their network to communicate the initiative to their employees.

    With this level of adoption, it meant that it was easier for IT to garner business participation in the project and to obtain feedback throughout.

    Info-Tech assists project leader to garner support from the project team

    CASE STUDY A
    Industry Government
    Source Onsite engagement

    Challenge

    The project received buy-in from the CIO and director of infrastructure. Together they assembled a team and project leader.

    The two struggled to get buy-in from the rest of the team, however. They didn’t understand the catalog or its benefits and objectives. They were reluctant to change their old ways. They didn’t know how much work was required from them to accomplish the project.

    Solution

    With the Info-Tech analyst on site, the client was able to discuss the benefits within their team as well as the project team responsibilities.

    The Info-Tech analyst convinced the group to move towards focusing on a business- and service-oriented mindset.

    The workshop discussion was intended to get the entire team on board and engaged with meeting project objectives.

    Results

    The project team had experienced full buy-in after the workshop. The CIO and director relived their struggles of getting project members on-board through proper communication and engagement.

    Engaging the members of the project team with the discussion was key to having them take ownership in accomplishing the project.

    The business users understood that the service catalog was to benefit their long-term IT service development.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.
    The following are sample activities that will be conducted by Info-Tech analysts with your team:
    1.1 this image contains a screenshot from section 1.1 of this blueprint. Begin your project with a mission statement
    A strong mission statement that outlines the benefits of the project is needed to communicate the purpose of the project. The onsite Info-Tech analysts will help you customize the message and establish the foundation of the project charter.
    1.2 this image contains a screenshot from section 1.2 of this blueprint.

    Identify project team members

    Our onsite analysts will help you identify high-value team members to contribute to this project.

    1.3 This image contains a screenshot from section 1.3 of this blueprint.

    Identify important business and IT stakeholders

    Buy-in from senior IT and business management is a must. Info-Tech will help you identify the stakeholders and determine their level of influence and impact.

    1.4 This image contains a screenshot from section 1.4 of this blueprint.

    Create a change message for the business and IT

    It is important to communicate changes early and the message must be tailored for each target audience. Our analysts will help you create an effective message by articulating the benefits of the service catalog to the business and to IT.

    1.5 This image contains a screenshot from section 1.5 of this blueprint.

    Determine service project metrics

    To demonstrate the value of the service catalog, IT must come up with tangible metrics. Info-Tech’s analysts will provide some sample metrics as well as facilitate a discussion around which metrics should be tracked and monitored.

    PHASE 2

    Identify and Define Enterprise Services

    Design & Build a User-Facing Service Catalog

    Step 2 – Create Enterprise Services Definitions

    1. Complete the Project Charter
    2. Create Enterprise Services Definitions
    3. Create Line of Business Services Definitions
    4. Complete Service Definitions

    This step will walk you through the following activities:

    • Identify and define enterprise services that are commonly used across the organization.
    • Create service descriptions and features to accurately sum up the functionality of each service.
    • Create service categories and assign each service to a category.

    Step Insights

    • When defining services, be sure to carefully distinguish between what is a feature and what is a service. Often, separate services are defined in situations when they would be better off as features of existing services, and vice versa.
    • When coming up with enterprise services categories, ensure the categories group the services in a way that is intuitive. The users should be able to find a service easily based on the names of the categories.

    Phase 2 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Define Enterprise Services
    Proposed Time to Completion: 4 weeks

    Step 2.1: Identify enterprise services

    Step 2.2: Create service categories

    Start with an analyst kick off call:

    • Identify enterprise services that are commonly used.
    • Ensure the list is comprehensive and capture common IT needs.
    • Create service descriptions and features.

    Review findings with analyst:

    • Review full list of identified enterprise services.
    • Identify service categories that are intuitive to the users.

    Then complete these activities…

    • Use Info-Tech’s sample enterprise service definitions as a guide, and change/add/delete the service definitions to customize them to your organization.

    Then complete these activities…

    • Group identified services into categories that are intuitive to the users.

    With these tools & templates: Service

    Sample Enterprise Services

    With these tools & templates:

    Sample Enterprise Services

    Identify enterprise services in the organization apart from the services available to lines of business

    Separating enterprise services from line of business services helps keep things simple to organize the service catalog. -

    Documentation of all business-facing IT services is an intimidating task, and a lack of parameters around this process often leads to longer project times and unsatisfactory outcomes.

    To streamline this process, separating enterprise services from line of business services allows IT to effectively and efficiently organize these services. This method increases the visibility of the service catalog through user-oriented communication plans.

    Enterprise Services are common services that are used across the organization.

    1. Common Services for all users within the organization (e.g. Email, Video Conferencing, Remote Access, Guest Wireless)
    2. Service Requests organized into Service Offerings (e.g. Hardware Provisioning, Software Deployment, Hardware Repair, Equipment Loans)
    3. Consulting Services (e.g. Project Management, Business Analysis, RFP Preparation, Contract Negotiation)

    All user groups access Enterprise Services

    Enterprise Services

    • Finance
    • IT
    • Sales
    • HR

    Ensure your enterprise services are defined from the user perspective and are commonly used

    If you are unsure whether a service is enterprise wide, ask yourself these two questions:

    This image contains an example of how you would use the two questions: Does the user directly use the service themselves?; and; Is the service used by the entire organization (or nearly everyone)?. The examples given are: A. Video Conferencing; B. Exchange Server; C. Email & Fax; D. Order Entry System

    Leverage Info-Tech’s Sample Enterprise Services definition

    2.1 Info-Tech’s Sample Enterprise Services definitions

    Included with this blueprint is Info-Tech’s Sample Enterprise Services definitions.

    The sample contains dozens of services common across most organizations; however, as a whole, they are not complete for every organization. They must be modified according to the business’ needs. Phase two will serve as a guide to identifying an enterprise service as well as how to fill out the necessary fields.

    This image contains a screenshot of definitions from Info-Tech's Sample Enterprises services

    Info-Tech Insight

    Keep track of which services you either modify or delete. You will have to change the same services in the final Info-Tech deliverable.

    The next slide will introduce you to the information for each service record that can be edited.

    Info-Tech’s Sample Enterprise Services definitions is designed to be easily customized

    2.1 Info-Tech’s Sample Enterprise Services definitions

    Below is an example of a service record and its necessary fields of information. This is information that can be kept, deleted, or expanded upon.

    Name the service unambiguously and from the user’s perspective.

    Brief description of how the service allows users to perform tasks.

    Describe the functionality of the service and how it helps users to achieve their business objectives.

    Cluster the services into logical groups.

    Service Name Description Features Category
    Email Email communication to connect with other employees, suppliers, and customers
    • Inbox
    • Calendar
    • Resource Scheduling (meeting rooms)
    • Access to shared mailboxes
    • Limit on mailbox size (‘x’ GB)
    • Address book/external contacts
    • Spam filtering, virus protection
    • Archiving and retrieval of older emails
    • Web/browser access to email
    • Mass email/notification (emergency, surveys, reporting)
    • Setting up a distribution list
    • Setting up Active Sync for email access on mobile devices
    		Communications

    Distinguish between a feature and a unique service

    It can be difficult to determine what is considered a service itself, and what is a feature of another service. Use these tips and examples below to help you standardize this judgement.

    Example 1

    Web Conferencing has already been defined as a service. Is Audio Conferencing its own service or a feature of Web Conferencing?

    Info-Tech Tip: Is Audio Conferencing run by the same application as the Web Conferencing? Does it use the same equipment? If not, Audio Conferencing is probably its own service.

    Example 2

    Web Conferencing has already been defined as a service. Is “Screen Sharing” its own service or a feature of Web Conferencing?

    Info-Tech Tip: It depends on how the user interacts with Screen Sharing. Do they only screen share when engaged in a Web Conference? If so, Screen Sharing is a feature and not a service itself.

    Example 3

    VoIP is a popular alternative to landline telephone nowadays, but should it be part of the telephony service or a separate service?

    Info-Tech Tip: It depends on how the VoIP phone is set up.

    If the user uses the VoIP phone the same way they would use a landline phone – because the catalog is user facing – consider the VoIP as part of the telephone service.

    If the user uses their computer application to call and receive calls, consider this a separate service on its own.

    Info-Tech Insight

    While there are some best practices for coming up with service definitions, it is not an exact science and you cannot accommodate everyone. When in doubt, think how most users would perceive the service.

    Change or delete Info-Tech’s enterprise services definitions to make them your own

    2.1 3 hours

    You need to be as comprehensive as possible and try to capture the entire breadth of services IT provides to the business.

    To achieve this, a three-step process is recommended.

    1. First, assemble your project team. It is imperative to have representatives from the service desk. Host two separate workshops, one with the business and one with IT. These workshops should take the form of focus groups and should take no more than 1-2 hours.
    2. Business Focus Group:
    • In an open-forum setting, discuss what the business needs from IT to carry out their day-to-day activities.
    • Engage user-group representatives and business relationship managers.

    IT Focus Group:

    • In a similar open-forum setting, determine what IT delivers to the business. Don’t think about it from a support perspective, but from an “ask” perspective – e.g. “Service Requests.”
    • Engage the following individuals: team leads, managers, directors.
  • Review results from the focus groups and compare with your service desk tickets – are there services users inquire about frequently that are not included? Finalize your list of enterprise services as a group.

    • INPUT

    • Modify Info-Tech’s sample services

    OUTPUT

    • A list of some of your business’ enterprise services

    Materials

    • Whiteboard/marker
    • Info-Tech sample enterprise services

    Participants

    • Key members of the project team
    • Service desk rep
    • Business rep

    Using Info-Tech’s Sample Enterprise Services, expand upon the services to add those that we did not include

    2.2 1-3 hours (depending on size and complexity of the IT department)

    Have your user hat on when documenting service features and descriptions. Try to imagine how the users interact with each service.

    1. Once you have your service name, start with the service feature. This field lists all the functionality the service provides. Think from the user’s perspective and document the IT-related activities they need to complete.
    2. Review the service feature fields with internal IT first to make sure there isn’t any information that IT doesn’t want to publish. Afterwards, review with business users to ensure the language is easy to understand and the features are relatable.
    3. Lastly, create a high-level service description that defines the nature of the service in one or two sentences.

    INPUT

    • Collaborate and discuss to expand on Info-Tech’s example

    OUTPUT

    • A complete list of your business’ enterprise services

    Materials

    • Whiteboard/marker
    • Info-Tech sample enterprise services

    Participants

    • Key members of the project team
    • Service desk rep
    • Business rep

    Follow Info-Tech’s guidelines to establish categories for the enterprise services that IT provides to the business

    Similar to the services and their features, there is no right or wrong way to categorize. The best approach is to do what makes sense for your organization and understand what your users think.

    What are Service Categories?

    Categories organize services into logical groups that the users can identify with. Services with similar functions are grouped together in a common category.

    When deciding your categories, think about:

    • What is best for the users?
    • Look at the workflows from the user perspective: how and why do they use the service?
    • Will the user connect with the category name?
    • Will they think about the services within the category?
    Enterprise Service Categories
    Accounts and Access
    Collaboration
    Communication
    Connectivity
    Consulting
    Desktop, Equipment, & Software
    Employee Services
    Files and Documents
    Help & Support
    Training

    Sample categories

    Categorize the services from the list below; how would you think to group them?

    There is no right or wrong way to categorize services; it is subjective to how they are provided by IT and how they are used by the business. Use the aforementioned categories to group the following services. Sample solutions are provided on the following slide.

    Service Name
    Telephone
    Email
    Remote access
    Internet
    BYOD (wireless access)
    Instant Messaging
    Video Conferencing
    Audio Conferencing
    Guest Wi-Fi
    Document Sharing

    Tips and tricks:

    1. Think about the technology behind the service. Is it the same application that provides the services? For example: is instant messaging run by the same application as email?
    2. Consider how the service is used by the business. Are two services always used together? If instant messaging is always used during video conferencing, then they belong in the same category.
    3. Consider the purpose of the services. Do they achieve the same outcomes? For example, document sharing is different from video conferencing, though they both support a collaborative working environment.

    This is a sample of different categorizations – use these examples to think about which would better suit your business

    Example 1 Example 2

    Desktop, Equipment, & Software Services

    Connectivity

    Mobile Devices

    Communications

    Internet

    Telephone

    BYOD (wireless access)

    Telephone

    Guest Wi-Fi

    Internet

    Email

    Remote Access

    Instant Messaging

    Video Conferencing

    Audio Conferencing

    Communications

    Collaboration

    Storage and Retrieval

    Accounts and Access

    Telephone

    Email

    Document Sharing

    Remote access

    Email

    Instant Messaging

    Connectivity

    Mobile Devices

    Video Conferencing

    		Internet

    BYOD (wireless access)

    Audio Conferencing

    Guest Wi-Fi

    Guest Wi-Fi

    Document Sharing

    Info-Tech Insight

    Services can have multiple categories only if it means the users will be better off. Try to limit this as much as possible.

    Neither of these two examples are the correct answer, and no such thing exists. The answers you came up with may well be better suited for the users in your business.

    With key members of your project team, categorize the list of enterprise services you have created

    2.3 1 hour

    Before you start, you must have a modified list of all defined enterprise services and a modified list of categories.

    1. Write down the service names on sticky notes and write down the categories either on the whiteboard or on the flipchart.
    2. Assign the service to a category one at a time. For each service, obtain consensus on how the users would view the service and which category would be the most logical choice. In some cases, discuss whether a service should be included in two categories to create better searchability for the users.
    3. If a consensus could not be reached on how to categorize a service, review the service features and category name. In some cases, you may go back and change the features or modify or create new categories if needed.

    INPUT

    • Collaborate and discuss to expand on Info-Tech’s example

    OUTPUT

    • A complete list of your business’ enterprise services

    Materials

    • Whiteboard/marker
    • Info-Tech sample enterprise services

    Participants

    • Key members of the project team
    • Service desk rep
    • Business rep

    Accounts & Access Services

    • User ID & Access
    • Remote Access
    • Business Applications Access

    Communication Services

    • Telephone
    • Email
    • Mobile devices

    Files & Documents

    • Shared Folders
    • File Storage
    • File Restoration
    • File Archiving

    Collaboration

    • Web Conferencing
    • Audio Conferencing
    • Video Conferencing
    • Chat
    • Document Sharing

    Employee Services

    • Onboarding & Off Boarding
    • Benefits Self Service
    • Time and Attendance
    • Employee Records Management

    Help & Support

    • Service Desk
    • Desk Side Support
    • After Hours Support

    Desktop, Equipment, & Software

    • Printing
    • Hardware Provisioning
    • Software Provisioning
    • Software Support
    • Device Move
    • Equipment Loaner

    Education & Training Services

    • Desktop Application Training
    • Corporate Application Training
    • Clinical Application Training
    • IT Training Consultation

    Connectivity

    • BYOD (wireless access)
    • Internet
    • Guest Wi-Fi

    IT Consulting Services

    • Project Management
    • Analysis
    • RFP Reviews
    • Solution Development
    • Business Analysis/Requirements Gathering
    • RFI/RFP Evaluation
    • Security Consulting & Assessment
    • Contract Management
    • Contract Negotiation

    IT department identifies a comprehensive list of enterprise services

    CASE STUDY A
    Industry Government
    Source Onsite engagement

    Challenge

    Because of the breadth of services IT provides across several agencies, it was challenging to identify what was considered enterprise beyond just the basic ones (email, internet, etc.)

    IT recognized that although the specific tasks of service could be different, there are many services that are offered universally across the organization and streamlining the service request and delivery process would reduce the burden on IT.

    Solution

    The client began with services that users interact with on a daily basis; this includes email, wireless, telephone, internet, printing, etc.

    Then, they focused on common service requests from the users, such as software and hardware provisioning, as well as remote access.

    Lastly, they began to think of other IT services that are provided across the organization, such as RFP/RFI support, project management analysis, employee onboarding/off-boarding, etc.

    Results

    By going through the lists and enterprise categories, the government was able to come up with a comprehensive list of all services IT provides to the business.

    Classifying services such as onboarding meant that IT could now standardize IT services for new recruits and employee termination.

    By capturing all enterprise services offered to the organization, IT centralized its management of services instead of having scattered request processes.

    Organization distinguishes features from services using Info-Tech’s tips and techniques

    CASE STUDY B
    Industry Government
    Source Onsite engagement

    Challenge

    For some services, the project team had difficulty deciding on what was a service and what was a feature. They found it hard to distinguish between a service with features or multiple services.

    For example, the client struggled to define the Wi-Fi services because they had many different user groups and different processes to obtain the service. Patients, visitors, doctors, researchers, and corporate employees all use Wi-Fi, but the service features for each user group were different.

    Solution

    The Info-Tech analyst came on-site and engaged the project team in a discussion around how the users would view the services.

    The analyst also provided tips and techniques on identifying services and their features.

    Because patients and visitors do not access Wi-Fi or receive support for the service in the same way as clinical or corporate employees, Wi-Fi was separated into two services (one for each user group).

    Results

    Using the tips and techniques that were provided during the onsite engagement, the project team was able to have a high degree of clarity on how to define the services by articulating who the authorized users are, and how to access the process.

    This allowed the group to focus on the users’ perspective and create clear, unambiguous service features so that users could clearly understand eligibility requirements for the service and how to request them.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts

    this is a picture of an Info-Tech Analyst

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.
    The following are sample activities that will be conducted by Info-Tech analysts with your team:
    2.1 This image contains a screenshot from section 2.1 of this blueprint.

    Understand what enterprise services are

    The project team must have a clear understanding of what qualifies as an enterprise service. The onsite analysts will also promote a user-oriented mindset so the catalog focuses on business needs.

    2.2 this image contains a screenshot from section 2.2 of this blueprint.

    Identify enterprise services

    The Info-Tech analysts will provide a list of ready-to-use services and will work with the project team to change, add, and delete service definitions and to customize the service features.

    2.3 this image contains a screenshot from section 2.3 of this blueprint.

    Identify categories for enterprise services

    The Info-Tech analyst will again emphasize the importance of being service-oriented rather than IT-oriented. This will allow the group to come up with categories that are intuitive to the users.

    PHASE 3

    Identify and Define Line of Business Services

    Design & Build a User-Facing Service Catalog

    Step 3 – Create Line of Business Services Definitions

    1. Complete the Project Charter
    2. Create Enterprise Services Definitions
    3. Create Line of Business Services Definitions
    4. Complete Service Definitions

    This step will walk you through the following activities:

    • Identify lines of business (LOB) within the organization as well as the user groups within the different LOBs.
    • Determine which one of Info-Tech’s two approaches is more suitable for your IT organization.
    • Define and document LOB services using the appropriate approach.
    • Categorize the LOB services based on the organization’s functional structure.

    Step Insights

    • Collaboration with the business significantly strengthens the quality of line of business service definitions. A significant amount of user input is crucial to create impactful and effective service definitions.
    • If a strong relationship with the business is not in place, IT can look at business applications and the business activities they support in order to understand how to define line of business services.

    Phase 3 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Define LOB Services

    Proposed Time to Completion: 4 weeks

    Step 3.1: Identify LOB services

    Step 3.2: Define LOB services

    Start with an analyst kick off call:

    • Identify enterprise services that are commonly used.
    • Ensure the list is comprehensive and capture common IT needs.
    • Create service descriptions and features.

    Review findings with analyst:

    • Use either the business view or the IT view methodology to identify and define LOB services.

    Then complete these activities…

    • Select one of the methodologies and either compile a list of business applications or a list of user groups/functional departments.

    Then complete these activities…

    • Validate the service definitions and features with business users.

    With these tools & templates: Service

    LOB Services – Functional Group
    LOB Services – Industry Specific

    With these tools & templates:

    LOB Services – Functional Group
    LOB Services – Industry Specific

    Communicate with your business users to get a clear picture of each line of business

    Within a business unit, there are user groups that use unique applications and IT services to perform business activities. IT must understand which group is consuming each service to document to their needs and requirements. Only then is it logical to group services into lines of business.

    Covering every LOB service is a difficult task. Info-Tech offers two approaches to identifying LOB services, though we recommend working alongside business user groups to have input on how each service is used directly from the users. Doing so makes the job of completing the service catalog easier, and the product more detailed and user friendly.

    Some helpful questions to keep in mind when characterizing user groups:

    • Where do they fall on the organizational chart?
    • What kind of work do they do?
    • What is included in their job description?
    • What are tasks that they do in addition to their formal responsibilities?
    • What do they need from IT to do their day-to-day tasks?
    • What does their work day look like?
    • When, why, and how do they use IT services?

    Info-Tech Insight

    With business user input, you can answer questions as specific as “What requirements are necessary for IT to deliver value to each line of business?” and “What does each LOB need in order to run their operation?”

    Understand when it is best to use one of Info-Tech’s two approaches to defining LOB services

    1. Business View

    Business View is the preferred method for IT departments with a better understanding of business operations. This is because they can begin with input from the user, enabling them to more successfully define every service for each user group and LOB.

    In addition, IT will also have a chance to work together with the business and this will improve the level of collaboration and communication. However, in order to follow this methodology, IT needs to have a pre-established relationship with the business and can demonstrate their knowledge of business applications.

    2. IT View

    The IT view begins with considering each business application used within the organization’s lines of business. Start with a broad view, following with a process of narrowing down, and then iterate for each business application.

    This process leads to each unique service performed by every application within the business’ LOBs.

    The IT view does not necessarily require a substantial amount of information about the business procedures. IT staff are capable of deducing what business users often require to maintain their applications’ functionality.

    Use one of Info-Tech’s two methodologies to help you identify each LOB service

    Choose the methodology that fits your IT organization’s knowledge of the business.

    This image demonstrates a comparison between the business view of service and the IT View of Service. Under the Business View, the inputs are LOB; User Groups; and Business Activity. Under the IT View, the inputs are Business Application and Functionality, and the outputs are Business Activity; User Groups; and LOB.

    1. Business View

    If you do have knowledge of business operations, using the business view is the better option and the service definition will be more relatable to the users.

    2. IT View

    For organizations that don’t have established relationships with the business or detailed knowledge of business activities, IT can decompose the application into services. They have more familiarity and comfort with the business applications than with business activities.

    It is important to continue after the service is identified because it helps confirm and solidify the names and features. Determining the business activity and the user groups can help you become more user-oriented.

    Identifying LOB services using Info-Tech’s Business View method

    We will illustrate the two methodologies with the same example.

    If you have established an ongoing relationship with the business and you are familiar with their business operations, starting with the LOB and user groups will ensure you cover all the services IT provides to the business and create more relatable service names.

    This is a screenshot of an example of the business view of Service.

    Identifying LOB services using Info-Tech’s IT View method

    If you want to understand what services IT provides to the Sales functional group, and you don’t have comprehensive knowledge of the department, you need to start with the IT perspective.

    This is a screenshot of an example of the business view of Service.

    Info-Tech Insight

    If you are concerned about the fact that people always associate a service with an application, you can include the application in the service name or description so users can find the service through a search function.

    Group LOB services into functional groups as you did enterprise services into categories

    3.1 Sample Line of Business Services Definitions – Functional Groups & Industry Examples

    Like categories for enterprise services in Phase Two, LOB services are grouped into functional groups. Functional groups are the components of an organizational chart (HR, Finance, etc.) that are found in a company’s structure.

    Functional Groups

    Functional groups enable a clear view for business users of what services they need, while omitting services that do not apply to them. This does not overwhelm them, and provides them with only relevant information.

    Industry Services

    To be clear, industry services can be put into functional groups.

    Info-Tech provides a few sample industry services (without their functional group) to give an idea of what LOB service is specific to these industries. Try to extrapolate from these examples to create LOB services for your business.

    Use Info-Tech’s Sample LOB Services – Functional Group and Sample LOB Services – Industry Specific documents.

    This is a screenshot of Info-Tech's Functional Group Services

    Info-Tech Insight

    Keep track of which services you either modify or delete. You will have to change the same services in the final Info-Tech deliverable.

    Identify the user group and business activity within each line of business – Business view

    3.1 30-45 minutes per line of business

    Only perform this activity if you have a relationship with the business that can enable you to generate business input on service identifications and definitions.

    In a group of your project participants, repeat the sequence for each LOB.

    1. Brainstorm each user group within the LOB that is creating value for the business by performing functional activities.
    2. Think of what each individual end user must do to create their value. Think of the bigger picture rather than specifics at this point. For example, sales representatives must communicate with clients to create value.
    3. Now that you have each user group and the activities they perform, consider the specifics of how they go about doing that activity. Consider each application they use and how much they use that application. Think of any and all IT services that could occur as a result of that application usage.

    INPUT

    • A collaborative discussion (with a business relationship)

    OUTPUT

    • LOB services defined from the business perspective

    Materials

    • Sticky notes
    • Whiteboard/marker

    Participants

    • Members of the project team
    • Representatives from the LOBs

    Identify the user group and business activity within each line of business – IT view

    3.1 30-45 minutes per application

    Only perform this activity if you cannot generate business input through your relationships, and must begin service definitions with business applications.

    In a group of your project participants, repeat the sequence for each application.

    1. Brainstorm all applications that the business provides through IT. Cross out the ones that provide enterprise services.
    2. In broad terms, think about what the application is accomplishing to create value for the business from IT’s perspective. What are the modules? Is it recording interactions with the clients? Each software can have multiple functionalities.
    3. Narrow down each functionality performed by the application and think about how IT helps deliver that value. Create a name for the service that the users can relate to and understand.

      4. → Optional

    4. Now go beyond the service and think about the business activities. They are always similar to IT’s application functionality, but from the user perspective. How would the user think about what the application’s functionality to accomplish that particular service is? At this point, focus on the service, not the application.
    5. Determine the user groups for each service. This step will help you complete the service record design in phase 4. Keep in mind that multiple user groups may access one service.

    INPUT

    • A collaborative discussion (without a business relationship)

    OUTPUT

    • LOB services defined from the IT perspective

    Materials

    • Sticky notes
    • Whiteboard/marker

    Participants

    • Members of the project team

    You must review your LOB service definitions with the business before deployment

    Coming up with LOB service definitions is challenging for IT because it requires comprehension of all lines of business within the organization as well as direct interaction with the business users.

    After completing the LOB service definitions, IT must talk to the business to ensure all the user groups and business activities are covered and all the features are accurate.

    Here are some tips to reviewing your LOB Service Catalog generated content:

    • If you plan to talk to a business SME, plan ahead to help complete the project in time for rollout.
    • Include a business relationship manager on the project team to facilitate discussion if you do not have an established relationship with the business.

    Sample Meeting Agenda

    Go through the service in batches. Present 5-10 related services to the business first. Start with the service name and then focus on the features.

    In the meeting, discuss whether the service features accurately sum up the business activities, or if there are missing key activities. Also discuss whether certain services should be split up into multiple services or combined into one.

    Organization identifies LOB services using Info-Tech’s methodologies

    CASE STUDY A
    Industry Government
    Source Onsite engagement

    Challenge

    There were many users from different LOBs, and IT provided multiple services to all of them. Tracking them and who had access to what was difficult.

    IT didn’t understand who provided the services (service owner) and who the customers were (business owner) for some of the services.

    Solution

    After identifying the different Lines of Business, they followed the first approach (Business View) for those that IT had sufficient knowledge of in terms of business operations:

    1. Identified lines of business
    2. Identified user groups
    3. Identified business activities

    For the LOBs they weren’t familiar with, they used the IT view method, beginning with the application:

    1. Identified business apps
    2. Deduced the functionalities of each application
    3. Traced the application back to the service and identified the service owner and business owner

    Results

    Through these two methodologies, IT was able to define services according to how the users both perceive and utilize them.

    IT was able to capture all the services it provides to each line of business effectively without too much help from the business representatives.

    By capturing all enterprise services offered to the organization, IT centralized its management of services instead of having scattered request processes.

    Info-Tech helps organization to identify LOB services using the IT View

    CASE STUDY B
    Industry Healthcare
    Source Onsite engagement

    Challenge
    The organization uses a major application containing several modules used by different users for various business activities.

    The challenge was to break down the application into multiple services in a way that makes sense to the business users. Users should be able to find services specific to them easily.

    Therefore, the project team must understand how to map the modules to different services and user groups.


    Solution
    The project team identified the major lines of business and took various user groups such as nurses and doctors, figured out their daily tasks that require IT services, and mapped each user-facing service to the functionality of the application.

    The project team then went back to the application to ensure all the modules and functionalities within the application were accounted for. This helped to ensure that services for all user groups were covered and prepared to be released in the catalog.


    Results
    Once the project team had come up with a comprehensive list of services for each line of business, they were able to sit with the business and review the services.

    IT was also able to use this opportunity to demonstrate all the services it provides. Having all the LOB services demonstrates IT has done its preparation and can show the value they help create for the business in a language the users can understand. The end result was a strengthened relationship between the business and the IT department.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts

    This is a picture of an Info-Tech Analyst

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.
    The following are sample activities that will be conducted by Info-Tech analysts with your team:
    3.1 this image contains a screenshot from section 3.1 of this blueprint.

    Understand what Line of Business services are

    The onsite analysts will provide a clear distinction between enterprise services and LOB services. The analysts will also articulate the importance of validating LOB services with the business.

    3.2 this image contains a screenshot from section 3.2 of this blueprint.

    Identify LOB services using the business’ view

    There are two methods for coming up with LOB services. If IT has comprehensive knowledge of the business, they can identify the services by outlining the user groups and their business activities.

    3.3 This image contains a screenshot from section 3.3 of this blueprint.

    Identify LOB services using IT’s view

    If IT does not understand the business and cannot obtain business input, Info-Tech’s analysts will present the second method, which allows IT to identify services with more comfortability through business applications/systems.

    3.4 This image contains a screenshot from section 3.4 of this blueprint.

    Categorize the LOB services into functional groups

    The analysts will help the project team categorize the LOB services based on user groups or functional departments.

    PHASE 4

    Complete Service Definitions

    Design & Build a User-Facing Service Catalog

    Step 4: Complete service definitions and service record design

    1. Complete the Project Charter
    2. Create Enterprise Services Definitions
    3. Create Line of Business Services Definitions
    4. Complete Service Definitions

    This step will walk you through the following activities:

    • Select which fields of information you would like to include in your service catalog design.
    • Determine which fields should be kept internal for IT use only.
    • Complete the service record design with business input if possible.

    Step Insights

    • Don’t overcomplicate the service record design. Only include the pieces of information the users really need to see.
    • Don’t publish anything that you don’t want to be held accountable for. If you are not ready, keep the metrics and costs internal.
    • It is crucial to designate a facilitator and a decision maker so confusions and disagreements regarding service definitions can be resolved efficiently.

    Phase 3 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 4: Complete service definitions
    Proposed Time to Completion (in weeks): 4 weeks

    Step 4.1: Design service record

    Step 4.2: Complete service definitions

    Start with an analyst kick off call:

    • Review Info-Tech’s sample service record and determine which fields to add/change/delete.
    • Determine which fields should be kept internal.

    Review findings with analyst:

    • Complete all fields in the service record for each identified service.

    Then complete these activities…

    • Finalize the design of the service record and bring over enterprise services and LOB services.

    Then complete these activities…

    • Test the service definitions with business users prior to catalog implementation.

    With these tools & templates: Service

    Services Definition Chart

    With these tools & templates:

    Services Definition Chart

    Utilize Info-Tech’s Services Definition Chart to map out your final service catalog design

    Info-Tech’s Sample Services Definition Chart

    Info-Tech has provided a sample Services Definition Chart with standard service definitions and pre-populated fields. It is up to you throughout this step to decide which fields are necessary to your business users, as well as how much detail you wish to include in each of them.

    This image contains a screenshot from Info-Tech's Services Definition Chart.

    Info-Tech Insight

    Keep track of which services you either modify or delete. You will have to change the same services in the final Info-Tech deliverable.

    Tips and techniques for service record design

    The majority of the fields in the service catalog are user facing, which means they must be written in business language that the users can understand.

    If there is any confusion or disagreement in filling out the fields, a facilitator is required to lead the working groups in coming up with a definitive answer. If a decision is still not reached, it should be escalated to the decision maker (usually the service owner).

    IT-Facing Fields

    There are IT facing fields that should not be published to the business users – they are for the benefit of IT. For example, you may want to keep Performance Metrics internal to IT until you are ready to discuss it with the business.

    If the organization is interested in creating a Technical Service Catalog following this initiative, these fields will provide a helpful starting place for IT to identify the people, process, and technology required to support user-facing services.

    Info-Tech Insight

    It is important for IT-facing fields to be kept internal. If business users are having trouble with a service and the service owner’s name is available to them, they will phone them for support even if they are not the support owner.

    Design your service catalog with business input: have the user in mind

    When completing the service record, adopt the principle that “Less is More.” Keep it simple and write the service description from the user’s perspective, without IT language. From the list below, pick which fields of information are important to your business users.

    What do the users need to access the service quickly and with minimal assistance?

    The depicted image contains an example of an analysis of what users need to access the service quickly and with minimal assistance. The contents are as follows. Under Service Overview, Name; Description; Features; Category; and Supporting Services. Under Owners, are Service Owner; Business Owner. Under Access Policies and Procedures, are Authorized Users; Request Process; Approval Requirements/Process; Turnaround Time; User Responsibility. Under Availability and Service Levels are Support Hours; Hours of Availability; Planned Downtime; and Metrics. Under Support Policies & Procedures are Support Process; Support Owner; Support Documentation. Under Costs are Internal Cost; Customer Cost. The items which are IT Facing are coloured Red. These include Supporting Services; Service Owner; Business Owner; Metrics; Support Owner; and Internal Cost.

    Identify service overview

    “What information must I have in each service record? What are the fundamentals required to define a service?”

    Necessary Fields – Service Description:

    • Service name → a title for the service that gives a hint of its purpose.
    • Service description → what the service does and expected outcomes.
    • Service features → describe functionality of the service.
    • Service category → an intuitive way to group the service.
    • Support services → applications/systems required to support the service.

    Description: Delivers electronic messages to and from employees.

    Features:

    • Desk phone
    • Teleconference phones (meeting rooms)
    • Voicemail
    • Recover deleted voicemails
    • Team line: call rings multiple phones/according to call tree
    • Employee directory
    • Caller ID, Conference calling

    Category: Communications

    This image contains an example of a Service overview table. The headings are: Description; Features; Category; Supporting Services (Systems, Applications).

    Identify owners

    Who is responsible for the delivery of the service and what are their roles?

    Service Owner and Business Owner

    Service owner → the IT member who is responsible and accountable for the delivery of the service.

    Business owner → the business partner of the service owner who ensures the provided service meets business needs.

    Example: Time Entry

    Service Owner: Manager of Business Solutions

    Business Owner: VP of Human Resources

    This image depicts a blank table with the headings Service Owner, and Business Owner

    Info-Tech Insight

    For enterprise services that are used by almost everyone in the organization, the business owner is the CIO.

    Identify access policies and procedures

    “Who is authorized to access this service? How do they access it?”

    Access Policies & Procedures

    Authorized users → who can access the service.

    Request process → how to request access to the service.

    Approval requirement/process → what the user needs to have in place before accessing the service.

    Example: Guest Wi-Fi

    Authorized Users: All people on site not working for the company

    Request Process: Self-Service through website for external visitors

    Approval Requirement/Process: N/A

    This image depicts a blank table with the headings: Authorized Users; Request Process; Approval Requirement/Process

    Info-Tech Insight

    Clearly defining how to access a service saves time and money by decreasing calls to the service desk and getting users up and running faster. The result is higher user productivity.

    Identify access policies and procedures

    “Who is authorized to access this service? How do they access it?”

    Access Policies & Procedures

    Requirements & pre-requisites → details of what must happen before a service can be provided.

    Turnaround time → how much time it will take to grant access to the service.

    User responsibility → What the user is expected to do to acquire the service.

    Example: Guest Wi-Fi

    Requirements & Pre-requisites: Disclaimer of non-liability and acceptance

    Turnaround time: Immediate

    User Responsibility: Adhering to policies outlined in the disclaimer

    This image depicts a blank table with the headings: Authorized Users; Request Process; Approval Requirement/Process

    Info-Tech Insight

    Clearly defining how to access a service saves time and money by decreasing calls to the service desk and getting users up and running faster. The result is higher user productivity.

    Identify availability and service levels

    “When is this service available to users? What service levels can the user expect?”

    Availability & Service Levels

    Support hours → what days/times is this service available to users?

    Hours of availability/planned downtime → is there scheduled downtime for maintenance?

    Performance metrics → what level of performance can the user expect for this service?

    Example: Software Provisioning

    Support Hours: Standard business hours

    Hours of Availability/Planned Downtime: Standard business hours; can be agreed to work beyond operating hours either earlier or later

    Performance Metrics: N/A

    This image depicts a blank table with the headings: Support hours; Hours of availability/planned downtime; Performance Metrics.

    Info-Tech Insight

    Manage user expectations by clearly documenting and communicating service levels.

    Identify support policies and procedures

    “How do I obtain support for this service?”

    Support Policies & Procedures

    Support process → what is the process for obtaining support for this service?

    Support owner → who can users contact for escalations regarding this service?

    Support documentation → where can users find support documentation for this service?

    Example: Shared Folders

    Support Process: Contact help desk or submit a ticket via portal

    Support Owner: Manager, client support

    Support Documentation: .pdf of how-to guide

    This image depicts a blank table with the headings: Support Process; Support Owner; Support Documentation

    Info-Tech Insight

    Clearly documenting support procedures enables users to get the help they need faster and more efficiently.

    Identify service costs and approvals

    “Is there a cost for this service? If so, how much and who is expensing it?”

    Costs

    Internal Cost → do we know the total cost of the service?

    Customer Cost → a lot of services are provided without charge to the business; however, certain service requests will be charged to a department’s budget.

    Example: Hardware Provisioning

    Internal Cost: For purposes of audit, new laptops will be expensed to IT.

    Customer Cost: Cost to rush order 10 new laptops with retina displays for the graphics team. Charged for extra shipment cost, not for cost of laptop.

    This image depicts a blank table with the headings: Internal Costs; Customer costs

    Info-Tech Insight

    Set user expectations by clearly documenting costs associated with a service and how to obtain approval for these costs if required.

    Complete the service record design fields for every service

    4.1 3 Hours

    This is the final activity to completing the service record design. It has been a long journey to make it here; now, all that is left is completing the fields and transferring information from previous activities.

    1. Organize the services however you think is most appropriate. A common method of organization is alphabetically by enterprise category, and then each LOB functional group.
    2. Determine which fields you would like to keep or edit to be part of your design. Also add any other fields you can think of which will add value to the user or IT. Remember to keep them IT facing if necessary.
    3. Complete the fields for each service one by one. Keep in mind that for some services, a field or two may not apply to the nature of that service and may be left blank or filled with a null value (e.g. N/A).

    INPUT

    • A collaborative discussion

    OUTPUT

    • Completed service record design ready for a catalog

    Materials

    • Info-Tech sample service record design.

    Participants

    • Project stakeholders, business representatives

    Info-Tech Insight

    Don’t forget to delete or bring over the edited LOB and Enterprise services from the phase 2 and 3 deliverables.

    Complete the service definitions and get them ready for publication

    Now that you have completed the first run of service definitions, you can go back and complete the rest of the identified services in batches. You should observe increased efficiency and effectiveness in filling out the service definitions.

    This image depicts how you can use bundles to simplify the process of catalog design using bundles. The cycle includes the steps: Identify Services; Select a Service Bundle; Review Record Design; followed by a cycle of: Pick a service; Service X; Service Data Collection; Create Service Record, followed by Publish the bundle; Communicate the bundle; Rinse and Repeat.

    This blueprint’s purpose is to help you design a service catalog. There are a number of different platforms to build the catalog offered by application vendors. The sophistication of the catalog depends on the size of your business. It may be as simple as an Excel book, or something as complex as a website integrated with your service desk.

    Determine how you want to publish the service catalog

    There are various levels of maturity to consider when you are thinking about how to deploy your service catalog.

    1. Website/User Portal 2. Catalog Module Within ITSM Tool

    3. Homegrown Solution

    Prerequisite

    An internet website, or a user portal

    An existing ITSM tool with a built-in service catalog module

    Database development capabilities

    Website development capabilities

    Pros

    Low cost

    Low effort

    Easy to deploy

    Customized solution tailored for the organization

    High flexibility regarding how the service catalog is published

    Cons

    Not aesthetically appealing

    Lacking sophistication

    Difficult to customize to organization’s needs

    Limitation on how the service catalog info is published

    High effort

    High cost

    →

    → Maturity Level →

    		→

    Organization uses the service catalog to outline IT’s and users’ responsibilities

    CASE STUDY A
    Industry Government
    Source Onsite engagement

    Challenge

    The client had collected a lot of good information, but they were not sure about what to include to ensure the users could understand the service clearly.

    They were also not sure what to keep internal so the service catalog did not increase IT’s workload. They want to help the business, but not appear as if they are capable of solving everything for everyone immediately. There was a fear of over-commitment.

    Solution

    The government created a Customer Responsibility field for each service, so it was not just IT who was providing solutions. Business users needed to understand what they had to do to receive some services.

    The Service Owner and Business Owner fields were also kept internal so users would go through the proper request channel instead of calling Service Owners directly.

    Lastly, the Performance Metrics field was kept internal until IT was ready to present service metrics to the business.

    Results

    The business was provided clarity on their responsibility and what was duly owed to them by IT staff. This established clear boundaries on what was to be expected of IT services projected into the future.

    The business users knew what to do and how to obtain the services provided to them. In the meantime, they didn’t feel overwhelmed by the amount of information provided by the service catalog.

    Organization leverages the service catalog as a tool to define IT workflows and business processes

    CASE STUDY B
    Industry Healthcare
    Source Onsite engagement

    Challenge

    There is a lack of clarity and a lack of agreement between the client’s team members regarding the request/approval processes for certain services. This was an indication that there is a level of ambiguity around process. Members were not sure what was the proper way to access a service and could not come up with what to include in the catalog.

    Different people from different teams had different ways of accessing services. This could be true for both enterprise and LOB services.

    Solution

    The Info-Tech analyst facilitated a discussion about workflows and business processes.

    In particular, the discussion focused around the approval/authorization process, and IT’s workflows required to deliver the service. The Info-Tech analyst on site walked the client through their different processes to determine which one should be included in the catalog.

    Results

    The discussion brought clarity to the project team around both IT and business process. Using this new information, IT was able to communicate to the business better, and create consistency for IT and the users of the catalog.

    The catalog design was a shared space where IT and business users could confer what the due process and responsibilities were from both sides. This increased accountability for both parties.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts

    this is a picture of an Info-Tech Analyst

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.
    The following are sample activities that will be conducted by Info-Tech analysts with your team:
    4.1 this image contains a screenshot from section 4.1 of this blueprint.

    Determine which fields should be included in the record design

    The analysts will present the sample service definitions record and facilitate a discussion to customize the service record so unique business needs are captured.

    4.2 this image contains a screenshot from section 4.2.1 of this blueprint.

    Determine which fields should be kept internal

    The onsite analysts will explain why certain fields are used but not published. The analysts will help the team determine which fields should be kept internal.

    4.3 this image contains a screenshot from section 4.3 of this blueprint.

    Complete the service definitions

    The Info-Tech analysts will help the group complete the full service definitions. This exercise will also provide the organization with a clear understanding of IT workflows and business processes.

    Summary of accomplishment

    Knowledge Gained

    • Understanding why it is important to identify and define services from the user’s perspective.
    • Understand the differences between enterprise services and line of business services.
    • Distinguish service features from services.
    • Involve the business users to define LOB services using either IT’s view or LOB’s view.

    Processes Optimized

    • Enterprise services identification and documentation.
    • Line of business services identification and documentation.

    Deliverables Completed

    • Service catalog project charter
    • Enterprise services definitions
    • Line of business service definitions – functional groups
    • Line of business service definitions – industry specific
    • Service definition chart

    Project step summary

    Client Project: Design and Build a User-Facing Service Catalog

    1. Launch the Project – Maximize project success by assembling a well-rounded team and managing all important stakeholders.
    2. Identify Enterprise Services – Identify services that are used commonly across the organization and categorize them in a user-friendly way.
    3. Identify Line of Business Services – Identify services that are specific to each line of business using one of two Info-Tech methodologies.
    4. Complete the Service Definitions – Determine what should be presented to the users and complete the service definitions for all identified services.

    Info-Tech Insight

    This project has the ability to fit the following formats:

    • Onsite workshop by Info-Tech Research Group consulting analysts.
    • Do-it-yourself with your team.
    • Remote delivery (Info-Tech Guided Implementation).

    Related Info-Tech research

    Establish a Service-Based Costing Model

    Develop the right level of service-based costing capability by applying our methodology.

    Drive Ongoing Adoption With an M365 Center of Excellence

    • Buy Link or Shortcode: {j2store}66|cart{/j2store}
    • member rating overall impact: 9.0/10 Overall Impact
    • member rating average dollars saved: 20 Average Days Saved
    • member rating average days saved: After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.
    • Parent Category Name: End-User Computing Applications
    • Parent Category Link: /end-user-computing-applications

    There are roadblocks common to all CoEs: lack of in-house expertise, lack of resources (time, budget, etc.), and employee perception that this is just another burdensome administrative layer. These are exacerbated when building an M365 CoE.

    • Constant vendor-initiated change in M365 means expertise always needs updating.
    • The self-service architecture of M365 is at odds with centralized limits and controls.
    • M365 has a multitude of services that can be adopted across a huge swath of the organization compared to the specific capabilities and limited audience of traditional CoEs.

    Our Advice

    Critical Insight

    The M365 CoE should be somewhat decentralized to avoid an “us versus them” mentality. Having clear KPIs at the center of the program makes it easier to demonstrate improvements and competencies. COMMUNICATE these early successes! They are vital in gaining widespread credibility and momentum.

    Impact and Result

    Having a clear vision of what you want business outcomes you want your Microsoft 365 CoE to accomplish is key. This vision helps select the core competencies and deliverables of the CoE.

    • Ongoing measurement and reporting of business value generated from M365 adoption.
    • Servant leadership allows the CoE to work closely and deeply with end users, which builds them up to share knowledge with others
    • Focus and clear lines of accountability ensure that everyone involved feels part of the compromise when decisions are to be made.

    Drive Ongoing Adoption With an M365 Center of Excellence Research & Tools

    Build out your M365 CoE competencies, membership, and roles; create success metrics and build your M365 adoption, then communicate

    In this deck we explain why your M365 CoE needs to be distributed and how it should be organized. Using a roadmap will assist you in building competency and maturity through training, certifications, and building governance.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    • Drive Ongoing Adoption With an M365 Center of Excellence Storyboard
    [infographic]

    Further reading

    Drive Ongoing Adoption With an M365 Center of Excellence

    Accelerate business processes change and get more value from your subscription by building and sharing thanks to an effective Centre of Excellence.

    CLIENT ADVISORY DECK

    Drive Ongoing Adoption With an M365 Centre of Excellence

    Accelerate business processes change and get more value from your subscription by building and sharing thanks to an effective Centre of Excellence

    Research Team:
    John Donovan
    John Annand
    Principal Research Directors I&O Practice

    41 builds released in 2021!
    IT can no longer be expected to provide training to all users on all features

    • Traditional classroom training (online and self-paced) is time consuming and overly generic
    • Users tend to hold onto old familiar tools even as new ones roll out
    • Citizen Programming comes with a lot of promise but also the spectre of reliving the era of Access ‘97 databases
    • Seemingly small decisions around configuration have outsized impacts
    • Every enterprises’ journey through adoption is unique

    ▲20% $ spent in 2021

    148% more meetings
    66% more users collaborating on documents
    40.6B more emails

    2021 vs. 2022 Source: Microsoft The Work Trend Index

    • Who needs to be in a CoE? What daily tasks do they undertake?
    • How do you turn artifacts like best practice documents into actual behavioral change?
    • How does CoE differ from governance? And why is it going to be any more successful?
    • How does the CoE evolve over time as enterprises become more mature?

    CoE Competencies, Membership and Roles
    Communication, Standards Templates
    Adoption, and Business Success Metrics

    this image depicts the key CoE Competencies: Goals; Controls; Tools; Training; and Support

    Using these deliverables, Info-Tech will help you drive consistency in your enterprise collaboration, increase end-user satisfaction in the tools they are provided, optimize your license spending, fill the gaps between implementation of a technology and realization of business value, and empower end-users to innovate in ways that senior leadership had not imagined.

    Executive Summary

    Insight

    User adoption is the primary focus of the efforts in the CoE

    User adoption and setting up guardrails in governance are the focuses of the CoE in its early stages. Purging obsolete data from legacy share servers, and exchange, and rationalize legacy applications that are comparable to Microsoft offerings. The primary goal is M365 excellence, but that needs to be primed with a Roadmap, and laying down clear milestones to show progress, along with setting up quick wins to get buy in from the organization.

    Breakdown your CoE into distinct areas for improvement

    Due to the size and complexity of Microsoft 365, breaking it into clearly defined divisions makes sense. The parts that need to be fragmented into are, Collaboration, Power Apps, Office tools, Learning, Professional Training and Certifications, Governance and Support. Subject Matter experts needs to keep pace with the ever-changing M365 environment with enhancements continuously being rolled out. (There were 41 build releases in 2021 alone! )

    Set up your M365 CoE in a decentralized design

    Define how your CoE will be set up. It will either be centralized, distributed, or a combination of both. They all have their strengths and weaknesses; however a distributed CoE can ensure there is buy-in from the various departments across the CoE, as they participate in the decision making and therefore the direction the CoE goes. Additionally, it ensures that each segment of the CoE is accountable for the success of the M365 adoption, its usage, and delivering value to the organization.

    Summary

    Your Challenge

    You have purchased Microsoft 365 for your business, and you have determined that you are not realizing the full value and potential of the product, neither adoption nor usage – for example, you have legacy applications that the user base is reluctant to move away from, whether it be Skype, Jabber, or other collaboration tools available to them. You have released Teams to the organization but may have not shown how useful it is and you have not communicated to the business that it is your new collaboration tool, along with SharePoint Online and OneDrive. How do you fix this problem?

    Common Obstacles

    There are roadblocks common to all CoEs: lack of in-house expertise, lack of resources (time, budget, etc.) and employee perception of just another burdensome administrative layer. These are exacerbated when building an M365 CoE.

    • Constant vendor-initiated change in M365 means expertise always needs updating
    • The self-service architecture of M365 is at odds with centralized limits and controls
    • M365 is a multitude of services, adopted across a huge swath of the organization compared to the specific capabilities and limited audience of traditional CoEs

    Info-Tech’s Approach

    Having a clear vision of what business outcomes you want your Microsoft 365 CoE to accomplish is key. This vision helps select the core competencies and deliverables of the CoE.

    1. Ongoing measurement and reporting of business value generated from M365 adoption
    2. Servant leadership allows the CoE to work closely and deeply with end-users, which builds them up to share knowledge with others
    3. Focus and clear lines of accountability ensure that everyone involved feels part of the compromise when decisions are to be made

    Info-Tech Insight

    The M365 CoE should be somewhat decentralized to avoid an “us versus them” mentality. Having clear KPIs at the center of the program makes it easier to demonstrate improvements and competencies. COMMUNICATE these early successes! They are vital in gaining widespread credibility and momentum.

    Charter Mandate Authority to Operate

    Mission : To accelerate the value that M365 brings to the organization by using the M365 CoE to increase adoption, build competency through training and best practices, and deliver on end user innovation throughout the business.

    Vision Statement: To transform the organization’s efficiencies and performance through an optimized world-class M365 CoE by meeting all KPIs set out in the Charter.

    Info-Tech Insights

    A mission and vision for your M365 CoE are a necessary step to kick the program off. Not aving clear goals and a roadmap to get there will hinder your progress. It may even stall the whole objective if you cannot agree or measure what you are trying to accomplish

    • The scope of the M365 CoE is to build the adoption rate that can meet milestone goals to advance user competency, as well as the maturation of the SMEs in each segment of the CoE leadership and contributors.
    • Maturity will be measured through 100% adoption, specifically around collaboration tools and Office apps across the organization that use M365. Strategic value will be measured by core competencies within the CoE.
    • SMEs are developed and educated with certifications and other training throughout the course of the CoE development to bring “bench strength” to the vision of optimizing a world-class M365 CoE.
    • SMEs will all be certified Microsoft professionals. They will set the standard to be met within the CoE. The SMEs can either be internal candidates or external hires, depending on the current IT department competency.
    • Additional resources required will be tech savvy department leads that understand and can help in the training of staff, who also are willing to spend a certain amount of their work time in coaching colleagues.
    • They will be assisted by the training through the SMEs providing relevant material and various M365 courses both in class and self-paced online learning using M365 VIVA tools.

    Charter Metrics

    Areas in Scope:

    • Ensure Mission is aligned to the business objectives.
    • Form core team for M365 CoE, including steering committee.
    • Create document for signoff from business sponsors.
    • Build training plans for users, engineers, and admins.
    • Document best practices and build standard templates for organizational uniformity.
    • Build governance charter and priorities, setting up guardrails early to ensure compliance and security.
    • Transition away and retire all legacy on-Prem apps to M365 Cloud apps.
    • Build a RACI model for roles and responsibility.

    Info-Tech Insights

    If meaningful metrics are set up correctly, the CoE can produce results early in the one- or two-year process, demonstrating business value and increasing production amongst staff and demonstrating SME development.

    this image contains example metrics, spread across three phases.

    CoE

    What are the reason to build an M365 CoE, and what is it expected to deliver?

    What It IS NOT

    It does not design or build applications, migrate applications, or create migration plans. It does not deploy applications nor does it operate and monitor applications. While a steering committee is a key part of the M365 CoE, its real function is to set the standards to be achieved though metrics that can measure a successful, efficient, and best-in-class M365 operation. It does not set business goals but does align M365 goals to the business drivers. SMEs in the CoE give guidance on M365 best practices and assist in its adoption and users’ competency.

    What It IS

    M365 CoE means investing in and developing usage growth and adoption while maintaining governance and control. A CoE is designed to drive innovation and improvement, and as a business-wide functional unit, it can break down geographical and organizational silos that utilize their own tools and collaboration platforms. It builds a training and artifacts database of relevant and up-to-date materials.

    Why Build It

    Benefits that can be realized are:

    • Building efficiencies, delivering quality training and knowledge transfer, and reducing risk from an organized and effective governance.
    • Consistency in document and information management.
    • Reusable templates and blueprints that standardize the business processes.
    • Standardized and communicated business policies around security and best practices.
    • Overcoming the challenges that comes with the titan of a platform that is M365.

    Expected Goals and Benefits With Risk

    Demonstrated impact for sustainability
    Ensuring value is delivered
    Ability to escalate to executive branch

    The What?

    What does the M365 CoE solve?

    • M365 Adoption
    • M365 tools templates
    • SME in tools deployment and delivery
    • Training and education – create artifacts and organize training sessions and certifications
    • Empower users into super users
    • Build analytics around usage, adoption, and ROI from license optimization

    And the How?

    How does the M365 CoE do it?

    • By defining clear adoption goals and best practices
    • By building a dedicated team with the confidence to improve the user experience
    • By creating a collection of reusable artifacts.
    • By establishing a stable, tested environment ensures users are not hindered in execution of the tools
    • By continuously improving M365 processes

    What are the Risks?

    • All goals must be achievable
    • Timeline phases are based on core SME competency of the IT department and the training quality of end users
    • Current state of SMEs in house or hired to execute the mandate of the M365 CoE
    • Business success – if business is struggling to make profits and grow, its usually the CoE that will get chopped – mainly due to layoffs
    • Inability to find SMEs or train SMEs
    • Turnover in CoE due to job function changes or attrition
    • Overload of day-to-day responsibilities preventing SMEs from executing work for the CoE – Need to align SMEs and CoE steering chair to establish and enable shared responsibilities.

    Who needs to be in a CoE for M365

    Design the CoE – What model to be used?

    What are their daily tasks? Is the CoE centralized, decentralized, or a combination?

    a flow chart is depicted, starting with the executive steering committee, describing governance 365, and VP applications.

    Info-Tech Insights

    Due to the size and complexity of Microsoft 365, a decentralized model works best. Each segment of the group could in themselves be a CoE, as in governance, training, or collaboration CoE. Maintaining SME in each group will drive the success of the M365 CoE.

    Key Competencies for CoE

    • Build a team of experts in M365 with sub teams in Products.
    • Manage the business processes around M365.
    • Train and optimize technical teams.
    • Share best practices and create a knowledge base.
    • Build processes that are repeatable and self-provisioned.
    This image depicts the core Coe Competencies, Strategy; Technology; Governance; and Skills/Capabilities.

    CoE for M365

    What is the Structure? Is it centralized, decentralized, or combination? What are the pros and cons?

    Thought Model

    This image depicts a thought model describing CoE for M365.

    How does the CoE differ from governance?

    Why is it going to be any more successful?

    “These problems already exist and haven't been successfully addressed by governance – how is the CoE going to be any different?”

    • Leadership
    • Empower end users
    • Automation of processes
    • Retention policies
    • Governance priorities
    • Risk management
    • Standard procedures
    • Set metrics
    • Self service
    • Training
    • SMEs
    • Automation
    • Innovation

    CoE

    While M365 governance is an integral part of the M365 CoE, the CoE is a more strategic program aimed at providing guidance, experienced leadership, and training.

    The CoE is designed to drive innovation and improvements throughout the organization’s M365 deployment. It will build best practices, create artifacts, and mentor members to become SMEs.

    Governance

    CoE is a form of collaborative governance. Those responsible for making the rules are the same ones who are working through how the rules are implemented in practice.

    The word most associated with CoE is "nurture." The word most associated with governance is "prevent."

    The CoE is experimental and innovative and constantly revising its guidance compared to governance, which is opaque and static.

    RACI chart for CoE define activities and ownership

    The Work

    Build artifacts

    Templates

    Scripts

    Reference architecture

    Policies definition

    Blueprints

    Version control

    Measure usage and ROI

    Quality assurance

    Baseline creation and integrity

    ActivitiesSupport Steering CTraining TeamM365 Tools Admin M365 Security AdminDoc Mgt
    Monitor M365 ChangeAIRR
    CommunicationsIR
    TrainingAR
    Support – Microsoft + HelpdeskRI
    Monitor UsageR
    Security and ComplianceAR
    Decom On-PremAR
    Eliminate Shadow ITR
    Identity and AccessAR
    Automate Policies in TennantAR
    Audit MonitorAR
    Data and Information ProtectionARR
    Build TemplatesAAR
    Manage ArtifactsARA

    Steering Committee

    This image contains a screenshot of the organization of the CoE Steering Committee

    Roles and Responsibilities

    • Set the goals and metrics for the CoE charter
    • Ensure the CoE is aligned to the business objectives
    • Clear any roadblocks that may hinder progress for the team leads
    • Provide guidance on best practices
    • Set expectations for training and certifications
    • Build SME strength through mentoring
    • Promote and facilitate research into M365 developments and releases
    • Ensure knowledge transfer is documented
    • Create roadmap to ensure phase KPIs are met and drive toward excellence

    Info-Tech Insight

    Executive sponsorship is an element of the CoE that cannot be overlooked. If this occurs, the funding and longevity of the CoE will be limited. Additionally, ensure you determine if the CoE will have an end of life and what that looks like.

    M365 Governance CoE Team

    Governance and Management

    After you’ve developed and implemented your data classification framework, ongoing governance and maintenance will be critical to your success. In addition to tracking how sensitivity labels are used in practice, you’ll need to update your control requirements based on changes in regulations, cybersecurity leading practices, and the nature of the content you manage. Governance and maintenance efforts can include:

    • Establishing a governance body dedicated to data classification or adding a data classification responsibility to the charter of an existing information security body.
    • Defining roles and responsibilities for those overseeing Data Classification
    • Establishing KPIs to monitor and measure progress
    • Tracking cybersecurity leading practices and regulatory changes
    • Developing Standard Operating Procedures that support and enforce a data classification framework

    Governance CoE

    Tools Used in the Governance CoE Identity – MFA, SSO, Identity Manager, Conditional Access, AD , Microsoft Defender, Compliance Assessments Templates

    Security and Compliance - Azure Purview, Microsoft Defender Threat Analytics, Rules-Based Classification (AIP Client & Scanner), Endpoint DLP, Insider Risk Management

    Information Management – Audit Log Retention, Information Protection and Governance, Trainable Classifiers

    Licenses – Entitlement Management, Risk-Based Conditional Access.

    This image depicts the M365 Governance CoE Team organization.

    M365 Tools CoE Team

    • Collaboration tools are at the center of the product portfolio for M365.
    • Need to get users empowered to manage and operate Teams, OneDrive, and SharePoint Online and promote uniform communications and collaborate with document building, sharing, and storing.

    This image depicts a screenshot of the Tools CoE Team organization

    Collaboration SME – Teams admin, Exchange admin, SharePoint, One Drive admin, Viva Learning (Premium), and Viva Insights (Premium)

    Application SME – Covers all updates and new features related to Office programs

    Power BI SME – Covers Power Automate for Office 365, Power Apps for Office 365, and Power BI Pro

    Voice and Video – Tools-Calling Plan, Audio Conference (Full), Teams Phone, Mobility

    PMO – Manages all M365 products online and in production. Also coordinates enhancements, writes up documentation for updates, and releases them to the training CoE for publication.

    Microsoft 365 tools used to support business

    M365 Training CoE Team

    Training and certifications for both end users and technical staff managing the M365 platform. Ensure that you set goals and objectives with your training schedule.

    this image depicts the framework for the training CoE team.

    Training for SMEs can be broken into two categories:

    First line training is internal training for users, in the collaboration space. Teams, One Drive, SharePoint Online, Exchange, and specialty training on Office tools – Word, PowerPoint, Excel, and Microsoft Forms.

    Second line training is professional development for the SMEs including certifications in M365 admin, Global admin, Teams admin, and SharePoint administrator.

    Additional training and certification can be obtained in governance, information management, and in the admin center for licencing optimization and compliance.

    Tools used

    • Viva topics – Integrated knowledge and expert discovery
    • Viva Insight
    • Viva Learning
    • Viva Connections
    • Dynamics 365
    • Voice of the customer surveys

    Support M365 CoE Team

    This image depicts the framework for m365 CoE team support.

    Support CoE:

    In charge of creating a knowledge base for M365. Manages incidents with access, usage, and administering apps to desktop. Manages change issues related to updates in patching.

    Help Desk Admin:

    Resets passwords when self service fails, force sign out, manages service requests.

    Works with learning CoE to populate knowledge base with articles and templates.

    Manages end user issues with changes and enhancements for M365.

    Supporting Metrics

    • Number of calls for M365 support
    • Recurring M365 incidents
    • Number of unresolved Platform issues
    • First call resolution
    • Knowledge sharing of M365
    • Customer satisfaction
    • Turnaround time of tickets created

    Roadmap

    How does the CoE evolve over time as enterprises become more mature?

    • Depending on the complexity and regulatory requirements of the business, baseline governance and rules around external partners sharing internal documents will need to be set up.
    • Identifying your SMEs in the organization is a perquisite at the beginning stages of setting up the M365 working group.
    • Build a roadmap to get to maturity and competency that brings strategic business value.
    • Meet milestone goals through a two-year, three-phase process. Begin with setting up governance guardrails.
    • Set up foundational baselines against which metrics will be measured.
    • Set up the M365 CoE, at first with target easy wins through group training and policy communications throughout the organization.
    this image depicts the CoE Roadmap, from Foundational Baseline, to Standardize Process, to Optimization

    How do you turn artifacts like best practice documents into actual behavior change?

    this image depicts the process of turning M365 ARtifacts into actual behavioural change within a company

    Info-Tech Insights

    Building Blocks
    The building blocks for a change in end user behavior are based on four criteria which must be clearly communicated. Knowledge transfer from SMEs to the training team is key. That in turn leads to effective knowledge transfer, allowing end users to develop skills quickly that can be shared with their teams. Sharing practices leads to best practices and maintaining these in a repository that can be quickly accessed will build on the efficiencies and effectiveness of the employees.

    How Do You Empower End Users to Innovate?

    Info-Tech Insights

    Understand the Vision

    Empowering End users starts with understanding the business vision that is embedded into the M365 CoE charter.

    Ensure that the business innovation goals are aligned to the organizational strategies.

    The innovative strategies need to be clearly communicated to the employees and the tools to achieve this needs to be mapped out and trained. Clearly lay out the goals, outcomes, and expectations.

    End users need to understand how the M365 CoE will assist them in their day-to-day operations, whether in the collaboration space with their colleagues, or with power BI that assists them in their decision making though analytics.

    The Right Resources

    Arm your team with the resources they need to be successful. Building use cases as part of the training program will give the employees insight into how the M365 tools can be used in their daily work environment. It will also address the pervasive use of nonstandard tools as is seen throughout organizations that are operated in a vacuum.

    Empowering your user base though the knowledge transfer borne through the building of artifacts that deal with real life examples that join the dots for employees.

    By painting a picture of how the innovative use of the M365 platform can be achieved, users will feel empowered and use those use cases to build out their own innovative ideas.

    Hybrid Work

    Digital fabric

    Collaboration – Communication – Creation

    Cloud Services – Innovative Apps – Security

    Productivity anywhere any place

    Shared working documents in secure cloud

    Mesh for Microsoft Teams/Viva

    Power apps and dataverse for Teams

    Self Service M365

    My Apps

    My Sign-Ins

    My Groups

    My Staff

    My Access

    My Account

    Password reset

    Sample Best Practices
    Tools and Standards Templates

    Then communicate them

    Collaboration Best Practices

    Sharing documents

    Real time co-authoring

    Comment

    Meet

    Mobile

    Version History

    Security Best Practices

    This is a screenshot of the Security Best Practices

    Default Security Settings

    Microsoft Security Score

    Enable Alert Policies

    Assign RBAC for Admins

    Enable Continuous Access Evaluation

    Admin Roles Best Practices in M365

    This is a screenshot of the admin roles best ractices in M365.

    Business Success Metrics for M365 CoE

    What does success look like?

    • Are you aligning the M365 metrics to business goals?
    • Are your decisions data driven?
    • Are you able to determine opportunities to improve with your metrics – continuous process improvement?
    • Are you seeing productivity gains, and are they being measured?
    This image contains a screenshot of the Business Success Metrics for M365-CoE: SMC Training; Content published and tagged; Usage Metrics; Cost Metrics; Adoption Metrics; New Product Introduction

    Activity Output

    Start building your M365 CoE and considering the steps for the Phase 1 checklist

    BUILD A FOUNDATIONAL BASELINE

    Step 1

    1. Select Resources to create a CoE working group
    2. Define your goals and objectives
    3. Identify SMEs within the business and do a gap analysis
    4. Build the M365 charter, mission, and vision
    5. Build consensus and sponsorship from C suite
    6. Create an organizational M365 framework that provides best coverage for all touch points to the platform, from support to training to controls.
    7. Determine the type of CoE you want to create that fits your business (centralized, distributed, or a combination).

    Step 2

    1. Build training plans for SMEs and M365 teams
    2. Populate company intranet with artifacts, knowledge articles, and user training portal with all things M365
    3. Build out best practice workbooks, tools, and templates that encompass all departments
    4. Create roles and responsibilities matrix
    5. Identify “super users” in departments to assist with promoting learning and knowledge sharing.
    6. Develop Metrics scorecards on success criteria ensuring they align to business goals

    Step 3

    1. Rational M365 licensing
    2. Create communication plan promoting CoE and M365 advantages
    3. Align your governance posture and building guardrails
    4. Identify legacy apps that can be retired and replaced
    5. Train support team and analysts with metrics supporting M365 CoE goals
    6. Create baseline metrics with clear alignment to business KPIs

    Related Blueprints

    Modernize Your Microsoft Licensing for the Cloud Era

    • Take control of your Microsoft licensing and optimize spend

    Govern Office 365

    • Office 365 is as difficult to wrangle as it is valuable. Leverage best practices to produce governance outcomes aligned with your goals

    Migrate to Office 365 Now

    • One small step to cloud, one big leap to Office 365. The key is to look before you leap

    Build a Data Classification MVP for M365

    • Kickstart your governance with data classification users will actually use!

    Bibliography

    “Five Guiding Principles of a successful Center of Excellence” Perficient, n.d. Web.

    “Self Service in Microsoft 365.” Janbakker.tech, n.d. Web.

    “My Apps portal overview.” Microsoft, June 2, 2022. Web.

    “Collaboration Best Practices Microsoft365.” Microsoft, n.d. Web.

    “Security Best Practices Microsoft 365” Microsoft, July 1, 2022. Web.

    Application Development Quality

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    • Parent Category Name: Applications
    • Parent Category Link: /applications
    • byline: Optimize your software quality assurance practice using a full lifecycle approach.
    Apply quality assurance across your critical development process steps to secure quality to product delivery

    Cost-Reduction Planning for IT Vendors

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    • member rating average dollars saved: $12,733 Average $ Saved
    • member rating average days saved: 5 Average Days Saved
    • Parent Category Name: Cost & Budget Management
    • Parent Category Link: /cost-and-budget-management
    • Unprecedented health and economic conditions are putting extreme pressure and controls on expense management.
    • IT needs to implement proactive measures to reduce costs with immediate results.
    • IT must sustain these reductions beyond the near term since no one knows how long the current conditions will last.

    Our Advice

    Critical Insight

    • Proactively initiating a “War on Waste” (WoW) to reduce the expenses and costs in areas that do not impact operational capabilities of IT is an easy way to reduce IT expenditures.
    • This is accomplished by following the principle “Stop Doing Stupid Stuff” (SDSS), which many organizations deemphasize or overlook during times of growth and prosperity.
    • Initiating a WoW and SDSS program with passion, creativity, and urgency will deliver short-term cost reductions.

    Impact and Result

    • Pinpoint and implement tactical countermeasures and savings opportunities to reduce costs immediately (Reactive: <3 months).
    • Identify and deploy proven practices to capture and sustain expense reduction throughout the mid-term (Proactive: 3-12months).
    • Create a long-term strategy to improve flexibility, make changes more swiftly, and quickly generate cost-cutting opportunities (Strategic: >12 months).
    • Use Info-Tech’s 4 R’s Framework (Required, Removed, Rescheduled, and Reduced) and guiding principles to develop your cost-reduction roadmap.

    Cost-Reduction Planning for IT Vendors Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Start here – read the Storyboard

    Read our concise Executive Brief to find out how you can reduce your IT cost in the short term while establishing a foundation for long-term sustainment of IT cost containment.

    • Cost-Reduction Planning for IT Vendors Storyboard
    • Cost-Cutting Classification and Prioritization Tool
    [infographic]

    Responsibly Resume IT Operations in the Office

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    • Parent Category Name: DR and Business Continuity
    • Parent Category Link: /business-continuity

    Having shifted operations almost overnight to a remote work environment, and with the crisis management phase of the COVID-19 pandemic winding down, IT leaders and organizations are faced with the following issues:

    • A reduced degree of control with respect to the organization’s assets.
    • Increased presence of unapproved workaround methods, including applications and devices not secured by the organization.
    • Pressure to resume operations at pre-pandemic cadence while still operating in recovery mode.
    • An anticipated game plan for restarting the organization’s project activities.

    Our Advice

    Critical Insight

    An organization’s shift back toward the pre-pandemic state cannot be carried out in isolation. Things have changed. Budgets, resource availability, priorities, etc., will not be the same as they were in early March. Organizations must ensure that all departments work collaboratively to support office repatriation. IT must quickly identify the must-dos to allow safe return to the office, while prioritizing tasks relating to the repopulation of employees, technical assets, and operational workloads via an informed and streamlined roadmap.

    As employees return to the office, PMO and portfolio leaders must sift through unclear requirements and come up with a game plan to resume project activities mid-pandemic. You need to develop an approach, and fast.

    Impact and Result

    Responsibly resume IT operations in the office:

    • Evaluate risk tolerance
    • Prepare to repatriate people to the office
    • Prepare to repatriate assets to the office
    • Prepare to repatriate workloads to the office
    • Prioritize your tasks and build your roadmap

    Quickly restart the engine of your PPM:

    • Restarting the engine of the project portfolio won’t be as simple as turning a key and hitting the gas. The right path forward will differ for every project portfolio practice.
    • Therefore, in this publication we put forth a multi-pass approach that PMO and portfolio managers can follow depending on their unique situations and needs.
    • Each approach is accompanied by a checklist and recommendations for next steps to get you on right path fast.

    Responsibly Resume IT Operations in the Office Research & Tools

    Start here – read the Executive Brief

    As the post-pandemic landscape begins to take shape, ensure that IT can effectively prepare and support your employees as they move back to the office.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Evaluate your new risk tolerance

    Identify the new risk landscape and risk tolerance for your organization post-pandemic. Determine how this may impact the second wave of pandemic transition tasks.

    • Responsibly Resume IT Operations in the Office – Phase 1: Evaluate Your New Risk Tolerance
    • Resume Operations Information Security Pressure Analysis Tool

    2. Repatriate people to the office

    Prepare to return your employees to the office. Ensure that IT takes into account the health and safety of employees, while creating an efficient and sustainable working environment

    • Responsibly Resume IT Operations in the Office – Phase 2: Repatriate People to the Office
    • Mid-Pandemic IT Prioritization Tool

    3. Repatriate assets to the office

    Prepare the organization's assets for return to the office. Ensure that IT takes into account the off-license purchases and new additions to the hardware family that took place during the pandemic response and facilitates a secure reintegration to the workplace.

    • Responsibly Resume IT Operations in the Office – Phase 3: Repatriate Assets to the Office

    4. Repatriate workloads to the office

    Prepare and position IT to support workloads in order to streamline office reintegration. This may include leveraging pre-existing solutions in different ways and providing additional workstreams to support employee processes.

    • Responsibly Resume IT Operations in the Office – Phase 4: Repatriate Workloads to the Office

    5. Prioritize your tasks and build the roadmap

    Once you've identified IT's supporting tasks, it's time to prioritize. This phase walks through the activity of prioritizing based on cost/effort, alignment to business, and security risk reduction weightings. The result is an operational action plan for resuming office life.

    • Responsibly Resume IT Operations in the Office – Phase 5: Prioritize Your Tasks and Build the Roadmap

    6. Restart the engine of your project portfolio

    Restarting the engine of the project portfolio mid-pandemic won’t be as simple as turning a key and hitting the gas. Use this concise research to find the right path forward for your organization.

    • Restart the Engine of Your Project Portfolio
    [infographic]

    2022 Tech Trends

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    • The post-pandemic workplace continues to shift and requires collaboration between remote workers and office workers.
    • Digital transformation has accelerated across every organization and CIOs must maneuver to keep pace.
    • Customer expectations have shifted, and spending habits are moving away from in-person activities to online.
    • IT must improve its maturity in key capabilities to maintain relevance in the organization.

    Our Advice

    Critical Insight

    • Improve the capabilities that matter. Focus on IT capabilities that are most relevant to competing in the digital economy and will enable the CEO's mission for growth.
    • Assess how external environment presents opportunities or threats to your organization using a scenarios approach, then chart a plan.

    Impact and Result

    • Use the data and analysis from Info-Tech's 2022 Tech Trends report to inform your digital strategic plan.
    • Discover the five trends shaping IT's path in 2022 and explore use cases for emerging technologies.
    • Hear directly from leading subject matter experts on each trend with featured episodes from our Tech Insights podcast.

    2022 Tech Trends Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. 2022 Tech Trends Report – A deck that discusses five use cases that can improve on your organization’s ability to compete in the digital economy.

    The post-pandemic pace of change continues to accelerate as the economic rapidly becomes more digital. To keep pace with shifting consumer expectations, CIOs must help the CEO compete in the digital economy by focusing on five key capabilities: innovation, human resources management, data architecture, security strategy, and business process controls and internal audit. Raising maturity in these capabilities will help CIOs deliver on opportunities to streamline back-office processes and develop new lines of revenue.

    • 2022 Tech Trends Report

    Infographic

    Further reading

    2022 Tech Trends

    Enabling the digital economy

    Supporting the CEO for growth

    The post-pandemic pace of change

    The disruptions to the way we work caused by the pandemic haven’t bounced back to normal.

    As part of its research process for the 2022 Tech Trends Report, Info-Tech Research Group conducted an open online survey among its membership and wider community of professionals. The survey was fielded from August 2021 through to September 2021, collecting 475 responses. We asked some of the same questions as last year’s survey so we can compare results as well as new questions to explore new trends.

    How much do you expect your organization to change permanently compared to how it was operating before the pandemic?

    • 7% – No change. We'll keep doing business as we always have.
    • 33% – A bit of change. Some ways of working will shift long term
    • 47% – A lot of change. The way we work will be differ in many ways long term. But our business remains...
    • 13% – Transformative change. Our fundamental business will be different and we'll be working in new ways.

    This year, about half of IT professionals expect a lot of change to the way we work and 13% expect a transformative change with a fundamental shift in their business. Last year, the same percentage expected a lot of change and only 10% expected transformative change.

    30% more professionals expect transformative permanent change compared to one year ago.

    47% of professionals expect a lot of permanent change; this remains the same as last year. (Info-Tech Tech Trends 2022 Survey)

    The pandemic accelerated the speed of digital transformation

    With the massive disruption preventing people from gathering, businesses shifted to digital interactions with customers.

    A visualization of the growth of 'Global average share of customer interactions that are digital' from December 2019 to July 2020. In that time it went from 36% to 58% with an 'Acceleration of 3 years'.

    Companies also accelerated the pace of creating digital or digitally enhanced products and services.

    A visualization of the growth of 'Global average share of partially or fully digitized products and/or services' from December 2019 to July 2020. In that time it went from 35% to 55% with an 'Acceleration of 7 years'. (McKinsey, 2020)

    “The Digital Economy incorporates all economic activity reliant on or significantly enhanced by the use of digital inputs, including digital technologies, digital infrastructure, digital services and data.” (OECD Definition)

    IT must enable participation in the digital economy

    Consumer spending is tilting more digital.

    Consumers have cut back spending on sectors where purchases are mostly made offline. That spending has shifted to digital services and online purchases. New habits formed during the pandemic are likely to stick for many consumers, with a continued shift to online consumption for many sectors.

    Purchases on online platforms are projected to rise from 10% today to 33% by 2030.

    Estimated online share of consumption
    Recreation & culture 30%
    Restaurants & hotels 50%
    Transport 10%
    Communications 90%
    Education 50%
    Health 20%
    Housing & utilities 50%
    (HSBC, 2020)

    Changing customer expectations pose a risk.

    IT practitioners agree that customer expectations are changing. They expect this to be more likely to disrupt their business in the next 12 months than new competition, cybersecurity incidents, or government-enacted policy changes.

    Factors likely to disrupt business in next 12 months
    Government-enacted policy changes 22%
    Cybersecurity incidents 56%
    Regulatory changes 45%
    Established competitor wins 26%
    New player enters the market 23%
    Changing customer expectations 68%
    (Info-Tech Tech Trends 2022 Survey)

    This poses a challenge to IT departments below the “expand” level of maturity

    CIOs must climb the maturity ladder to help CEOs drive growth.

    Most IT departments rated their maturity in the “optimize” or “support” level on Info-Tech’s maturity ladder.

    CIOs at the “optimize” level can play a role in digital transformation by improving back-office processes but should aim for a higher mandate.

    CIOs achieving at the “expand” level can help directly improve revenues by improving customer-facing products and services, and those at the “transform” level can help fundamentally change the business to create revenue in new ways. CIOs can climb the maturity ladder by enabling new digital capabilities.

    Maturity is heading in the wrong direction.

    Only half of IT practitioners described their department’s maturity as “transform” compared to last year’s survey, and more than twice the number rated themselves as “struggle.”

    A colorful visualization of the IT 'Maturity Ladder' detailing levels of IT function within an organization. Percentages represent answers from IT practitioners to an Info-Tech survey about the maturity level of their company. Starting from the bottom: 13% answered 'Struggle', compared to 6% in 2020; 35% answered 'Support'; 37% answered 'Optimize'; 12% answered 'Expand'; and only 3% answered 'Transform', compared to 6% in 2020.

    48% rate their IT departments as low maturity.

    Improve maturity by focusing on key capabilities to compete in the digital economy

    Capabilities to unlock digital

    Innovation: Identify innovation opportunities and plan how to use technology innovation to create a competitive advantage or achieve improved operational effectiveness and efficiency.

    Human Resources Management: Provide a structured approach to ensure optimal planning, evaluation, and development of human resources.

    Data Architecture: Manage the business’ data stores, including technology, governance, and people that manage them. Establish guidelines for the effective use of data.

    Security Strategy: Define, operate, and monitor a system for information security management. Keep the impact and occurrence of information security incidents within risk appetite levels.

    Business Process Controls and Internal Audit: Manage business process controls such as self-assessments and independent assurance reviews to ensure information related to and used by business processes meets security and integrity requirements. (ISACA, 2020)

    A periodic table-esque arrangement of Info-Tech tools and templates titled 'IT Management and Governance Framework', subtitled 'A comprehensive and connected set of research to help you optimize and improve your core IT processes', and anchored by logos for Info-Tech and COBIT. Color-coded sections with highlighted tools or templates are: 'Strategy and Governance' with 'APO04 Innovation' highlighted; 'People and Resources' with 'APO07 Human Resources Management' highlighted; 'Security and Risk' with 'APO13 Security Strategy' and 'DSS06 MEA02 Business Process Controls and Internal Audit' highlighted; 'Data and BI' with 'ITRG07 Data Architecture' highlighted. Other sections are 'Financial Management', 'Service planning and architecture', 'Infrastructure and operations', 'Apps', and 'PPM and projects'.

    5 Tech Trends for 2022

    In this report, we explore five use cases for emerging technology that can improve on capabilities needed to compete in the digital economy. Use cases combine emerging technologies with new processes and strategic planning.

    DIGITAL ECONOMY

    TREND 01 | Human Resources Management

    HYBRID COLLABORATION
    Provide a digital employee experience that is flexible, contextual, and free from the friction of hybrid operating models.

    TREND 02 | Security Strategy

    BATTLE AGAINST RANSOMWARE
    Prevent ransomware infections and create a response plan for a worst-case scenario. Collaborate with relevant external partners to access resources and mitigate risks.

    TREND 03 | Business Process Controls and Internal Audit

    CARBON METRICS IN ENERGY 4.0
    Use internet of things (IoT) and auditable tracking to provide insight into business process implications for greenhouse gas emissions.

    TREND 04 | Data Architecture

    INTANGIBLE VALUE CREATION
    Provide governance around digital marketplace and manage implications of digital currency. Use blockchain technology to turn unique intellectual property into saleable digital products

    TREND 05 | Innovation

    AUTOMATION AS A SERVICE
    Automate business processes and access new sophisticated technology services through platform integration.

    Hybrid Collaboration

    TREND 01 | HUMAN RESOURCES MANAGEMENT

    Provide a digital employee experience that is flexible, contextual, and free from the friction of hybrid operating models.

    Emerging technologies:
    Intelligent conference rooms; intelligent workflows, platforms

    Introduction

    Hybrid work models enable productive, diverse, and inclusive talent ecosystems necessary for the digital economy.

    Hybrid work models have become the default post-pandemic work approach as most knowledge workers prefer the flexibility to choose whether to work remotely or come into the office. CIOs have an opportunity lead hybrid work by facilitating collaboration between employees mixed between meeting at the office and virtually.

    IT departments rose to the challenge to quickly facilitate an all-remote work scenario for their organizations at the outset of the pandemic. Now they must adapt again to facilitate the hybrid work model, which brings new friction to collaboration but also new opportunities to hire a talented, engaged, and diverse workforce.

    79% of organizations will have a mix of workers in the office and at home. (Info-Tech Tech Trends 2022 Survey)

    35% view role type as a determining factor in the feasibility of the hybrid work model.

    Return-to-the-office tensions

    Only 18% of employees want to return to the office full-time.

    But 70% of employers want people back in the office. (CNBC, April 2021)

    Signals

    IT delivers the systems needed to make the hybrid operating model a success.

    IT has an opportunity to lead by defining the hybrid operating model through technology that enables collaboration. To foster collaboration, companies plan to invest in the same sort of tools that helped them cope during the pandemic.

    As 79% of organizations envision a hybrid model going forward, investments into hybrid work tech stacks – including web conferencing tools, document collaboration tools, and team workspaces – are expected to continue into 2022.

    Plans for future investment in collaboration technologies

    Web Conferencing 41%
    Document Collaboration and Co-Authoring 39%
    Team Workspaces 38%
    Instant Messaging 37%
    Project and Task Management Tools 36%
    Office Meeting Room Solutions 35%
    Virtual Whiteboarding 30%
    Intranet Sites 21%
    Enterprise Social Networking 19%
    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    COVID-19

    Vaccination rates around the world are rising and allowing more offices to welcome back workers because the risk of COVID-19 transmission is reduced and jurisdictions are lifting restrictions limiting gatherings.

    Worker satisfaction

    Most workers don't want to go to the office full-time. In a Bloomberg poll (2021), almost half of millennial and Gen Z workers say they would quit their job if not given an option to work remotely.

    IT spending

    Companies are investing more into IT budgets to find ways to support a mix of remote work and in-office resources to cope with work disruption. This extra spending is offset in some cases by companies saving money from having employees work from home some portion of the time. (CIO Dive, 2021)

    Risks and Benefits

    Benefits

    Flexibility Employees able to choose between working from home and working in the office have more control over their work/life balance.
    Intelligence Platforms that track contextual work relationships can accelerate workflows through smart recommendations that connect people at the right time, in the right place.
    Talent Flexible work arrangements provide businesses with access to the best talent available around the world and employees with more career options as they work from a home office (The Official Microsoft Blog, 2021).

    Risks

    Uncertainty The pandemic lacks a clear finish line and local health regulations can still waver between strict control of movement and open movement. There are no clear assurances of what to expect for how we'll work in the near future.
    FOMO With some employees going back to the office while others remain at home, employee bases could be fractured along the lines of those seeing each other in person every day and those still connecting by videoconference.
    Complexity Workers may not know in advance whether they're meeting certain people in person or online, or a mix of the two. They'll have to use technology on the fly to try and collaborate across a mixed group of people in the office and people working remotely (McKinsey Quarterly, 2021).

    “We have to be careful what we automate. Do we want to automate waste? If a company is accustomed to having a ton of meetings and their mode in the new world is to move that online, what are you going to do? You're going to end up with a lot of fatigue and disenchantment…. You have to rethink your methods before you think about the automation part of it." (Vijay Sundaram, Chief Strategy Officer, Zoho)

    Photo of Vijay Sundaram, Chief strategy officer, Zoho.

    Listen to the Tech Insights podcast: Unique approach to hybrid collaboration

    Case Study: Zoho

    Situation

    Zoho Corp. is a cloud software firm based in Chennai, India. It develops a wide range of cloud software, including enterprise collaboration software and productivity tools. Over the past decade, Zoho has used flexible work models to grant remote work options to some employees.

    When the coronavirus pandemic hit, not only did the office have to shut down but also many employees had to relocate back with families in rural areas. The human costs of the pandemic experienced by staff required Zoho to respond by offering counseling services and material support to employees.

    Complication

    Zoho prides itself as an employee-centric company and views its culture as a community that's purpose goes beyond work. That sense of community was lost because of the disruption caused by the pandemic. Employees lost their social context and their work role models. Zoho had to find a way to recreate that without the central hub of the office or find a way to work with the limitations of it not being possible.

    Resolution

    To support employees in rural settings, Zoho sent out phones to provide redundant bandwidth. As lockdowns in India end, Zoho is taking a flexible approach and giving employees the option to come to the office. It's seeing more people come back each week, drawn by the strong community.

    Zoho supports the hybrid mix of workers by balancing synchronous and asynchronous collaboration. It holds meetings when absolutely necessary through tools like Zoho Meet but tries to keep more work context to asynchronous collaboration that allows people to complete tasks quickly and move on. Its applications are connected to a common platform that is designed to facilitate workflows between employees with context and intelligence. (Interview with Vijay Sundaram, Chief Strategy Officer, Zoho)

    “We tend to think of it on a continuum of synchronous to asynchronous work collaboration. It’s become the paramount norm for so many different reasons…the point is people are going to work at different times in different locations. So how do we enable experiences where everyone can participate?" (Jason Brommet, Head of Modern Work and Security Business Group at Microsoft)

    Photo of Jason Brommet, Head of Modern Work and Security Business Group at Microsoft.

    Listen to the Tech Insights podcast: Microsoft on the ‘paradox of hybrid work’

    Case Study: Microsoft

    Situation

    Before the pandemic, only 18% of Microsoft employees were working remotely. As of April 1, 2020, they were joined by the other 82% of non-essential workers at the company in working remotely.

    As with its own customers, Microsoft used its own software to enable this new work experience, including Microsoft Teams for web conferencing and instant messaging and Office 365 for document collaboration. Employees proved just as productive getting their work done from home as they were working in the office.

    Complication

    At Microsoft, the effects of firm-wide remote work changed the collaboration patterns of the company. Even though a portion of the company was working remotely before the pandemic, the effects of everyone working remotely were different. Employees collaborated in a more static and siloed way, focusing on scheduled meetings with existing relationships. Fewer connections were made with more disparate parts of the organization. There was also a decrease in synchronous communication and an increase in asynchronous communication.

    Resolution

    Microsoft is creating new tools to break down the silos in organizations that are grappling with hybrid work challenges. For example, Viva Insights is designed to inform workers about their collaboration habits with analytics. Microsoft wants to provide workers with insights on their collaborative networks and whether they are creating new connections or deepening existing connections. (Interview with Jason Brommet, Head of Modern Work and Security Business Group, Microsoft; Nature Human Behaviour, 2021)

    What's Next?

    Distributed collaboration space:

    International Workplace Group says that more companies are taking advantage of its full network deals on coworking spaces. Companies such as Standard Charter are looking to provide their workers with a happy compromise between working from home and making the commute all the way to the central office. The hub-and-spoke model gives employees the opportunity to work near home and looks to be part of the hybrid operating model mix for many companies. (Interview with Wayne Berger, CEO of IWG Canada & Latin America)

    Optimized hybrid meetings:

    Facilitating hybrid meetings between employees grouped in the office and remote workers will be a major pain point. New hybrid meeting solutions will provide cameras embedded with intelligence to put boardroom participants into independent video streams. They will also focus on making connecting to the same meeting from various locations as convenient as possible and capture clear and crisp audio from each speaker.

    Uncertainties

    Mix between office and remote work:

    It's clear we're not going to work the way we used to previously with central work hubs, but full-on remote work isn't the right path forward either. A new hybrid work model is emerging, and organizations are experimenting to find the right approach.

    Attrition:

    Between April and September 2021, 15 million US workers quit their jobs, setting a record pace. Employees seek a renewed sense of purpose in their work, and many won’t accept mandates to go back to the office. (McKinsey, 2021)

    Equal footing in meetings:

    What are the new best practices for conducting an effective meeting between employees in the office and those who are remote? Some companies ask each employee to connect via a laptop. Others are using conference rooms with tech to group in-office workers together and connect them with remote workers.

    Hybrid Collaboration Scenarios

    Organizations can plan their response to the hybrid work context by plotting their circumstances across two continuums: synchronous to asynchronous collaboration approach and remote work to central hub work model.

    A map of hybrid collaboration scenarios with two axes representing 'Work Context, From all remote work to gathering in a central hub' and 'Collaboration Style, From collaborating at the same time to collaborating at different times'. The axes split the map into quarters. 'Work Context' ranges from 'Remote Work' on the left to 'Central Hub' on the right. 'Collaboration Style' ranges from 'Synchronous' on top to 'Asynchronous' on bottom. The top left quarter, synchronous remote work, reads 'Virtual collective collaboration via videoconference and collaboration software, with some workers meeting in coworking spaces.' The top right quarter, synchronous central hub, reads 'In-person collective collaboration in the office.' The bottom left quarter, asynchronous remote work, reads 'Virtual group collaboration via project tracking tools and shared documents.' The bottom right quarter, asynchronous central hub, reads 'In-person group collaboration in coworking spaces and the main office.'

    Recommendations

    Rethink technology solutions. Don't expect your pre-pandemic videoconference rooms to suffice. And consider how to optimize your facilities and infrastructure for hot-desking scenarios.

    Optimize remote work. Shift from the collaboration approach you put together just to get by to the program you'll use to maximize flexibility.

    Enable effective collaboration. Enable knowledge sharing no matter where and when your employees work and choose the best collaboration software solutions for your scenario.

    Run better meetings. Successful hybrid workplace plans must include planning around hybrid meetings. Seamless hybrid meetings are the result of thoughtful planning and documented best practices.

    89% of organizations invested in web conferencing technology to facilitate better collaboration, but only 43% invested in office meeting room solutions. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Battle Against Ransomware

    TREND 02 | SECURITY STRATEGY

    Prevent ransomware infections and create a response plan for a worst-case scenario. Collaborate with relevant external partners to access resources and mitigate risks.

    Emerging technologies:
    Open source intelligence; AI-powered threat detection

    “It has been a national crisis for some time…. For every [breach] that hits the news there are hundreds that never make it.” (Steve Orrin, Federal Chief Technology Officer, Intel)

    Photo of Steve Orrin, Federal Chief Technology Officer, Intel.

    Listen to the Tech Insights podcast: Ransomware crisis and AI in military

    Introduction

    Between 2019 and 2020, ransomware attacks rose by 62% worldwide and by 158% in North America. (PBS NewsHour, 2021)

    Security strategies are crucial for companies to control access to their digital assets and confidential data, providing it only to the right people at the right time. Now security strategies must adapt to a new caliber of threat in ransomware to avoid operational disruption and reputational damage.

    In 2021, ransomware attacks exploiting flaws in widely used software from vendors Kaseya, SolarWinds, and Microsoft affected many companies and saw record-breaking ransomware payments made to state-sponsored cybercriminal groups.

    After a ransomware attack caused Colonial Pipeline to shut down its pipeline operations across the US, the ransomware issue became a topic of federal attention with executives brought before Senate committees. A presidential task force to combat ransomware was formed.

    62% of IT professionals say they are more concerned about being a victim of ransomware than they were one year ago. (Info-Tech Tech Trends 2022 Survey)

    $70 million demanded by REvil gang in ransom to unlock firms affected by the Kaseya breach. (TechRadar, 2021)

    Signals

    Organizations are taking a multi-faceted approach to preparing for the event of a ransomware breach.

    The most popular methods to prepare for ransomware are to buy an insurance policy or create offline backups and redundant systems. Few are making an effort to be aware of free decryption tools, and only 2% admit to budgeting to pay ransoms.

    44% of IT professionals say they spent time and money specifically to prevent ransomware over the past year. (Info-Tech Tech Trends 2022 Survey)

    Approaches to prepare for ransomware

    Kept aware of free decryption tools available 9%
    Set aside budget to pay ransoms 2%
    Designed network to contain ransomware 24%
    Implemented technology to eradicate ransomware 36%
    Created a specific incident response plan for ransomware 26%
    Created offline backups and redundant systems 41%
    Purchased insurance covering cyberattacks 47%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    National security concerns

    Attacks on US infrastructure and government agencies have prompted the White House to treat ransomware as a matter of national security. The government stance is that Russia supports the attacks. The US is establishing new mechanisms to address the threat. Plans include new funding to support ransomware response, a mandate for organizations to report incidents, and requirements for organizations to consider the alternatives before paying a ransom. (Institute for Security and Technology, 2021)

    Advice from cybersecurity insurance providers

    Increases in ransom payouts have caused cybersecurity insurance providers to raise premiums and put in place more security requirements for policyholders to try and prevent ransomware infection. However, when clients are hit with ransomware, insurance providers advise to pay the ransom as it's usually the cheapest option. (ProPublica, 2019)

    Reputational damage

    Ransomware attacks also often include a data breach event with hackers exfiltrating the data before encrypting it. Admitting a breach to customers can seriously damage an organization's reputation as trustworthy. Organizations may also be obligated to pay for credit protection of their customers. (Interview with Frank Trovato, Research Director – Infrastructure, Info-Tech Research Group)

    Risks and Benefits

    Benefits

    Privacy Protecting personal data from theft improves people’s confidence that their privacy is being respected and they are not at risk of identity theft.
    Productivity Ransomware can lock out employees from critical work systems and stop them from being able to complete their tasks.
    Access Ransomware has prevented public access to transportation, healthcare, and any number of consumer services for days at a time. Ransomware prevention ensures public service continuity.

    Risks

    Expenses Investing in cybersecurity measures to protect against attacks is becoming more expensive, and recently cybersecurity insurance premiums have gone up in response to expensive ransoms.
    Friction More security requirements could create friction between IT priorities and business priorities in trying to get work done.
    Stability If ransomware attacks become worse or cybercriminals retaliate for not receiving payments, people could find their interactions with government services and commercial services are disrupted.

    Case Study: Victim to ransomware

    Situation

    In February 2020, a large organization found a ransomware note on an admin’s workstation. They had downloaded a local copy of the organization’s identity management database for testing and left a port open on their workstation. Hackers exfiltrated it and encrypted the data on the workstation. They demanded a ransom payment to decrypt the data.

    Complication

    Because private information of employees and customers was breached, the organization decided to voluntarily inform the state-level regulator. With 250,000 accounts affected, plans were made to require password changes en masse. A public announcement was made two days after the breach to ensure that everyone affected could be reached.

    The organization decided not to pay the ransom because it didn’t need the data back, since it had a copy on an unaffected server.

    Resolution

    After a one-day news cycle for the breach, the story about the ransom was over. The organization also received praise for handling the situation well and quickly informing stakeholders.

    The breach motivated the organization to put more protections in place. It implemented a deny-by-default network and turned off remote desktop protocol and secure shell. It mandated multi-factor authentication and put in a new endpoint-detection and response system. (Interview with CIO of large enterprise)

    What's Next

    AI for cybersecurity:

    New endpoint protections using AI are being deployed to help defend against ransomware and other cybersecurity intrusions. The solutions focus on the prevention and detection of ransomware by learning about the expected behavior of an environment and then detecting anomalies that could be attack attempts. This type of approach can be applied to everything from reading the contents of an email to helping employees detect phishing attempts to lightweight endpoint protection deployed to an Internet of Things device to detect an unusual connection attempt.

    Unfortunately, AI is a tool available to both the cybersecurity industry and hackers. Examples of hackers tampering with cybersecurity AI to bypass it have already surfaced. (Forbes, 23 Sept. 2021)

    Uncertainties

    Government response:

    In the US, the Ransomware Task Force has made recommendations to the government but it's not clear whether all of them will be followed. Other countries such as Russia are reported to be at least tolerating ransomware operations if not supporting them directly with resources.

    Supply chain security:

    Sophisticated attacks using zero-day exploits in widely used software show that organizations simply can't account for every potential vulnerability.

    Arms escalation:

    The ransomware-as-a-service industry is doing good business and finding new ways to evade detection by cybersecurity vendors. New detection techniques involving AI are being introduced by vendors, but will it just be another step in the back-and-forth game of one-upmanship? (Interview with Frank Trovato)

    Battle Against Ransomware Scenarios

    Determine your organization’s threat profile for ransomware by plotting two variables: the investment made in cybersecurity and the sophistication level of attacks that you should be prepared to guard against.

    A map of Battle Against Ransomware scenarios with two axes representing 'Attack Sophistication, From off-the-shelf, ransomware-as-a-service kits to state-sponsored supply chain attacks' and 'Investment in Cybersecurity, From low, minimal investment to high investment for a multi-layer approach.'. The axes split the map into quarters. 'Attack Sophistication' ranges from 'Ransomware as a Service' on the left to 'State-Sponsored' on the right. 'Investment in Cybersecurity' ranges from 'High' on top to 'Low' on bottom. The top left quarter, highly invested ransomware as a service, reads 'Organization is protected from most ransomware attacks and isn’t directly targeted by state-sponsored attacks.' The top right quarter, highly invested state-sponsored, reads 'Organization is protected against most ransomware attacks but could be targeted by state-sponsored attacks if considered a high-value target.' The bottom left quarter, low investment ransomware as a service, reads 'Organization is exposed to most ransomware attacks and is vulnerable to hackers looking to make a quick buck by casting a wide net.' The bottom right quarter, low investment state-sponsored, reads 'Organization is exposed to most ransomware attacks and risks being swept up in a supply chain attack by being targeted or as collateral damage.'

    Recommendations

    Create a ransomware incident response plan. Assess your current security practices and identify gaps. Quantify your ransomware risk to prioritize investments and run tabletop planning exercises for ransomware attacks.

    Reduce your exposure to ransomware. Focus on securing the frontlines by improving phishing awareness among staff and deploying AI tools to help flag attacks. Use multi-factor authentication. Take a zero-trust approach and review your use of RDP, SSH, and VPN.

    Require security in contracts. Security must be built into vendor contracts. Government contracts are now doing this, elevating security to the same level as functionality and support features. This puts money incentives behind improving security. (Interview with Intel Federal CTO Steve Orrin)

    42% of IT practitioners feel employees must do much more to help defend against ransomware. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Carbon Metrics in Energy 4.0

    TREND 03 | BUSINESS PROCESS CONTROLS AND INTERNAL AUDIT

    Use Internet of Things (IoT) and auditable tracking to provide insight into business process implications for greenhouse gas emissions.

    Emerging technologies:
    IoT

    Introduction

    Making progress towards a carbon-neutral future.

    A landmark report published in 2021 by the United Nations Intergovernmental Panel on Climate Change underlines that human actions can still determine the future course of climate change. The report calls on governments, individuals, and organizations to stop putting new greenhouse gas emissions into the atmosphere no later than 2050, and to be at the halfway point to achieving that by 2030.

    With calls to action becoming more urgent, organizations are making plans to reduce the use of fossil fuels, move to renewable energy sources, and reduce consumption that causes more emissions downstream. As both voluntary and mandatory regulatory requirements task organizations with reducing emissions, they will first be challenged to accurately measure the size of their footprint.

    CIOs in organizations are well positioned to make conscious decisions to both influence how technology choices impact carbon emissions and implement effective tracking of emissions across the entire enterprise.

    Canada’s CIO strategy council is calling on organizations to sign a “sustainable IT pledge” to cut emissions from IT operations and supply chain and to measure and disclose emissions annually. (CIO Strategy Council, Sustainable IT Pledge)

    SCOPE 3 – Indirect Consumption

    • Goods and services
    • Fuel, travel, distribution
    • Waste, investments, leased assets, employee activity

    SCOPE 2 – Indirect Energy

    • Electricity
    • Heat and cooling

    SCOPE 1 – Direct

    • Facilities
    • Vehicles

    Signals

    Emissions tracking requires a larger scope.

    About two-thirds of organizations have a commitment to reduce greenhouse gas emissions. When asked about what tactics they use to reduce emissions, the most popular options affect either scope 1 emissions (retiring older IT equipment) or scope 2 emissions (using renewable energy sources). Fewer are using tactics that would measure scope 3 emissions such as using IoT to track or using software or AI.

    68% of organizations say they have a commitment to reduce greenhouse gas emissions. (Info-Tech Tech Trends 2022 Survey)

    Approaches to reducing carbon emissions

    Using "smart technologies" or IoT to help cut emissions 12%
    Creating incentive programs for staff to reduce emissions 10%
    Using software or AI to manage energy use 8%
    Using external DC or cloud on renewable energy 16%
    Committing to external emissions standards 15%
    Retiring/updating older IT equipment 33%
    Using renewable energy sources 41%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    Investor pressure

    The world’s largest asset manager, at $7 trillion in investments, says it will move away from investing in firms that are not aligned to the Paris Agreement. (The New York Times, 2020)

    Compliance tipping point

    International charity CDP has been collecting environmental disclosure from organizations since 2002. In 2020, more than 9,600 of the world’s largest companies – representing over 50% of global market value – took part. (CDP, 2021)

    International law

    In 2021, six countries have net-zero emissions policies in law, six have proposed legislations, and 20 have policy documents. (Energy & Climate Intelligence Unit, 2021)

    Employee satisfaction

    In 2019, thousands of workers walked out of offices of Amazon, Google, Twitter, and Microsoft to demand their employers do more to reduce carbon emissions. (NBC News, 2021)

    High influence factors for carbon reduction

    • 25% – New government laws or policies
    • 9% – External social pressures
    • 9% – Pressure from investors
    • 8% – International climate compliance efforts
    • 7% – Employee satisfaction

    (Info-Tech Tech Trends 2022 Survey)

    Risks and Benefits

    Benefits

    Trust Tracking carbon emissions creates transparency into an organization’s operations and demonstrates accountability to its carbon emissions reduction goals.
    Innovation As organizations become more proficient with carbon measurement and modeling, insights can be leveraged as a decision-making tool.
    Resilience Reducing energy usage shrinks your carbon footprint, increases operational efficiency, and decreases energy costs.

    Risks

    Regulatory Divergence Standardization of compliance enforcement around carbon emissions is a work in progress. Several different voluntary frameworks exist, and different governments are taking different approaches including taxation and cap-and-trade markets.
    Perceptions Company communications that speak to emissions reduction targets without providing proof can be accused of “greenwashing” or falsely trying to improve public perception.
    Financial Pain Institutional investments are requiring clear commitments and plans to reduce greenhouse gases. Some jurisdictions are now taxing carbon emissions.

    “When you can take technology and embed that into management change decisions that impact the environment, you can essentially guarantee that [greenhouse gas] offset. Companies that are looking to reduce their emissions can buy those offsets and it creates value for everybody.” (Wade Barnes, CEO and founder of Farmers Edge)

    Photo of Wade Barnes, CEO and founder of Farmers Edge.

    Listen to the Tech Insights podcast: The future of farming is digital

    Case Study

    Situation

    The Alberta Technology Innovation and Emissions Reduction Regulation is Alberta’s approach to reduce emissions from large industrial emitters. It prices GHG and provides a trading system.

    No-till farming and nitrogen management techniques sequester up to 0.3 metric tons of GHG per year.

    Complication

    Farmers Edge offers farmers a digital platform that includes IoT and a unified data warehouse. It can turn farm records into digital environmental assets, which are aggregated and sold to emitters.

    Real-time data from connected vehicles, connected sensors, and other various inputs can be verified by third-party auditors.

    Resolution

    Farmers Edge sold aggregated carbon offsets to Alberta power producer Capital Power to help it meet regulatory compliance.

    Farmers Edge is expanding its platform to include farmers in other provinces and in the US, providing them opportunity to earn revenue via its Smart Carbon program.

    The firm is working to meet standards outlined by the U.S. Department of Agriculture’s Natural Resources Conservation Service. (Interview with Wade Barnes, CEO, Farmers Edge)

    What's Next

    Global standards:

    The International Sustainability Standards Board (ISSB) has been formed by the International Financial Reporting Standards Foundation and will have its headquarters location announced in November at a United Nations conference. The body is already governing a set of global standards that have a roadmap for development through 2023 through open consultation. The standards are expected to bring together the multiple frameworks for sustainability standards and offer one global set of standards. (Business Council of Canada, 2021)

    CIOs take charge:

    The CIO is well positioned to take the lead role on corporate sustainability initiatives, including measuring and reducing an organization’s carbon footprint (or perhaps even monetizing carbon credits for an organization that is a negative emitter). CIOs can use their position as facilities managers and cross-functional process owners and mandate to reduce waste and inefficiency to take accountability for this important role. CIOs will expand their roles to deliver transparent and auditable reporting on environmental, social, and governance (ESG) goals for the enterprise.

    Uncertainties

    International resolve:

    Fighting the climate crisis will require governments and private sector collaboration from around the world to commit to creating new economic structures to discourage greenhouse gas emissions and incentivize long-term sustainable thinking. If some countries or private sector forces continue to prioritize short-term gains over sustainability, the U.N.’s goals won’t be achieved and the human costs as a result of climate change will become more profound.

    Cap-and-trade markets:

    Markets where carbon credits are sold to emitters are organized by various jurisdictions around the world and have different incentive structures. Some are created by governments and others are voluntary markets created by industry. This type of organization for these markets limits their size and makes it hard to scale the impact. Organizations looking to sell carbon credits at volume face the friction of having to navigate different compliance rules for each market they want to participate in.

    Carbon Metrics in Energy 4.0 Scenarios

    Determine your organization’s approach to measuring carbon dioxide and other greenhouse gas emissions by considering whether your organization is likely to be a high emitter or a carbon sink. Also consider your capability to measure and report on your carbon footprint.

    A map of Carbon Metrics in Energy 4.0 scenarios with two axes representing 'Quantification Capability, From not tracking any emissions whatsoever to tracking all emissions at every scope' and 'Greenhouse Gas Emissions, From mitigating more emissions than you create to emitting more than regulations allow'. The axes split the map into quarters. 'Quantification Capability' ranges from 'No Measures' on the left to 'All Emissions Measured' on the right. 'Greenhouse Gas Emissions' ranges from 'More Than Allowed' on top to 'Net-Negative' on bottom. The top left quarter, no measures and more than allowed, reads 'Companies that are likely to be high emitters and not measuring will attract the most scrutiny from regulators and investors.' The top right quarter, all measured and more than allowed, reads 'Companies emit more than regulators allow but the measurements show a clear path to mitigation through the purchase of carbon credits.' The bottom left quarter, no measures and net-negative, reads 'Companies able to achieve carbon neutrality or even be net-negative in emissions but unable to demonstrate it will still face scrutiny from regulators.' The bottom right quarter, all measured and net-negative, reads 'Companies able to remove more emissions than they create have an opportunity to aggregate those reductions and sell on a cap-and-trade market.'

    Recommendations

    Measure the whole footprint. Devise a plan to measure scope 1, 2, and 3 greenhouse gas emissions at a level that is auditable by a third party.

    Gauge the impact of Industry 4.0. New technologies in Industry 4.0 include IoT, additive manufacturing, and advanced analytics. Make sustainability a core part of your focus as you plan out how these technologies will integrate with your business.

    Commit to net zero. Make a clear commitment to achieve net-zero emissions by a specific date as part of your organization’s core strategy. Take a continuous improvement approach to make progress towards the goal with measurable results.

    New laws from governments will have the highest degree of influence on an organization’s decision to reduce emissions. (Info-Tech Tech Trends 2022 Survey)

    Info-Tech Resources

    Intangible Value Creation

    TREND 04 | DATA ARCHITECTURE

    Use blockchain technology to turn unique intellectual property into saleable digital products. Provide governance around marketplaces where sales are made.

    Emerging technologies:
    Blockchain, Distributed Ledger Technology, Virtual Environments

    Introduction

    Decentralized technologies are propelling the digital economy.

    As the COVID-19 pandemic has accelerated our shift into virtual social and economic systems, blockchain technology poses a new technological frontier – further disrupting digital interactions and value creation by providing a modification of data without relying on third parties. New blockchain software developments are being used to redefine how central banks distribute currency and to track provenance for scarce digital assets.

    Tokenizing the blockchain

    Non-fungible tokens (NFTs) are distinct cryptographic tokens created from blockchain technology. The rarity systems in NFTs are redefining digital ownership and being used to drive creator-centric communities.

    Not crypto-currency, central currency

    Central Bank Digital Currencies (CBDC) combine the same architecture of cryptocurrencies built on blockchain with the financial authority of a central bank. These currencies are not decentralized because they are controlled by a central authority, rather they are distributed systems. (Decrypt, 2021)

    80% of banks are working on a digital currency. (Atlantic Council, 2021)

    Brands that launched NFTs

    NBA, NFL, Formula 1, Nike, Stella Artois, Coca-Cola, Mattel, Dolce & Gabbana, Ubisoft, Charmin

    Banks that launched digital currencies

    The Bahamas, Saint Kitts and Nevis, Antigua and Barbuda, Saint Lucia, Grenada

    Signals

    ID on the blockchain

    Blockchains can contain smart contracts that automatically execute given specific conditions, protecting stakeholders involved in a transaction. These have been used by central banks to automate when and how currency can be spent and by NFT platforms to attribute a unique identity to a digital asset. Automation and identity verification are the most highly valued digital capabilities of IT practitioners.

    $69.3 million – The world’s most expensive NFT artwork sale, for Beeple’s “Everydays: The First 5,000 Days” (The New York Times, Mar. 2021)

    Digital capabilities that provide high value to the organization

    E-commerce 50%
    Automation 79%
    Smart contracts 42%
    Community building and engagement 55%
    Real-time payments 46%
    Tracking provenance 33%
    Identity verification 74%

    (Info-Tech Tech Trends 2022 Survey)

    Drivers

    Financial autonomy

    Central banks view cryptocurrencies as "working against the public good" and want to maintain control over their financial system to maintain the integrity of payments and provide financial crime oversight and protections against money laundering. (Board of Governors of the Federal Reserve System, 2021)

    Bitcoin energy requirements and greenhouse gas emissions

    Annual energy consumption of the Bitcoin blockchain in China is estimated to peak in 2024 at 297 TwH and generate 130.5 million metric tons of carbon emissions. That would exceed the annual GHG of the Czech Republic and Qatar and rank in the top 10 among 182 cities and 42 industrial sectors in China. This is motiving cryptocurrency developers and central banks to move away from the energy-intensive "Proof of Work" mining approach and towards the "Proof of Stake" approach. (Nature Communications, 2021)

    Digital communities

    During the pandemic, people spent more time exploring digital spaces and interacting in digital communities. Asset ownership within those communities is a way for individuals to show their own personal investment in the community and achieve a status that often comes with additional privileges. The digital assets can also be viewed as an investment vehicle or to gain access to exclusive experiences.

    “The pillars of the music economy have always been based on three things that the artist has never had full control of. The idea of distribution is freed up. The way we are going to connect to fans in this direct to fan value prop is very interesting. The fact we can monetize it, and that money exchange, that transaction is immediate. And on a platform like S!NG we legitimately have a platform to community build…. Artists are getting a superpower.” (Raine Maida, Chief Product Officer, S!NG Singer, Our Lady Peace)

    Raine Maida, Chief Product Officer, S!NG, and Singer, Our Lady Peace.

    Listen to the Tech Insights podcast: Raine Maida's startup is an NFT app for music

    Case Study

    Situation

    Artists can create works and distribute them to a wide audience more easily than ever with the internet. Publishing a drawing or a song to a website allows it to be infinitely copied. Creators can use social media accounts and digital advertisements to build up a fan base for their work and monetize it through sales or premium-access subscriber schemes.

    Complication

    The internet's capacity for frictionless distribution is a boon and a burden for artists at the same time. Protecting copyright in a digital environment is difficult because there is no way to track a song or a picture back to its creator. This devalues the work because it can be freely exchanged by users.

    Resolution

    S!NG allows creators to mint their works with a digital token that stamps its origin to the file and tracks provenance as it is reused and adapted into other works. It uses the ERC 721 standard on the Ethereum blockchain to create its NFT tokens. They are portable files that the user can create for free on the S!NG platform and are interoperable with other digital token platforms. This enables a collaboration utility by reducing friction in using other people's works while giving proper attribution. Musicians can create mix tracks using the samples of others’ work easily and benefit from a smart-contract-based revenue structure that returns money to creators when sales are made. (Interview with Geoff Osler and Raine Maida, S!NG Executives)

    Risks and Benefits

    Benefits

    Autonomy Digital money and assets could proliferate the desire for autonomy as users have greater control over their assets (by cutting out the middlemen, democratizing access to investments, and re-claiming ownership over intangible data).
    Community Digital worlds and assets offer integrated and interoperable experiences influenced by user communities.
    Equity Digital assets allow different shareholder equity models as they grant accessible and affordable access to ownership.

    Risks

    Volatility Digital assets are prone to volatile price fluctuations. A primary reason for this is due to its perceived value relative to the fiat currency and the uncertainty around its future value.
    Security While one of the main features of blockchain-based digital assets is security, digital assets are vulnerable to breaches during the process of storing and trading assets.
    Access Access to digital marketplaces requires a steep learning curve and a base level of technical knowledge.

    What's Next

    Into the Metaverse:

    Digital tokens are finding new utility in virtual environments known as the Metaverse. Decentraland is an example of a virtual reality environment that can be accessed via a web browser. Based on the Ethereum blockchain, it's seen sales of virtual land plots for hundreds of thousands of dollars. Sotheby's is one buyer, building a digital replica of its New Bond Street gallery in London, complete with commissionaire Hans Lomuldur in avatar form to greet visitors. The gallery will showcase and sell Sotheby's digital artworks. (Artnet News, 2021)

    Bitcoin as legal tender:

    El Salvador became the first country in the world to make Bitcoin legal tender in September 2021. The government intended for this to help citizens avoid remittance fees when receiving money sent from abroad and to provide a way for citizens without bank accounts to receive payments. Digital wallet Chivo launched with technical glitches and in October a loophole that allowed “price scalping” had to be removed to stop speculators from using the app to trade for profit. El Salvador’s experiment will influence whether other countries consider using Bitcoin as legal tender. (New Scientist, 2021)

    Uncertainties

    Stolen goods at the mint:

    William Shatner complained that Twitter account @tokenizedtweets had taken his content without permission and minted tokens for sale. In doing so, he pointed out there’s no guarantee a minted digital asset is linked to the creator of the attached intellectual property.

    Decentralized vs. distributed finance:

    Will blockchain-based markets be controlled by a single platform operator or become truly open? For example, Dapper Labs centralizes the minting of NFTs on its Flow blockchain and controls sales through its markets. OpenSea allows NFTs minted elsewhere to be brought to the platform and sold.

    Supply and demand:

    Platforms need to improve the reliability of minting technology to create tokens in the future. Ethereum's network is facing more demand than it can keep up with and requires future upgrades to improve its efficiency. Other platforms that support minting tokens are also awaiting upgrades to be fully functional or have seen limited NFT projects launched on their platform.

    Intangible Value Creation Scenarios

    Determine your organization’s strategy by considering the different scenarios based on two main factors. The design decisions are made around whether digital assets are decentralized or distributed and whether the assets facilitate transactions or collections.

    A map of Intangible Value Creation scenarios with two axes representing 'Fungibility, From assets that are designed to be exchanged like currency to assets that are unique' and 'Asset Control Model, From decentralized control with open ownership to centralized control with distributed assets'. The axes split the map into quarters. 'Fungibility' ranges from 'Transactional' on the left to 'Collectible' on the right. 'Asset Control Model' ranges from 'Distributed' on top to 'Decentralized' on bottom. The top left quarter, distributed transactional, reads 'Platform-controlled digital exchanges and utility (e.g. tokens exchanged for fan experiences, central bank digital currency, S!NG).' The top right quarter, distributed collectible, reads 'Platform-controlled digital showcases and community (e.g. NBA Top Shot, Decentraland property).' The bottom left quarter, decentralized transactional, reads 'Peer-controlled digital exchanges and utility (e.g. Bitcoin).' The bottom right quarter, decentralized collectible, reads 'Peer-controlled digital showcases and community (e.g. OpenSea and Ethereum-based NFTs).'

    Recommendations

    Determine your role in the digital asset ecosystem.
    • Becoming a platform provider for digital tokens will require a minting capability to create blockchain-based assets and a marketplace for users to exchange them.
    • Issuing digital tokens to a platform through a sale will require making partnerships and marketing.
    • Investing in digital assets will require management of digital wallets and subject-matter expert analysis of the emerging markets.
    Track the implications of digital currencies.

    Track what your country’s central bank is planning for digital currency and determine if you’ll need to prepare to support it. Be informed about payment partner support for cryptocurrency and consider any complications that may introduce.

    $1 billion+ – The amount of cryptocurrency spent by consumers globally through crypto-linked Visa cards in first half of 2021. (CNBC, July 2021)

    Info-Tech Resources

    Automation as a Service

    TREND 05 | INNOVATION

    Automate business processes and access new sophisticated technology services through platform integration.

    Emerging technologies:
    Cloud platforms, APIs, Generative AI

    Introduction

    The glue for innovation

    Rapidly constructing a business model that is ready to compete in a digital economy requires continuous innovation. Application programming interfaces (APIs) can accelerate innovation by unlocking marketplaces of ready-to-use solutions to business problems and automating manual tasks to make more time for creativity. APIs facilitate a microarchitecture approach and make it possible to call upon a new capability with a few lines of code. This is not a new tool, as the first API was specified in 1951, but there were significant advances of both scale and capability in this area in 2021.

    In the past 18 months, API adoption has exploded and even industries previously considered as digital laggards are now integrating them to reinvent back-office processes. Technology platforms specializing in API management are attracting record-breaking investment. And sophisticated technology services such as artificial intelligence are being delivered by APIs.

    APIs can play a role in every company’s digital strategy, from transforming back-office processes to creating revenue as part of a platform.

    $500,000 was invested in API companies in 2016. (Forbes, May 2021)

    $2,000,000,000+ was invested in API companies in 2020. (Forbes, May 2021)

    69% of IT practitioners say digital transformation has been a high priority for their organization during the pandemic. (Info-Tech Tech Trends 2022 Survey)

    51% of developers used more APIs in 2020 than in 2019. (InsideHPC, 2021)

    71% of developers planned to use even more APIs in 2021. (InsideHPC, 2021)

    Signals

    IT practitioners indicate that digital transformation was a strong focus for their organization during the pandemic and will remain so during the period afterwards, and one-third say their organizations were “extremely focused” on digital transformation.

    When it came to shifting processes from being done manually to being completed digitally, more than half of IT practitioners say they shifted at least 21% of their processes during the past year. More than one in five say that at least 60% of their processes were shifted from manual to digital in the past year.

    3.5 trillion calls were performed on API management platform Apigee, representing a 50% increase year over year. (SiliconANGLE, 2021)

    Processes shifted from manual to digital in the past year

    A horizontal bar chart recording survey responses regarding the percent of processes that shifted from manual to digital in the past year. The horizontal axis is 'percent of survey respondents' with values from 0 to 35%. The vertical axis is 'percent of process shifted to digital' with bar labels 'Between 0 to 20%', 'Between 21 to 40%', and so on until 'Between 81 to 100%'. 20% of respondents answered '0 to 20%' of processes went digital. 28% of respondents answered '21 to 40%' of processes went digital. 30% of respondents answered '41 to 60%' of processes went digital. 15% of respondents answered '61 to 80%' of processes went digital. 7% of respondents answered '81 to 100%' of processes went digital.

    Drivers

    Covid-19

    The pandemic lockdowns pushed everyone into a remote-work scenario. With in-person interaction not an option, even more traditional businesses had to adapt to digital processes.

    Customer Expectations

    The success of digital services in the consumer space is causing expectations to rise in other areas, such as professional services. Consumers now want their health records to be portable and they want to pay their lawyer through e-transfer, not by writing a cheque. (Interview with Mik Lernout)

    Standardization

    Technology laggard industries such as legal and healthcare are recognizing the pain of working with siloed systems. New standardization efforts are driving the adoption of open APIs at a rapid rate. (Interview with Jennifer Jones, Research Director – Industry, Info-Tech Research Group)

    Risks and Benefits

    Benefits

    Speed Using a microarchitecture approach with readily available services constructed in different ways provides a faster way to get from idea to minimum-viable product.
    Intelligence Open APIs have more than ever exposed people to sophisticated AI algorithms that were in the domain of only advanced researchers just a couple years ago. Developers can integrate AI with a couple lines of code. Non-technical users can train algorithms with low-code and no-code tools (Forbes, Sept. 2021).
    Resilience If one function of a solution doesn't work, it can be easily replaced with another one available on the market and the overall experience is maintained.

    Risks

    Loss of Privacy APIs are being targeted by hackers as a way to access personal information. Recent API-related leaks affected Experian, John Deere, Clubhouse, and Peloton (VentureBeat, 2021).
    Complexity Using a decentralized approach to assemble applications means that there is no single party accountable for the solution. Different pieces can break, or oversights can go unnoticed.
    Copycats Platforms that take the approach of exposing all functions via API run the risk of having their services used by a competitor to offer the same solution but with an even better user experience.

    “When we think about what the pandemic did, we had this internal project called 'back to the future.' It kind of put the legal industry in a time machine and it kind of accelerated the legal industry 5, maybe even 10 years. A lot of the things we saw with the innovators became table stakes.” (Mik Lernout, Vice President of Product, Clio)

    Photo of Mik Lernout, Vice president of product, Clio.

    Listen to the Tech Insights podcast: Clio drives digital transformation to redefine the legal industry

    Case Study

    Situation

    The COVID-19 pandemic required the legal industry to shift to remote work. A typically change-resistant industry was now holding court hearings over videoconference, taking online payments, and collecting e-signatures on contracts. For Clio, a software-as-a-service software vendor that serves the legal industry, its client base grew and its usage increased. It previously focused on the innovators in the legal industry, but now it noticed laggards were going digital too.

    Complication

    Law firms have very different needs depending on their legal practice area (e.g. family law, corporate law, or personal injury) and what jurisdiction they operate in.

    Clients are also demanding more from their lawyers in terms of service experience. They don't want to travel to the law office to drop off a check but expect digital interactions on par with service they receive in other areas.

    Resolution

    Since its inception, Clio built its software product so that all of its functions could be called upon by an API as well. It describes its platform as the "operating system for the legal industry." Its API functions include capabilities like managing activities, billing, and contracts. External developers can submit applications to the Clio Marketplace to add new functionality. Its platform approach enables it to find solutions for its 150,000+ users. During the pandemic, Clio saw its customers rely on its APIs more than ever before. It expects this accelerated adoption to be the way of working in the future. (ProgrammableWeb, 2021; Interview with Mik Lernout)

    What's Next

    GOOGLE’S API-FIRST APPROACH:

    Google is expanding its Apigee API management platform so enterprises will be able to connect existing data and applications and access them via APIs. It's part of Google's API-first approach to digital transformation, helping enterprises with their integration challenges. The new release includes tools and a framework that's needed to integrate services in this way and includes pre-built connectors for common business apps and services such as Salesforce, Cloud SQL, MySQL, and BigQuery. (SiliconANGLE, 2021)

    Uncertainties

    API SECURITY:

    APIs represent another potential vulnerability for hackers to exploit and the rise in popularity has come with more security incidents. Companies using APIs have leaked data through APIs, with one research report on the state of API security finding that 91% of organizations have suffered an API security incident. Yet more than a quarter of firms running production APIs don’t have an API security strategy. (VentureBeat, 2021)

    For low IT maturity organizations moving onto platforms that introduce API capabilities, education is required about the consequences of creating more integrations. Platforms must bear some responsibility for monitoring for irregular activity. (Interview with Mik Lernout)

    Automation as a Service Scenarios

    Determine your organization’s platform strategy from the basis of your digital maturity – from that of a laggard to a native – and whether it involves monetized APIs vs. freely available public APIs. A strategy can include both the consumption of APIs and the creation of them.

    A map of Automation as a Service scenarios with two axes representing 'Business Model, From an open and public API to a monetized pay-for-use API' and 'Digital Maturity, From being a digital laggard to being a digital native'. The axes split the map into quarters. 'Business Model' ranges from 'Public APIs' on the left to 'Monetized APIs' on the right. 'Digital Maturity' ranges from 'Digital Native' on top to 'Digital Laggard' on bottom. The top left quarter, digital native public APIs, reads 'Platform business model that grows through adoption of free APIs (e.g. Clio).' The top right quarter, digital native monetized APIS, reads 'Platform business model with spectrum of API services including free tiers.' The bottom left quarter, digital laggard public APIs, reads 'Consume public APIs to simplify and automate business processes and improve customer experience (e.g. law firms using Clio).' The bottom right quarter, digital laggard monetized APIs, reads 'Consume paid APIs to provide customers with expanded services (e.g. retailer Lowe’s uses AccuWeather to predict supply and demand).'

    Recommendations

    Leverage APIs to connect your systems. Create a repeatable process to improve the quality, reusability, and governance of your web APIs.

    Transform your business model with digital platforms. Use the best practices of digital native enterprises and leverage your core assets to compete in a digital economy.

    Deliver sophisticated new capabilities with APIs. Develop an awareness of new services made available through API integration, such as artificial intelligence, and take advantage of them.

    4.5 billion words per day generated by the OpenAI natural language API GPT-3, just nine months after launch. (OpenAI, 2021)

    Info-Tech Resources

    Behind the design

    Inspiration provided by the golden ratio

    The golden ratio has long fascinated humans for its common occurrence in nature and inspired artists who adopted its proportions as a guiding principle for their creations. A new discovery of the golden ratio in economic cycles was published in August 2021 by Bert de Groot, et al. As the boundaries of value creation blur between physical and digital and the pace of change accelerates, these digital innovations may change our lives in many ways. But they are still bound by the context of the structure of the economy. Hear more about this surprising finding from de Groot and from this report’s designer by listening to our podcast. (Technological Forecasting and Social Change, 2021)

    “Everything happening will adapt itself into the next cycle, and that cycle is one phi distance away.” (Bert de Groot, professor of economics at Erasmus University Rotterdam)

    Photo of Bert de Groot, Professor of Economics at Erasmus University Rotterdam.

    Listen to the Tech Insights podcast: New discovery of the golden ratio in the economy

    Contributing Experts

    Vijay Sundaram
    Chief Strategy Officer, Zoho
    		 Photo of Vijay Sundaram, Chief Strategy Officer, Zoho.
    Jason Brommet
    Head of Modern Work and Security Business Group, Microsoft
    		 Photo of Jason Brommet, Head of Modern Work and Security Business Group at Microsoft.
    Steve Orrin
    Federal Chief Technology Officer, Intel
    		 Photo of Steve Orrin, Federal Chief Technology Officer, Intel.
    Wade Barnes
    CEO and Founder, Farmers Edge
    		 Photo of Wade Barnes, CEO and founder of Farmers Edge.

    Contributing Experts

    Raine Maida
    Chief Product Officer, S!NG
    Singer, Our Lady Peace
    		 Raine Maida, Chief Product Officer, S!NG Singer, Our Lady Peace.
    Geoff Osler
    CEO, S!NG
    		 Photo of Geoff Osler, CEO, S!NG.
    Mik Lernout
    Vice President of Product, Clio
    		 Photo of Mik Lernout, Vice President of Product, Clio.
    Bert de Groot
    Professor of Economics, Erasmus University Rotterdam
    		 Photo of Bert de Groot, Professor of Economics at Erasmus University Rotterdam.

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    About the research

    Tech trends survey

    As part of its research process for the 2022 Tech Trends Report, Info-Tech Research Group conducted an open online survey among its membership and wider community of professionals. The survey was fielded from August 2021 to September 2021, collecting 475 responses.

    The underlying metrics are diverse, capturing 14 countries and regions and 16 Industries.

    A geospatial chart of the world documenting the percentage of respondents from each country to Info-Tech's '2022 Tech Trends Report' Percentages are below.
    01 United States 45.3% 08 India 1.7%
    02 Canada 19.2% 09 Other (Asia) 1.7%
    03 Africa 9.3% 10 New Zealand 1.5%
    04 Other (Europe) 5.3% 11 Germany 0.8%
    05 Australia 4.2% 12 Mexico 0.4%
    06 Great Britain 3.8% 13 Netherlands 0.4%
    07 Middle East 2.9% 14 Japan 0.2%

    Industry

    01 Government 18.9%
    02 Media, Information, & Technology 12.8%
    03 Professional Services 12.8%
    04 Manufacturing 9.9%
    05 Education 8.8%
    06 Healthcare 8.2%
    07 Financial Services 7.8%
    08 Transportation & Logistics 3.4%
    09 Utilities 3.4%
    10 Insurance 2.5%
    11 Retail & Wholesale 2.5%
    12 Construction 2.3%
    13 Natural Resources 2.1%
    14 Real Estate & Property Management 1.7%
    15 Arts & Leisure 1.5%
    16 Professional Associations 1.3%

    Department

    IT (information technology) 88.2%
    Other (Department) 3.79%
    Operations 2.32%
    Research & Development 1.89%
    Sales 1.26%
    Administration 1.06%
    Finance 0.42%
    HR (Human Resources) 0.42%
    Marketing 0.42%
    Production 0.21%

    Role

    Manager 24%
    Director-level 22%
    C-level officer 19%
    VP-level 9%
    Team lead / supervisor 7%
    Owner / President / CEO 7%
    Team member 7%
    Consultant 5%
    Contractor 1%

    IT Spend

    Respondents on average spent 35 million per year on their IT budget.

    Accounting for the outlier responses – the median spend sits closer to 4.5 million per year. The highest spend on IT was within the Government, Healthcare, and Retail & Wholesale sectors.

    Understand the Data and Analytics Landscape

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    • Parent Category Name: Data Management
    • Parent Category Link: /data-management
    • The data and analytics landscape comprises many disciplines and components; organizations may find themselves unsure of where to start or what data topic or area they should be addressing.
    • Organizations want to better understand the components of the data and analytics landscape and how they are connected.

    Our Advice

    Critical Insight

    • This deck will provide a base understanding of the core data disciplines and will point to the various Info-Tech blueprints that dive deeper into each of the areas.

    Impact and Result

    • This deck will provide a base understanding of the core disciplines of the data and analytics landscape and will point to the various Info-Tech blueprints that dive deeper into each of the areas.

    Understand the Data and Analytics Landscape Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Understand the data and analytics landscape

    Get an overview of the core disciplines of the data and analytics landscape.

    • Understand the Data and Analytics Landscape Storyboard

    Infographic

    Drive Successful Sourcing Outcomes With a Robust RFP Process

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    • Parent Category Name: Vendor Management
    • Parent Category Link: /vendor-management
    • Most IT organizations do not have standard RFP templates and tools.
    • Many RFPs lack sufficient requirements.
    • Most RFP team members are not adequately trained on RFP best practices.
    • Most IT departments underestimate the amount of time that is required to perform an effective RFP.

    Our Advice

    Critical Insight

    • Vendors generally do not like RFPs
      Vendors view RFPs as time consuming and costly to respond to and believe that the decision is already made.
    • Don’t ignore the benefits of an RFI
      An RFI is too often overlooked as a tool for collecting information from vendors about their product offerings and services.
    • Leverage a pre-proposal conference to maintain an equal and level playing field
      Pre-proposal conference is a convenient and effective way to respond to vendors’ questions ensuring all vendors have the same information to provide a quality response.

    Impact and Result

    • A bad or incomplete RFP results in confusing and incomplete vendor RFP responses which consume time and resources.
    • Incomplete or misunderstood requirements add cost to your project due to the change orders required to complete the project.

    Drive Successful Sourcing Outcomes With a Robust RFP Process Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Storyboard – Leverage your vendor sourcing process to get better results

    Discover a proven process for your RFPs. Review Info-Tech’s process and understand how you can prevent your organization from leaking negotiation leverage while preventing vendors from taking control of your RFP. Our 7-phase process prevents a bad RFP from taking your time, money, and resources.

    • Drive Successful Sourcing Outcomes With a Robust RFP Process Storyboard

    2. Define your RFP Requirements Tool – A convenient tool to gather your requirements and align them to your negotiation strategy.

    Use this tool to assist you and your team in documenting the requirements for your RFP. Use the results of this tool to populate the requirements section of your RFP.

    • RFP Requirements Worksheet

    3. RFP Development Suite of Tools – Use Info-Tech’s RFP, pricing, and vendor response tools and templates to increase your efficiency in your RFP process.

    Configure this time-saving suite of tools to your organizational culture, needs, and most importantly the desired outcome of your RFP initiative. This suite contains four unique RFP templates. Evaluate which template is appropriate for your RFP. Also included in this suite are a response evaluation guidebook and several evaluation scoring tools along with a template to report the RFP results to stakeholders.

    • RFP Calendar and Key Date Tool
    • Vendor Pricing Tool
    • Lean RFP Template
    • Short-Form RFP Template
    • Long-Form RFP Template
    • Excel Form RFP Tool
    • RFP Evaluation Guidebook
    • RFP Evaluation Tool
    • Vendor TCO Tool
    • Consolidated Vendor RFP Response Evaluation Summary
    • Vendor Recommendation Presentation

    Infographic

    Workshop: Drive Successful Sourcing Outcomes With a Robust RFP Process

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Foundation for Creating Requirements

    The Purpose

    Problem Identification

    Key Benefits Achieved

    Current process mapped and requirements template configured

    Activities

    1.1 Overview and level-setting

    1.2 Identify needs and drivers

    1.3 Define and prioritize requirements

    1.4 Gain business authorization and ensure internal alignment

    Outputs

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    Map Your Process With Gap Identification

    Requirements Template

    2 Creating a Sourcing Process

    The Purpose

    Define Success Target

    Key Benefits Achieved

    Baseline RFP and evaluation templates

    Activities

    2.1 Create and issue RFP

    2.2 Evaluate responses/proposals and negotiate the agreement

    2.3 Purchase goods and services

    Outputs

    RFP Calendar Tool

    RFP Evaluation Guidebook

    RFP Respondent Evaluation Tool

    3 Configure Templates

    The Purpose

    Configure Templates

    Key Benefits Achieved

    Configured Templates

    Activities

    3.1 Assess and measure

    3.2 Review templates

    Outputs

    Long-Form RFP Template

    Short-Form RFP Template

    Excel-Based RFP Template

    Further reading

    Drive Successful Sourcing Outcomes With a Robust RFP Process

    Leverage your vendor sourcing process to get better results.

    EXECUTIVE BRIEF

    Drive Successful Sourcing Outcomes with a Robust RFP Process

    Lack of RFP Process Causes...
    • Stress
    • Confusion
    • Frustration
    • Directionless
    • Exhaustion
    • Uncertainty
    • Disappointment
    		 Solution: RFP Process
    Steps in an RFP Process, 'Identify Need', 'Define Business Requirements', 'Gain Business Authorization', 'Perform RFI/RFP', 'Negotiate Agreement', 'Purchase Good and Services', and 'Assess and Measure Performance'.
    • Best value solutions
    • Right-sized solutions
    • Competitive Negotiations
    • Better requirements that feed negotiations
    • Internal alignment on requirements and solutions
    • Vendor Management Governance Plan
    Requirements
    • Risk
    • Legal
    • Support
    • Security
    • Technical
    • Commercial
    • Operational
    • Vendor Management Governance
    		 Templates, Tools, Governance
    • RFP Template
    • Your Contracts
    • RFP Procedures
    • Pricing Template
    • Evaluation Guide
    • Evaluation Matrix
    		 Vendor Management
    • Scorecards
    • Classification
    • Business Review Meetings
    • Key Performance Indicators
    • Contract Management
    • Satisfaction Survey

    Analyst Perspective

    Consequences of a bad RFP

    Photo of Steven Jeffery, Principal Research Director, Vendor Management, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group

    “A bad request for proposal (RFP) is the gift that keeps on taking – your time, your resources, your energy, and your ability to accomplish your goal. A bad RFP is ineffective and incomplete, it creates more questions than it answers, and, perhaps most importantly, it does not meet your organization’s expectations.”

    Steven Jeffery
    Principal Research Director, Vendor Management
    Co-Author: The Art of Creating a Quality RFP
    Info-Tech Research Group

    Executive Summary

    Your Challenge

    • Most IT organizations are absent of standard RFP templates, tools, and processes.
    • Many RFPs lack sufficient requirements from across the business (Legal, Finance, Security, Risk, Procurement, VMO).
    • Most RFP team members are not adequately trained on RFP best practices.
    • Most IT departments underestimate the amount of time required to perform an effective RFP.
    • An ad hoc sourcing process is a common recipe for vendor performance failure.

    Common Obstacles

    • Lack of time
    • Lack of resources
    • Right team members not engaged
    • Poorly defined requirements
    • Too difficult to change supplier
    • Lack of a process
    • Lack of adequate tools/processes
    • Lack of a vendor communications plan that includes all business stakeholders.
    • Lack of consensus as to what the ideal result should look like.

    Info-Tech’s Approach

    • Establish a repeatable, consistent RFP process that maintains negotiation leverage and includes all key components.
    • Create reusable templates to expedite the RFP evaluation and selection process.
    • Maximize the competition by creating an equal and level playing field that encourages all the vendors to respond to your RFP.
    • Create a process that is clear and understandable for both the business unit and the vendor to follow.
    • Include Vendor Management concepts in the process.

    Info-Tech Insight

    A well planned and executed sourcing strategy that focuses on solid requirements, evaluation criteria, and vendor management will improve vendor performance.

    Executive Summary

    Your Challenge

    Your challenge is to determine the best sourcing tool to obtain vendor information on capabilities, solution(s), pricing and contracting: RFI, RFP, eRFX.

    Depending on your organization’s knowledge of the market, your available funding, and where you are in the sourcing process, there are several approaches to getting the information you need.

    An additional challenge is to answer the question “What is the purpose of our RFX?”

    If you do not have in-depth knowledge of the market, available solutions, and viable vendors, you may want to perform an RFI to provide available market information to guide your RFP strategy.

    If you have defined requirements, approved funding, and enough time, you can issue a detailed, concise RFP.

    If you have “the basics” about the solution to be acquired and are on a tight timeframe, an “enhanced RFI” may fit your needs.

    This blueprint will provide you with the tools and processes and insights to affect the best possible outcome.

    Executive Summary

    Common Obstacles

    • Lack of process/tools
    • Lack of input from stakeholders
    • Stakeholders circumventing the process to vendors
    • Vendors circumventing the process to key stakeholders
    • Lack of clear, concise, and thoroughly articulated requirements
    • Waiting until the vendor is selected to start contract negotiations
    • Waiting until the RFP responses are back to consider vendor management requirements
    • Lack of clear communication strategy to the vendor community that the team adheres to

    Many organizations underestimate the time commitment for an RFP

    70 Days is the average duration of an IT RFP.

    The average number of evaluators is 5-6

    4 Is the average number of vendor submissions, each requiring an average of two to three hours to review. (Source: Bonfire, 2019. Note: The 2019 Bonfire report on the “State of the RFP” is the most recent published.)

    		“IT RFPs take the longest from posting to award and have the most evaluators. This may be because IT is regarded as a complex subject requiring complex evaluation. Certainly, of all categories, IT offers the most alternative solutions. The technology is also changing rapidly, as are the requirements of IT users – the half-life of an IT requirement is less than six months (half the requirements specified now will be invalid six months from now). And when the RFP process takes up two of those months, vendors may be unable to meet changed requirements when the time to implement arrives. This is why IT RFPs should specify the problem to be resolved rather than the solution to be provided. If the problem resolution is the goal, vendors are free to implement the latest technologies to meet that need.” (Bonfire, “2019 State of the RFP”)

    Why Vendors Don’t Like RFPs

    Vendors’ win rate

    44%

    Vendors only win an average of 44% of the RFPs they respond to (Loopio, 2022).     		High cost to respond

    3-5%

    Vendors budget 3-5% of the anticipated contract value to respond (LinkedIn, 2017, Note: LinkedIn source is the latest information available).     		Time spent writing response

    23.8 hours

    Vendors spend on average 23.8 hours to write or respond to your RFP (Marketingprofs, 2021).

    Negative effects on your organization from a lack of RFP process

    Visualization titled 'Lack of RFP Process Causes' with the following seven items listed.

    Stress, because roles and responsibilities aren’t clearly defined and communication is haphazard, resulting in strained relationships.

    Confusion, because you don’t know what the expected or desired results are.

    Directionless, because you don’t know where the team is going.

    Uncertainty, with many questions of your own and many more from other team members.

    Frustration, because of all the questions the vendors ask as a result of unclear or incomplete requirements.

    Exhaustion, because reviewing RFP responses of insufficient quality is tedious.

    Disappointment in the results your company realizes.

    (Source: The Art of Creating a Quality RFP)

    Info-Tech’s approach

    Develop an inclusive and thorough approach to the RFP Process

    Steps in an RFP Process, 'Identify Need', 'Define Business Requirements', 'Gain Business Authorization', 'Perform RFI/RFP', 'Negotiate Agreement', 'Purchase Good and Services', and 'Assess and Measure Performance'.

    The Info-Tech difference:

    1. The secret to managing an RFP is to make it as manageable and as thorough as possible. The RFP process should be like any other aspect of business – by developing a standard process. With a process in place, you are better able to handle whatever comes your way, because you know the steps you need to follow to produce a top-notch RFP.
    2. The business then identifies the need for more information about a product/service or determines that a purchase is required.
    3. A team of stakeholders from each area impacted gather all business, technical, legal, and risk requirements. What are the expectations of the vendor relationship post-RFP? How will the vendors be evaluated?
    4. Based on the predetermined requirements, either an RFI or an RFP is issued to vendors with a predetermined due date.

    Insight Summary

    Overarching insight

    Without a well defined, consistent RFP process, with input from all key stakeholders, the organization will not achieve the best possible results from its sourcing efforts.

    Phase 1 insight

    Vendors are choosing to not respond to RFPs due to their length and lack of complete requirements.

    Phase 2 insight

    Be clear and concise in stating your requirements and include, in addition to IT requirements, procurement, security, legal, and risk requirements.

    Phase 3 insight

    Consider adding vendor management requirements to manage the ongoing relationship post contract.

    Tactical insight

    Consider the RFP Evaluation Process as you draft the RFP, including weighting the RFP components. Don’t underestimate the level of effort required to effectively evaluate responses – write the RFP with this in mind.

    Tactical insight

    Provide strict, prescriptive instructions detailing how the vendor should submit their responses. Controlling vendor responses will increase your team’s efficiency in evaluations while providing ease of reference responses across multiple vendors.

    Key deliverables

    Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

    Key deliverables:

    Info-Tech provides you with the tools you need to go to market in the most efficient manner possible, with guidance on how to achieve your goals.

    Sample of

    		Long-Form RFP Template
    For when you have complete requirements and time to develop a thorough RFP.     		Sample of the Long-Form RFP Template deliverable. Short-Form RFP Template
    When the requirements are not as extensive, time is short, and you are familiar with the market.     		Sample of the Short-Form RFP Template deliverable.
    Lean RFP Template
    When you have limited time and some knowledge of the market and wish to include only a few vendors.     		Sample of the Lean RFP Template deliverable. Excel-Form RFP Template
    When there are many requirements, many options, multiple vendors, and a broad evaluation team.     		Sample of the Excel-Form RFP Template deliverable.

    Blueprint benefits

    IT Benefits
    • Side-by-side comparison of vendor capabilities
    • Pricing alternatives
    • No surprises
    • Competitive solutions to deliver the best results
    		 Mutual IT and Business Benefits
    • Reduced time to implement
    • Improved alignment between IT /Business
    • Improved vendor performance
    • Improved vendor relations
    		 Business Benefits
    • Budget alignment, reduced cost
    • Best value
    • Risk mitigation
    • Legal and risk protections

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    Guided Implementation

    Workshop

    Consulting
    "Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful." "Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track." "We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place." "Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

    Diagnostics and consistent frameworks used throughout all four options

    Guided Implementation

    A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

    A typical GI is seven to twelve calls over the course of four to six months.

    What does a typical GI on this topic look like?

    Phase 1

    Phase 2

    Phase 3

    Phase 4

    Phase 5

    Phase 6

    Phase 7
    Call #1: Identify the need Call #3: Gain business authorization Call #5: Negotiate agreement strategy Call #7: Assess and measure performance
    Call #2: Define business requirements Call #4: Review and perform the RFX or RFP Call #6: Purchase goods and services

    Workshop Overview

    Contact your account representative for more information.
    workshops@infotech.com1-888-670-8889

    Day 1 Day 2 Day 3
    Activities
    Answer “What problem do we need to solve?”

    1.1 Overview and level-setting

    1.2 Identify needs and drivers

    1.3 Define and prioritize requirements

    1.4 Gain business authorization and ensure internal alignment

    Define what success looks like?

    2.1 Create and issue RFP

    2.2 Evaluate responses/ proposals and negotiate the agreement.

    2.3 Purchase goods and services

    Configure Templates

    3.1 Assess and measure

    3.2 Review tools

    Deliverables
    1. Map your process with gap identification
    2. RFP Requirements Worksheet
    1. RFP Calendar and Key Date Tool
    2. RFP Evaluation Guidebook
    3. RFP Evaluation Tool
      4.
    1. Long-form RFP Template
    2. Short-form RFP Template
    3. Excel-based RFP Tool
    4. Lean RFP Template
      5.

    Phase 1

    Identify Need

    Steps

    1.1 Establish the need to either purchase goods/services (RFP) or acquire additional information from the market (RFI).

    		Steps in an RFP Process with the first step, 'Identify Need', highlighted.

    This phase involves the following participants:

    • Business stakeholders
    • IT
    • Sourcing/Procurement
    • Finance

    Identify the need based on business requirements, changing technology, increasing vendor costs, expiring contracts, and changing regulatory requirements.

    Outcomes of this phase

    Agreement on the need to go to market to make a purchase (RFP) or to acquire additional information (RFI) along with a high-level agreement on requirements, rough schedule (is there time to do a full blown RFP or are you time constrained, which may result in an eRFP) and the RFP team is identified.

    Identify Need
    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Identify the Need for Your RFP

    • An RFP is issued to the market when you are certain that you intend to purchase a product/service and have identified an adequate vendor base from which to choose as a result of:

      • IT Strategy
      • Changes in technology
      • Marketplace assessment
      • Contract expiration/renewal
      • Changes in regulatory requirements
      • Changes in the business’ requirements
    • An RFI is issued to the market when you are uncertain as to available technologies or supplier capabilities and need budgetary costs for planning purposes.
    • Be sure to choose the right RFx tool for your situation!
    		 Stock photo of a pen circling the word 'needs' on a printed document.

    Phase 2

    Define Your RFP Requirements

    Steps

    2.1 Define and classify the technical, business, financial, legal, and support and security requirements for your business.

    		Steps in an RFP Process with the second step, 'Define Business Requirements', highlighted.

    This phase involves the following participants:

    • IT
    • Legal
    • Finance
    • Risk management
    • Sourcing/Procurement
    • Business stakeholders

    Outcomes of this phase

    A detailed list of required business, technical, legal and procurement requirements classified as to absolute need(s), bargaining and concession need(s), and “nice to haves.”

    Define Business Requirements

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Define RFP Requirements

    Key things to consider when defining requirements

    • Must be inclusive of the needs of all stakeholders: business, technical, financial, and legal
    • Strive for clarity and completeness in each area of consideration.
    • Begin defining your “absolute,” “bargaining,” “concession,” and ‘”dropped/out of scope” requirements to streamline the evaluation process.
    • Keep the requirements identified as “absolute” to a minimum, because vendors that do not meet absolute requirements will be removed from consideration.
    • Do you have a standard contract that can be included or do you want to review the vendor’s contract?
    • Don’t forget Data Security!
    • Begin defining your vendor selection criteria.
    • What do you want the end result to look like?
    • How will you manage the selected vendor after the contract? Include key VM requirements.
    • Defining requirements can’t be rushed or you’ll find yourself answering many questions, which may create confusion.
    • Collect all your current spend and budget considerations regarding the needed product(s) and service(s).

    “Concentrate on the needs of the organization and not the wants of the individuals when creating requirements to avoid scope creep.” (Donna Glidden, ITRG Research Director)

    Leverage the “ABCD” approach found in our Prepare for Negotiations More Effectively blueprint:
    https://tymansgrpup.com/research/ss/prepare-for-negotiations-more-effectively

    2.1 Prioritize your requirements

    1 hr to several days

    Input: List of all requirements from IT and IT Security, Business, Sourcing/Procurement, Risk Management, and Legal

    Output: Prioritized list of RFP requirements approved by the stakeholder team

    Materials: The RFP Requirements Worksheet

    Participants: All stakeholders impacted by the RFP: IT, IT Security, the Business, Sourcing/ Procurement, Risk Management, Legal

    1. Use this tool to assist you and your team in documenting the requirements for your RFP. Leverage it to collect and categorize your requirements in preparation for negotiations. Use the results of this tool to populate the requirements section of your RFP.
    2. As a group, review each of the requirements and determine their priority as they will ultimately relate to the negotiations.
      • Prioritizing your requirements will set up your negotiation strategy and streamline the process.
      • By establishing the priority of each requirement upfront, you will save time and effort in the selection process.
    3. Review RFP requirements with stakeholders for approval.

    Download the RFP Requirements Worksheet

    Phase 3

    Gain Business Authorization

    Steps

    3.1 Obtain business authorization from the business, technology, finance and Sourcing/Procurement

    		Steps in an RFP Process with the third step, 'Gain Business Authorization', highlighted.

    This phase involves the following participants:

    • Business stakeholders
    • Technology and finance (depending upon the business)
    • Sourcing/Procurement

    Outcomes of this phase

    Approval by all key stakeholders to proceed with the issuing of the RFP and to make a purchase as a result.

    Gain Business Authorization

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Gain Business Authorization

    Gain authorization for your RFP from all relevant stakeholders
    • Alignment of stakeholders
    • Agreement on final requirements
    • Financial authorization
    • Commitment of resources
    • Agreement on what constitutes vendor qualification
    • Finalization of selection criteria and their prioritization

    Obtaining cross-function alignment will clear the way for contract, SOW, and budget approvals and not waste any of your and your vendor’s resources in performing an RFP that your organization is not ready to implement or invest financial and human resources in.

    		Stock photo of the word 'AUTHORIZED' stamped onto a white background with a much smaller stamp laying beside it.

    Phase 4

    Create and Issue

    Steps

    4.1 Build your RFP

    4.2 Decide RFI or not

    4.3 Create your RFP

    4.4 Receive & answer questions

    4.5 Perform Pre-Proposal Conference

    4.6 Evaluate responses

    		Steps in an RFP Process with the fourth step, 'Perform RFI/RFP', highlighted.

    This phase involves the following participants:

    • The RFP owner
    • IT
    • Business SMEs/stakeholders

    Outcomes of this phase

    RFP package is issued to vendors and includes the date of the Pre-Proposal Conference, which should be held shortly after RFP release and includes all parties.

    SME’s/stakeholders participate in providing answers to RFP contact for response to vendors.

    Create and Issue Your RFP/RFI

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Build your RFP with evaluation in mind

    Easing evaluation frustrations

    At the beginning of your RFP creation process consider how your requirements will impact the vendor’s response. Concentrate on the instructions you provide the vendors and how you wish to receive their responses. View the RFP through the lens of the vendors and envision how they are going to respond to the proposal.

    Limiting the number of requirements included in the RFP will increase the evaluation team’s speed when reviewing vendors’ responses. This is accomplished by not asking questions for common features and functionality that all vendors provide. Don’t ask multiple questions within a question. Avoid “lifting” vendor-specific language to copy into the RFP as this will signal to vendors who their competition might be and may deter their participation. Concentrate your requirement questions to those areas that are unique to your solution to reduce the amount of time required to evaluate the vendors’ response.

    Things to Consider When Creating Your RFP:

    • Consistency is the foundation for ease of evaluation.
    • Provide templates, such as an Excel worksheet, for the vendor’s pricing submissions and for its responses to close-ended questions.
    • Give detailed instructions on how the vendor should organize their response.
    • Limit the number of open-ended questions requiring a long narrative response to must-have requirements.
    • Organize your requirements and objectives in a numerical outline and have the vendor respond in the same manner, such as the following:
      • 1
      • 1.1
      • 1.1.1

    Increase your response quality

    Inconsistent formatting of vendor responses prevents an apples-to-apples evaluation between vendor responses. Evaluation teams are frequently challenged and are unable to evaluate vendors’ responses equally against each other for the following reasons:

    Challenges
    • Vendor responses are submitted with different and confusing nomenclature
    • Inconsistent format in response
    • Disparate order of sections in the vendors responses
    • Different style of outlining their responses, e.g. 1.1 vs. I.(i)
    • Pricing proposal included throughout their response
    • Responses are comingled with marketing messages
    • Vendor answers to requirements or objectives are not consolidated in a uniform manner
    • Disparate descriptions for response subsections
    		 Prevention
    • Provide specific instructions as to how the vendor is to organize their response:
      • How to format and outline the response
      • No marketing material
      • No pricing in the body of the response
    • Provide templates for pricing, technical, operational, and legal aspects.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP
      •

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Perform Request for Information

    Don’t underestimate the importance of the RFI

    As the name implies, a request for information (RFI) is a tool for collecting information from vendors about the companies, their products, and their services. We find RFIs useful when faced with a lot of vendors that we don’t know much about, when we want to benchmark the marketplace for products and services, including budgetary information, and when we have identified more potential vendors than we care to commit a full RFP to.

    RFIs are simpler and less time-consuming than RFPs to prepare and evaluate, so it can make a lot of sense to start with an RFI. Eliminating unqualified vendors from further consideration will save your team from weeding through RFP responses that do not meet your objectives. For their part, your vendors will appreciate your efforts to determine up-front which of them are the best bets before asking them to spend resources and money producing a costly proposal.

    While many organizations rarely use RFIs, they can be an effective tool in the vendor manager’s toolbox when used at the right time in the right way. RFIs can be deployed in competitive targeted negotiations.

    A Lean RFP is a two-stage strategy that speeds up the typical RFP process. The first stage is like an RFI on steroids, and the second stage is targeted competitive negotiation.

    Don’t rely solely on the internet to qualify vendors; use an RFI to acquire additional information before finalizing an RFP.

    4.2.1 In a hurry? Consider a Lean RFP instead of an RFP

    Several days
    1. Create an RFI with all of the normal and customary components. Next, add a few additional RFP-like requirements (e.g. operational, technical, and legal requirements). Make sure you include a request for budgetary pricing and provide any significant features and functionality requirements so that the vendors have enough information to propose solutions. In addition, allow the vendors to ask questions through your single point of coordination and share answers with all of the vendors. Finally, notify the vendors that you will not be doing an RFP.
    2. Review the vendors’ proposals and evaluate their proposals against your requirements along with their notional or budgetary pricing.
    3. Have the evaluators utilize the Lean RFP Template to record their scores accordingly.
    4. After collecting the scores from the evaluators, consolidate the scores together to discuss which vendors – we recommend two or three – you want to present demos.
    5. Based on the vendors’ demos, the team selects at least two vendors to negotiate contract and pricing terms with intent of selecting the best-value vendor.
    6. The Lean RFP shortens the typical RFP process, maintains leverage for your organization, and works great with low- to medium-spend items (however your organization defines them). You’ll get clarification on vendors’ competencies and capabilities, obtain a fair market price, and meet your internal clients’ aggressive timelines while still taking steps to protect your organization.

    Download the Lean RFP Template

    Download the RFP Evaluation Tool

    4.2.1 In a hurry? Consider a Lean RFP instead of an RFP continued

    Input

    • List of technical, operational, business, and legal requirements
    • Budgetary pricing ask

    Output

    • A Lean RFP document that includes the primary components of an RFP
    • Lean RFP vendors response evaluation

    Materials

    • Lean RFP Template
    • RFP Evaluation Tool
    • Contracting requirements
    • Pricing

    Participants

    • IT
    • Business
    • Finance
    • Sourcing/Procurement

    Case Study

    A Lean RFP saves time
    INDUSTRY: Pharmaceutical
    SOURCE: Guided Implementation
    Challenge
    • The vendor manager (VM) was experiencing pressure to shorten the expected five-month duration to perform an RFP for software that planned, coordinated, and submitted regulatory documents to the US Food and Drug Administration.
    • The VM team was not completely familiar with the qualified vendors and their solutions.
    • The organization wanted to capitalize on this opportunity to enhance its current processes with the intent of improving efficiencies in documentation submissions.
    		 Solution
    • Leveraging the Lean RFP process, the team reduced the 200+ RFP questionnaire into a more manageable list of 34 significant questions to evaluate vendor responses.
    • The team issued the Lean RFP and requested the vendors’ responses in three weeks instead of the five weeks planned for the RFP process.
    • The team modified the scoring process to utilize a simple weighted-scoring methodology, using a scale of 1-5.
    		 Results
    • The Lean RFP scaled back the complexity of a large RFP.
    • The customer received three vendor responses ranging from 19 to 43 pages and 60-80% shorter than expected if the RFP had been used. This allowed the team to reduce the evaluation period by three weeks.
    • The duration of the RFx process was reduced by more than two months – from five months to just under three months.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    4.3.1 RFP Calendar

    1 hour

    Input: List duration in days of key activities, RFP Calendar and Key Date Tool, For all vendor-inclusive meetings, include the dates on your RFP calendar and reference them in the RFP

    Output: A timeline to complete the RFP that has the support of each stakeholder involved in the process and that allows for a complete and thorough vendor response.

    Materials: RFP Calendar and Key Date Tool

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    1. As a group, identify the key activities to be accomplished and the amount of time estimated to complete each task:
      1. Identify who is ultimately accountable for the completion of each task
      2. Determine the length of time required to complete each task
    2. Use the RFP Calendar and Key Date Tool to build the calendar specific to your needs.
    3. Include vendor-related dates in the RFP, i.e., Pre-Proposal Conference, deadline for RFP questions as well as response.

    Download the RFP Calendar and Key Date Tool

    Draft your RFP

    Create and issue your RFP, which should contain at least the following:
    • The ability for the vendors to ask clarifying questions (in writing, sent to the predetermined RFP contact)
    • Pre-Proposal/Pre-Bid Conference schedule where vendors can receive the same answer to all clarifying written questions
    • A calendar of events (block the time on stakeholder calendars – see template).
    • Instructions to potential vendors on how they should construct and return their response to enable effective and timely evaluation of each offer.
    • Requirements; for example: Functional, Operational, Technical, and Legal.
    • Specification drawings as if applicable.
    • Consider adding vendor management requirements – how do you want to manage the relationship after the deal is done?
    • A pricing template for vendors to complete that facilitates comparison across multiple vendors.
    • Contract terms required by your legal team (or your standard contract for vendors to redline as part of their response and rated/ranked accordingly).
    • Create your RFP with the evaluation process and team in mind to ensure efficiency and timeliness in the process. Be clear, concise, and complete in the document.
    • Consistency and completeness is the foundation for ease of evaluation.
    • Give vendors detailed instruction on how to structure and organize their response.
    • Limit the number of open-ended questions requiring a long narrative response.
    • Be sure to leverage Info-Tech’s proven and field-tested Short-Form, Long-Form, and Lean RFP Templates provided in this blueprint.

    Create a template for the vendors’ response

    Dictating to the vendors the format of their response will increase your evaluation efficiency
    Narrative Response:

    Create either a Word or Excel document that provides the vendor with an easy vehicle for their response. This template should include the question identifier that ties the response back to the requirement in the RFP. Instruct vendors to include the question number on any ancillary materials they wish to include.

    Pricing Response:

    Create a separate Excel template that the vendors must use to provide their financial offer. This template should include pricing for hardware, software, training, implementation, and professional services, as well as placeholders for any additional fees.

    Always be flexible in accepting alternative proposals after the vendor has responded with the information you requested in the format you require.

    		Stock image of a paper checklist in front of a laptop computer's screen.

    4.3.2 Vendor Pricing Tool

    1 hour

    Input: Identify pricing components for hardware, software, training, consulting/services, support, and additional licenses (if needed)

    Output: Vendor Pricing Tool

    Materials: RFP Requirements Worksheet, Pricing template

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Using a good pricing template will prevent vendors from providing pricing offers that create a strategic advantage designed to prevent you from performing an apples-to-apples comparison.
    2. Provide specific instructions as to how the vendor is to organize their pricing response, which should be submitted separate from the RFP response.
    3. Configure and tailor pricing templates that are specific to the product and/or services.
    4. Upon receipt of all the vendor’s responses, simply cut and paste their total response to your base template for an easy side-by-side pricing comparison.
    5. Do not allow vendors to submit financial proposals outside of your template.

    Download the Vendor Pricing Tool

    Three RFP Templates

    Choose the right template for the right sourcing initiative

    • Short-Form

      • Use the Short-Form RFP Template for simple, non-complex solutions that are medium to low dollar amounts that do not require numerous requirements.

    • Long-Form

      • We recommend the Long-Form RFP Template for highly technical and complex solutions that are high dollar and have long implementation duration.

    • Excel-Form

      • Leverage the Excel-Form RFP Tool for requirements that are more specific in nature to evaluate a vendor’s capability for their solution. This template is designed to be complete and inclusive of the RFP process, e.g., requirements, vendor response, and vendor response evaluation scoring.

    Like tools in a carpenters’ tool box or truck, there is no right or wrong template for any job. Take into account your organization culture, resources available, time frame, policies, and procedures to pick the right tool for the job. (Steve Jeffery, Principal Research Director, Vendor Management, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group)

    4.3.3 Short-Form RFP Template

    1-2 hours

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all participants agree to

    Materials: Short-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • This is a less complex RFP that has relatively basic requirements and perhaps a small window in which the vendors can respond. As with the long-form RFP, exhibits are placed at the end of the RFP, an arrangement that saves both your team and the vendors time. Of course, the short-form RFP contains less-specific instructions, guidelines, and rules for vendors’ proposal submissions.
    • We find that short-form RFPs are a good choice when you need to use something more than a request for quote (RFQ) but less than an RFP running 20 or more pages. It’s ideal, for example, when you want to send an RFP to only one vendor or to acquire items such as office supplies, contingent labor, or commodity items that don’t require significant vendor risk assessment.

    Download the Short-Form RFP Template

    4.3.4 Long-Form RFP Template

    1-3 hours

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all stakeholders agree to

    Materials: Long-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • A long-form or major RFP is an excellent tool for more complex and complicated requirements. This template is for a baseline RFP.
    • It starts with best-in-class RFP terms and conditions that are essential to maintaining your control throughout the RFP process. The specific requirements for the business, functional, technical, legal, and pricing areas should be included in the exhibits at the end of the template. That makes it easier to tailor the RFP for each deal, since you and your team can quickly identify specific areas that need modification. Grouping the exhibits together also makes it convenient for both your team to review and the vendors to respond.
    • You can use this sample RFP as the basis for your template RFP, taking it all as is or picking and choosing the sections that best meet the mission and objectives of the RFP and your organization.

    Download the Long-Form RFP Template

    4.3.5 Excel-Form RFP Tool

    Several weeks

    Input: List of technical, legal, business, and data security requirements

    Output: Full set of requirements, prioritized, that all stakeholders agree to

    Materials: Excel-Form RFP Template, Vendor Pricing Tool, Supporting exhibits

    Participants: IT management, Business stakeholder(s), Legal (as required), Risk management (as required), Sourcing/Procurement, Vendor management

    • The Excel-Form RFP Tool is used as an alternative to the other RFP toolsets if you have multiple requirements and have multiple vendors to choose from.
    • Requirements are written as a “statement” and the vendor can select from five answers as to their ability to meet the requirements, with the ability to provide additional context and materials to augment their answers, as needed.
    • Requirements are listed separately in each tab, for example, Business, Legal, Technical, Security, Support, Professional Services, etc.

    Download the Excel-Form RFP Template

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference
      •

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Answer Vendor Questions

    Maintaining your equal and level playing field among vendors

    • Provide an adequate amount of time from the RFP issue date to the deadline for vendor questions. There may be multiple vendor staff/departments that need to read the RFP and then discuss their response approach and gather any clarifying questions, so we generally recommend three to five business days.
    • There should be one point of contact for all Q&A, which should be submitted in writing via email only. Be sure to plan for enough time to get the answers back from the RFP stakeholders.
    • After the deadline, collect all Q&A and begin the process of consolidating into one document.
    		 Large silver question mark.
    • Be sure to anonymize both vendor questions and your responses, so as not to reveal who asked or answered the question.
    • Send the document to all RFP respondents via your sourcing tool or BCC in an email to the point of contact, with read receipt requested. That way, you can track who has received and opened the correspondence.
    • Provide the answers a few days prior to the Pre-Proposal Conference to allow all respondents time to review the document and prepare any additional questions.
    • Begin the preparation for the Pre-Proposal Conference.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference
      •

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report

    Conduct Pre-Proposal Conference

    Maintain an equal and level playing field

    • Consolidate all Q&A to be presented to all vendors during the Pre-Proposal Conference.
    • If the Pre-Proposal Conference is conducted via conference call, be sure to record the session and advise all participants at the beginning of the call.
    • Be sure to have key stakeholders present on the call to answer questions.
    • Read each question and answer, after which ask if there are any follow up questions. Be sure to capture them and then add them to the Q&A document.
    • Remind respondents that no further questions will be entertained during the remainder of the RFP response period.
    • Send the updated and completed document to all vendors (even if circumstances prevented their attending the Pre-Proposal Conference). Use the same process as when you sent out the initial answers: via email, blind copy the respondents and request read/receipt.

    “Using a Pre-Proposal Conference allows you to reinforce that there is a level playing field for all of the vendors…that each vendor has an equal chance to earn your business. This encourages and maximizes competition, and when that happens, the customer wins.” (Phil Bode, Principal Research Director, Co-Author: The Art of Creating a Quality RFP, Info-Tech Research Group)

    Pre-Proposal Conference Agenda

    Modify this agenda for your specific organization’s culture
    1. Opening Remarks & Welcome – RFP Manager
      1. Agenda review
      2. Purpose of the Pre-Proposal Conference
    2. Review Agenda
      1. Introduction of your (customer) attendees
    3. Participating Vendor Introduction (company name)
    4. Executive or Sr. Leadership Comments (limit to five minutes)
      1. Importance of the RFP
      2. High-level business objective or definition of success
    5. Review Key Dates in the RFP

    (Source: The Art of Creating a Quality RFP, Jeffery et al., 2019)
    1. Review of any Technical Drawings or Information
      1. Key technical requirements and constraints
      2. Key infrastructure requirements and constraints
    2. Review of any complex RFP Issues
      1. Project scope/out of scope
    3. Question &Answer
      1. Vendors’ questions in alphabetical order
    4. Review of Any Specific Instructions for the Respondents
    5. Conclusion/Closing
      1. Review how to submit additional questions
      2. Remind vendors of the single point of contact

    Allow your executive or leadership sponsor to leave the Pre-Proposal Conference after they provide their comments to allow them to continue their day while demonstrating to the vendors the importance of the project.

    Six Steps to Perform RFI/RFP

    Step 1

    • Build your RFP with evaluation in mind.

    Step 2

    • RFI or no RFI
    • Consider a Lean RFP

    Step 3

    • Create your RFP
    • Establish your RFP dates
    • Decide on RFP template
      • Short
      • Long
      • Excel
    • Create a template for vendors’ response
    • Create your Pricing Template

    Step 4

    • Receive RFP questions from vendors
    • Review and prepare answers to questions for the Pre-Proposal Conference

    Step 5

    • Conduct a Pre-Proposal Conference

    Step 6

    • Receive vendors’ proposals
    • Review for compliance and completion
    • Team evaluates vendors’ proposals.
    • Prepare TCO
    • Draft executive recommendation report
      •

    Evaluate Responses

    Other important information

    • Consider separating the pricing component from the RFP responses before sending them to reviewers to maintain objectivity until after you have received all ratings on the proposals themselves.
    • Each reviewer should set aside focused time to carefully read each vendor’s response
    • Read the entire vendor proposal – they spent a lot time and money responding to your request, so please read everything.
    • Remind reviewers that they should route any questions to the vendor through the RFP manager.
    • Using the predetermined ranking system for each section, rate each section of the response, capturing any notes, questions, or concerns as you proceed through the document(s).
    		 Stock photo of a 'Rating' meter with values 'Very Bad to 'Excellent'.

    Use a proven evaluation method

    Two proven methods to reviewing vendors’ proposals are by response and by objective

    The first, by response, is when the evaluator reviews each vendor’s response in its entirety.

    The second, reviewing by objective, is when the evaluator reviews each vendor’s response to a single objective before moving on to the next.

    By Response

    Two-way arrow with '+ Pros' in green on the left and 'Cons -' in red on the right.

    		By Objective

    Two-way arrow with '+ Pros' in green on the left and 'Cons -' in red on the right.

    • Each response is thoroughly read all the way through.
    • Response inconsistencies are easily noticed.
    • Evaluators obtain a good feel for the vendor's response.
    • Evaluators will lose interest as they move from one response to another.
    • Evaluation will be biased if the beginning of response is subpar, influencing the rest of the evaluation.
    • Deficiencies of the perceived favorite vendor are overlooked.
    • Evaluators concentrate on how each objective is addressed.
    • Evaluators better understand the responses, resulting in identifying the best response for the objective.
    • Evaluators are less susceptible to supplier bias.
    • Electronic format of the response hampers response review per objective.
    • If a hard copy is necessary, converting electronic responses to hard copy is costly and cumbersome.
    • Discipline is required to score each vendor's response as they go.

    Maintain evaluation objectivity by reducing response evaluation biases

    Evaluation teams can be naturally biased during their review of the vendors’ responses.

    You cannot eliminate bias completely – the best you can do is manage it by identifying these biases with the team and mitigating their influence in the evaluation process.

    Vendor

    The evaluator only trusts a certain vendor and is uncomfortable with any other vendor.
    • Evaluate the responses blind of vendor names, if possible.
    		 Centerpiece for this table, titled 'BIAS' and surrounding by iconized representations of the four types listed.

    Account Representatives

    Relationships extend beyond business, and an evaluator doesn't want to jeopardize them.
    • Craft RFP objectives that are vendor neutral.

    Technical

    A vendor is the only technical solution the evaluator is looking for, and they will not consider anything else.
    • Conduct fair and open solution demonstrations.

    Price

    As humans, we can justify anything at a good price.
    • Evaluate proposals without awareness of price.

    Additional insights when evaluating RFPs

    When your evaluation team includes a member of the C-suite or senior leadership, ensure you give them extra time to sufficiently review the vendor's responses. When your questions require a definitive “Yes”/“True” or “No”/“False” responses, we recommend giving the maximum score for “Yes”/“True” and the minimum score for “No”/“False”.
    Increase your efficiency and speed of evaluation by evaluating the mandatory requirements first. If a vendor's response doesn't meet the minimum requirements, save time by not reviewing the remainder of the response. Group your RFP questions with a high-level qualifying question, then the supporting detailed requirements. The evaluation team can save time by not evaluating a response that does not meet a high-level qualifying requirement.

    Establish your evaluation scoring scale

    Define your ranking scale to ensure consistency in ratings

    Within each section of your RFP are objectives, each of which should be given its own score. Our recommended approach is to award on a scale of 0 to 5. With such a scale, you need to define every level. Below are the recommended definitions for a 0 to 5 scoring scale.

    Score Criteria for Rating
    5 Outstanding – Complete understanding of current and future needs; solution addresses current and future needs
    4 Competent – Complete understanding and adequate solution
    3 Average – Average understanding and adequate solution
    2 Questionable – Average understanding; proposal questionable
    1 Poor – Minimal understanding
    0 Not acceptable – Lacks understanding
    		Stock photo of judges holding up their ratings.

    Weigh the sections of your RFP on how important or critical they are to the RFP

    Obtain Alignment on Weighting the Scores of Each Section
    • There are many ways to score responses, ranging from extremely simple to highly complicated. The most important thing is that everyone responsible for completing scorecards is in total agreement about how the scoring system should work. Otherwise, the scorecards will lose their value, since different weighting and scoring templates were used to arrive at their scores.
    • You can start by weighting the scores by section, with all sections adding up to 100%.
    		 Example RFP Section Weights
    Pie chart of example RFP section weights, 'Operational, 20%', 'Service-Level Agreements, 20%', 'Financial, 20%', 'Legal/Contractual, 15%', 'Technical, 10%' 'Functional, 15%'.
    (Source: The Art of Creating a Quality RFP, Jeffery et al., 2019)

    Protect your negotiation leverage with these best practices

    Protect your organization's reputation within the vendor community with a fair and balanced process.
    • Unless you regularly have the evaluators on your evaluation team, always assume that the team members are not familiar nor experienced with your process and procedures.
    • Do not underestimate the amount of preparations required to ensure that your evaluation team has everything they need to evaluate vendors’ responses without bias.
    • Be very specific about the expectations and time commitment required for the evaluation team to evaluate the responses.
    • Explain to the team members the importance of evaluating responses without conflicts of interest, including the fact that information contained within the responses and all discussions within the team are considered company owned and confidential.
    • Include examples of the evaluation and scoring processes to help the evaluators understand what they should be doing.
    • Finally – don’t forget to the thank the evaluation team and their managers for their time and commitment in contributing to this essential decision.
    		 Stock photo of a cork board with 'best practice' spelled out by tacked bits of paper, each with a letter in a different font.

    Evaluation teams must balance commercial vs. technical requirements

    Do not alter the evaluation weights after responses are submitted.
    • Evaluation teams are always challenged by weighing the importance of price, budget, and value against the technical requirements of “must-haves” and super cool “nice-to-haves.”
    • Encouraging the evaluation team not to inadvertently convert the nice-to-haves to must-haves will prevent scope creep and budget pressure. The evaluation team must concentrate on the vendors’ responses that drive the best value when balancing both commercial and technical requirements.
    		 Two blocks labelled 'Commercial Requirements' and 'Technical Requirements' balancing on either end of a flat sheet, which is balancing on a silver ball.

    4.6.1 Evaluation Guidebook

    1 hour

    Input: RFP responses, Weighted Scoring Matrix, Vendor Response Scorecard

    Output: One or two finalists for which negotiations will proceed

    Materials: RFP Evaluation Guidebook

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Info-Tech provides an excellent resource for your evaluation team to better understand the process of evaluating vendor response. The guidebook is designed to be configured to the specifics of your RFP, with guidance and instructions to the team.
    2. Use this guidebook to provide instruction to the evaluation team as to how best to score and rate the RFP responses.
    3. Specific definitions are provided for applying the numerical scores to the RFP objectives will ensure consistency among the appropriate numerical score.

    Download the RFP Evaluation Guidebook

    4.6.2 RFP Vendor Proposal Scoring Tool

    1-4 hours

    Input: Each vendor’s RFP response, A copy of the RFP (less pricing), A list of the weighted criteria incorporated into a vendor response scorecard

    Output: A consolidated ranked and weighted comparison of the vendor responses with pricing

    Materials: Vendor responses, RFP Evaluation Tool

    Participants: Sourcing/Procurement, Vendor management

    1. Using the RFP outline as a base, develop a scorecard to evaluate and rate each section of the vendor response, based on the criteria predetermined by the team.
    2. Provide each stakeholder with the scorecard when you provide the vendor responses for them to review and provide the team with adequate time to review each response thoroughly and completely.
    3. Do not, at this stage, provide the pricing. Allow stakeholders to review the responses based on the technical, business, operational criteria without prejudice as to pricing.
    4. Evaluators should always be reminded that they are evaluating each vendor’s response against the objectives and requirements of the RFP. The evaluators should not be evaluating each vendor’s response against one another.
    5. While the team is reviewing and scoring responses, review and consolidate the vendor pricing submissions into one document for a side-by-side comparison.

    Download the RFP Evaluation Tool

    4.6.3 Total Cost of Owners (TCO)

    1-2 hours

    Input: Consolidated vendor pricing responses, Consolidated vendor RFP responses, Current spend within your organization for the product/service, if available, Budget

    Output: A completed TCO model summarizing the financial results of the RFP showing the anticipated costs over the term of the agreement, taking into consideration the impact of renewals.

    Materials: Vendor TCO Tool, Vendor pricing responses

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement

    • Use Info-Tech’s Vendor TCO Tool to normalize each vendor’s pricing proposal and account for the lifetime cost of the product.
    • Fill in pricing information (the total of all annual costs) from each vendor's returned Pricing Proposal.
    • The tool will summarize the net present value of the TCO for each vendor proposal.
    • The tool will also provide the rank of each pricing proposal.

    Download the Vendor TCO Tool

    Conduct an evaluation team results meeting

    Follow the checklist below to ensure an effective evaluation results meeting

    • Schedule the evaluation team’s review meeting well in advance to ensure there are no scheduling conflicts.
    • Collect the evaluation team’s scores in advance.
    • Collate scores and provide an initial ranking.
    • Do not reveal the pricing evaluation results until after initial discussions and review of the scoring results.
    • Examine both high and low scores to understand why the team members scored the response as they did.
    • Allow the team to discuss, debate, and arrive at consensus on the ranking.
    • After consensus, reveal the pricing to examine if or how it changes the ranking.
    • Align the team on the next steps with the applicable vendors.

    4.6.4 Consolidated RFP Response Scoring

    1-2 hours

    Input: Vendor Response Scorecard from each stakeholder, Consolidated RFP responses and pricing, Any follow up questions or items requiring further vendor clarification.

    Output: An RFP Response Evaluation Summary that identifies the finalists based on pre-determined criteria.

    Materials: RFP Evaluation Tool from each stakeholder, Consolidated RFP responses and pricing.

    Participants: IT, Finance, Business stakeholders, Sourcing/Procurement, Vendor management

    1. Collect from the evaluation team all scorecards and any associated questions requiring further clarification from the vendor(s). Consolidate the scorecards into one for presentation to the team and key decision makers.
    2. Present the final scores to the team, with the pricing evaluation, to determine, based on your needs, two or three finalists that will move forward to the next steps of negotiations.
    3. Discuss any scores that are have large gaps, e.g., a requirement with a score of one from one evaluator and the same requirement with a score five from different evaluator.
    4. Arrive at a consensus of your top one or two potential vendors.
    5. Determine any required follow-up actions with the vendors and include them in the Evaluation Summary.

    Download the Consolidated Vender RFP Response Evaluation Summary

    4.6.5 Vendor Recommendation Presentation

    1-3 hours
    1. Use the Vendor Recommendation Presentation to present your finalist and obtain final approval to negotiate and execute any agreements.
    2. The Vendor Recommendation Presentation provides leadership with:
      1. An overview of the RFP, its primary goals, and key requirements
      2. A summary of the vendors invited to participate and why
      3. A summary of each component of the RFP
      4. A side-by-side comparison of key vendor responses to each of the key/primary requirements, with ranking/weighting results
      5. A summary of the vendor’s responses to key legal terms
      6. A consolidated summary of the vendors’ pricing, augmented by the TCO calculations for the finalist(s).
      7. The RFP team’s vendor recommendations based on its findings
      8. A summary of next steps with dates
      9. Request approval to proceed to next steps of negotiations with the primary and secondary vendor

    Download the Vendor Recommendation Presentation

    4.6.5 Vendor Recommendation Presentation

    Input

    • Consolidated RFP responses, with a focus on key RFP goals
    • Consolidated pricing responses
    • TCO Model completed, approved by Finance, stakeholders

    Output

    • Presentation deck summarizing the key findings of the RFP results, cost estimates and TCO and the recommendation for approval to move to contract negotiations with the finalists

    Materials

    • Consolidated RFP responses, including legal requirements
    • Consolidated pricing
    • TCO Model
    • Evaluators scoring results

    Participants

    • IT
    • Finance
    • Business stakeholders
    • Legal
    • Sourcing/Procurement

    Caution: Configure templates and tools to align with RFP objectives

    Templates and tools are invaluable assets to any RFP process

    • Leveraging templates and tools saves time and provides consistency to your vendors.
    • Maintain a common repository of your templates and tools with different versions and variations. Include a few sentences with instructions on how to use the template and tools for team members who might not be familiar with them.

    Templates/Tools

    RFP templates and tools are found in a variety of places, such as previous projects, your favorite search engine, or by asking a colleague.

    Sourcing

    Regardless of the source of these documents, you must take great care and consideration to sanitize any reference to another vendor, company, or name of the deal.

    Review

    Then you must carefully examine the components of the deal before creating your final documents.

    Popular RFP templates include:

    • RFP documents
    • Pricing templates
    • Evaluation and scoring templates
    • RFP requirements
    • Info-Tech research

    Phase 5

    Negotiate Agreement(s)

    Steps

    5.1 Perform negotiation process

    		Steps in an RFP Process with the fifth step, 'Negotiate Agreement', highlighted.

    This phase involves the following participants:

    • Procurement
    • Vendor management
    • Legal
    • IT stakeholders
    • Finance

    Outcomes of this phase

    A negotiated agreement or agreements that are a result of competitive negotiations.

    Negotiate Agreement(s)

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Negotiate Agreement

    You should evaluate your RFP responses first to see if they are complete and the vendor followed your instructions.


    Then you should:

    • Plan negotiation(s) with one or more vendors based on your questions and opportunities identified during evaluation.
    • Select finalist(s).
    • Apply selection criteria.
    • Resolve vendors’ exceptions.

    Info-Tech Insight

    Be certain to include any commitments made in the RFP, presentations, and proposals in the agreement – dovetails to underperforming vendor.

    		Centerpiece of the table, titled 'Negotiation Process'.

    Leverage Info-Tech's negotiation process research for additional information

    		Negotiate before you select your vendor:
    • Negotiating with two or more vendors will maintain your competitive leverage while decreasing the time it takes to negotiate the deal.
    • Perform legal reviews as necessary.
    • Use sound competitive negotiations principles.

    Info-Tech Insight

    Providing contract terms in an RFP can dramatically reduce time for this step by understanding the vendor’s initial contractual position for negotiation.

    Phase 6

    Purchase Goods and Services

    Steps

    6.1 Purchase Goods & Services

    		Steps in an RFP Process with the sixth step, 'Purchase Goods and Services', highlighted.

    This phase involves the following participants:

    • Procurement
    • Vendor management
    • IT stakeholders

    Outcomes of this phase

    A purchase order that completes the RFP process.

    The beginning of the vendor management process.

    Purchase Goods and Services

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Purchase Goods and Services

    Prepare to purchase goods and services

    Prepare to purchase goods and services by completing all items on your organization’s onboarding checklist.
    • Have the vendor complete applicable tax forms.
    • Set up the vendor in accounts payable for electronic payment (ACH) set-up.
    Then transact day-to-day business:
    • Provide purchasing forecasts.
    • Complete applicable purchase requisition and purchase orders. Be sure to reference the agreement in the PO.
    		 Stock image of a computer monitor with a full grocery cart shown on the screen.

    Info-Tech Insight

    As a customer, honoring your contractual obligations and commitments will ensure that your organization is not only well respected but considered a customer of choice.

    Phase 7

    Assess and Measure Performance

    Steps

    7.1 Assess and measure performance against the agreement

    		Steps in an RFP Process with the seventh step, 'Assess and Measure Performance', highlighted.

    This phase involves the following participants:

    • Vendor management
    • Business stakeholders
    • Senior leadership (as needed)
    • IT stakeholders
    • Vendor representatives & senior management

    Outcomes of this phase

    A list of what went well during the period – it’s important to recognize successes

    A list of areas needing improvement that includes:

    • A timeline for each item to be completed
    • The team member(s) responsible

    Purchase Goods and Services

    Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

    Assess and Measure Performance

    Measure to manage: the job doesn’t end when the contract is signed.

    • Classify vendor
    • Assess vendor performance
    • Manage improvement
    • Conduct periodic vendor performance reviews or quarterly business reviews
    • Ensure contract compliance for both the vendor and your organization
    • Build knowledgebase for future
    • Re-evaluate and improve appropriately your RFP processes

    Info-Tech Insight

    To be an objective vendor manager, you should also assess and measure your company’s performance along with the vendor’s performance.

    Summary of Accomplishment

    Problem Solved

    Upon completion of this blueprint, guided implementation, or workshop, your team should have a comprehensive, well-defined end-to-end approach to performing a quality sourcing event. Leverage Info-Tech’s industry-proven tools and templates to provide your organization with an effective approach to maintain your negotiation leverage, improve the ease with which you evaluate vendor proposals, and reduce your risk while obtaining the best market value for your goods and services.

    Additionally, your team will have a foundation to execute your vendor management principles. These principles will assist your organization in ensuring you receive the perceived value from the vendor as a result of your competitive negotiations.

    If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.

    Contact your account representative for more information.

    workshops@infotech.com 1-888-670-8889

    Final Thoughts: RFP Do’s and Don’ts

    DO

    • Leverage your team’s knowledge
    • Document and explain your RFP process to stakeholders and vendors
    • Include contract terms in your RFP
    • Consider vendor management requirements up front
    • Plan to measure and manage performance after contract award leveraging RFP objectives
    • Seek feedback from the RFP team for process improvements

    DON'T

    • Reveal your budget
    • Do an RFP in a vacuum
    • Send an RFP to a vendor your team is not willing to award the business to
    • Hold separate conversations with candidate vendors during your RFP process
    • Skimp on the requirements definition to speed the process
    • Tell the vendor they are selected before negotiating

    Bibliography

    “2022 RFP Response Trends & Benchmarks.” Loopio, 2022. Web.

    Corrigan, Tony. “How Much Does it Cost to Respond to an RFP?” LinkedIn, March 2017. Accessed 10 Dec. 2019

    “Death by RFP:7 Reasons Not to Respond.” Inc. Magazine, 2013. Web.

    Jeffery, Steven, George Bordon, and Phil Bode. The Art of Creating a Quality RFP, 3rd ed. Info-Tech Research Group, 2019.

    “RFP Benchmarks: How Much Time and Staff Firms Devote to Proposals.” MarketingProfs, 2020. Web.

    “State of the RFP 2019.” Bonfire, 2019. Web.

    “What Vendors Want (in RFPs).” Vendorful, 2020. Web.

    Related Info-Tech Research

    Stock photo of two people looking at a tablet. Prepare for Negotiations More Effectively
    • Negotiations are about allocating risk and money – how much risk is a party willing to accept at what price point?
    • Using a cross-functional/cross-insight team structure for negotiation preparation yields better results.
    • Soft skills aren’t enough and theatrical negotiation tactics aren’t effective.
    Stock photo of two people in suits shaking hands. Understand Common IT Contract Provisions to Negotiate More Effectively
    • Focus on the terms and conditions, not just the price. Too often, organizations focus on the price contained within their contracts, neglecting to address core terms and conditions that can end up costing multiples of the initial price.
    • Lawyers can’t ensure you get the best business deal. Lawyers tend to look at general terms and conditions for legal risk and may not understand IT-specific components and business needs.
    Stock photo of three people gathered around a computer. Jump Start Your Vendor Management Initiative
    • Vendor management must be an IT strategy. Solid vendor management is an imperative – IT organizations must develop capabilities to ensure that services are delivered by vendors according to service-level objectives and that risks are mitigated according to the organization's risk tolerance.
    • Visibility into your IT vendor community. Understand how much you spend with each vendor and rank their criticality and risk to focus on the vendors you should be concentrating on for innovative solutions.

    Industry-Specific Digital Transformation

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    • Parent Category Name: Innovation
    • Parent Category Link: /innovation

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    Infographic

    Implement DevOps Practices That Work

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    • Parent Category Name: Development
    • Parent Category Link: /development
    • In today’s world, business agility is essential to stay competitive. Quick responses to business needs through efficient development and deployment practices are critical for business value delivery.
    • Organizations are looking to DevOps as an approach to rapidly deliver changes, but they often lack the foundations to use DevOps effectively.

    Our Advice

    Critical Insight

    Even in a highly tool-centric view, it is the appreciation of DevOps core principles that will determine your success in implementing its practices.

    Impact and Result

    • Understand the basics of DevOps-related improvements.
    • Assess the health and conduciveness of software delivery process through Info-Tech Research Group’s MATURE framework.

    Implement DevOps Practices That Work Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should implement DevOps, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Examine your current state

    Understand the current state of your software delivery process and categorize existing challenges in it.

    • DevOps Readiness Survey

    2. MATURE your delivery lifecycle

    Brainstorm solutions using Info-Tech Research Group’s MATURE framework.

    • DevOps Roadmap Template

    3. Choose the right metrics and tools for your needs

    Identify metrics that are insightful and valuable. Determine tools that can help with DevOps practices implementation.

    • DevOps Pipeline Maturity Assessment

    4. Select horizons for improvement

    Lay out a schedule for enhancements for your software process to make it ready for DevOps.

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    Workshop: Implement DevOps Practices That Work

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Examine Your Current State

    The Purpose

    Set the context for improvement.

    Key Benefits Achieved

    Provide a great foundation for an actionable vision and goals that people can align to.

    Activities

    1.1 Review the outcome of the DevOps Readiness Survey.

    1.2 Articulate the current-state delivery process.

    1.3 Categorize existing challenges using PEAS.

    Outputs

    Baseline assessment of the organization’s readiness for introducing DevOps principles in its delivery process

    A categorized list of challenges currently evident in the delivery process

    2 MATURE Your Delivery Lifecycle

    The Purpose

    Brainstorm solutions using the MATURE framework.

    Key Benefits Achieved

    Collaborative list of solutions to challenges that are restricting/may restrict adoption of DevOps in your organization.

    Activities

    2.1 Brainstorm solutions for identified challenges.

    2.2 Understand different DevOps topologies within the context of strong communication and collaboration.

    Outputs

    A list of solutions that will enhance the current delivery process into one which is influenced by DevOps principles

    (Optional) Identify a team topology that works for your organization.

    3 Choose the Right Metrics and Tools for Your Needs

    The Purpose

    Select metrics and tools for your DevOps-inspired delivery pipeline.

    Key Benefits Achieved

    Enable your team to select the right metrics and tool chain that support the implementation of DevOps practices.

    Activities

    3.1 Identify metrics that are sensible and provide meaningful insights into your organization’s DevOps transition.

    3.2 Determine the set of tools that satisfy enterprise standards and can be used to implement DevOps practices.

    3.3 (Optional) Assess DevOps pipeline maturity.

    Outputs

    A list of metrics that will assist in measuring the progress of your organization’s DevOps transition

    A list of tools that meet enterprise standards and enhance delivery processes

    4 Define Your Release, Communication, and Next Steps

    The Purpose

    Build a plan laying out the work needed to be done for implementing the necessary changes to your organization.

    Key Benefits Achieved

    Roadmap of steps to take in the coming future.

    Activities

    4.1 Create a roadmap for future-state delivery process.

    Outputs

    Roadmap for future-state delivery process

    Drive Customer Convenience by Enabling Text-Based Customer Support

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    • Parent Category Name: Customer Relationship Management
    • Parent Category Link: /customer-relationship-management
    • Text messaging services and applications (such as SMS, iMessage, WhatsApp, and Facebook Messenger) have seen explosive growth over the last decade. They are an entrenched part of consumers’ daily lives. For many demographics, text messaging rather than audio calls is the preferred medium of communication via smartphone.
    • Despite the popularity of text messaging services and applications with consumers, organizations have been slow to adequately incorporate these channels into their customer service strategy.
    • The result is a major disconnect between the channel preferences of consumers and the customer service options being offered by businesses.

    Our Advice

    Critical Insight

    • IT must work with their counterparts in customer service to build a technology roadmap that incorporates text messaging services and apps as a core channel for customer interaction. Doing so will increase IT’s stature as an innovator in the eyes of the business, while allowing the broader organization to leapfrog competitors that have not yet added text-based support to their repertoire of service channels. Incorporating text messaging as a customer service channel will increase customer satisfaction, improve retention, and reduce cost-to-serve.
    • A prudent strategy for text-based customer service begins with defining the value proposition and creating objectives: is there a strong fit with the organization’s customers and service use cases? Next, organizations must create a technology enablement roadmap for text-based support that incorporates the right tools and applications to deliver it. Finally, the strategy must address best practices for text-based customer service workflows and appropriate resourcing.

    Impact and Result

    • Understand the value and use cases for text-based customer support.
    • Create a framework for enabling technologies that will support scalable text-based customer service.
    • Improve underlying business metrics such as customer satisfaction, retention, and time to resolution by having a plan for text-based support.
    • Better align IT with customer service and support needs.

    Drive Customer Convenience by Enabling Text-Based Customer Support Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should be leveraging text-based services for customer support, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Create the business case for text-based customer support

    Understand the use cases and benefits of using text-based services for customer support, and establish how they align to the organization’s current service strategy.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 1: Create the Business Case for Text-Based Customer Support
    • Text-Based Customer Support Strategic Summary Template
    • Text-Based Customer Support Project Charter Template
    • Text-Based Customer Support Business Case Assessment

    2. Create a technology enablement framework for text-based customer support

    Identify the right applications that will be needed to adequately support a text-based support strategy.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 2: Create a Technology Enablement Framework for Text-Based Customer Support
    • Text-Based Customer Support Requirements Traceability Matrix

    3. Create customer service workflows for text-based support

    Create repeatable workflows and escalation policies for text-centric support.

    • Drive Customer Convenience by Enabling Text-Based Customer Support – Phase 3: Create Customer Service Workflows for Text-Based Support
    • Text-Based Customer Support TCO Tool
    • Text-Based Customer Support Acceptable Use Policy
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    Workshop: Drive Customer Convenience by Enabling Text-Based Customer Support

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Create the Business Case for Text-Based Support

    The Purpose

    Create the business case for text-based support.

    Key Benefits Achieved

    A clear direction on the drivers and value proposition of text-based customer support for your organization.

    Activities

    1.1 Identify customer personas.

    1.2 Define business and IT drivers.

    Outputs

    Identification of IT and business drivers.

    Project framework and guiding principles for the project.

    2 Create a Technology Enablement Framework for Text-Based Support

    The Purpose

    Create a technology enablement framework for text-based support.

    Key Benefits Achieved

    Prioritized requirements for text-based support and a vetted shortlist of the technologies needed to enable it.

    Activities

    2.1 Determine the correct migration strategy based on the current version of Exchange.

    2.2 Plan the user groups for a gradual deployment.

    Outputs

    Exchange migration strategy.

    User group organization by priority of migration.

    3 Create Service Workflows for Text-Based Support

    The Purpose

    Create service workflows for text-based support.

    Key Benefits Achieved

    Customer service workflows and escalation policies, as well as risk mitigation considerations.

    Present final deliverable to key stakeholders.

    Activities

    3.1 Review the text channel matrix.

    3.2 Build the inventory of customer service applications that are needed to support text-based service.

    Outputs

    Extract requirements for text-based customer support.

    4 Finalize Your Text Service Strategy

    The Purpose

    Finalize the text service strategy.

    Key Benefits Achieved

    Resource and risk mitigation plan.

    Activities

    4.1 Build core customer service workflows for text-based support.

    4.2 Identify text-centric risks and create a mitigation plan.

    4.3 Identify metrics for text-based support.

    Outputs

    Business process models assigned to text-based support.

    Formulation of risk mitigation plan.

    Key metrics for text-based support.

    2023-Q1 Research Agenda

    This 2023-Q1 research agenda slide deck provides you with a comprehensive overview of our most up-to-date published research. Each piece offers you valuable insights, allowing you to take effective decisions and informed actions. All TY|Info-tech research is backed by our team of expert analysts who share decades of IT and industry experience.

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    Build a Service Desk Consolidation Strategy

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    • Parent Category Name: Service Desk
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    • Incompatible technologies. Organizations with more than one service desk are likely to have many legacy IT service management (ITSM) solutions. These come with a higher support cost, costly skill-set maintenance, and the inability to negotiate volume licensing discounts.
    • Inconsistent processes. Organizations with more than one service desk often have incompatible processes, which can lead to inconsistent service support across departments, less staffing flexibility, and higher support costs.
    • Lack of data integration. Without a single system and consistent processes, IT leaders often have only a partial view of service support activities. This can lead to rigid IT silos, limit the ability to troubleshoot problems, and streamline process workflows.

    Our Advice

    Critical Insight

    • Every step should put people first. It’s tempting to focus the strategy on designing processes and technologies for the target architecture. However, the most common barrier to success is workforce resistance to change.
    • A consolidated service desk is an investment, not a cost-reduction program. Focus on efficiency, customer service, and end-user satisfaction. There will be many cost savings, but viewing them as an indirect consequence of the pursuit of efficiency and customer service is the best approach.

    Impact and Result

    • Conduct a comprehensive assessment of existing service desk people, processes, and technology.
    • Identify and retire resources and processes that are no longer meeting business needs, and consolidate and modernize resources and processes that are worth keeping.
    • Identify logistic and cost considerations and create a roadmap of consolidation initiatives.
    • Communicate the change and garner support for the consolidation initiative.

    Build a Service Desk Consolidation Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a service desk consolidation strategy, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Develop a shared vision

    Engage stakeholders to develop a vision for the project and perform a comprehensive assessment of existing service desks.

    • Build a Service Desk Consolidation Strategy – Phase 1: Develop a Shared Vision
    • Stakeholder Engagement Workbook
    • Consolidate Service Desk Executive Presentation
    • Consolidate Service Desk Assessment Tool
    • IT Skills Inventory and Gap Assessment Tool

    2. Design the consolidated service desk

    Outline the target state of the consolidated service desk and assess logistics and cost of consolidation.

    • Build a Service Desk Consolidation Strategy – Phase 2: Design the Consolidated Service Desk
    • Consolidate Service Desk Scorecard Tool
    • Consolidated Service Desk SOP Template
    • Service Desk Efficiency Calculator
    • Service Desk Consolidation TCO Comparison Tool

    3. Plan the transition

    Build a project roadmap and communication plan.

    • Build a Service Desk Consolidation Strategy – Phase 3: Plan the Transition
    • Service Desk Consolidation Roadmap
    • Service Desk Consolidation Communications and Training Plan Template
    • Service Desk Consolidation News Bulletin & FAQ Template
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    Workshop: Build a Service Desk Consolidation Strategy

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Engage Stakeholders to Develop a Vision for the Service Desk

    The Purpose

    Identify and engage key stakeholders.

    Conduct an executive visioning session to define the scope and goals of the consolidation.

    Key Benefits Achieved

    A list of key stakeholders and an engagement plan to identify needs and garner support for the change.

    A common vision for the consolidation initiative with clearly defined goals and objectives.

    Activities

    1.1 Identify key stakeholders and develop an engagement plan.

    1.2 Brainstorm desired service desk attributes.

    1.3 Conduct an executive visioning session to craft a vision for the consolidated service desk.

    1.4 Define project goals, principles, and KPIs.

    Outputs

    Stakeholder Engagement Workbook

    Executive Presentation

    2 Conduct a Full Assessment of Each Service Desk

    The Purpose

    Assess the overall maturity, structure, organizational design, and performance of each service desk.

    Assess current ITSM tools and how well they are meeting needs.

    Key Benefits Achieved

    A robust current state assessment of each service desk.

    An understanding of agent skills, satisfaction, roles, and responsibilities.

    An evaluation of existing ITSM tools and technology.

    Activities

    2.1 Review the results of diagnostics programs.

    2.2 Map organizational structure and roles for each service desk.

    2.3 Assess overall maturity and environment of each service desk.

    2.4 Assess current information system environment.

    Outputs

    Consolidate Service Desk Assessment Tool

    3 Design Target Consolidated Service Desk

    The Purpose

    Define the target state for consolidated service desk.

    Identify requirements for the service desk and a supporting solution.

    Key Benefits Achieved

    Detailed requirements and vision for the consolidated service desk.

    Gap analysis of current vs. target state.

    Documented standardized processes and procedures.

    Activities

    3.1 Identify requirements for target consolidated service desk.

    3.2 Build requirements document and shortlist for ITSM tool.

    3.3 Use the scorecard comparison tool to assess the gap between existing service desks and target state.

    3.4 Document standardized processes for new service desk.

    Outputs

    Consolidate Service Desk Scorecard Tool

    Consolidated Service Desk SOP

    4 Plan for the Transition

    The Purpose

    Break down the consolidation project into specific initiatives with a detailed timeline and assigned responsibilities.

    Plan the logistics and cost of the consolidation for process, technology, and facilities.

    Develop a communications plan.

    Key Benefits Achieved

    Initial analysis of the logistics and cost considerations to achieve the target.

    A detailed project roadmap to migrate to a consolidated service desk.

    A communications plan with responses to anticipated questions and objections.

    Activities

    4.1 Plan the logistics of the transition.

    4.2 Assess the cost and savings of consolidation to refine business case.

    4.3 Identify initiatives and develop a project roadmap.

    4.4 Plan communications for each stakeholder group.

    Outputs

    Consolidation TCO Tool

    Consolidation Roadmap

    Executive Presentation

    Communications Plan

    News Bulletin & FAQ Template

    Further reading

    Build a Service Desk Consolidation Strategy

    Manage the dark side of growth.

    ANALYST PERSPECTIVE

    A successful service desk consolidation begins and ends with people.

    "It’s tempting to focus strategic planning on the processes and technology that will underpin the consolidated service desk. Consistent processes and a reliable tool will cement the consolidation, but they are not what will hold you back.

    The most common barrier to a successful consolidation is workforce resistance to change. Cultural difference, perceived risks, and organizational inertia can hinder data gathering, deter collaboration, and impede progress from the start.

    Building a consolidated service desk is first and foremost an exercise in organizational change. Garner executive support for the project, enlist a team of volunteers to lead the change, and communicate with key stakeholders early and often. The key is to create a shared vision for the project and engage those who will be most affected."

    Sandi Conrad

    Senior Director, Infrastructure Practice

    Info-Tech Research Group

    Our understanding of the problem

    This Research is Designed For:

    • CIOs who need to reduce support costs and improve customer service.
    • IT leaders tasked with the merger of two or more IT organizations.
    • Service managers implementing a shared service desk tool.
    • Organizations rationalizing IT service management (ITSM) processes.

    This Research Will Help You:

    • Develop a shared vision for the consolidated service desk.
    • Assess key metrics and report on existing service desk architecture.
    • Design a target service desk architecture and assess how to meet the new requirements.
    • Deploy a strategic roadmap to build the consolidated service desk architecture.

    Executive summary

    Situation

    Every organization must grow to survive. Good growth makes an organization more agile, responsive, and competitive, which leads to further growth.

    The proliferation of service desks is a hallmark of good growth when it empowers the service of diverse end users, geographies, or technologies.

    Complication

    Growth has its dark side. Bad growth within a business can hinder agility, responsiveness, and competitiveness, leading to stagnation.

    Supporting a large number of service desks can be costly and inefficient, and produce poor or inconsistent customer service, especially when each service desk uses different ITSM processes and technologies.

    Resolution

    Manage the dark side of growth. Consolidating service desks can help standardize ITSM processes, improve customer service, improve service desk efficiency, and reduce total support costs. A consolidation is a highly visible and mission critical project, and one that will change the public face of IT. Organizations need to get it right.

    Building a consolidated service desk is an exercise in organizational change. The success of the project will hinge on how well the organization engages those who will be most affected by the change. Build a guiding coalition for the project, create a shared vision, enlist a team of volunteers to lead the change, and communicate with key stakeholders early and often.

    Use a structured approach to facilitate the development of a shared strategic vision, design a detailed consolidated architecture, and anticipate resistance to change to ensure the organization reaps project benefits.

    Info-Tech Insight

    1. Every step should put people first. It’s tempting to focus the strategy on designing processes and technologies for the target architecture. However, the most common barrier to success is workforce resistance to change.
    2. A consolidated service desk is an investment, not a cost-reduction program. Focus on efficiency, customer service, and end-user satisfaction. Cost savings, and there will be many, should be seen as an indirect consequence of the pursuit of efficiency and customer service.

    Focus the service desk consolidation project on improving customer service to overcome resistance to change

    Emphasizing cost reduction as the most important motivation for the consolidation project is risky.

    End-user satisfaction is a more reliable measure of a successful consolidation.

    • Too many variables affect the impact of the consolidation on the operating costs of the service desk to predict the outcome reliably.
    • Potential reductions in costs are unlikely to overcome organizational resistance to change.
    • Successful service desk consolidations can increase ticket volume as agents capture tickets more consistently and increase customer service.

    The project will generate many cost savings, but they will take time to manifest, and are best seen as an indirect consequence of the pursuit of customer service.

    Info-Tech Insight

    Business units facing a service desk consolidation are often concerned that the project will lead to a loss of access to IT resources. Focus on building a customer-focused consolidated service desk to assuage those fears and earn their support.

    End users, IT leaders, and process owners recognize the importance of the service desk.

    2nd out of 45

    On average, IT leaders and process owners rank the service desk 2nd in terms of importance out of 45 core IT processes. Source: Info-Tech Research Group, Management and Governance Diagnostic (2015, n = 486)

    42.1%

    On average, end users who were satisfied with service desk effectiveness rated all other IT services 42.1% higher than dissatisfied end users. Source: Info-Tech Research Group, End-User Satisfaction Survey 2015, n = 133)

    38.0%

    On average, end users who were satisfied with service desk timeliness rated all other IT services 38.0% higher than dissatisfied end users. Source: Info-Tech Research Group, End-User Satisfaction Survey (2015, n = 133)

    Overcome the perceived barriers from differing service unit cultures to pursue a consolidated service desk (CSD)

    In most organizations, the greatest hurdles that consolidation projects face are related to people rather than process or technology.

    In a survey of 168 service delivery organizations without a consolidated service desk, the Service Desk Institute found that the largest internal barrier to putting in place a consolidated service desk was organizational resistance to change.

    Specifically, more than 56% of respondents reported that the different cultures of each service unit would hinder the level of collaboration such an initiative would require.

    The image is a graph titled Island cultures are the largest barrier to consolidation. The graph lists Perceived Internal Barriers to CSD by percentage. The greatest % barrier is Island cultures, with executive resistance the next highest.

    Service Desk Institute (n = 168, 2007)

    Info-Tech Insight

    Use a phased approach to overcome resistance to change. Focus on quick-win implementations that bring two or three service desks together in a short time frame and add additional service desks over time.

    Avoid the costly proliferation of service desks that can come with organizational growth

    Good and bad growth

    Every organization must grow to survive, and relies heavily on its IT infrastructure to do that. Good growth makes an organization more agile, responsive, and competitive, and leads to further growth.

    However, growth has its dark side. Bad growth hobbles agility, responsiveness, and competitiveness, and leads to stagnation.

    As organizations grow organically and through mergers, their IT functions create multiple service desks across the enterprise to support:

    • Large, diverse user constituencies.
    • Rapidly increasing call volumes.
    • Broader geographic coverage.
    • A growing range of products and services.

    A hallmark of bad growth is the proliferation of redundant and often incompatible ITSM services and processes.

    Project triggers:

    • Organizational mergers
    • ITSM tool purchase
    • Service quality or cost-reduction initiatives
    Challenges arising from service desk proliferation:
    Challenge Impact
    Incompatible Technologies
    • Inability to negotiate volume discounts.
    • Costly skill set maintenance.
    • Increased support costs.
    • Increased shadow IT.
    Inconsistent Processes
    • Low efficiency.
    • High support costs.
    • Inconsistent support quality.
    • Less staffing flexibility.
    Lack of Data Integration
    • Only partial view of IT.
    • Inefficient workflows.
    • Limited troubleshooting ability.
    Low Customer Satisfaction
    • Fewer IT supporters.
    • Lack of organizational support.

    Consolidate service desks to integrate the resources, processes, and technology of your support ecosystem

    What project benefits can you anticipate?

    • Consolidated Service Desk
      • End-user group #1
      • End-user group #2
      • End-user group #3
      • End-user group #4

    A successful consolidation can significantly reduce cost per transaction, speed up service delivery, and improve the customer experience through:

    • Single point of contact for end users.
    • Integrated ITSM solution where it makes sense.
    • Standardized processes.
    • Staffing integration.
    Project Outcome

    Expected Benefit

    Integrated information The capacity to produce quick, accurate, and segmented reports of service levels across the organization.
    Integrated staffing Flexible management of resources that better responds to organizational needs.
    Integrated technology Reduced tool procurement costs, improved data integration, and increased information security.
    Standardized processes Efficient and timely customer service and a more consistent customer experience.

    Standardized and consolidated service desks will optimize infrastructure, services, and resources benefits

    • To set up a functioning service desk, the organization will need to invest resources to build and integrate tier 1, tier 2, and tier 3 capabilities to manage incidents and requests.
    • The typical service desk (Figure 1) can address a certain number of tickets from all three tiers. If your tickets in a given tier are less than that number, you are paying for 100% of service costs but consuming only a portion of it.
    • The consolidated model (Figure 2) reduces the service cost by reducing unused capacity.
    • Benefits of consolidation include a single service desk solution, a single point of contact for the business, data integration, process standardization, and consolidated administration, reporting, and management.

    The image is a graphic showing 2 figures. The first shows ring graphs labelled Service Desk 1 and Service Desk 2, with the caption Service provisioning with distinct service desks. Figure 2 shows one graphic, captioned Service provisioning with Consolidated service providers. At the bottom of the image, there is a legend.

    Info-Tech’s approach to service desk consolidation draws on key metrics to establish a baseline and a target state

    The foundation of a successful service desk consolidation initiative is a robust current state assessment. Given the project’s complexity, however, determining the right level of detail to include in the evaluation of existing service desks can be challenging.

    The Info-Tech approach to service desk consolidation includes:

    • Envisioning exercises to set project scope and garner executive support.
    • Surveys and interviews to identify the current state of people, processes, technologies, and service level agreements (SLAs) in each service desk, and to establish a baseline for the consolidated service desk.
    • Service desk comparison tools to gather the results of the current state assessment for analysis and identify current best practices for migration to the consolidated service desk.
    • Case studies to illustrate the full scope of the project and identify how different organizations deal with key challenges.

    The project blueprint walks through a method that helps identify which processes and technologies from each service desk work best, and it draws on them to build a target state for the consolidated service desk.

    Inspiring your target state from internal tools and best practices is much more efficient than developing new tools and processes from scratch.

    Info-Tech Insight

    The two key hurdles that a successful service desk consolidation must overcome are organizational complexity and resistance to change.

    Effective planning during the current state assessment can overcome these challenges.

    Identify existing best practices for migration to the consolidated service desk to foster agent engagement and get the consolidated service desk up quickly.

    A consolidation project should include the following steps and may involve multiple transition phases to complete

    Phase 1: Develop a Shared Vision

    • Identify stakeholders
    • Develop vision
    • Measure baseline

    Phase 2: Design the Consolidation

    • Design target state
    • Assess gaps to reach target
    • Assess logistics and cost

    Phase 3: Plan the Transition

    • Develop project plan and roadmap
    • Communicate changes
    • Make the transition
      • Evaluate and prepare for next transition phase (if applicable)
      • Evaluate and stabilize
        • CSI

    Whether or not your project requires multiple transition waves to complete the consolidation depends on the complexity of the environment.

    For a more detailed breakdown of this project’s steps and deliverables, see the next section.

    Follow Info-Tech’s methodology to develop a service desk consolidation strategy

    Phases Phase 1: Develop a Shared Vision Phase 2: Design the Consolidated Service Desk Phase 3: Plan the Transition
    Steps 1.1 - Identify and engage key stakeholders 2.1 - Design target consolidated service desk 3.1 - Build the project roadmap
    1.2 - Develop a vision to give the project direction
    1.3 - Conduct a full assessment of each service desk 2.2 - Assess logistics and cost of consolidation 3.2 - Communicate the change
    Tools & Templates Executive Presentation Consolidate Service Desk Scorecard Tool Service Desk Consolidation Roadmap
    Consolidate Service Desk Assessment Tool Consolidated Service Desk SOP Communications and Training Plan Template
    Service Desk Efficiency Calculator News Bulletin & FAQ Template
    Service Desk Consolidation TCO Comparison Tool

    Service desk consolidation is the first of several optimization projects focused on building essential best practices

    Info-Tech’s Service Desk Methodology aligns with the ITIL framework

    Extend

    Facilitate the extension of service management best practices to other business functions to improve productivity and position IT as a strategic partner.

    Standardize

    Build essential incident, service request, and knowledge management processes to create a sustainable service desk that meets business needs.

    Improve

    Build a continual improvement plan for the service desk to review and evaluate key processes and services, and manage the progress of improvement initiatives.

    Adopt Lean

    Build essential incident, service request, and knowledge management processes to create a sustainable service desk that boosts business value.

    Select and Implement

    Review mid-market and enterprise service desk tools, select an ITSM solution, and build an implementation plan to ensure your investment meets your needs.

    Consolidate

    Build a strategic roadmap to consolidate service desks to reduce end-user support costs and sustain end-user satisfaction.

    Our Approach to the Service Desk

    Service desk optimization goes beyond the blind adoption of best practices.

    Info-Tech’s approach focuses on controlling support costs and making the most of IT’s service management expertise to improve productivity.

    Complete the projects sequentially or in any order.

    Info-Tech draws on the COBIT framework, which focuses on consistent delivery of IT services across the organization

    The image shows Info-Tech's IT Management & Governance Framework. It is a grid of boxes, which are colour-coded by category. The framework includes multiple connected categories of research, including Infrastructure & Operations, where Service Desk is highlighted.

    Oxford University IT Service Desk successfully undertook a consolidation project to merge five help desks into one

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    Background

    Until 2011, three disparate information technology organizations offered IT services, while each college had local IT officers responsible for purchasing and IT management.

    ITS Service Desk Consolidation Project

    Oxford merged the administration of these three IT organizations into IT Services (ITS) in 2012, and began planning for the consolidation of five independent help desks into a single robust service desk.

    Complication

    The relative autonomy of the five service desks had led to the proliferation of different tools and processes, licensing headaches, and confusion from end users about where to acquire IT service.

    Oxford University IT at a Glance

    • One of the world’s oldest and most prestigious universities.
    • 36 colleges with 100+ departments.
    • Over 40,000 IT end users.
    • Roughly 350 ITS staff in 40 teams.
    • 300 more distributed IT staff.
    • Offers more than 80 services.

    Help Desks:

    • Processes → Business Services & Projects
    • Processes → Computing Services
    • Processes → ICT Support Team

    "IT Services are aiming to provide a consolidated service which provides a unified and coherent experience for users. The aim is to deliver a ‘joined-up’ customer experience when users are asking for any form of help from IT Services. It will be easier for users to obtain support for their IT – whatever the need, service or system." – Oxford University, IT Services

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Build a Service Desk Consolidation Strategy – project overview

    1. Develop shared vision 2. Design consolidation 3. Plan transition
    Best-Practice Toolkit

    1.1 Identify and engage key stakeholders

    1.2 Develop a vision to give the project direction

    1.3 Conduct a full assessment of each service desk

    2.1 Design target consolidated service desk

    2.2 Assess logistics and cost of consolidation

    3.1 Build project roadmap

    3.2 Communicate the change

    Guided Implementations
    • Build the project team and define their roles and responsibilities, then identify key stakeholders and formulate an engagement plan
    • Develop an executive visioning session plan to formulate and get buy-in for the goals and vision of the consolidation
    • Use diagnostics results and the service desk assessment tool to evaluate the maturity and environment of each service desk
    • Define the target state of the consolidated service desk in detail
    • Identify requirements for the consolidation, broken down by people, process, technology and by short- vs. long-term needs
    • Plan the logistics of the consolidation for process, technology, and facilities, and evaluate the cost and cost savings of consolidation with a TCO tool
    • Identify specific initiatives for the consolidation project and evaluate the risks and dependencies for each, then plot initiatives on a detailed project roadmap
    • Brainstorm potential objections and questions and develop a communications plan with targeted messaging for each stakeholder group
    Onsite Workshop

    Module 1: Engage stakeholders to develop a vision for the service desk

    Module 2: Conduct a full assessment of each service desk

    		Module 3: Design target consolidated service desk Module 4: Plan for the transition

    Phase 1 Outcomes:

    • Stakeholder engagement and executive buy-in
    • Vision for the consolidation
    • Comprehensive assessment of each service desk’s performance

    Phase 2 Outcomes:

    • Defined requirements, logistics plan, and target state for the consolidated service desk
    • TCO comparison

    Phase 3 Outcomes:

    • Detailed consolidation project roadmap
    • Communications plan and FAQs

    Info-Tech delivers: Use our tools and templates to accelerate your project to completion

    • Service Desk Assessment Tool (Excel)
    • Executive Presentation (PowerPoint)
    • Service Desk Scorecard Comparison Tool (Excel)
    • Service Desk Efficiency Calculator (Excel)
    • Service Desk Consolidation Roadmap (Excel)
    • Service Desk Consolidation TCO Tool (Excel)
    • Communications and Training Plan (Word)
    • Consolidation News Bulletin & FAQ Template (PowerPoint)

    Measured value for Guided Implementations (GIs)

    Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings.

    GI Measured Value
    Phase 1:
    • Time, value, and resources saved by using Info-Tech’s methodology to engage stakeholders, develop a project vision, and assess your current state.
    • For example, 2 FTEs * 10 days * $80,000/year = $6,200
    Phase 2:
    • Time, value, and resources saved by using Info-Tech’s tools and templates to design the consolidated service desk and evaluate cost and logistics.
    • For example, 2 FTEs * 5 days * $80,000/year = $3,100
    Phase 3:
    • Time, value, and resources saved by following Info-Tech’s tools and methodology to build a project roadmap and communications plan.
    • For example, 1 FTE * 5 days * $80,000/year = $1,500
    Total savings $10,800

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Pre-Workshop Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4
    Activities

    Module 0: Gather relevant data

    0.1 Conduct CIO Business Vision Survey

    0.2 Conduct End-User Satisfaction Survey

    0.3 Measure Agent Satisfaction

    Module 1: Engage stakeholders to develop a vision for the service desk

    1.1 Identify key stakeholders and develop an engagement plan

    1.2 Brainstorm desired service desk attributes

    1.3 Conduct an executive visioning session to craft a vision for the consolidated service desk

    1.4 Define project goals, principles, and KPIs

    Module 2: Conduct a full assessment of each service desk

    2.1 Review the results of diagnostic programs

    2.2 Map organizational structure and roles for each service desk

    2.3 Assess overall maturity and environment of each service desk

    2.4 Assess current information system environment

    Module 3: Design target consolidated service desk

    3.1 Identify requirements for target consolidated service desk

    3.2 Build requirements document and shortlist for ITSM tool

    3.3 Use the scorecard comparison tool to assess the gap between existing service desks and target state

    3.4 Document standardized processes for new service desk

    Module 4: Plan for the transition

    4.1 Plan the logistics of the transition

    4.2 Assess the cost and savings of consolidation to refine business case

    4.3 Identify initiatives and develop a project roadmap

    4.4 Plan communications for each stakeholder group

    Deliverables
    1. CIO Business Vision Survey Diagnostic Results
    2. End-User Satisfaction Survey Diagnostic Results
    1. Stakeholder Engagement Workbook
    2. Executive Presentation
    1. Consolidate Service Desk Assessment Tool
    1. Consolidate Service Desk Scorecard Tool
    2. Consolidated Service Desk SOP
    1. Consolidation TCO Tool
    2. Executive Presentation
    3. Consolidation Roadmap
    4. Communications Plan
    5. News Bulletin & FAQ Template

    Insight breakdown

    Phase 1 Insight

    Don’t get bogged down in the details. A detailed current state assessment is a necessary first step for a consolidation project, but determining the right level of detail to include in the evaluation can be challenging. Gather enough data to establish a baseline and make an informed decision about how to consolidate, but don’t waste time collecting and evaluating unnecessary information that will only distract and slow down the project, losing management interest and buy-in.

    How we can help

    Leverage the Consolidate Service Desk Assessment Tool to gather the data you need to evaluate your existing service desks.

    Phase 2 Insight

    Select the target state that is right for your organization. Don’t feel pressured to move to a complete consolidation with a single point of contact if it wouldn’t be compatible with your organization’s needs and abilities, or if it wouldn’t be adopted by your end users. Design an appropriate level of standardization and centralization for the service desk and reinforce and improve processes moving forward.

    How we can help

    Leverage the Consolidate Service Desk Scorecard Tool to analyze the gap between your existing processes and your target state.

    Phase 3 Insight

    Getting people on board is key to the success of the consolidation, and a communication plan is essential to do so. Develop targeted messaging for each stakeholder group, keeping in mind that your end users are just as critical to success as your staff. Know your audience, communicate to them often and openly, and ensure that every communication has a purpose.

    How we can help

    Leverage the Communications Plan and Consolidation News Bulletin & FAQ Template to plan your communications.

    Phase 1

    Develop a Shared Vision

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Develop shared vision

    Proposed Time to Completion (in weeks): 4-8

    Step 1.1: Identify and engage key stakeholders

    Discuss with an analyst:

    • Build the project team and define their roles and responsibilities
    • Identify key stakeholders and formulate an engagement plan

    Then complete these activities…

    • Assign project roles and responsibilities
    • Identify key stakeholders
    • Formalize an engagement plan and conduct interviews

    With these tools & templates:

    Stakeholder Engagement Workbook

    Step 1.2: Develop a vision to give the project direction

    Discuss with an analyst:

    • Develop an executive visioning session plan to formulate and get buy-in for the goals and vision of the consolidation

    Then complete these activities…

    • Host an executive visioning exercise to define the scope and goals of the consolidation

    With these tools & templates:

    Consolidate Service Desk Executive Presentation

    Step 1.3: Conduct a full assessment of each service desk

    Discuss with an analyst:

    • Use diagnostics results and the service desk assessment tool to evaluate the maturity and environment of each service desk
    • Assess agent skills, satisfaction, roles and responsibilities

    Then complete these activities…

    • Analyze organizational structure
    • Assess maturity and environment of each service desk
    • Assess agent skills and satisfaction

    With these tools & templates:

    Consolidate Service Desk Assessment Tool

    IT Skills Inventory and Gap Assessment Tool

    Phase 1 Outcome:

    • A common vision for the consolidation initiative, an analysis of existing service desk architectures, and an inventory of existing best practices.

    Step 1.1: Get buy-in from key stakeholders

    Phase 1

    Develop a shared vision

    1.1 Identify and engage key stakeholders

    1.2 Develop a vision to give the project direction

    1.3 Conduct a full assessment of each service desk

    This step will walk you through the following activities:
    • 1.1.1 Assign roles and responsibilities
    • 1.1.2 Identify key stakeholders for the consolidation
    • 1.1.3 Conduct stakeholder interviews to understand needs in more depth, if necessary
    This step involves the following participants:
    • Project Sponsor
    • CIO or IT Director
    • Project Manager
    • IT Managers and Service Desk Manager(s)
    Step Outcomes:
    • A project team with clearly defined roles and responsibilities
    • A list of key stakeholders and an engagement plan to identify needs and garner support for the change

    Oxford consulted with people at all levels to ensure continuous improvement and new insights

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    Motivation

    The merging of Oxford’s disparate IT organizations was motivated primarily to improve end-user service and efficiency.

    Similarly, ITS positioned the SDCP as an “operational change,” not to save costs, but to provide better service to their customers.

    "The University is quite unique in the current climate in that reduction in costs was not one of the key drivers behind the project. The goal was to deliver improved efficiencies and offer a single point of contact for their user base." – Peter Hubbard, ITSM Consultant Pink Elephant

    Development

    Oxford recognized early that they needed an open and collaborative environment to succeed.

    Key IT and business personnel participated in a “vision workshop” to determine long- and short-term objectives, and to decide priorities for the consolidated service desk.

    "Without key support at this stage many projects fail to deliver the expected outcomes. The workshop involved the key stakeholders of the project and was deemed a successful and positive exercise, delivering value to this stage of the project by clarifying the future desired state of the Service Desk." – John Ireland, Director of Customer Service & Project Sponsor

    Deployment

    IT Services introduced a Service Desk Consolidation Project Blog very early into the project, to keep everyone up-to-date and maintain key stakeholder buy-in.

    Constant consultation with people at all levels led to continuous improvement and new insights.

    "We also became aware that staff are facing different changes depending on the nature of their work and which toolset they use (i.e. RT, Altiris, ITSM). Everyone will have to change the way they do things at least a little – but the changes depend on where you are starting from!" – Jonathan Marks, Project Manager

    Understand and validate the consolidation before embarking on the project

    Define what consolidation would mean in the context of your organization to help validate and frame the scope of the project before proceeding.

    What is service desk consolidation?

    Service desk consolidation means combining multiple service desks into one centralized, single point of contact.

    • Physical consolidation = personnel and assets are combined into a single location
    • Virtual consolidation = service desks are combined electronically

    Consolidation must include people, process, and technology:

    1. Consolidation of some or all staff into one location
    2. Consolidation of processes into a single set of standardized processes
    3. One consolidated technology platform or ITSM tool

    Consolidation can take the form of:

    1. Merging multiple desks into one
    2. Collapsing multiple desks into one
    3. Connecting multiple desks into a virtual desk
    4. Moving all desks to one connected platform

    Service Desk 1 - Service Desk 2 - Service Desk 3

    ↓

    Consolidated Service Desk

    Info-Tech Insight

    Consolidation isn’t for everyone.

    Before you embark on the project, think about unique requirements for your organization that may necessitate more than one service desk, such as location-specific language. Ask yourself if consolidation makes sense for your organization and would achieve a benefit for the organization, before proceeding.

    1.1 Organize and build the project team to launch the project

    Solidify strong support for the consolidation and get the right individuals involved from the beginning to give the project the commitment and direction it requires.

    Project Sponsor
    • Has direct accountability to the executive team and provides leadership to the project team.
    • Legitimatizes the consolidation and provides necessary resources to implement the project.
    • Is credible, enthusiastic, and understands the organization’s culture and values.
    Steering Committee
    • Oversees the effort.
    • Ensures there is proper support from the organization and provides resources where required.
    • Resolves any conflicts.
    Core Project Team
    • Full-time employees drawn from roles that are critical to the service desk, and who would have a strong understanding of the consolidation goals and requirements.
    • Ideal size: 6-10 full-time employees.
    • May include roles defined in the next section.

    Involve the right people to drive and facilitate the consolidation

    Service desk consolidations require broad support and capabilities beyond only those affected in order to deal with unforeseen risks and barriers.

    • Project manager: Has primary accountability for the success of the consolidation project.
    • Senior executive project sponsor: Needed to “open doors” and signal organization’s commitment to the consolidation.
    • Technology SMEs and architects: Responsible for determining and communicating requirements and risks of the technology being implemented or changed, especially the ITSM tool.
    • Business unit leads: Responsible for identifying and communicating impact on business functions, approving changes, and helping champion change.
    • Product/process owners: Responsible for identifying and communicating impact on business functions, approving changes, and helping champion change.
    • HR specialists: Most valuable when roles and organizational design are affected, i.e. the consolidation requires staff redeployment or substantial training (not just using a new system or tool but acquiring new skills and responsibilities) or termination.
    • Training specialists: If you have full-time training staff in the organization, you will eventually need them to develop training courses and material. Consulting them early will help with scoping, scheduling, and identifying the best resources and channels to deliver the training.
    • Communications specialists (internal): Valuable in crafting communications plan, required if communications function owns internal communications.

    Use a RACI table (e.g. in the following section) to clarify who is to be accountable, responsible, consulted, and informed.

    Info-Tech Insight

    The more transformational the change, the more it will affect the organizational chart – not just after the implementation but through the transition.

    Take time early in the project to define the reporting structure for the project/transition team, as well as any teams and roles supporting the transition.

    Assign roles and responsibilities

    1.1.1 Use a RACI chart to assign overarching project responsibilities

    Participants
    • Project Sponsor
    • IT Director, CIO
    • Project Manager
    • IT Managers and Service Desk Manager(s)
    What You'll Need
    • RACI chart

    RACI = Responsible, Accountable, Consulted, Informed

    The RACI chart will provide clarity for overarching roles and responsibilities during the consolidation.

    1. Confirm and modify the columns to match the stakeholders in your organization.
    2. Confirm and modify the roles listed as rows if there are obvious gaps or opportunities to consolidate rows.
    3. Carefully analyze and document the roles as a group.
    Task Project Sponsor Project Manager Sr. Executives SMEs Business Lead Service Desk Managers HR Trainers Communications
    Meeting project objectives A R A R R
    Identifying risks and opportunities R A A C C C C I I
    Assessing current state I A I R C R
    Defining target state I A I C C R
    Planning logistics I A I R R C R
    Building the action plan I A C R R R R R R
    Planning and delivering communications I A C C C C R R A
    Planning and delivering training I A C C C C R R C
    Gathering and analyzing feedback and KPIs I A C C C C C R R

    Identify key stakeholders to gather input from the business, get buy-in for the project, and plan communications

    Identify the key stakeholders for the consolidation to identify the impact consolidation will have on them and ensure their concerns don’t get lost.

    1. Use a stakeholder analysis to identify the people that can help ensure the success of your project.
    2. Identify an Executive Sponsor
      • A senior-level project sponsor is someone who will champion the consolidation project and help sell the concept to other stakeholders. They can also ensure that necessary financial and human resources will be made available to help secure the success of the project. This leader should be someone who is credible, tactful, and accessible, and one who will not only confirm the project direction but also advocate for the project.

    Why is a stakeholder analysis essential?

    • Ignoring key stakeholders is an important cause of failed consolidations.
    • You can use the opinions of the most influential stakeholders to shape the project at an early stage.
    • Their support will secure resources for the project and improve the quality of the consolidation.
    • Communicating with key stakeholders early and often will ensure they fully understand the benefits of your project.
    • You can anticipate the reaction of key stakeholders to your project and plan steps to win their support.

    Info-Tech Insight

    Be diverse and aware. When identifying key stakeholders for the project, make sure to include a rich diversity of stakeholder expertise, geography, and tactics. Also, step back and add silent members to your list. The loudest voices and heaviest campaigners are not necessarily your key stakeholders.

    Identify key stakeholders for the consolidation

    1.1.2 Identify project stakeholders, particularly project champions

    Participants
    • CIO/IT Director
    • Project Sponsor
    • Project Manager
    • IT Managers
    What You’ll Need
    • Whiteboard or flip chart and markers

    Goal: Create a prioritized list of people who are affected or can affect your project so you can plan stakeholder engagement and communication.

    • Use an influence/commitment matrix to determine where your stakeholders lie.
    • High influence, high commitment individuals should be used in conjunction with your efforts to help bring others on board. Identify these individuals and engage with them immediately.
    • Beware of the high influence, low commitment individuals. They should be the first priority for engagement.
    • High commitment, low influence individuals can be used to help influence the low influence, low commitment individuals. Designate a few of these individuals as “champions” to help drive engagement on the front lines.

    Outcome: A list of key stakeholders to include on your steering committee and your project team, and to communicate with throughout the project.

    The image is a matrix, with Influence on the Y-axis and Commitment to change on the X-axis. It is a blank template.

    Overcome the value gap by gathering stakeholder concerns

    Simply identifying and engaging your stakeholders is not enough. There needs to be feedback: talk to your end users to ensure their concerns are heard and determine the impact that consolidation will have on them. Otherwise, you risk leaving value on the table.

    • Talk to the business end users who will be supported by the consolidated service desk.
    • What are their concerns about consolidation?
    • Which functions and services are most important to them? You need to make sure these won't get lost.
    • Try to determine what impact consolidation will have on them.

    According to the Project Management Institute, only 25% of individuals fully commit to change. The remaining 75% either resist or simply accept the change. Gathering stakeholder concerns is a powerful way to gain buy-in.

    The image is a graph with Business Value on the Y-Axis and Time on the X-Axis. Inside the graph, there is a line moving horizontally, separated into segments: Installation, Implementation, and Target Value. The line inclines during the first two segments, and is flat during the last. Emerging from the space between Installation and Implementation is a second line marked Actual realized value. The space between the target value line and the actual realized value line is labelled: Value gap.

    Collect relevant quantitative and qualitative data to assess key stakeholders’ perceptions of IT across the organization

    Don’t base your consolidation on a hunch. Gather reliable data to assess the current state of IT.

    Solicit direct feedback from the organization to gain critical insights into their perceptions of IT.

    • CIO Business Vision: Understanding the needs of your stakeholders is the first and most important step in building a consolidation strategy. Use the results of this survey to assess the satisfaction and importance of different IT services.
    • End-User Satisfaction: Solicit targeted department feedback on core IT service capabilities, IT communications, and business enablement. Use the results to assess the satisfaction of end users with each service broken down by department and seniority level.

    We recommend completing at least the End-User Satisfaction survey as part of your service desk consolidation assessment and planning. An analyst will help you set up the diagnostic and walk through the report with you.

    To book a diagnostic, or get a copy of our questions to inform your own survey, visit Info-Tech’s Benchmarking Tools, contact your account manager, or call toll-free 1-888-670-8889 (US) or 1-844-618-3192 (CAN).

    Data-Driven Diagnostics:

    End-User Satisfaction Survey

    CIO Business Vision

    Review the results of your diagnostics in step 1.3

    Formalize an engagement plan to cultivate support for the change from key stakeholders

    Use Info-Tech’s Stakeholder Engagement Workbook to formalize an engagement strategy

    If a more formal engagement plan is required for this project, use Info-Tech’s Stakeholder Engagement Workbook to document an engagement strategy to ensure buy-in for the consolidation.

    The engagement plan is a structured and documented approach for gathering requirements by eliciting input and validating plans for change and cultivating sponsorship and support from key stakeholders early in the project lifecycle.

    The Stakeholder Engagement Workbook situates stakeholders on a grid that identifies which ones have the most interest in and influence on your project, to assist you in developing a tailored engagement strategy.

    You can also use this analysis to help develop a communications plan for each type of stakeholder in step 3.2.

    Conduct stakeholder interviews to understand needs in more depth, if necessary

    1.1.3 Interview key stakeholders to identify needs

    • If the consolidation will be a large and complex project and there is a need to understand requirements in more depth, conduct stakeholder interviews with “high-value targets” who can help generate requirements and promote communication around requirements at a later point.
    • Choose the interview method that is most appropriate based on available resources.
    Method Description Assessment and Best Practices Stakeholder Effort Business Analyst Effort
    Structured One-on-One Interview In a structured one-on-one interview, the business analyst has a fixed list of questions to ask the stakeholder and follows up where necessary. Structured interviews provide the opportunity to quickly hone in on areas of concern that were identified during process mapping or group elicitation techniques. They should be employed with purpose – to receive specific stakeholder feedback on proposed requirements or help identify systemic constraints. Generally speaking, they should be 30 minutes or less. Low

    Medium

    Unstructured One-on-One Interview In an unstructured one-on-one interview, the business analyst allows the conversation to flow freely. The BA may have broad themes to touch on, but does not run down a specific question list. Unstructured interviews are most useful for initial elicitation, when brainstorming a draft list of potential requirements is paramount. Unstructured interviews work best with senior stakeholders (sponsors or power users), since they can be time consuming if they’re applied to a large sample size. It’s important for BAs not to stifle open dialog and allow the participants to speak openly. They should be 60 minutes or less. Medium Low

    Step 1.2: Develop a vision to give the project direction

    Phase 1

    Develop a shared vision

    1.1 Get buy-in from key stakeholders

    1.2 Develop a vision to give the project direction

    1.3 Conduct a full assessment of each service desk

    This step will walk you through the following activities:
    • 1.2.1 Brainstorm desired attributes for the consolidated service desk to start formulating a vision
    • 1.2.2 Develop a compelling vision and story of change
    • 1.2.3 Create a vision for the consolidated service desk
    • 1.2.4 Identify the purpose, goals, and guiding principles of the consolidation project
    • 1.2.5 Identify anticipated benefits and associated KPIs
    • 1.2.6 Conduct a SWOT analysis on the business
    This step involves the following participants:
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    • Business Executives
    Step outcomes

    A shared vision for the consolidated service desk that:

    • Defines the scope of the consolidation
    • Encompasses the goals and guiding principles of the project
    • Identifies key attributes of the consolidated service desk and anticipated benefits it will bring
    • Is documented in an executive presentation

    Hold an executive visioning session to kick off the project

    A major change such as service desk consolidation requires a compelling vision to engage staff and motivate them to comprehend and support the change.

    After identifying key stakeholders, gather them in a visioning session or workshop to establish a clear direction for the project.

    An executive visioning session can take up to two days of focused effort and activities with the purpose of defining the short and long-term view, objectives, and priorities for the new consolidated service desk.

    The session should include the following participants:

    • Key stakeholders identified in step 1.1, including:
      • IT management and CIO
      • Project sponsor
      • Business executives interested in the project

    The session should include the following tasks:

    • Identify and prioritize the desired outcome for the project
    • Detail the scope and definition of the consolidation
    • Identify and assess key problems and opportunities
    • Surface and challenge project assumptions
    • Clarify the future desired state of the service desk
    • Determine how processes, functions, and systems are to be included in a consolidation analysis
    • Establish a degree of ownership by senior management

    The activities throughout this step are designed to be included as part of the visioning session

    Choose the attributes of your desired consolidated service desk

    Understand what a model consolidated service desk should look like before envisioning your target consolidated service desk.

    A consolidated service desk should include the following aspects:

    • Handles all customer contacts – including internal and external users – across all locations and business units
    • Provides a single point of contact for end users to submit requests for help
    • Handles both incidents and service requests, as well as any additional relevant ITIL modules such as problem, change, or asset management
    • Consistent, standardized processes and workflows
    • Single ITSM tool with workflows for ticket handling, prioritization, and escalations
    • Central data repository so that staff have access to all information needed to resolve issues quickly and deliver high-quality service, including:
      • IT infrastructure information (such as assets and support contracts)
      • End-user information (including central AD, assets and products owned, and prior interactions)
      • Knowledgebase containing known resolutions and workarounds

    Consolidated Service Desk

    • Service Desk 1
    • Service Desk 2
    • Service Desk 3
    • Consolidated staff
    • Consolidated ITSM tool
    • Consolidated data repository

    Brainstorm desired attributes for the consolidated service desk to start formulating a vision

    1.2.1 Identify the type of consolidation and desired service desk attributes

    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    • Other interested business executives
    What You'll Need
    • Whiteboard or flip chart and markers
    Document

    Document in the Consolidate Service Desk Executive Presentation, slide 6.

    Brainstorm the model and attributes of the target consolidated service desk. You will use this to formulate a vision and define more specific requirements later on.
    1. Identify the type of consolidation: virtual, physical, or hybrid (both)
    2. Identify the level of consolidation: partial (some service desks consolidated) or complete (all service desks consolidated)
    Consolidated Service Desk Model Level of Consolidation
    Partial Complete
    Type of Consolidation Virtual
    Physical
    Hybrid ✓

    3. As a group, brainstorm and document a list of attributes that the consolidated service desk should have.

    Examples:

    • Single point of contact for all users
    • One ITSM tool with consistent built-in automated workflows
    • Well-developed knowledgebase
    • Self-serve portal for end users with ability to submit and track tickets
    • Service catalog

    Develop a compelling vision and story of change

    1.2.2 Use a vision table to begin crafting the consolidation vision

    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    • Other interested business executives
    What You'll Need
    • Whiteboard or flip chart and markers
    Document

    Document in the Consolidate Service Desk Executive Presentation, slide 7.

    Build desire for change.

    In addition to standard high-level scope elements, consolidation projects that require organizational change also need a compelling story or vision to influence groups of stakeholders.

    Use the vision table below to begin developing a compelling vision and story of change.

    Why is there a need to consolidate service desks?
    How will consolidation benefit the organization? The stakeholders?
    How did we determine this is the right change?
    What would happen if we didn’t consolidate?
    How will we measure success?

    Develop a vision to inspire and sustain leadership and commitment

    Vision can be powerful but is difficult to craft. As a result, vision statements often end up being ineffective (but harmless) platitudes.

    A service desk consolidation project requires a compelling vision to energize staff and stakeholders toward a unified goal over a sustained period of time.

    Great visions:

    • Tell a story. They describe a journey with a beginning (who we are and how we got here) and a destination (our goals and expected success in the future).
    • Convey an intuitive sense of direction (or “spirit of change”) that helps people act appropriately without being explicitly told what to do.
    • Appeal to both emotion and reason to make people want to be part of the change.
    • Balance abstract ideas with concrete facts. Without concrete images and facts, the vision will be meaninglessly vague. Without abstract ideas and principles, the vision will lack power to unite people and inspire broad support.
    • Are concise enough to be easy to communicate and remember in any situation.

    Info-Tech Insight

    Tell a story. Stories pack a lot of information into few words. They are easy to write, remember, and most importantly – share. It’s worth spending a little extra time to get the details right.

    Create a vision for the consolidated service desk

    1.2.3 Tell a story to describe the consolidated service desk vision

    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    What You'll Need
    • Whiteboard or flip chart and markers
    • Document in the Executive Presentation, slide 8.

    Craft a vision of the future state of the service desk.

    Tell a story.

    Stories serve to give the consolidation real-world context by describing what the future state will mean for both staff and users of the service desk. The story should sum up the core of the experience of using the consolidated service desk and reflect how the service desk will fit into the life of the user.

    Stories should include:

    • Action describing the way things happen.
    • Contextual detail that helps readers relate to the person in the story.
    • Challenging ideas that contradict common belief and may be disruptive, but help suggest new directions.
    Example:

    Imagine if…

    … users could access one single online service that allows them to submit a ticket through a self-service portal and service catalog, view the status of their ticket, and receive updates about organization-wide outages and announcements. They never have to guess who to contact for help with a particular type of issue or how to contact them as there is only one point of contact for all types of incidents and service requests.

    … all users receive consistent service delivery regardless of their location, and never try to circumvent the help desk or go straight to a particular technician for help as there is only one way to get help by submitting a ticket through a single service desk.

    … tickets from any location could be easily tracked, prioritized, and escalated using standardized definitions and workflows to ensure consistent service delivery and allow for one set of SLAs to be defined and met across the organization.

    Discuss the drivers of the consolidation to identify the goals the project must achieve

    Identifying the reasons behind the consolidation will help formulate the vision for the consolidated service desk and the goals it should achieve.

    The image is a graph, titled Deployment Drivers for Those Planning a Consolidated Service Desk. From highest to lowest, they are: Improved Service Delivery/Increased Productivity; Drive on Operational Costs; and Perceived Best Practice.

    Service Desk Institute (n = 20, 2007)

    A survey of 233 service desks considering consolidation found that of the 20 organizations that were in the planning stages of consolidation, the biggest driver was to improve service delivery and/or increase productivity.

    This is in line with the recommendation that improved service quality should be the main consolidation driver over reducing costs.

    This image is a graph titled Drivers Among Those Who Have Implemented a Consolidated Service Desk. From highest to lowest, they are: Improved Service Delivery/Increased Productivity; Best Practice; Drive on Operational Costs; Internal vs Outsourcing; and Legacy.

    Service Desk Institute (n = 43, 2007)

    The drivers were similar among the 43 organizations that had already implemented a consolidated service desk, with improved service delivery and increased productivity again the primary driver.

    Aligning with best practice was the second most cited driver.

    Identify the purpose, goals, and guiding principles of the consolidation project

    1.2.4 Document goals of the project

    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    What You'll Need
    • Whiteboard or flip chart and markers
    • Document in the Executive Presentation, slide 9.

    Use the results of your stakeholder analysis and interviews to facilitate a discussion among recommended participants and document the purpose of the consolidation project, the goals the project aims to achieve, and the guiding principles that must be followed.

    Use the following example to guide your discussion:

    Purpose The purpose of consolidating service desks is to improve service delivery to end users and free up more time and resources to achieve the organization’s core mission.
    Goals
    • Align IT resources with business strategies and priorities
    • Provide uniform quality and consistent levels of service across all locations
    • Improve the end-user experience by reducing confusion about where to get help
    • Standardize service desk processes to create efficiencies
    • Identify and eliminate redundant functions or processes
    • Combine existing resources to create economies of scale
    • Improve organizational structure, realign staff with appropriate job duties, and improve career paths
    Guiding Principles

    The consolidated service desk must:

    1. Provide benefit to the organization without interfering with the core mission of the business
    2. Balance cost savings with service quality
    3. Increase service efficiency without sacrificing service quality
    4. Not interfere with service delivery or the experience of end users
    5. Be designed with input from key stakeholders

    Identify the anticipated benefits of the consolidation to weigh them against risks and plan future communications

    The primary driver for consolidation of service desks is improved service delivery and increased productivity. This should relate to the primary benefits delivered by the consolidation, most importantly, improved end-user satisfaction.

    A survey of 43 organizations that have implemented a consolidated service desk identified the key benefits delivered by the consolidation (see chart at right).

    The image is a bar graph titled Benefits Delivered by Consolidated Service Desk. The benefits, from highest to lowest are: Increased Customer Satisfaction; Optimised Resourcing; Cost Reduction; Increased Productivity/Revenue; Team Visibility/Ownership; Reporting/Accountability.

    Source: Service Desk Institute (n = 43, 2007)

    Info-Tech Insight

    Cost reduction may be an important benefit delivered by the consolidation effort, but it should not be the most valuable benefit delivered. Focus communications on anticipated benefits for improved service delivery and end-user satisfaction to gain buy-in for the project.

    Identify anticipated outcomes and benefits of consolidation

    1.2.5 Use a “stop, start, continue” exercise to identify KPIs

    What You'll Need
    • Whiteboard or flip chart and markers
    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    Document

    Document in the Executive Presentation, slide 10

    1. Divide the whiteboard into 3 columns: stop, start, and continue
    2. Identify components of your service desk that:
    • Are problematic and should be phased out (stop)
    • Provide value but are not in place yet (start)
    • Are effective and should be sustained, if not improved (continue)
  • For each category, identify initiatives or outcomes that will support the desired goals and anticipated benefits of consolidation.
    • Stop Start Continue
    • Escalating incidents without following proper protocol
    • Allowing shoulder taps
    • Focusing solely on FCR as a measure of success
    • Producing monthly ticket trend reports
    • Creating a self-serve portal
    • Communicating performance to the business
    • Writing knowledgebase articles
    • Improving average TTR
    • Holding weekly meetings with team members

    Use a SWOT analysis to assess the service desk

    • A SWOT analysis is a structured planning method that organizations can use to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or business venture.
    • Use a SWOT analysis to identify the organization’s current IT capabilities and classify potential disruptive technologies as the first step toward preparing for them.
    Review these questions...
    Strengths (Internal) Weaknesses (Internal)
    • What Service Desk processes provide value?
    • How does the Service Desk align with corporate/IT strategy?
    • How does your Service Desk benefit end users?
    • Does the Service Desk produce reports or data that benefit the business?
    • Does your Service Desk culture offer an advantage?
    • What areas of your service desk require improvement?
    • Are there gaps in capabilities?
    • Do you have budgetary limitations?
    • Are there leadership gaps (succession, poor management, etc.)?
    • Are there reputational issues with the business?
    Opportunities (External) Threats (External)
    • Are end users adopting hardware or software that requires training and education for either themselves or the Service Desk staff?
    • Can efficiencies be gained by consolidating our Service Desks?
    • What is the most cost-effective way to solve the user's technology problems and get them back to work?
    • How can we automate Service Desk processes?
    • Are there obstacles that the Service Desk must face?
    • Are there issues with respect to sourcing of staff or technologies?
    • Could the existing Service Desk metrics be affected?
    • Will the management team need changes to their reporting?
    • Will SLAs need to be adjusted?

    …to help you conduct your SWOT analysis on the service desk.

    Strengths (Internal) Weaknesses (Internal)
    • End user satisfaction >80%
    • Comprehensive knowledgebase
    • Clearly defined tiers
    • TTR on tickets is <1 day
    • No defined critical incident workflow
    • High cost to solve issues
    • Separate toolsets create disjointed data
    • No root cause analysis
    • Ineffective demand planning
    • No clear ticket categories
    Opportunities (External) Threats (External)
    • Service catalog
    • Ticket Templates
    • Ticket trend analysis
    • Single POC through the use of one tool
    • Low stakeholder buy-in
    • Fear over potential job loss
    • Logistics of the move
    • End user alienation over process change

    Conduct a SWOT analysis on the business

    1.2.6 Conduct SWOT analysis

    Participants
    • Project Sponsor
    • IT Director, CIO
    • IT Managers and Service Desk Manager(s)
    What You'll Need
    • Whiteboard or flip chart and markers
    Document
    • Document in the Executive Presentation, slide 11
    1. Break the group into two teams:
    • Assign team A strengths and weaknesses.
    • Assign team B opportunities and threats.
  • Have the teams brainstorm items that fit in their assigned areas.
    • Refer to the questions on the previous slide to help guide discussion
  • Choose someone from each group to fill in the grid on the whiteboard.
  • Conduct a group discussion about the items on the list.
    • Helpful to achieving the objective Harmful to achieving the objective
    Internal origin attributes of the organization Strengths Weaknesses

    External Origin attributes of the environment

    		Opportunities Threats

    Frame your project in terms of people, process, technology

    A framework should be used to guide the consolidation effort and provide a standardized basis of comparison between the current and target state.

    Frame the project in terms of the change and impact it will have on:

    • People
    • Process
    • Technology

    Service desk consolidation will likely have a significant impact in all three categories by standardizing processes, implementing a single service management tool, and reallocating resources. Framing the project in this way will ensure that no aspect goes forgotten.

    For each of the three categories, you will identify:

    • Current state
    • Target state
    • Gap and actions required
    • Impact, risks, and benefits
    • Communication and training requirements
    • How to measure progress/success

    People

    • Tier 1 support
    • Tier 2 support
    • Tier 3 support
    • Vendors

    Process

    • Incident management
    • Service request management
    • SLAs

    Technology

    • ITSM tools
    • Knowledgebase
    • CMDB and other databases
    • Technology supported

    Complete the Consolidate Service Desk Executive Presentation

    Complete an executive presentation using the decisions made throughout this step

    Use the Consolidate Service Desk Executive Presentation to deliver the outputs of your project planning to the business and gain buy-in for the project.

    1. Use the results of the activities throughout step 1.2 to produce the key takeaways for your executive presentation.
    2. At the end of the presentation, include 1-2 slides summarizing any additional information specific to your organization.
    3. Once complete, pitch the consolidation project to the project sponsor and executive stakeholders.
      • This presentation needs to cement buy-in for the project before any other progress is made.

    Step 1.3: Conduct a full assessment of each service desk

    Phase 1

    Develop a shared vision

    1.1 Get buy-in from key stakeholders

    1.2 Develop a vision to give the project direction

    1.3 Conduct a full assessment of each service desk

    This step will walk you through the following activities:
    • 1.3.1 Review the results of your diagnostic programs
    • 1.3.2 Analyze the organizational structure of each service desk
    • 1.3.3 Assess the overall maturity of each service desk
    • 1.3.4 Map out roles and responsibilities of each service desk using organizational charts
    • 1.3.5 Assess and document current information system environment
    This step involves the following participants:
    • CIO
    • IT Directors
    • Service Desk Managers
    • Service Desk Technicians
    Step outcomes
    • A robust current state assessment of each service desk, including overall maturity, processes, organizational structure, agent skills, roles and responsibilities, agent satisfaction, technology and ITSM tools.

    Oxford saved time and effort by sticking with a tested process that works

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    Oxford ITS instigated the service desk consolidation project in the fall of 2012.

    A new ITSM solution was formally acquired in the spring 2014, and amalgamated workflows designed.

    Throughout this period, at least 3 detailed process analyses occurred in close consultation with the affected IT units.

    Responsibility for understanding each existing process (incident, services, change management, etc.) were assigned to members of the project team.

    They determined which of the existing processes were most effective, and these served as the baseline – saving time and effort in the long run by sticking with tested processes that work.

    Reach out early and often.

    Almost from day one, the Oxford consolidation team made sure to consult closely with each relevant ITS team about their processes and the tools they used to manage their workflows.

    This was done both in structured interviews during the visioning stage and informally at periodic points throughout the project.

    The result was the discovery of many underlying similarities. This information was then instrumental to determining a realistic baseline from which to design the new consolidated service desk.

    "We may give our activities different names or use different tools to manage our work but in all cases common sense has prevailed and it’s perhaps not so surprising that we have common challenges that we choose to tackle in similar ways." – Andrew Goff, Change Management at Oxford ITS

    Review the results of your diagnostic programs to inform your current state assessment

    1.3.1 Understand satisfaction with the service desk

    Participants
    • CIO/IT Director
    • IT Manager
    • Service Manager(s)
    Document
    1. Set up an analyst call through your account manager to review the results of your diagnostic.
    • Whatever survey you choose, ask the analyst to review the data and comments concerning:
      • Assessments of service desk timeliness/effectiveness
      • IT business enablement
      • IT innovation leadership
  • Book a meeting with recommended participants. Go over the results of your diagnostic survey.
  • Facilitate a discussion of the results. Focus on the first few summary slides and the overall department results slide.
    • What is the level of IT support?
    • What are stakeholders’ perceptions of IT performance?
    • How satisfied are stakeholders with IT?
    • Does the department understand and act on business needs?
    • What are the business priorities and how well are you doing in meeting these priorities?
    • How can the consolidation project assist the business in achieving goals?
    • How could the consolidation improve end-user satisfaction and business satisfaction?

    • A robust current state assessment is the foundation of a successful consolidation

    You can’t determine where you’re going without a clear idea of where you are now.

    Before you begin planning for the consolidation, make sure you have a clear picture of the magnitude of what you plan on consolidating.

    Evaluate the current state of each help desk being considered for consolidation. This should include an inventory of:

    • Process:
      • Processes and workflows
      • Metrics and SLAs
    • People:
      • Organizational structure
      • Agent workload and skills
      • Facility layout and design
    • Technology:
      • Technologies and end users supported
      • Technologies and tools used by the service desk

    Info-Tech Insight

    A detailed current state assessment is a necessary first step for a consolidation project, but determining the right level of detail to include in the evaluation can be challenging. Gather enough data to establish a baseline and make an informed decision about how to consolidate, but don’t waste time collecting unnecessary information that will only distract and slow down the project.

    Review ticket handling processes for each service desk to identify best practices

    Use documentation, reports, and metrics to evaluate existing processes followed by each service desk before working toward standardized processes.

    Poor Processes vs. Optimized Processes

    Inconsistent or poor processes affect the business through:

    • Low business satisfaction
    • Low end-user satisfaction
    • High cost to resolve
    • Delayed progress on project work
    • Lack of data for reporting due to ineffective ticket categorization, tools, and logged tickets
    • No root cause analysis leads to a reactive vs. proactive service desk
    • Lack of cross-training and knowledge sharing result in time wasted troubleshooting recurring issues
    • Lack of trend analysis limits the effectiveness of demand planning

    Standardized service desk processes increase user and technician satisfaction and lower costs to support through:

    • Improved business satisfaction Improved end-user satisfaction Incidents prioritized and escalated accurately and efficiently
    • Decreased recurring issues due to root cause analysis and trends
    • Increased self-sufficiency of end users
    • Strengthened team and consistent delivery through cross-training and knowledge sharing
    • Enhanced demand planning through trend analysis and reporting

    The image is a graphic of a pyramid, with categories as follows (from bottom): FAQ/Knowledgebase; Users; Tier 1-75-80%; Tier 2-15%; Tier 3 - 5%. On the right side of the pyramid is written Resolution, with arrows extending from each of the higher sections down to Users. On the left is written Escalation, with arrows from each lower category up to the next highest. Inside the pyramid are arrows extending from the bottom to each level and vice versa.

    Analyze the organizational structure of each service desk

    1.3.2 Discuss the structure of each service desk

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Consolidate Service Desk Assessment Tool

    1. Facilitate a discussion among recommended participants to discuss the structure of each service desk. Decide which model best describes each service desk:

    • The Gatekeeper Model: All calls are routed through a central call group whose sole responsibility is to link the customer to the right individual or group.
    • The Call Sorting Model: All calls are sorted into categories using technology and forwarded to the right 2nd level specialist group.
    • Tiered Structure (Specialist Model): All calls are sorted through a single specialist group, such as desktop support. Their job is to log the interaction, attempt resolution, and escalate when the problem is beyond their ability to resolve.
    • Tiered Structure (Generalist Model): All calls are sorted through a single generalist group, whose responsibility is to log the interaction, attempt a first resolution, and escalate when the problem is beyond their ability to resolve.

    2. Use a flip chart or whiteboard to draw the architecture of each service desk, using the example on the right as a guide.

    The image is a graphic depicting the organizational structure of a service desk, from Users to Vendor. The graphic shows how a user request can move through tiers of service, and the ways that Tiers 2 and 3 of the service desk are broken down into areas of specialization.

    Assess the current state of each service desk using the Consolidate Service Desk Assessment Tool

    Assess the current state of each service desk

    The Consolidate Service Desk Assessment Tool will provide insight into the overall health of each existing service desk along two vectors:

    1. Process Maturity (calculated on the basis of a comprehensive survey)
    2. Metrics (calculated on the basis of entered ticket and demographic data)

    Together these answers offer a snapshot of the health, efficiency, performance, and perceived value of each service desk under evaluation.

    This tool will assist you through the current state assessment process, which should follow these steps:

    1. Send a copy of this tool to the Service Desk Manager (or other designated party) of each service desk that may be considered as part of the consolidation effort.
      • This will collect key metrics and landscape data and assess process maturity
    2. Analyze the data and discuss as a group
    3. Ask follow-up questions
    4. Use the information to compare the health of each service desk using the scorecard tool

    These activities will be described in more detail throughout this step of the project.

    Gather relevant data to assess the environment of each service desk

    Assess each service desk’s environment using the assessment tool

    Send a copy of the Consolidate Service Desk Assessment Tool to the Service Desk Manager (or other designated party) of each service desk that will be considered as part of the consolidation.

    Instruct them to complete tab 2 of the tool, the Environment Survey:

    • Enter Profile, Demographic, Satisfaction, Technology, and Ticket data into the appropriate fields as accurately as possible. Satisfaction data should be entered as percentages.
    • Notes can be entered next to each field to indicate the source of the data, to note missing or inaccurate data, or to explain odd or otherwise confusing data.

    This assessment will provide an overview of key metrics to assess the performance of each service desk, including:

    • Service desk staffing for each tier
    • Average ticket volume and distribution per month
    • # staff in IT
    • # service desk staff
    • # supported devices (PC, laptops, mobiles, etc.)
    • # desktop images

    Assess the overall maturity of each service desk

    1.3.3 Use the assessment tool to measure the maturity of each service desk

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Consolidate Service Desk Assessment Tool
    1. Assemble the relevant team for each service desk: process owners, functional managers, service desk manager, and relevant staff and technicians who work with the processes to be assessed. Each service desk team should meet to complete the maturity assessment together as a group.
    2. Go to tab 3 (Service Desk Maturity Survey) of the Consolidate Service Desk Assessment Tool and respond to the questions in the following categories:
    • Prerequisites (general questions)
    • People
    • Process
    • Technology
    • SLAs
  • Rate each element. Be honest. The goal is to end up with as close a representation as possible to what really exists. Only then can you identify realistic improvement opportunities. Use the maturity definitions as guides.

    • Evaluate resource utilization and satisfaction to allocate resources effectively

    Include people as part of your current state assessment to evaluate whether your resources are appropriately allocated to maximize effectiveness and agent satisfaction.

    Skills Inventory

    Use the IT Skills Inventory and Gap Assessment Tool to assess agent skills and identify gaps or overlaps.

    Agent Satisfaction

    Measure employee satisfaction and engagement to identify strong teams.

    Roles and Responsibilities

    Gather a clear picture of each service desk’s organizational hierarchy, roles, and responsibilities.

    Agent Utilization

    Obtain a snapshot of service desk productivity by calculating the average amount of time an agent is handling calls, divided by the average amount of time an agent is at work.

    Conduct a skills inventory for each service desk

    Evaluate agent skills across service desks

    After evaluating processes, evaluate the skill sets of the agents tasked with following these processes to identify gaps or overlap.

    Send the Skills Coverage Tool tab to each Service Desk Manager, who will either send it to the individuals who make up their service desk with instructions to rate themselves, or complete the assessment together with individuals as part of one-on-one meetings for discussing development plans.

    IT Skills Inventory and Gap Assessment Tool will enable you to:

    • List skills required to support the organization.
    • Document and rate the skills of the existing IT staffing contingent.
    • Assess the gaps to help determine hiring or training needs, or even where to pare back.
    • Build a strategy for knowledge sharing, transfer, and training through the consolidation project.

    Map out roles and responsibilities of each service desk using organizational charts

    1.3.4 Obtain or draw organizational charts for each location

    Clearly document service desk roles and responsibilities to rationalize service desk architecture.
    Participants
    • CIO, IT Director
    • Service Desk Manager(s)
    • Tier/Specialist Manager(s)
    What You’ll Need
    • Org. charts
    • Flip chart or whiteboard and markers
    1. Obtain or draw (on a whiteboard or flip chart) the organizational chart for each service desk to get a clear picture of the roles that fulfill each service desk. If there is any uncertainty or disagreement, discuss as a group to come to a resolution.
    2. Discuss the roles and reporting relationships within the service desk and across the organization to establish if/where inefficiencies exist and how these might be addressed through consolidation.
    3. If an up-to-date organizational chart is not in place, use this time to define the organizational structure as-is and consider future state.
    IT Director
    Service Desk Manager
    Tier 1 Help Desk Lead Tier 2 Help Desk Lead Tier 2 Apps Support Lead Tier 3 Specialist Support Lead
    Tier 1 Specialist Name Title Name Title Name Title
    Tier 1 Specialist Name Title Name Title Name Title
    Name Title Name Title Name Title
    Name Title Name Title

    Conduct an agent satisfaction survey to compare employee engagement across locations

    Evaluate agent satisfaction

    End-user satisfaction isn’t the only important satisfaction metric.

    Agent satisfaction forms a key metric within the Consolidate Service Desk Assessment Tool, and it can be evaluated in a variety of ways. Choose the approach that best suits your organization and time restraints for the project.

    Determine agent satisfaction on the basis of a robust (and anonymous) survey of service desk agents. Like the end-user satisfaction score, this measure is ideally computed as a percentage.

    There are several ways to measure agent satisfaction:

    1. If your organization runs an employee engagement survey, use the most recent survey results, separating them by location and converting them to a percentage.
    2. If your organization does not currently measure employee engagement or satisfaction, consider one of Info-Tech and McLean & Company’s two engagement diagnostics:
      • Full Engagement Diagnostic – 81 questions that provide a comprehensive view into your organization's engagement levels
      • McLean & Company’s Pulse Survey – 15 questions designed to give a high-level view of employee engagement
    3. For smaller organizations, a survey may not be feasible or make sense. In this case, consider gathering informal engagement data through one-on-one meetings.
    4. Be sure to discuss and document any reasons for dissatisfaction, including pain points with the current tools or processes.
    Document
    • Document on tab 2 of the Consolidate Service Desk Assessment Tool

    Assess the service management tools supporting your service desks

    Identify the different tools being used to support each service desk in order to assess whether and how they can be consolidated into one service management tool.

    Ideally, your service desks are already on the same ITSM platform, but if not, a comprehensive assessment of current tools is the first step toward a single, consolidated solution.

    Include the following in your tools assessment:

    • All automated ITSM solutions being used to log and track incidents and service requests
    • Any manual or other methods of tracking tickets (e.g. Excel spreadsheets)
    • Configurations and any customizations that have been made to the tools
    • How configuration items are maintained and how mature the configuration management databases (CMDB) are
    • Pricing and licensing agreements for tools
    • Any unique functions or limitations of the tools

    Info-Tech Insight

    Document not only the service management tools that are used but also any of their unique and necessary functions and configurations that users may have come to rely upon, such as remote support, self-serve, or chat support, in order to inform requirements in the next phase.

    Assess the IT environment your service desks support

    Even if you don’t do any formal asset management, take this opportunity for discovery and inventory to gain a complete understanding of your IT environment and the range of devices your service desks support.

    Inventory your IT environment, including:

    User Devices

    • Device counts by category Equipment/resources by user

    Servers

    • Server hardware, CPU, memory
    • Applications residing on servers

    Data centers

    • Including location and setup

    In addition to identifying the range of devices you currently support, assess:

    • Any future devices, hardware, or software that the service desk will need to support (e.g. BYOD, mobile)
    • How well each service desk is currently able to support these devices
    • Any unique or location-specific technology or devices that could limit a consolidation

    Info-Tech Insight

    The capabilities and configuration of your existing infrastructure and applications could limit your consolidation plans. A comprehensive technology assessment of not only the service desk tools but also the range of devices and applications your service desks supports will help you to prepare for any potential limitations or obstacles a consolidated service desk may present.

    Assess and document current information system environment

    1.3.5 Identify specific technology and tool requirements

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Consolidate Service Desk Assessment Tool, tab 2.
    Document

    Document information on number of devices supported and number of desktop images associated with each service desk in the section on “Technology Data” of the Consolidate Service Desk Assessment Tool.

    1. Identify and document the service management tools that are used by each service desk.
    2. For each tool, identify and document any of the following that apply:
    • Integrations
    • Configurations that were made during implementation
    • Customizations that were made during implementation
    • Version, licenses, cost
  • For each service desk, document any location-specific or unique technology requirements or differences that could impact consolidation, including:
    • Devices and technology supported
    • Databases and configuration items
    • Differing applications or hardware needs

    • If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    1.1.1 Assign roles and responsibilities

    Use a RACI chart to assign overarching responsibilities for the consolidation project.

    1.3.2 Analyze the organizational structure of each service desk

    Map out the organizational structure and flow of each service desk and discuss the model that best describes each.

    Phase 2

    Design the Consolidated Service Desk

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Design consolidated service desk

    Proposed Time to Completion (in weeks): 2-4

    Step 2.1: Model target consolidated service desk

    Start with an analyst kick-off call:

    • Define the target state of the consolidated service desk in detail
    • Identify requirements for the consolidation, broken down by people, process, technology and by short- vs. long-term needs

    Then complete these activities…

    • Set project metrics to measure success of the consolidation
    • Brainstorm people, process, technology requirements for the service desk
    • Build requirements documents and RFP for a new tool
    • Review results of the scorecard comparison tool

    With these tools & templates:

    Consolidate Service Desk Scorecard Tool

    Step 2.2: Assess logistics and cost of consolidation

    Review findings with analyst:

    • Plan the logistics of the consolidation for process, technology, and facilities
    • Evaluate the cost and cost savings of consolidation using a TCO tool

    Then complete these activities…

    • Plan logistics for process, technology, facilities, and resource allocation
    • Review the results of the Service Desk Efficiency Calculator to refine the business case for the consolidation project

    With these tools & templates:

    Service Desk Efficiency Calculator

    Service Desk Consolidation TCO Comparison Tool

    Phase 2 Results:

    • Detailed requirements and vision for the consolidated service desk, gap analysis of current vs. target state, and an initial analysis of the logistical considerations to achieve target.

    Step 2.1: Model target consolidated state

    Phase 2

    Design consolidation

    2.1 Design target consolidated service desk

    2.2 Assess logistics and cost of consolidation

    This step will walk you through the following activities:
    • 2.1.1 Determine metrics to measure the value of the project
    • 2.1.2 Set targets for each metric to measure progress and success of the consolidation
    • 2.1.3 Brainstorm process requirements for consolidated service desk
    • 2.1.4 Brainstorm people requirements for consolidated service desk
    • 2.1.5 Brainstorm technology requirements for consolidated service desk
    • 2.1.6 Build a requirements document for the service desk tool
    • 2.1.7 Evaluate alternative tools, build a shortlist for RFPs, and arrange web demonstrations or evaluation copies
    • 2.1.8 Set targets for key metrics to identify high performing service desks
    • 2.1.9 Review the results of the scorecard to identify best practices
    This step involves the following participants:
    • CIO
    • IT Director
    • Service Desk Managers
    • Service Desk Technicians
    Step Outcomes
    • A list of people, process, and technology requirements for the new consolidated service desk
    • A clear vision of the target state
    • An analysis of the gaps between existing and target service desks

    Ensure the right people and methods are in place to anticipate implementation hurdles

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    "Since our last update, a review and re-planning exercise has reassessed the project approach, milestones, and time scales. This has highlighted some significant hurdles to transition which needed to be addressed, resulting primarily from the size of the project and the importance to the department of a smooth and well-planned transition to the new processes and toolset." – John Ireland, Director of Customer Service & Project Sponsor

    Initial hurdles led to a partial reorganization of the project in Fall 2014

    Despite careful planning and its ultimate success, Oxford’s consolidation effort still encountered some significant hurdles along the way – deadlines were sometimes missed and important processes overlooked.

    These bumps can be mitigated by building flexibility into your plan:

    • Adopt an Agile methodology – review and revise groups of tasks as the project progresses, rather than waiting until near the end of the project to get approval for the complete implementation.
    • Your Tiger Team or Project Steering Group must include the right people – the project team should not just include senior or high-level management; members of each affected IT group should be consulted, and junior-level employees can provide valuable insight into existing and potential processes and workflows.

    Info-Tech Insight

    Ensure that the project lead is someone conversant in ITSM, so that they are equipped to understand and react to the unique challenges and expectations of a consolidation and can easily communicate with process owners.

    Use the consolidation vision to define the target service desk in more detail

    Use your baseline assessment and your consolidation vision as a guide to figure out exactly where you’re going before planning how to get there.

    With approval for the project established and a clear idea of the current state of each service desk, narrow down the vision for the consolidated service desk into a specific picture of the target state.

    The target state should provide answers to the following types of questions:

    Process:

    • Will there be one set of SLAs across the organization?
    • What are the target SLAs?
    • How will ticket categories be defined?
    • How will users submit and track their tickets?
    • How will tickets be prioritized and escalated?
    • Will a knowledgebase be maintained and accessible by both service desk and end users?

    People:

    • How will staff be reorganized?
    • What will the roles and responsibilities look like?
    • How will tiers be structured?
    • What will the career path look like within the service desk?

    Technology:

    • Will there be one single ITSM tool to support the service desk?
    • Will an existing tool be used or will a new tool be selected?
    • If a new tool is needed, what are the requirements?

    Info-Tech Insight

    Select the target state that is right for your organization. Don’t feel pressured to select the highest target state or a complete consolidation. Instead select the target state that is most compatible with your organization’s current needs and capabilities.

    Determine metrics to measure the value of the project

    2.1.1 Identify KPIs to measure the success of the consolidation

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You’ll Need
    • Whiteboard or flip chart and markers

    Identify three primary categories where the consolidation project is expected to yield benefits to the business. Use the example on the right to guide your discussion.

    Efficiency and effectiveness are standard benefits for this project, but the third category may depend on your organization.

    • Examples include: improved resourcing, security, asset management, strategic alignment, end-user experience, employee experience

    Identify 1-3 key performance indicators (KPIs) associated with each benefit category, which will be used to measure the success of the consolidation project. Ensure that each has a baseline measure that can be reassessed after the consolidation.

    Efficiency

    Streamlined processes to reduce duplication of efforts

    • Reduced IT spend and cost of delivery
    • One ITSM tool Improved reliability of service
    • Improved response time

    Resourcing

    Improved allocation of human and financial resources

    • Improved resource sharing
    • Improved organizational structure of service desk

    Effectiveness

    Service delivery will be more accessible and standardized

    • Improved responsive-ness to incidents and service requests
    • Improved resolution time
    • Single point of contact for end users
    • Improved reporting

    Set targets for each metric to measure progress and success of the consolidation

    2.1.2 Identify specific metrics for each KPI and targets for each

    Participants
    • IT Director
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You’ll Need
    • KPIs from previous step
    • Whiteboard or flip chart and markers
    1. Select one core KPI for each critical success factor, which will be used to measure progress and success of the consolidation effort down the road.
    2. For each KPI, document the average baseline metric the organization is achieving (averaged across all service desks).
    3. Discuss and document a target metric that the project will aim to reach through the single consolidated service desk.
    4. Set a short and long-term target for each metric to encourage continuous improvement. Examples:
    Efficiency
    Business Value KPI Current Metric Short-Term (6 month) Target Long-Term (1 year) Target
    Streamlined processes to reduce duplication of efforts Improved response time 2 hours 1 hour 30 minutes
    Effectiveness
    Business Value KPI Current Metric Short-Term (6 month) Target Long-Term (1 year) Target
    Service delivery will be more accessible and standardized Improved first call resolution (% resolved at Tier 1) 50% 60% 70%

    If poor processes were in place, take the opportunity to start fresh with the consolidation

    If each service desk’s existing processes were subpar, it may be easier to build a new service desk from the basics rather than trying to adapt existing processes.

    You should have these service management essentials in place:

    Service Requests:

    • Standardize process to verify, approve, and fulfill service requests.
    • Assign priority according to business criticality and service agreements.
    • Think about ways to manage service requests to better serve the business long term.

    Incident Management:

    • Set standards to define and record incidents.
    • Define incident response actions and communications.

    Knowledgebase:

    • Define standards for knowledgebase.
    • Introduce creation of knowledgebase articles.
    • Create a knowledge-sharing and cross-training culture.

    Reporting:

    • Select appropriate metrics.
    • Generate relevant insights that shed light on the value that IT creates for the organization.

    The image is a circle comprised of 3 concentric circles. At the centre is a circle labelled Standardized Service Desk. The ring outside of it is split into 4 sections: Incident Management; Service Requests; Structure and Reporting; and Knowledgebase. The outer circle is split into 3 sections: People, Process, Technologies.

    Evaluate how your processes compare with the best practices defined here. If you need further guidance on how to standardize these processes after planning the consolidation, follow Info-Tech’s blueprint, Standardize the Service Desk.

    Even optimized processes will need to be redefined for the target consolidated state

    Your target state doesn’t have to be perfect. Model a short-term, achievable target state that can demonstrate immediate value.

    Consider the following elements when designing service desk processes:
    • Ticket input (i.e. how can tickets be submitted?)
    • Ticket classification (i.e. how will tickets be categorized?)
    • Ticket prioritization (i.e. how will critical incidents be defined?)
    • Ticket escalation (i.e. how and at what point will tickets be assigned to a more specialized resource?)
    • Ticket resolution (i.e. how will resolution be defined and how will users be notified?)
    • Communication with end users (i.e. how and how often will users be notified about the status of their ticket or of other incidents and outages?)

    Consider the following unique process considerations for consolidation:

    • How will knowledge sharing be enabled in order for all technicians to quickly access known errors and resolve problems?
    • How can first contact resolution levels be maintained through the transition?
    • How will procedures be clearly documented so that tickets are escalated properly?
    • Will ticket classification and prioritization schemes need to change?
    • Will new services such as self-serve be introduced to end users and how will this be communicated?

    Info-Tech Insight

    Don’t do it all at once. Consolidation will lead to some level of standardization. It will be reinforced and improved later through ongoing reengineering and process improvement efforts (continual improvement management).

    Brainstorm process requirements for consolidated service desk

    2.1.3 Identify process-related requirements for short and long term

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Whiteboard, sticky notes, markers
    • Vision and goals for the consolidation from step 1.2
    Document
    • Document internally, or leave on a whiteboard for workshop participants to return to when documenting tasks in the roadmap tool.
    1. Review the questions in the previous section to frame a discussion on process considerations and best practices for the target consolidated service desk.
    2. Use your responses to the questions to brainstorm a list of process requirements or desired characteristics for the target state, particularly around incident management and service request management.
    3. Write each requirement onto a sticky note and categorize it as one of the following:
      1. Immediate requirement for consolidated service desk
      2. Implement within 6 months
      3. Implement within 1 year

    Example:

    Whiteboard:

    • Immediate
      • Clearly defined ticket prioritization scheme
      • Critical incident process workflow
    • 6 months
      • Clearly defined SOP, policies, and procedures
      • Transactional end-user satisfaction surveys
    • 1 year
      • Change mgmt.
      • Problem mgmt.

    Define the target resource distribution and utilization for the consolidated service desk

    Consolidation can sound scary to staff wondering if there will be layoffs. Reduce that by repurposing local staff and maximizing resource utilization in your organizational design.

    Consider the following people-related elements when designing your target state:

    • How will roles and responsibilities be defined for service desk staff?
    • How many agents will be required to deal with ticket demand?
    • What is the target agent utilization rate?
    • How will staff be distributed among tiers?
    • What will responsibilities be at each tier?
    • Will performance goals and rewards be established or standardized?

    Consider the following unique people considerations for consolidation:

    • Will staffing levels change?
    • Will job titles or roles change for certain individuals?
    • How will staff be reorganized?
    • Will staff need to be relocated to one location?
    • Will reporting relationships change?
    • How will this be managed?
    • How will performance measurements be consolidated across teams and departments to focus on the business goals?
    • Will there be a change to career paths?
    • What will consolidation do to morale, job interest, job opportunities?

    Info-Tech Insight

    Identify SMEs and individuals who are knowledgeable about a particular location, end-user base, technology, or service offering. They may be able to take on a different, greater role due to the reorganization that would make better use of their skills and capabilities and improve morale.

    Brainstorm people requirements for consolidated service desk

    2.1.4 Identify people-related requirements for short and long term

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Whiteboard, sticky notes, markers
    • Vision and goals for the consolidation from step 1.2
    Document

    Document internally, or leave on a whiteboard for workshop participants to return to when documenting tasks in the roadmap tool.

    1. Review the questions in the previous section to frame a discussion on people considerations and best practices for the target consolidated service desk.
    2. Use your responses to the questions to brainstorm a list of requirements for the allocation and distribution of resources, including roles, responsibilities, and organizational structure.
    3. When thinking about people, consider requirements for both your staff and your end users.
    4. Write each requirement onto a sticky note and categorize it as one of the following:
      1. Immediate requirement for consolidated service desk
      2. Implement within 6 months
      3. Implement within 1 year

    Example:

    Whiteboard:

    • Immediate
      • Three tier structure with SMEs at Tier 2 and 3
      • All staff working together in one visible location
    • 6 months
      • Roles and responsibilities well defined and documented
      • Appropriate training and certifications available to staff
    • 1 year
      • Agent satisfaction above 80%
      • End-user satisfaction above 75%

    Identify the tools that will support the service desk and those the service desk will support

    One of the biggest technology-related decisions you need to make is whether you need a new ITSM tool. Consider how it will be used by a single service desk to support the entire organization.

    Consider the following technology elements when designing your target state:
    • What tool will be used to support the service desk?
    • What processes or ITIL modules can the tool support?
    • How will reports be produced? What types of reports will be needed for particular audiences?
    • Will a self-service tool be in place for end users to allow for password resets or searches for solutions?
    • Will the tool integrate with tools for change, configuration, problem, and asset management?
    • Will the majority of manual processes be automated?
    Consider the following unique technology considerations for consolidation:
    • Is an existing service management tool extensible?
    • If so, can it integrate with essential non-IT systems?
    • Can the tool support a wider user base?
    • Can the tool support all areas, departments, and technologies it will need to after consolidation?
    • How will data from existing tools be migrated to the new tool?
    • What implementation or configuration needs and costs must be considered?
    • What training will be required for the tool?
    • What other new tools and technologies will be required to support the consolidated service desk?

    Info-Tech Insight

    Talk to staff at each service desk to ask about their tool needs and requirements to support their work. Invite them to demonstrate how they use their tools to learn about customization, configuration, and functionality in place and to help inform requirements. Engaging staff in the process will ensure that the new consolidated tool will be supported and adopted by staff.

    Brainstorm technology requirements for consolidated service desk

    2.1.5 Identify technology-related requirements for short and long term

    Participants
    • CIO
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You’ll Need
    • Whiteboard, sticky notes, markers
    • Vision and goals for the consolidation from step 1.2
    Document

    Document internally, or leave on a whiteboard for workshop participants to return to when documenting tasks in the roadmap tool.

    1. Review the questions in the previous section to frame a discussion on technology considerations and best practices for the target consolidated service desk.
    2. Use your responses to the questions to brainstorm a list of requirements for the tools to support the consolidated service desk, along with any other technology requirements for the target state.
    3. Write each requirement onto a sticky note and categorize it as one of the following:
      1. Immediate requirement for consolidated service desk
      2. Implement within 6 months
      3. Implement within 1 year

    Example:

    Whiteboard:

    • Immediate
      • Single ITSM tool
      • Remote desktop support
    • 6 months
      • Self-service portal
      • Regular reports are produced accurately
    • 1 year
      • Mobile portal
      • Chat integration

    Identify specific requirements for a tool if you will be selecting a new ITSM solution

    Service desk software needs to address both business and technological needs. Assess these needs to identify core capabilities required from the solution.

    Features Description
    Modules
    • Do workflows integrate seamlessly between functions such as incident management, change management, asset management, desktop and network management?

    Self-Serve

    • Does the existing tool support self-serve in the form of web forms for incident reporting, forms for service requests, as well as FAQs for self-solve?
    • Is a service catalog available or can one be integrated painlessly?
    Enterprise Service Management Needs
    • Integration of solution to all of IT, Human Resources, Finance, and Facilities for workflows and financial data can yield great benefits but comes at a higher cost and greater complexity. Weigh the costs and benefits.
    Workflow Automation
    • If IT has advanced beyond simple workflows, or if extending these workflows beyond the department, more power may be necessary.
    • Full business process management (BPM) is part of a number of more advanced service desk/service management solutions.
    License Maintenance Costs
    • Are license and maintenance costs still reasonable and appropriate for the value of the tool?
    • Will the vendor renegotiate?
    • Are there better tools out there for the same or better price?
    Configuration Costs
    • Templates, forms, workflows, and reports all take time and skills but bring big benefits. Can these changes be done in-house? How much does it cost to maintain and improve?
    Speed / Performance
    • Data growth and volume may have reached levels beyond the current solution’s ability to cope, despite database tuning.
    Vendor Support
    • Is the vendor still supporting the solution and developing the roadmap? Has it been acquired? Is the level of support still meeting your needs?

    Build a requirements document for the service desk tool

    2.1.6 Create a requirements list and demo script for an ITSM tool (optional)

    Participants
    • CIO/IT Director
    • Service Desk Manager(s)
    • Service Desk Technicians
    What You'll Need
    • Flip charts and markers
    • Templates:
      • IT Service Management Demo Script Template
      • Service Desk Software and RFP Evaluation Tool

    Create a requirements list for the service desk tool.

    1. Break the group into smaller functional groups.
    2. Brainstorm features that would be important to improving efficiencies, services to users, and visibility to data.
    3. Document on flip chart paper, labelling each page with the functional group name.
    4. Prioritize into must-have and nice-to-have items.
    5. Reconvene and discuss each list with the group.
    6. Info-Tech’s Service Desk Software and RFP Evaluation Tool can also be used to document requirements for an RFI.

    Create a demo script:

    Using information from the requirements list, determine which features will be important for the team to see during a demo. Focus on areas where usability is a concern, for example:

    • End-user experience
    • Workflow creation and modification
    • Creating templates
    • Creating service catalog items
    • Knowledgebase

    Evaluate alternative tools, build a shortlist for RFPs, and arrange web demonstrations or evaluation copies

    2.1.7 Identify an alternative tool and build an RFP (optional)

    Participants
    • CIO (optional)
    • Service Desk Manager
    • Service Desk Technician(s)
    • Service Desk Tool Administrator
    What You'll Need
    • Whiteboard or flip chart and markers
    • Service Desk RFP Template

    Evaluate current tool:

    • Investigate to determine if these features are present and just not in use.
    • Contact the vendor if necessary.
    • If enough features are present, determine if additional training is required.
    • If tool is proven to be inadequate, investigate options.

    Consider alternatives:

    Use Info-Tech’s blueprints for further guidance on selecting and implementing an ITSM tool

    1. Select a tool

    Info-Tech regularly evaluates ITSM solution providers and ranks each in terms of functionality and affordability. The results are published in the Enterprise and Mid-Market Service Desk Software Vendor Landscapes.

    2. Implement the tool

    After selecting a solution, follow the Build an ITSM Tool Implementation Plan project to develop an implementation plan to ensure the tool is appropriately designed, installed, and tested and that technicians are sufficiently trained to ensure successful deployment and adoption of the tool.

    Compare your existing service desks with the Consolidate Service Desk Scorecard Tool

    Complete the scorecard tool along with the activities of the next step

    The Consolidate Service Desk Scorecard Tool will allow you to compare metrics and maturity results across your service desks to identify weak and poor performers and processes.

    The purpose of this tool is to organize the data from up to six service desks that are part of a service desk consolidation initiative. Displaying this data in an organized fashion, while offering a robust comparative analysis, should facilitate the process of establishing a new baseline for the consolidated service desk.

    Use the results on tab 4 of the Consolidate Service Desk Assessment Tool. Enter the data from each service desk into tab “2. InfoCards” of the Consolidate Service Desk Scorecard Tool.

    Data from up to six service desks (up to six copies of the assessment tool) can be entered into this tool for comparison.

    Set targets for key metrics to identify high performing service desks

    2.1.8 Use the scorecard tool to set target metrics against which to compare service desks

    Participants
    • CIO or IT Director
    • Service Desk Manager(s)
    What You’ll Need
    • Consolidate Service Desk Scorecard Tool
    1. Review the explanations of the six core metrics identified from the service desk assessment tool. These are detailed on tab 3 of the Consolidate Service Desk Scorecard Tool.
      1. End-user satisfaction
      2. Agent satisfaction
      3. Cost per ticket
      4. Agent utilization rate
      5. First contact resolution rate
      6. First tier resolution rate
    2. For each metric (except agent utilization), define a “worst” and “best” target number. These numbers should be realistic and determined only after some consideration.
    • Service desks scoring at or above the “best” threshold for a particular metric will receive 100% on that metric; while service desks scoring at or below the “worst” threshold for a particular metric will receive 0% on that metric.
    • For agent utilization, only a “best” target number is entered. Service desks hitting this target number exactly will receive 100%, with scores decreasing as a service desk’s agent utilization gets further away from this target.
  • Identify the importance of each metric and vary the values in the “weighting” column accordingly.

    • The values entered on this tab will be used in calculating the overall metric score for each service desk, allowing you to compare the performance of existing service desks against each other and against your target state.

    Review the results of the scorecard to identify best practices

    2.1.9 Discuss the results of the scorecard tool

    Participants
    • CIO or IT Director (optional)
    • Service Desk Manager(s)
    What You'll Need
    • Consolidate Service Desk Scorecard Tool
    1. Facilitate a discussion on the results of the scorecard tool on tabs 4 (Overall Results), 5 (Maturity Results), and 6 (Metrics Results).
    2. Identify the top performing service desks(s) (SD Champions) as identified by the average of their metric and maturity scores.
    3. Identify the top performing service desk by maturity level (tab 5; Level 3 – Integrated or Optimized), paying particular attention to high scorers on process maturity and maturity in incident & service request management.
    4. Identify the top performing service desk by metric score (tab 6), paying particular attention to the metrics that tie into your KPIs.
    5. For those service desks, review their processes and identify what they are doing well to glean best practices.
      1. Incorporate best practices from existing high performing service desks into your target state.
      2. If one service desk is already performing well in all areas, you may choose to model your consolidated service desk after it.

    Document processes and procedures in an SOP

    Define the standard operating procedures for the consolidated service desk

    Develop one set of standard operating procedures to ensure consistent service delivery across locations.

    One set of standard operating procedures for the new service desk is essential for a successful consolidation.

    Info-Tech’s Consolidated Service Desk SOP Template provides a detailed example of documenting procedures for service delivery, roles and responsibilities, escalation and prioritization rules, workflows for incidents and service requests, and resolution targets to help ensure consistent service expectations across locations.

    Use this template as a guide to develop or refine your SOP and define the processes for the consolidated service desk.

    Step 2.2: Assess logistics and cost of consolidation

    Phase 2

    Design consolidation

    2.1 Design target consolidated state

    2.2 Assess logistics and cost

    This step will walk you through the following activities:
    • 2.2.1 Plan logistics for process, technology, and facilities
    • 2.2.2 Plan logistics around resource allocation
    • 2.2.3 Review the results of the Service Desk Efficiency Calculator to refine the business case for the consolidation project
    This step involves the following participants:
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    Step outcomes
    • An understanding and list of tasks to accomplish to ensure all logistical considerations for the consolidation are accounted for
    • An analysis of the impact on staffing and service levels using the Service Desk Efficiency Calculator
    • An assessment of the cost of consolidation and the cost savings of a consolidated service desk using a TCO tool

    The United States Coast Guard’s consolidation saved $20 million in infrastructure and support costs

    CASE STUDY

    Industry: US Coast Guard

    Source: CIO Rear Adm. Robert E. Day, Jr. (retired)

    Challenges

    The US Coast Guard was providing internal IT support for 42,000 members on active duty from 11 distinct regional IT service centers around the US.

    Pain Points

    1. Maintaining 11 disparate IT architectures was costly and time consuming.
    2. Staffing inefficiencies limited the USCG’s global IT service operations to providing IT support from 8am to 4pm.
    3. Individual sites were unable to offload peak volume during heavier call loads to other facilities.
    4. Enforcing adherence to standard delivery processes, procedures, and methods was nearly impossible.
    5. Personnel didn’t have a single point of contact for IT support.
    6. Leadership has limited access to consolidated analytics.

    Outcomes

    • Significant reduction in infrastructure, maintenance, and support costs.
    • Reduced risk through comprehensive disaster recovery.
    • Streamlined processes and procedures improved speed of incident resolution.
    • Increased staffing efficiencies.
    • Deeper analytical insight into service desk performance.

    Admiral Day was the CIO from 2009 to 2014. In 2011, he lead an initiative to consolidate USCG service desks.

    Selecting a new location communicated the national mandate of the consolidated service desk

    Site Selection - Decision Procedures

    • Determine location criteria, including:
      • Access to airports, trains, and highways
      • Workforce availability and education
      • Cost of land, real estate, taxes
      • Building availability Financial incentives
    • Review space requirements (i.e. amount and type of space).
    • Identify potential locations and analyze with defined criteria.
    • Develop cost models for various alternatives.
    • Narrow selection to 2-3 sites. Analyze for fit and costs.
    • Conduct site visits to evaluate each option.
    • Make a choice and arrange for securing the site.
    • Remember to compare the cost to retrofit existing space with the cost of creating a space for the consolidated service desk.

    Key Decision

    Relocating to a new location involved potentially higher implementation costs, which was a significant disadvantage.

    Ultimately, the relocation reinforced the national mandate of the consolidated service desk. The new organization would act as a single point of contact for the support of all 42,000 members of the US Coast Guard.

    "Before our regional desks tended to take on different flavors and processes. Today, users get the same experience whether they’re in Alaska or Maryland by calling one number: (855) CG-FIX IT." – Rear Adm. Robert E. Day, Jr. (retired)

    Plan the logistics of the consolidation to inform the project roadmap and cost assessment

    Before proceeding, validate that the target state is achievable by evaluating the logistics of the consolidation itself.

    A detailed project roadmap will help break down the project into manageable tasks to reach the target state, but there is no value to this if the target state is not achievable or realistic.

    Don’t forget to assess the logistics of the consolidation that can be overlooked during the planning phase:

    • Service desk size
    • Location of the service desk
    • Proximity to company management and facilities
    • Unique applications, platforms, or configurations in each location/region
    • Distribution of end-user population and varying end-user needs
    • Load balancing
    • Call routing across locations
    • Special ergonomic or accessibility requirements by location
    • Language requirements

    Info-Tech Insight

    Language barriers can form significant hurdles or even roadblocks for the consolidation project. Don’t overlook the importance of unique language requirements and ensure the consolidated service desk will be able to support end-user needs.

    Plan logistics for process, technology, and facilities

    2.2.1 Assess logistical and cost considerations around processes, technology, and facilities

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    What You'll Need
    • Whiteboard or flip chart and markers
    • Consolidate roadmap
    Document

    Identify tasks that should form part of the roadmap and document in the roadmap tool.

    Identify costs that should be included in the TCO assessment and document in the TCO tool.

    Discuss and identify any logistic and cost considerations that will need to form part of the consolidation plan and roadmap. Examples are highlighted below.

    Logistic considerations

    • Impact of ticket intake process changes on end users
    • Process change impact on SLAs and productivity standards
    • Call routing changes and improvements
    • Workstations and workspace – is there enough and what will it look like for each agent?
    • Physical access to the service desk – will walk-ups be permitted? Is it accessible?
    • Security or authorization requirements for specific agents that may be impacted by relocation
    • Layout and design of new location, if applicable
    • Hardware, platform, network, and server implications
    • Licensing and contract limitations of the service desk tool

    Cost considerations

    • Cost savings from ITSM tool consolidation
    • Cost of new ITSM tool purchase, if applicable
    • Efficiencies gained from process simplification
    • New hardware or software purchases
    • Cost per square foot of new physical location, if applicable

    Develop a staffing plan that leverages the strengths you currently have and supplement where your needs require

    Your staff are your greatest assets; be sensitive to their concerns as you plan the consolidation.

    Keep in mind that if your target state involves reorganization of resources and the creation of resources, there will be additional staffing tasks that should form part of the consolidation plan. These include:

    • Develop job descriptions and reporting relationships
    • Evaluate current competencies Identify training and hiring needs
    • Develop migration strategy (including severance and migration packages)

    If new positions will be created, follow these steps to mitigate risks:

    1. Conduct skills assessments (a skills inventory should have been completed in phase 1)
    2. Re-interview existing staff for open positions before considering hiring outside staff
    3. Hire staff from outside if necessary

    For more guidance on hiring help desk staff, see Info-Tech’s blueprint, Manage Help Desk Staffing.

    Be sensitive to employee concerns.

    Develop guiding principles for the consolidation to ensure that employee satisfaction remains a priority throughout the consolidation.

    Examples include:

    1. Reconcile existing silos and avoid creating new silos
    2. Keep current systems where it makes sense to avoid staff having to learn multiple new systems to do their jobs and to reduce costs
    3. Repurpose staff and allocate according to their knowledge and expertise as much as possible
    4. Remain open and transparent about all changes and communicate change regularly

    Info-Tech Insight

    The most talented employees can be lost in the migration to a consolidated service desk, resulting in organizational loss of core knowledge. Mitigate this risk using measurement strategies, competency modeling, and knowledge sharing to reduce ambiguity and discomfort of affected employees.

    Plan logistics around resource allocation

    2.2.2 Assess logistical and cost considerations around people

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    What You’ll Need
    • Whiteboard or flip chart and markers
    • Consolidate roadmap
    Document

    Identify tasks that should form part of the roadmap and document in the roadmap tool.

    Identify costs that should be included in the TCO assessment and document in the TCO tool.

    Discuss and identify any logistic and cost considerations surrounding resources and staffing that will need to form part of the consolidation plan and roadmap. Examples are highlighted below.

    Logistic considerations

    • Specialized training requirements for staff moving to new roles
    • Enablement of knowledge sharing across agents
    • Potential attrition of staff who do not wish to relocate or be reallocated
    • Relocation of staff – will staff have to move and will there be incentives for moving?
    • Skills requirements, recruitment needs, job descriptions, and postings for hiring

    Cost considerations

    • Existing and future salaries for employees
    • Potential attrition of employees
    • Retention costs and salary increases to keep employees
    • Hiring costs
    • Training needs and costs

    Assess impact on staffing with the Service Desk Efficiency Calculator

    How do organizations calculate the staffing implications of a service desk consolidation?

    The Service Desk Efficiency Calculator uses the ITIL Gross Staffing Model to think through the impact of consolidating service desk processes.

    To estimate the impact of the consolidation on staffing levels, estimate what will happen to three variables:

    • Ticket volume
    • Average call resolution
    • Spare capacity

    All things being equal, a reduction in ticket volume (through outsourcing or the implementation of self-serve options, for example), will reduce your staffing requirements (all things being equal). The same goes for a reduction in the average call resolution rate.

    Constraints:

    Spare capacity: Many organizations are motivated to consolidate service desks by potential reductions in staffing costs. However, this is only true if your service desk agents have spare capacity to take on the consolidated ticket volume. If they don’t, you will still need the same number of agents to do the work at the consolidated service desk.

    Agent capabilities: If your agents have specialised skills that you need to maintain the same level of service, you won’t be able to reduce staffing until agents are cross-trained.

    Review the results of the Service Desk Efficiency Calculator to refine the business case for the consolidation project

    2.2.3 Discuss the results of the efficiency calculator in the context of consolidation

    Participants
    • CIO or IT Director
    • Service Desk Manager(s)
    What You’ll Need
    • Completed Service Desk Efficiency Calculator

    The third tab of the Service Desk Efficiency Calculator will quantify:

    • Service Desk Staffing: The impact of different ticket distribution on service desk staffing levels.
    • Service Desk Ticket Resolution Cost: The impact of different ticket distributions on ticket resolution costs.
    • Service Management Efficiency: The business impact of service management initiatives, specifically, the time lost or captured in service management processes relative to an average full-time employee equivalent.

    Facilitate a discussion around the results.

    Evaluate where you are now and where you hope to be. Focus on the efficiency gains expected from the outsourcing project. Review the expected gains in average resolution time, the expected impact on service desk ticket volume, and the associated productivity gains.

    Use this information to refine the business case and project plan for the consolidation, if needed.

    Assess consolidation costs and cost savings to refine the business case

    While cost savings should not be the primary driver of consolidation, they should be a key outcome of the project in order to deliver value.

    Typical cost savings for a service desk consolidation are highlighted below:

    People 10-20% savings (through resource pooling and reallocation)

    Process 5-10% savings (through process simplification and efficiencies gained)

    Technology 10-15% savings (through improved call routing and ITSM tool consolidation)

    Facilities 5-10% savings (through site selection and redesign)

    Cost savings should be balanced against the costs of the consolidation itself (including hiring for consolidation project managers or consultants, moving expenses, legal fees, etc.)

    Evaluate consolidation costs using the TCO Comparison Tool described in the next section.

    Analyze resourcing and budgeting to create a realistic TCO and evaluate the benefits of consolidation

    Use the TCO tool to assess the cost and cost savings of consolidation

    • The tool compares the cost of operating two service desks vs. one consolidated service desk, along with the cost of consolidation.
    • If your consolidation effort involves more than two facilities, then use multiple copies of the tool.
      • E.g. If you are consolidating four service desks (A, B, C, and D) into one service desk (X), then use two copies of the tool. We encourage you to book an analyst call to help you get the most out of this tool and process.

    Service Desk Consolidation TCO Comparison Tool

    Refine the business case and update the executive presentation

    Check in with executives and project sponsor before moving forward with the transition

    Since completing the executive visioning session in step 1.2, you should have completed the following activities:

    • Current state assessment
    • Detailed target state and metrics
    • Gap analysis between current and target state
    • Assessment of logistics and cost of consolidation

    The next step will be to develop a project roadmap to achieve the consolidation vision.

    Before doing this, check back in with the project sponsor and business executives to refine the business case, obtain necessary approvals, and secure buy-in.

    If necessary, add to the executive presentation you completed in step 1.2, copying results of the deliverables you have completed since:

    • Consolidate Service Desk Assessment Tool (current state assessment)
    • Consolidate Service Desk Scorecard Tool
    • Service Desk Consolidation TCO Comparison Tool

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    2.1.3 Brainstorm process requirements for consolidated service desk

    Identify process requirements and desired characteristics for the target consolidated service desk.

    2.1.9 Review the results of the scorecard to identify best practices

    Review the results of the Consolidate Service Desk Scorecard Tool to identify top performing service desks and glean best practices.

    Phase 3

    Plan the Transition

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 3: Plan the transition

    Proposed Time to Completion (in weeks): 2-4

    Step 3.1: Build project roadmap

    Discuss with an analyst:

    • Identify specific initiatives for the consolidation project and evaluate the risks and dependencies for each
    • Plot initiatives on a detailed project roadmap with assigned responsibilities

    Then complete these activities…

    • Break the consolidation project down into specific initiatives
    • Identify and document risks and dependencies
    • Plot your initiatives onto a detailed project roadmap
    • Select transition date for consolidation

    With these tools & templates:

    Service Desk Consolidation Roadmap

    Step 3.2: Communicate the change

    Discuss with an analyst:

    • Identify the goals of communication, then develop a communications plan with targeted messaging for each stakeholder group to achieve those goals
    • Brainstorm potential objections and questions as well as responses to each

    Then complete these activities…

    • Build the communications delivery plan
    • Brainstorm potential objections and questions and prepare responses
    • Complete the news bulletin to distribute to your end users

    With these tools & templates:

    Service Desk Consolidation Communications and Training Plan Template

    Service Desk Consolidation News Bulletin & FAQ Template

    Phase 3 Results:
    • A detailed project roadmap toward consolidation and a communications plan to ensure stakeholders are on board

    Step 3.1: Build the project roadmap

    Phase 3

    Plan the consolidation

    3.1 Build the project roadmap

    3.2 Communicate the change

    This step will walk you through the following activities:
    • 3.1.1 Break the consolidation project down into a series of specific initiatives
    • 3.1.2 Identify and document risks and dependencies
    • 3.1.3 Plot your initiatives onto a detailed project roadmap
    • 3.1.4 Select transition date based on business cycles
    This step involves the following participants:
    • CIO
    • IT Directors
    • Service Desk Managers
    • Consolidation Project Manager
    • Service Desk Technicians
    Step outcomes

    A detailed roadmap to migrate to a single, consolidated service desk, including:

    • A breakdown of specific tasks groups by people, process, and technology
    • Identified risks and dependencies for each task
    • A timeline for completion of each task and the overall consolidation
    • Assigned responsibility for task completion

    Failure to engage stakeholders led to the failure of a large healthcare organization’s consolidation

    CASE STUDY

    Industry: Healthcare

    Source: Organizational insider

    A large US healthcare facilities organization implemented a service desk consolidation initiative in early 2013. Only 18 months later, they reluctantly decided to return to their previous service desk model.

    Why did this consolidation effort fail?

    1. Management failed to communicate the changes to service-level staff, leading to agent confusion and pushback. Initially, each desk became part of the other’s overflow queue with no mention of the consolidation effort. Next, the independent desks began to share a basic request queue. Finally, there was a complete virtual consolidation – which came as a shock to service agents.
    2. The processes and workflows of the original service desks were not integrated, requiring service agents to consult different processes and use different workflows when engaging with end users from different facilities, even though all calls were part of the same queue.
    3. Staff at the different service centers did not have a consistent level of expertise or technical ability, even though they all became part of the same queue. This led to a perceived drop in end-user satisfaction – end users were used to getting a certain level of service and were suddenly confronted with less experienced agents.

    Before Consolidation

    Two disparate service desks:

    • With distinct geographic locations.
    • Servicing several healthcare facilities in their respective regions.
    • With distinct staff, end users, processes, and workflows.

    After Consolidation

    One virtually-consolidated service desk servicing many facilities spread geographically over two distinct locations.

    The main feature of the new virtual service desk was a single, pooled ticket queue drawn from all the end users and facilities in the new geographic regions.

    Break the consolidation project down into a series of specific initiatives

    3.1.1 Create a list of specific tasks that will form the consolidation project

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    What You’ll Need
    • Whiteboard and markers
    • List of prioritized target state requirements
    • Consolidation roadmap
    Document

    Document the list of initiatives in the Service Desk Consolidation Roadmap.

    In order to translate your newly made decisions regarding the target state and logistical considerations into a successful consolidation strategy, create an exhaustive list of all the steps and sub-steps that will lead you from your current state to your target state.

    Use the next few steps to finish brainstorming the initiative list, identify risks and dependencies, and construct a detailed timeline populated with specific project steps.

    Instructions

    Start with the list you have been curating throughout the current and future state assessments. If you are completing this project as a workshop, add to the initiative list you have been developing on the whiteboard.

    Try to organize your initiatives into groups of related tasks. Begin arranging your initiatives into people, process, technology, or other categories.

    Whiteboard People Process Technology Other

    Evaluate the impact of potential risks and develop a backup plan for high risk initiatives

    A service desk consolidation has a high potential for risks. Have a backup plan prepared for when events don’t go as planned.

    • A consolidation project requires careful planning as it is high risk and not performed often.
    • Apply the same due diligence to the consolidation plan as you do in preparing your disaster recovery plan. Establish predetermined resolutions to realistic risks so that the team can think of solutions quickly during the consolidation.

    Potential Sources of Risk

    • Service desk tool or phone line downtime prevents ability to submit tickets
    • Unable to meet SLAs through the transition
    • Equipment failure or damage through the physical move
    • Lost data through tool migration
    • Lost knowledge from employee attrition
    Risk - degree of impact if activities do not go as planned High

    A – High Risk, Low Frequency

    Tasks that are rarely done and are high risk. Focus attention here with careful planning (e.g. consolidation)

    B – High Risk, High Frequency

    Tasks that are performed regularly and must be watched closely each time (e.g. security authorizations)

    ↕

    C – Low Risk, Low Frequency

    Tasks that are performed regularly with limited impact or risk (e.g. server upgrades)

    D – Low Risk, High Frequency

    Tasks that are done all the time and are not risky (e.g. password resets)

    Low ↔ High
    Frequency - how often the activity has been performed

    Service desk consolidations fit in category A

    Identify risks for people, processes, tools, or data to ensure the project plan will include appropriate mitigations

    Each element of the consolidation has an inherent risk associated with it as the daily service flow is interrupted. Prepare in advance by anticipating these risks.

    The project manager, service desk managers, and subject matter experts (SMEs) of different areas, departments, or locations should identify risks for each of the processes, tools, resource groups (people), and any data exchanges and moves that will be part of the project or impacted by the project.

    Process - For each process, validate that workflows can remain intact throughout the consolidation project. If any gaps may occur in the process flows, develop a plan to be implemented in parallel with the consolidation to ensure service isn’t interrupted.

    Technology - For a tool consolidation, upgrade, or replacement, verify that there is a plan in place to ensure continuation of service delivery processes throughout the change.

    Make a plan for if and how data from the old tool(s) will be migrated to the new tool, and how the new tool will be installed and configured.

    People - For movement of staff, particularly with termination, identify any risks that may occur and involve your HR and legal departments to ensure all movement is compliant with larger processes within the organization.

    Info-Tech Insight

    Don’t overlook the little things. Sometimes the most minor-seeming components of the consolidation can cause the greatest difficulty. For example, don’t assume that the service desk phone number can simply roll over to a new location and support the call load of a combined service desk. Verify it.

    Identify and document risks and dependencies

    3.1.2 Risks, challenges, and dependencies exercise - Estimated Time: 60 minutes

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    • SMEs
    What You'll Need
    • Whiteboard and markers
    • List of initiatives identified in previous activities
    • Consolidation roadmap
    Document

    Use the outcome of this activity to complete your consolidation roadmap.

    Instructions
    • Document risks and challenges, as well as dependencies associated with the initiatives identified earlier, using a different color sticky note from your initiatives.
    • See example below.
    Combine Related Initiatives
    • Look for initiatives that are highly similar, dependent on each other, or occurring at the same time. Consolidate these initiatives into a single initiative with several sub-steps in order to better organize your roadmap and reduce redundancy.
    • Create hierarchies for dependent initiatives that could affect the scheduling of initiatives on a roadmap, and reorganize the whiteboard where necessary.
    Optional:
    • Use a scoring method to categorize risks. E.g.:
      • High: will stop or delay operations, radically increase cost, or significantly reduce consolidation benefits
      • Medium: would cause some delay, cost increase, or performance shortfall, but would not threaten project viability
      • Low: could impact the project to a limited extent, causing minor delays or cost increases
    • Develop contingency plans for high risks or adjust to avoid the problem entirely
    Implement new ISTM tool:
    • Need to transition from existing tools
    • Users must be trained
    • Data and open tickets must be migrated

    Plot your initiatives onto a detailed project roadmap

    3.1.3 Estimated Time: 45 minutes

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    Document

    Document your initiatives on tab 2 of the Service Desk Consolidation Roadmap or map it out on a whiteboard.

    Determine the sequence of initiatives, identify milestones, and assign dates.
    • The purpose of this exercise is to define a timeline and commit to initiatives to reach your goals.
    • Determine the order in which previously identified consolidation initiatives will be implemented, document previously identified risks and dependencies, assign ownership for each task, and assign dates for pilots and launch.

    Select transition date based on business cycles

    3.1.4

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    What You'll Need
    • Consolidation roadmap
    Document

    Adjust initiatives in the consolidation roadmap if necessary.

    The transition date will be used in communications in the next step.

    1. Review the initiatives in the roadmap and the resulting sunshine diagram on tab 3.
    2. Verify that the initiatives will be possible within the determined time frame and adjust if necessary.
    3. Based on the results of the roadmap, select a target transition date for the consolidation by determining:
      1. Whether there are dates when a major effort of this kind should not be scheduled.
      2. Whether there are merger and acquisition requirements that dictate a specific date for the service desk merger.
    4. Select multiple measurable checkpoints to alert the team that something is awry and mitigate risks.
    5. Verify that stakeholders are aware of the risks and the proposed steps necessary to mitigate them, and assign the necessary resources to them.
    6. Document or adjust the target transition date in the roadmap.

    Info-Tech Insight

    Consolidating service desks doesn’t have to be done in one shot, replacing all your help desks, tools, and moving staff all at the same time. You can take a phased approach to consolidating, moving one location, department, or tool at a time to ease the transition.

    Step 3.2: Communicate the change

    Phase 3

    Design consolidation

    3.1 Build the project roadmap

    3.2 Communicate the change

    This step will walk you through the following activities:
    • 3.2.1 Build the communications delivery plan
    • 3.2.2 Brainstorm potential objections and questions and prepare responses
    This step involves the following participants:
    • IT Director
    • Project Manager
    • Service Desk Manager(s)
    • Service Desk Agents
    Step outcomes
    • A detailed communications plan with key messages, delivery timeline, and spokesperson responsibility for each key stakeholder audience
    • A set of agreed-upon responses to anticipated objections and questions to ensure consistent message delivery
    • A news bulletin and list of FAQs to distribute to end users to prepare them for the change

    Create your communication plan with everyone in mind, from the CIO to end users

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    Oxford implemented extremely innovative initiatives as part of its robust communications plan.

    ITS ran a one-day ITSM “business simulation” for the CIO and direct reports, increasing executive buy-in.

    “ The business simulation was incredibly effective as a way of getting management buy-in – it really showed what we are driving at. It’s a way of making it real, bringing people on board. ” – John Ireland, Director of Customer Service

    Detailed use cases were envisioned referencing particular ITIL processes as the backbone of the process framework.

    “ The use cases were very helpful, they were used […] in getting a broad engagement from teams across our department and getting buy-in from the distributed IT staff who we work with across the wider University. ” – John Ireland, Director of Customer Service

    The Oxford ITS SDCP blog was accessible to everyone.

    • Oxford’s SDCP blog acted as a project touchstone not only to communicate updates quickly, but also to collect feedback, enable collaboration, and set a project tone.
    • An informal tone and accessible format facilitated the difficult cultural shifts required of the consolidation effort.

    “ We in the project team would love to hear your view on this project and service management in general, so please feel free to comment on this blog post, contact us using the project email address […] or, for further information visit the project SharePoint site […] ” – Oxford ITS SDCP blog post

    Plan for targeted and timely communications to all stakeholders

    Develop a plan to keep all affected stakeholders informed about the changes consolidation will bring, and more importantly, how they will affect them.

    All stakeholders must be kept informed of the project plan and status as the consolidation progresses.
    • Management requires frequent communication with the core project group to evaluate the success of the project in meeting its goals.
    • End users should be informed about changes that are happening and how these changes will affect them.

    A communications plan should address three elements:

    1. The audience and their communication needs
    2. The most effective means of communicating with this audience
    3. Who should deliver the message

    Goals of communication:

    1. Create awareness and understanding of the consolidation and what it means for each role, department, or user group
    2. Gain commitment to the change from all stakeholders
    3. Reduce and address any concerns about the consolidation and be transparent in responding to any questions
    4. Communicate potential risks and mitigation plan
    5. Set expectations for service levels throughout and after the consolidation

    Plan the method of delivery for your communications carefully

    Plan the message, test it with a small audience, then deliver to your employees and stakeholders in person to avoid message avoidance or confusion.

    Message Format

    Email and Newsletters

    Email and newsletters are convenient and can be transmitted to large audiences easily, but most users are inundated with email already and may not notice or read the message.

    • Use email to make large announcements or invite people to meetings but not as the sole medium of communication.

    Face-to-Face Communication

    Face-to-face communication helps to ensure that users are receiving and understanding a clear message, and allows them to voice their concerns and clarify any confusion or questions.

    • Use one-on-ones for key stakeholders and team meetings for groups.

    Internal Website/Drive

    Internal sites help sustain change by making knowledge available after the consolidation, but won’t be retained beforehand.

    • Use for storing policies, how-to-guides, and SOPs.
    Message Delivery
    1. Plan your message
      1. Emphasize what the audience really needs to know, that is, how the change will impact them.
    2. Test your message
      1. Run focus groups or test your communications with a small audience (2-3 people) first to get feedback and adjust messages before delivering them more broadly.
    3. Deliver and repeat your message
      1. “Tell them what you’re going to tell them, then tell them, then tell them what you told them.”
    4. Gather feedback and evaluate communications
      1. Evaluate the effectiveness of the communications (through surveys, focus groups, stakeholder interviews, or metrics) to ensure the message was delivered and received successfully and communication goals were met.

    Address the specific concerns of the business vs. employees

    Focus on alleviating concerns from both sides of the communication equation: the business units and employees.

    Business units:

    Be attentive to the concerns of business unit management about loss of power. Appease worries about the potential risk of reduced service quality and support responsiveness that may have been experienced in prior corporate consolidation efforts.

    Make the value of the consolidation clear, and involve business unit management in the organizational change process.

    Focus on producing a customer-focused consolidated service desk. It will assuage fears over the loss of control and influence. Business units may be relinquishing control of their service desk, but they should retain the same level of influence.

    Employees:

    Employees are often fearful of the impact of a consolidation on their jobs. These fears should be addressed and alleviated as soon as possible.

    Design a communication plan outlining the changes and the reasons motivating it.

    Put support programs in place for displaced and surviving employees.

    Motivate employees during the transition and increase employee involvement in the change.

    Educate and train employees who make the transition to the new structure and new job demands.

    Info-Tech Insight

    Know your audience. Be wary of using technical jargon or acronyms that may seem like common knowledge within your department but would not be part of the vocabulary of non-technical audiences. Ensure your communications are suitable for the audience. If you need to use jargon or acronyms, explain what you mean.

    Build the communications delivery plan

    3.2.1 Develop a plan to deliver targeted messages to key stakeholder groups

    Participants
    • CIO or IT Director
    • Project Manager
    • Service Desk Manager(s)
    What You'll Need
    • Communications plan template
    • Whiteboard and markers
    Document

    Document your decisions in the communications plan template

    1. Define the goals of the communications in section 1 of the Service Desk Consolidation Communications and Training Plan Template.
    2. Determine when communication milestones/activities need to be delivered by completing the Communications Schedule in section 2.
    3. Determine the key stakeholder groups or audiences to whom you will need to deliver communications.
    4. Identify the content of the key messages that need to be delivered and select the most appropriate delivery method for each (i.e. email, team meeting, individual meetings). Designate who will be responsible for delivering the messages.
    5. Document a plan for gathering feedback and evaluating the effectiveness of the communications in section 5 (i.e. stakeholder interviews and surveys).

    Section 4 of the communications plan on objections and question handling will be completed in activity 3.2.2.

    Optional Activity

    If you completed the Stakeholder Engagement Workbook in step 1.1, you may also complete the Communications tab in that workbook to further develop your plan to engage stakeholders.

    Effectively manage the consolidation by implementing change management processes

    Implement change management processes to ensure that the consolidation runs smoothly with limited impact on IT infrastructure.

    Communicate and track changes: Identify and communicate changes to all stakeholders affected by the change to ensure they are aware of any downtime and can plan their own activities accordingly.

    Isolate testing: Test changes within a safe non-production environment to eliminate the risk of system outages that result from defects discovered during testing.

    Document back-out plans: Documented back-out/backup plans enable quick recovery in the event that the change fails.

    The image is a horizontal bar graph, titled Unplanned downtime due to change versus change management maturity. The graph shows that for a Change Management Maturity that is Informal, the % Experiencing Unplanned Downtime due to Failed Change is 41%; for Defined, it is 25%; and for Optimized, it is 19%.

    Organizations that have more mature and defined change management processes experience less unplanned downtime when implementing change across the organization.

    Sustain changes by adapting people, processes, and technologies to accept the transition

    Verify that people, process, and technologies are prepared for the consolidation before going live with the transition.

    What?

    1. Adapt people to the change

    • Add/change roles and responsibilities.
    • Move people to different roles/teams.
    • Change compensation and incentive structures to reinforce new goals, if applicable.

    2. Adapt processes to the change

    • Add/change supporting processes.
    • Eliminate or consolidate legacy processes.
    • Add/change standard operating procedures.

    3. Adapt technologies to the change

    • Add/change/update supporting technologies.
    • Eliminate or consolidate legacy technologies
    How? Work with HR on any changes involving job design, personnel changes, or compensation. Work with enterprise architects or business analysts to manage significant changes to processes that may impact the business and service levels.

    See Info-Tech’s Optimize the Change Management Processblueprint to use a disciplined change control process for technology changes.

    Info-Tech Insight

    Organizational change management (OCM) is widely recognized as a key component of project success, yet many organizations struggle to get adoption for new tools, policies, and procedures. Use Info-Tech’s blueprint on driving organizational change to develop a strategy and toolkit to achieve project success.

    Manage people by addressing their specific concerns based on their attitude toward change

    Avoid high turnover and resistance to change by engaging both the enthusiasts and the skeptics with targeted messaging.

    • Clearly articulate and strongly champion the changes that will result from the consolidation for those willing to adapt to the change.
    • Make change management practices integral to the entire project.
    • Provide training workshops on new processes, new goals or metrics, new technologies and tools, and teamwork as early as possible after consolidation.
    1. Enthusiasts - Empower them to stay motivated and promote the change
    2. Fence-Sitters/Indifferent - Continually motivate them by example but give them time to adapt to the change
    3. Skeptics - Engage them early and address their concerns and doubts to convert them to enthusiasts
    4. Saboteurs - Prevent them from spreading dissent and rumors, thus undermining the project, by counteracting negative claims early

    Leverage the Stakeholder Engagement Workbook from step 1.1 as well as Info-Tech’s blueprint on driving organizational change for more tactics on change management, particularly managing and engaging various personas.

    Prepare ahead of time for questions that various stakeholder groups may have

    Anticipate questions that will arise about the consolidation so you can prepare and distribute responses to frequently asked questions. Sample questions from various stakeholders are provided below.

    General
    1. Why is the organization moving to a consolidated service desk?
    2. Where is the consolidated service desk going to be located?
    3. Are all or only some service desks consolidating?
    4. When is the consolidation happening?
    5. What are the anticipated benefits of consolidation?

    Business

    1. What is the budget for the project?
    2. What are the anticipated cost savings and return on investment?
    3. When will the proposed savings be realized?
    4. Will there be job losses from the consolidation and when will these occur?
    5. Will the organization subsidize moving costs?

    Employees

    1. Will my job function be changing?
    2. Will my job location be changing?
    3. What will happen if I can’t relocate?
    4. Will my pay and benefits be the same?
    5. Will reporting relationships change?
    6. Will performance expectations and metrics change?

    End Users

    1. How do I get help with IT issues?
    2. How do I submit a ticket?
    3. How will I be notified of ticket status, outages?
    4. Where will the physical service desk be located?
    5. Will I be able to get help in my language?
    6. Will there be changes for levels of service?

    Brainstorm likely objections/questions to prepare responses

    3.2.2 Prepare responses to likely questions to ensure consistent messaging

    Participants
    • IT Director
    • Project Manager
    • Service Desk Manager(s)
    • Service Desk Agents
    Document

    Document your questions and responses in section 4 of the communications plan template. This should be continually updated.

    1. Brainstorm anticipated objections and questions you may hear from various stakeholder groups: service desk employees, end users, and management or executives.
    2. For each objection or question, prepare a response that will be delivered to ensure consistent messaging. Use a table like the example below.
    Group Objection/Question Response
    Service desk staff I’m comfortable with the service desk tool we’ve been using here and won’t know how to use the new one. We carefully evaluated the new solution against our requirements and selected it as the one that will provide the best service to our users and be user friendly. We tested the solution through user-acceptance testing to ensure staff will be comfortable using it, and we will provide comprehensive training to all users of the tool before launching it.
    End user I’m used to going to my favorite technician for help. How will I get service now? We are initiating a single point of contact so that you will know exactly where to go to get help quickly and easily, so that we can more quickly escalate your issue to the appropriate technician, and so that we can resolve it and notify you as soon as possible. This will make our service more effective and efficient than you having to find one individual who may be tied up with other work or unavailable.

    Keep the following in mind when formulating your responses:

    • Lead with the benefits
    • Be transparent and honest
    • Avoid acronyms, jargon, and technical terms
    • Appeal to both emotion and reason
    • Be concise and straightforward
    • Don’t be afraid to be repetitive; people need repetition to remember the message
    • Use concrete facts and images wherever possible

    Complete the Service Desk Consolidation News Bulletin & FAQ Template to distribute to your end users

    Customize the template or use as a guide to develop your own

    The Service Desk Consolidation News Bulletin & FAQ Template is intended to be an example that you can follow or modify for your own organization. It provides a summary of how the consolidation project will change how end users interact with the service desk.

    1. What the change means to end users
    2. When they should contact the service desk (examples)
    3. How to contact the service desk (include all means of contact and ticket submission)
    4. Answers to questions they may have
    5. Links to more information

    The bulletin is targeted for mass distribution to end users. A similar letter may be developed for service desk staff, though face-to-face communication is recommended.

    Instructions:

    1. Use the template as a guide to develop your own FAQ news bulletin and adjust any sections or wording as you see fit.
    2. You may wish to develop separate letters for each location, referring more specifically to their location and where the new service desk will be located.
    3. Save the file as a PDF for print or email distribution at the time determined in your communications plan.

    Keeping people a priority throughout the project ensured success

    CASE STUDY

    Industry: Higher Education

    Source: Oxford University, IT Services

    Oxford’s new consolidated service desk went live April 20, 2015.

    They moved from 3 distinct tools and 5 disparate help desks to a single service desk with one robust ITSM solution, all grounded by a unified set of processes and an integrated workflow.

    The success of this project hinged upon:

    • A bold vision, formulated early and in collaboration with all stakeholders.
    • Willingness to take time to understand the unique perspective of each role and help desk, then carefully studying existing processes and workflows to build upon what works.
    • Constant collaboration, communication, and the desire to listen to feedback from all interested parties.

    "We have had a few teething issues to deal with, but overall this has been a very smooth transition given the scale of it." – ICTF Trinity Term 2015 IT Services Report

    Beyond the initial consolidation.
    • Over the summer of 2015, ITS moved to full 24/7 support coverage.
    • Oxford’s ongoing proposition with regard to support services is to extend the new consolidated service desk beyond its current IT role:
      • Academic Admissions
      • Case Management
      • IT Purchasing
    • To gradually integrate those IT departments/colleges/faculties that remain independent at the present time.
    • Info-Tech can facilitate these goals in your organization with our research blueprint, Extend the Service Desk to Enterprise.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    • To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.
    • Info-Tech analysts will join you and your team onsite at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
    • Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

    The following are sample activities that will be conducted by Info-Tech analysts with your team:

    3.1.1 Break the consolidation project down into a series of specific initiatives

    Create a list of specific tasks that will form the consolidation project on sticky notes and organize into people, process, technology, and other categories to inform the roadmap.

    3.2.2 Brainstorm likely objections/questions to prepare responses

    Brainstorm anticipated questions and objections that will arise from various stakeholder groups and prepare consistent responses to each.

    Related Info-Tech research

    Standardize the Service Desk - Provide timely and effective responses to user requests and resolutions of all incidents.

    Extend the Service Desk to the Enterprise - Position IT as an innovator.

    Build a Continual Improvement Plan for the Service Desk - Teach your old service desk new tricks.

    Adopt Lean IT to Streamline the Service Desk - Turn your service desk into a Lean, keen, value-creating machine.

    Vendor Landscape: Enterprise Service Desk Software - Move past tickets to proactive, integrated service.

    Vendor Landscape: Mid-Market Service Desk Software - Ensure the productivity of the help desk with the right platform.

    Build an ITSM Tool Implementation Plan - Nail your ITSM tool implementation from the outset.

    Drive Organizational Change from the PMO - Don’t let bad change happen to good projects.

    Research contributors and experts

    Stacey Keener - IT Manager for the Human Health and Performance Directorate, Johnson Space Center, NASA

    Umar Reed - Director of IT Support Services US Denton US LLP

    Maurice Pryce - IT Manager City of Roswell, Georgia

    Ian Goodhart - Senior Business Analyst Allegis Group

    Gerry Veugelaers - Service Delivery Manager New Zealand Defence Force

    Alisa Salley Rogers - Senior Service Desk Analyst HCA IT&S Central/West Texas Division

    Eddie Vidal - IS Service Desk Managers University of Miami

    John Conklin - Chief Information Officer Helen of Troy LP

    Russ Coles - Senior Manager, Computer Applications York Region District Schoolboard

    John Seddon - Principal Vanguard Consulting

    Ryan van Biljon - Director, Technical Services Samanage

    Rear Admiral Robert E. Day Jr. (ret.) - Chief Information Officer United States Coast Guard

    George Bartha - Manager of Information Technology Unifrax

    Peter Hubbard - IT Service Management Consultant Pink Elephant

    Andre Gaudreau - Manager of School Technology Operations York Region District School Board

    Craig Nekola - Manager, Information Technology Anoka County

    Bibliography and Further Reading

    Hoen, Jim. “The Single Point of Contact: Driving Support Process Improvements with a Consolidated IT Help-Desk Approach.” TechTeam Global Inc. September 2005.

    Hubbard, Peter. “Leading University embarks on IT transformation programme to deliver improved levels of service excellence.” Pink Elephant. http://pinkelephant.co.uk/about/case-studies/service-management-case-study/

    IBM Global Services. “Service Desk: Consolidation, Relocation, Status Quo.” IBM. June 2005.

    Keener, Stacey. “Help Desks: a Problem of Astronomical Proportions.” Government CIO Magazine. 1 February 2015.

    McKaughan, Jeff. “Efficiency Driver.” U.S. Coast Guard Forum Jul. 2013. Web. http://www.intergraphgovsolutions.com/documents/CoastGuardForumJuly2013.pdf

    Numara Footprints. “The Top 10 Reasons for Implementing a Consolidated Service Desk.” Numara Software.

    Roy, Gerry, and Frederieke Winkler Prins. “How to Improve Service Quality through Service Desk Consolidation.” BMC Software.

    Smith, Andrew. “The Consolidated Service Desk – An Achievable Goal?” The Service Desk Institute.

    Wolfe, Brandon. “Is it Time for IT Service Desk Consolidation?” Samanage. 4 August 2015.

    Modernize Your Microsoft Licensing for the Cloud Era

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    • Parent Category Name: Licensing
    • Parent Category Link: /licensing
    • Microsoft licensing is complicated. Often, the same software can be licensed a number of ways. It’s difficult to know which edition and licensing model is best.
    • Licensing and features often change with the release of new software versions, compounding the problem by making it difficult to stay current.
    • In tough economic times, IT is asked to reduce capital and operating expenses wherever possible. As one of the top five expense items in most enterprise software budgets, Microsoft licensing is a primary target for cost reduction.

    Our Advice

    Critical Insight

    • Focus on needs first. Conduct a thorough needs assessment and document the results. Well-documented needs will be your best asset in navigating Microsoft licensing and negotiating your agreement.
    • Beware the bundle. Be aware when purchasing the M365 suite that there is no way out. Negotiating a low price is critical, as all leverage swings to Microsoft once it is on your agreement.
    • If the cloud doesn’t fit, be ready to pay up or start making room. Microsoft has drastically reduced discounting for on-premises products, support has been reduced, and product rights have been limited. If you are planning to remain on premises, be prepared to pay up.

    Impact and Result

    • Understand what your organization needs and what your business requirements are. It’s always easier to purchase more later than try to reduce your spend.
    • Complete cost calculations carefully, as the cloud might end up costing significantly more for the desired feature set. However, in some scenarios, it may be more cost efficient for organizations to license in the cloud.
    • If there are significant barriers to cloud adoption, discuss and document them. You’ll need this documentation in three years when it’s time to renew your agreement.

    Modernize Your Microsoft Licensing for the Cloud Era Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Modernize Your Microsoft Licensing Deck – A deck to help you build a strategy for your Microsoft licensing renewal.

    This storyboard will help you build a strategy for your Microsoft licensing renewal from conducting a thorough needs assessment to examining your licensing position, evaluating Microsoft's licensing options, and negotiations.

    • Modernize Your Microsoft Licensing for the Cloud Era – Phases 1-4

    2. Microsoft Cloud Products Cost Modeler – A tool to model estimated costs for Microsoft's cloud products.

    The Microsoft Cloud Products Cost Modeler will provide a rough estimate of what you can expect to pay for Office 365 or Dynamics CRM licensing, before you enter into negotiations. This is not your final cost, but it will give you an idea.

    • Microsoft Cloud Products Cost Modeler

    3. Microsoft Licensing Purchase Reference Guide - A template to capture licensing stakeholder information, proposed changes to licensing, and negotiation items.

    The Microsoft Licensing Purchase Reference Guide can be used throughout the process of licensing review: from initial meetings to discuss compliance state and planned purchases, to negotiation meetings with resellers. Use it in conjunction with Info-Tech's Microsoft Licensing Effective License Position Template.

    • Microsoft Licensing Purchase Reference Guide

    4. Negotiation Timeline for Microsoft – A template to navigate your negotiations with Microsoft.

    This tool will help you plot out your negotiation timeline, depending on where you are in your contract negotiation process.

  • 6-12 months
  • Less than 3 months

    • Negotiation Timeline for Microsoft – Visio
    • Negotiation Timeline for Microsoft – PDF

    5. Effective Licensing Position Tool – A template to help you create an effective licensing position and determine your compliance position.

    This template helps organizations to determine the difference between the number of software licenses they own and the number of software copies deployed. This is known as the organization’s effective license position (ELP).

    • Effective Licensing Position Tool
    [infographic]

    Cost Optimization

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    • Parent Category Name: Financial Management
    • Parent Category Link: /financial-management
    • byline: IT cost cutting has consequences.
    Minimize the damage of IT cost cuts

    Portfolio Management

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    • member rating average dollars saved: $40,234
    • member rating average days saved: 30
    • Parent Category Name: Applications
    • Parent Category Link: /applications
    • byline: Develop your project portfolio management strategy.

    The challenge

    • Typically your business wants much more than your IT development organization can deliver with the available resources at the requested quality levels.
    • Over-damnd has a negative influence on delivery throughput. IT starts many projects (or features) but has trouble delivering most of them within the set parameters of scope, time, budget, and quality. Some requested deliverables may even be of questionable value to the business.
    • You may not have the right project portfolio management (PPM) strategy to bring order in IT's delivery activities and to maximize business value.

    Our advice

    Insight

    • Many in IT mix PPM and project management. Your project management playbook does not equate to the holistic view a real PPM practice gives you.
    • Some organizations also mistake PPM for a set of processes. Processes are needed, but a real strategy works towards tangible goals.
    • PPM works at the strategic level of the company; hence executive buy-in is critical. Without executive support, any effort to reconcile supply and demand will be tough to achieve.

    Impact and results 

    • PPM is a coherent business-aligned strategy that maximizes business value creation across the entire portfolio, rather than in each project.
    • Our methodology tackles the most pressing challenge upfront: get executive buy-in before you start defining your goals. With senior management behind the plan, implementation will become easier.
    • Create PPM processes that are a cultural fit for your company. Define your short and long-term goals for your strategy and support them with fully embedded portfolio management processes.

    The roadmap

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    Get started.

    Read our executive brief to understand why you should develop a PPM strategy and understand how our methodology can help you. We show you how we can support you.

    Obtain executive buy-in for your strategy

    Ensure your strategy is a cultural fit or cultural-add for your company.

    • Develop a Project Portfolio Management Strategy – Phase 1: Get Executive Buy-In for Your PPM Strategy (ppt)
    • PPM High-Level Supply-Demand Calculator (xls)
    • PPM Strategic Plan Template (ppt)
    • PPM Strategy-Process Goals Translation Matrix Template (xls)

    Align the PPM processes to your company's strategic goals

    Use the advice and tools in this stage to align the PPM processes.

    • Develop a Project Portfolio Management Strategy – Phase 2: Align PPM Processes to Your Strategic Goals (ppt)
    • PPM Strategy Development Tool (xls)

    Refine and complete your plan

    Use the inputs from the previous stages and add a cost-benefit analysis and tool recommendation.

    • Streamline Application Maintenance – Phase 3: Optimize Maintenance Capabilities (ppt)

    Streamline your maintenance delivery

    Define quality standards in maintenance practices. Enforce these in alignment with the governance you have set up. Show a high degree of transparency and open discussions on development challenges.

    • Develop a Project Portfolio Management Strategy – Phase 3: Complete Your PPM Strategic Plan (ppt)
    • Project Portfolio Analyst / PMO Analyst (doc)

     

     

    Legacy Active Directory Environment

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    You are looking to lose your dependency on Active Directory (AD), and you need to tackle infrastructure technical debt, but there are challenges:

    • Legacy apps that are in maintenance mode cannot shed their AD dependency or have hardware upgrades made.
    • You are unaware of what processes depend on AD and how integrated they are.
    • Departments invest in apps that are integrated with AD without informing you until they ask for Domain details after purchasing.

    Our Advice

    Critical Insight

    • Remove your dependency on AD one application at a time. If you are a cloud-first organization, rethink your AD strategy to ask “why” when you add a new device to your Active Directory.
    • With the advent of hybrid work, AD is now a security risk. You need to shore up your security posture. Think of zero trust architecture.
    • Take inventory of your objects that depend on Kerberos and NTML and plan on removing that barrier through applications that don’t depend on AD.

    Impact and Result

    Don’t allow Active Directory services to dictate your enterprise innovation and modernization strategies. Determine if you can safely remove objects and move them to a cloud service where your Azure AD Domain Services can handle your authentication and manage users and groups.

    Legacy Active Directory Environment Research & Tools

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Legacy Active Directory Environment Deck – Legacy AD was never built for modern infrastructure. Understand the history and future of Active Directory and what alternatives are in the market.

    Build all new systems with cloud integration in mind. Many applications built in the past had built-in AD components for access, using Kerberos and NTLM. This dependency has prevented organizations from migrating away from AD. When assessing new technology and applications, consider SaaS or cloud-native apps rather than a Microsoft-dependent application with AD ingrained in the code.

    • Legacy Active Directory Environment Storyboard
    [infographic]

    Further reading

    Legacy Active Directory Environment

    Kill the technical debt of your legacy Active Directory environment.

    Analyst Perspective

    Understand what Active Directory is and why Azure Active Directory does not replace it.

    It’s about Kerberos and New Technology LAN Manager (NTLM).

    The image contains a picture of John Donovan.

    Many organizations that want to innovate and migrate from on-premises applications to software as a service (SaaS) and cloud services are held hostage by their legacy Active Directory (AD). Microsoft did a good job taking over from Novell back in the late 90s, but its hooks into businesses are so deep that many have become dependent on AD services to manage devices and users, when in fact AD falls far short of needed capabilities, restricting innovation and progress.

    Despite Microsoft’s Azure becoming prominent in the world of cloud services, Azure AD is not a replacement for on-premises AD. While Azure AD is a secure authentication store that can contain users and groups, that is where the similarities end. In fact, Microsoft itself has an architecture to mitigate the shortcomings of Azure AD by recommending organizations migrate to a hybrid model, especially for businesses that have an in-house footprint of servers and applications.

    If you are a greenfield business and intend to take advantage of software, infrastructure, and platform as a service (SaaS, IaaS, and PaaS), as well as Microsoft 365 in Azure, then Azure AD is for you and you don’t have to worry about the need for AD.

    John Donovan
    Principal Director, I&O Practice
    Info-Tech Research Group

    Insight Summary

    Legacy AD was never built for modern infrastructure

    When Microsoft built AD as a free component for the Windows Server environment to replace Windows NT before the demise of Novell Directory Services in 2001, it never meant Active Directory to work outside the corporate network with Microsoft apps and devices. While it began as a central managing system for users and PCs on Microsoft operating systems, with one user per PC, the IT ecosystem has changed dramatically over the last 20 years, with cloud adoption, SaaS, IaaS, PaaS, and everything as a service. To make matters worse, work-from-anywhere has become a serious security challenge.

    Build all new systems with cloud integration in mind

    Many applications built in the past had built-in AD components for access, using Kerberos and NTLM. This dependency has prevented organizations from migrating away from AD. When assessing new technology and applications, consider SaaS or cloud-native apps rather than a Microsoft-dependent application with AD ingrained in the code. Ensure you are engaged when the business is assessing new apps. Stop the practice of the business purchasing apps without IT’s involvement; for example, if your marketing department is asking you for your Domain credentials for a vendor when you were not informed of this purchase.

    Hybrid AD is a solution but not a long-term goal

    Economically, Microsoft has no interest in replacing AD anytime soon. Microsoft wants that revenue and has built components like Azure AD Connect to mitigate the AD dependency issue, which is basically holding your organization hostage. In fact, Microsoft has advised that a hybrid solution will remain because, as we will investigate, Azure AD is not legacy AD.

    Executive Summary

    Your Challenge

    Common Obstacles

    Info-Tech’s Approach

    You are looking to lose your dependency on Active Directory, and you need to tackle infrastructure technical debt, but there are challenges.

    • Legacy apps that are in maintenance mode cannot shed their AD dependency or have hardware upgrades made.
    • You are unaware of what processes depend on AD and how integrated they are.
    • Departments invest in apps that are integrated with AD without informing you until they ask for Domain details after purchasing.
    • Legacy applications can prevent you from upgrading servers or may need to be isolated due to security concerns related to inadequate patching and upgrades.
    • You do not see any return on investment in AD maintenance.
    • Mergers and acquisitions can prevent you from migrating away from AD if one company is dependent on AD and the other is fully in the cloud. This increases technical debt.
    • Remove your dependency on AD one application at a time. If you are a cloud-first organization, rethink your AD strategy to ask “why” when you add a new device to your Active Directory.
    • With the advent of hybrid work, AD is now a security risk. You need to shore up your security posture. Think of zero trust architecture.
    • Take inventory of your objects that depend on Kerberos and NTML and plan on removing that barrier through applications that don’t depend on AD.

    Info-Tech Insight

    Don’t allow Active Directory services to dictate your enterprise innovation and modernization strategies. Determine if you can safely remove objects and move them to a cloud service where your Azure AD Domain Services can handle your authentication and manage users and groups.

    The history of Active Directory

    The evolution of your infrastructure environment

    From NT to the cloud

    AD 2001 Exchange Server 2003 SharePoint 2007 Server 2008 R2 BYOD Security Risk All in Cloud 2015
    • Active Directory replaces NT and takes over from Novell as the enterprise access and control plane.
    • With slow WAN links, no cellphones, no tablets, and very few laptops, security was not a concern in AD.
    • In 2004, email becomes business critical.
    • This puts pressure on links, increases replication and domains, and creates a need for multiple identities.
    • Collaboration becomes pervasive.
    • Cross domain authentication becomes prevalent across the enterprise.
    • SharePoint sites need to be connected to multiple Domain AD accounts. More multiple identities are required.
    • Exchange resource forest rolls out, causing the new forest functional level to be a more complex environment.
    • Fine-grained password policies have impacted multiple forests, forcing them to adhere to the new password policies.
    • There are powerful Domain controllers, strong LAN and WAN connections, and an increase in smartphones and laptops.
    • Audits and compliance become a focus, and mergers and acquisitions add complexity. Security teams are working across the board.
    • Cloud technology doesn’t work well with complicated, messy AD environment. Cloud solutions need simple, flat AD architecture.
    • Technology changes after 15+ years. AD becomes the backbone of enterprise infrastructure. Managers demand to move to cloud, building complexity again.

    Organizations depend on AD

    AD is the backbone of many organizations’ IT infrastructure

    73% of organizations say their infrastructure is built on AD.

    82% say their applications depend on AD data.

    89% say AD enables authenticated access to file servers.

    90% say AD is the main source for authentication.

    Source: Dimensions research: Active Directory Modernization :

    Info-Tech Insight

    Organizations fail to move away from AD for many reasons, including:

    • Lack of time, resources, budget, and tools.
    • Difficulty understanding what has changed.
    • Migrating from AD being a low priority.

    Active Directory components

    Physical and logical structure

    Authentication, authorization, and auditing

    The image contains a screenshot of the active directory components.

    Active Directory has its hooks in!

    AD creates infrastructure technical debt and is difficult to migrate away from.

    The image contains a screenshot of an active directory diagram.

    Info-Tech Insight

    Due to the pervasive nature of Active Directory in the IT ecosystem, IT organizations are reluctant to migrate away from AD to modernize and innovate.

    Migration to Microsoft 365 in Azure has forced IT departments’ hand, and now that they have dipped their toe in the proverbial cloud “lake,” they see a way out of the mounting technical debt.

    AD security

    Security is the biggest concern with Active Directory.

    Neglecting Active Directory security

    98% of data breaches came from external sources.

    Source: Verizon, Data Breach Report 2022

    85% of data breach took weeks or even longer to discover.

    Source: Verizon Data Breach Report, 2012

    The biggest challenge for recovery after an Active Directory security breach is identifying the source of the breach, determining the extent of the breach, and creating a safe and secure environment.

    Info-Tech Insight

    Neglecting legacy Active Directory security will lead to cyberattacks. Malicious users can steal credentials and hijack data or corrupt your systems.

    What are the security risks to legacy AD architecture?

    • It's been 22 years since AD was released by Microsoft, and it has been a foundational technology for most businesses over the years. However, while there have been many innovations over those two decades, like Amazon, Facebook, iPhones, Androids, and more, Active Directory has remained mostly unchanged. There hasn’t been a security update since 2016.
    • This lack of security innovation has led to several cyberattacks over the years, causing businesses to bolt on additional security measures and added complexity. AD is not going away any time soon, but the security dilemma can be addressed with added security features.

    AD event logs

    84% of organizations that had a breach had evidence of that breach in their event logs.

    Source: Verizon Data Breach Report, 2012

    What is the business risk

    How does AD impact innovation in your business?

    It’s widely estimated that Active Directory remains at the backbone of 90% of Global Fortune 1000 companies’ business infrastructure (Lepide, 2021), and with that comes risk. The risks include:

    • Constraints of AD and growth of your digital footprint
    • Difficulty integrating modern technologies
    • Difficulty maintaining consistent security policies
    • Inflexible central domains preventing innovation and modernization
    • Inability to move to a self-service password portal
    • Vulnerability to being hacked
    • BYOD not being AD friendly

    AD is dependent on Windows Server

    1. Even though AD is compliant with LDAP, software vendors often choose optional features of LDAP that are not supported by AD. It is possible to implement Kerberos in a Unix system and establish trust with AD, but this is a difficult process and mistakes are frequent.
    2. Restricting your software selection to Windows-based systems reduces innovation and may hamper your ability to purchase best-in-class applications.

    Azure AD is not a replacement for AD

    AD was designed for an on-premises enterprise

    The image contains a screenshot of a Azure AD diagram.

    • Despite Microsoft’s Azure becoming prominent in the world of cloud services, Azure AD is not a replacement for on-premises AD.
    • In fact, Microsoft itself has an architecture to mitigate the shortcomings of Azure AD by recommending organizations migrate to a hybrid model, especially those businesses that have an in-house footprint of servers and applications.
    • If you are a greenfield business and intend to take advantage of SaaS, IaaS, and PaaS, as well as Microsoft 365 in Azure, then Azure AD is for you and you don’t have to worry about the need for AD.

    "Azure Active Directory is not designed to be the cloud version of Active Directory. It is not a domain controller or a directory in the cloud that will provide the exact same capabilities with AD. It actually provides many more capabilities in a different way.

    That’s why there is no actual ‘migration’ path from Active Directory to Azure Active Directory. You can synchronize your on-premises directories (Active Directory or other) to Azure Active Directory but not migrate your computer accounts, group policies, OU etc."

    – Gregory Hall,
    Brand Representative for Microsoft
    (Source: Spiceworks)

    The hybrid model for AD and Azure AD

    How the model works

    The image contains a screenshot of a hybrid model for AD and Azure AD.

    Note: AD Federated Services (ADFS) is not a replacement for AD. It’s a bolt-on that requires maintenance, support, and it is not a liberating service.

    Many companies are:

    • Moving to SaaS solutions for customer relationship management, HR, collaboration, voice communication, file storage, and more.
    • Managing non-Windows devices.
    • Moving to a hybrid model of work.
    • Enabling BYOD.

    Given these trends, Active Directory is becoming obsolete in terms of identity management and permissions.

    The difference between AD Domain Services and Azure AD DS

    One of the core principles of Azure AD is that the user is the security boundary, not the network.

    Kerberos is the default authentication and authorization protocol for AD. Kerberos is involved in nearly everything from the time you log on to accessing Sysvol, which is used to deliver policy and logon scripts to domain members from the Domain Controller.

    Info-Tech Insight

    If you are struggling to get away from AD, Kerberos and NTML are to blame. Working around them is difficult. Azure AD uses SAML2.0 OpenID Connect and OAuth2.0.

    Feature Azure AD DS Self-managed AD DS
    Managed service ✓ ✕
    Secure deployments ✓ Administrator secures the deployment
    DNS server ✓ (managed service) ✓
    Domain or Enterprise administrator privileges ✕ ✓
    Domain join ✓ ✓
    Domain authentication using NTLM and Kerberos ✓ ✓
    Kerberos-constrained delegation Resource-based Resource-based and account-based
    Custom OU structure ✓ ✓
    Group Policy ✓ ✓
    Schema extensions ✕ ✓
    AD domain/forest trusts ✓ (one-way outbound forest trusts only) ✓
    Secure LDAP (LDAPS) ✓ ✓
    LDAP read ✓ ✓
    LDAP write ✓ (within the managed domain) ✓
    Geo-distributed deployments ✓ ✓

    Source: “Compare self-managed Active Directory Domain Services...” Azure documentation, 2022

    Impact of work-from-anywhere

    How AD poses issues that impact the user experience

    IT organizations are under pressure to enable work-from-home/work-from-anywhere.

    • IT teams regard legacy infrastructure, namely Active Directory, as inadequate to securely manage remote workloads.
    • While organizations previously used VPNs to access resources through Active Directory, they now have complex webs of applications that do not reside on premises, such as AWS, G-Suite, and SaaS customer relationship management and HR management systems, among others. These resources live outside the Windows ecosystem, complicating user provisioning, management, and security.
    • The work environment has changed since the start of COVID-19, with businesses scrambling to enable work-from-home. This had a huge impact on on-premises identity management tools such as AD, exposing their limitations and challenges. IT admins are all too aware that AD does not meet the needs of work-from-home.
    • As more IT organizations move infrastructure to the cloud, they have the opportunity to move their directory services to the cloud as well.
      • JumpCloud, OneLogin, Okta, Azure AD, G2, and others can be a solution for this new way of working and free up administrators from the overloaded AD environment.
      • Identity and access management (IAM) can be moved to the cloud where the modern infrastructure lives.
      • Alternatives for printers using AD include Google Cloud Print, PrinterOn, and PrinterLogic.

    How AD can impact your migration to Microsoft 365

    The beginning of your hybrid environment

    • Businesses that have a large on-premises footprint have very few choices for setting up a hybrid environment that includes their on-premises AD and Azure AD synchronization.
    • Microsoft 365 uses Azure AD in the background to manage identities.
    • Azure AD Connect will need to be installed, along with IdFix to identify errors such as duplicates and formatting problems in your AD.
    • Password hash should be implemented to synchronize passwords from on-premises AD so users can sign in to Azure without the need for additional single sign-on infrastructure.
    • Azure AD Connect synchronizes accounts every 30 minutes and passwords within two minutes.

    Alternatives to AD

    When considering retiring Active Directory from your environment, look at alternatives that can assist with those legacy application servers, handle Kerberos and NTML, and support LDAP.

    • JumpCloud: Cloud-based directory services. JumpCloud provides LDAP-as-a-Service and RADIUS-as-a-Service. It authenticates, authorizes, and manages employees, their devices, and IT applications. However, domain name changes are not supported.
    • Apache Directory Studio Pro: Written in Java, it supports LDAP v3–certified directory services. It is certified by Eclipse-based database utilities. It also supports Kerberos, which is critical for legacy Microsoft AD apps authentication.
    • Univention Corporate Server (UCS): Open-source Linux-based solution that has a friendly user interface and gets continuous security and feature updates. It supports Kerberos V5 and LDAP, works with AD, and is easy to sync. It also supports DNS server, DHCP, multifactor authentication and single sign-on, and APIs and REST APIs. However, it has a limited English knowledgebase as it is a German tool.

    What to look for

    If you are embedded in Windows systems but looking for an alternative to AD, you need a similar solution but one that is capable of working in the cloud and on premises.

    Aside from protocols and supporting utilities, also consider additional features that can help you retire your Active Directory while maintaining highly secure access control and a strong security posture.

    These are just a few examples of the many alternatives available.

    Market drivers to modernize your infrastructure

    The business is now driving your Active Directory migration

    What IT must deal with in the modern world of work:

    • Leaner footprint for evolving tech trends
    • Disaster recovery readiness
    • Dynamic compliance requirements
    • Increased security needs
    • The need to future-proof
    • Mergers and acquisitions
    • Security extending the network beyond Windows

    Organizations are making decisions that impact Active Directory, from enabling work-from-anywhere to dealing with malicious threats such as ransomware. Mergers and acquisitions also bring complexity with multiple AD domains.
    The business is putting pressure on IT to become creative with security strategies, alternative authentication and authorization, and migration to SaaS and cloud services.

    Activity

    Build a checklist to migrate off Active Directory.

    Discovery

    Assessment

    Proof of Concept

    Migration

    Cloud Operations
    ☐ Catalog your applications.

    ☐ Define your users, groups and usage.

    ☐ Identify network interdependencies and complexity.

    ☐ Know your security and compliance regulations.

    ☐ Document your disaster recovery plan and recovery point and time objectives (RPO/RTO).

    ☐ Build a methodology for migrating apps to IaaS.

    ☐ Develop a migration team using internal resources and/or outsourcing.

    ☐ Use Microsoft resources for specific skill sets.

    ☐ Map on-premises third-party solutions to determine how easily they will migrate.

    ☐ Create a plan to retire and archive legacy data.

    ☐ Test your workload: Start small and prove value with a phased approach.

    ☐ Estimate cloud costs.

    ☐ Determine the amount and size of your compute and storage requirements.

    ☐ Understand security requirements and the need for network and security controls.

    ☐ Assess network performance.

    ☐ Qualify and test the tools and solutions needed for the migration.

    ☐ Create a blueprint of your desired cloud environment.

    ☐ Establish a rollback plan.

    ☐ Identify tools for automating migration and syncing data.

    ☐ Understand the implications of the production-day data move.

    ☐ Keep up with the pace of innovation.

    ☐ Leverage 24/7 support via skilled Azure resources.

    ☐ Stay on top of system maintenance and upgrades.

    ☐ Consider service-level agreement requirements, governance, security, compliance, performance, and uptime.

    Related Info-Tech Research

    Manage the Active Directory in the Service Desk

    • Build and maintain your Active Directory with good data.
    • Actively maintaining the Active Directory is a difficult task that only gets more difficult with issues like stale accounts and privilege creep.

    SoftwareReviews: Microsoft Azure Active Directory

    • The Azure Active Directory (Azure AD) enterprise identity service provides SSO and multifactor authentication to help protect your users from 99.9% of cybersecurity attacks

    Define Your Cloud Vision

    • Don’t think about the cloud as an inevitable next step for all workloads. The cloud is merely another tool in the toolbox, ready to be used when appropriate and put away when it’s not needed. Cloud-first isn’t always the way to go.

    Bibliography

    “2012 Data Breach Investigations Report.” Verizon, 2012. Web.
    “2022 Data Breach Investigations Report.” Verizon, 2012. Web.
    “22 Best Alternatives to Microsoft Active Directory.” The Geek Page, 16 Feb 2022. Accessed 12 Sept. 2022.
    Altieri, Matt. “Infrastructure Technical Debt.” Device 42, 20 May 2019. Accessed Sept 2022.
    “Are You Ready to Make the Move from ADFS to Azure AD?’” Steeves and Associates, 29 April 2021. Accessed 28 Sept. 2022.
    Blanton, Sean. “Can I Replace Active Directory with Azure AD? No, Here’s Why.” JumpCloud, 9 Mar 2021. Accessed Sept. 2022.
    Chai, Wesley, and Alexander S. Gillis. “What is Active Directory and how does it work?” TechTarget, June 2021. Accessed 10 Sept. 2022.
    Cogan, Sam. “Azure Active Directory is not Active Directory!” SamCogan.com, Oct 2020. Accessed Sept. 2022.
    “Compare Active Directory to Azure Active Directory.” Azure documentation, Microsoft Learn, 18 Aug. 2022. Accessed 12 Sept. 2022.
    "Compare self-managed Active Directory Domain Services, Azure Active Directory, and managed Azure Active Directory Domain Services." Azure documentation, Microsoft Learn, 23 Aug. 2022. Accessed Sept. 2022.
    “Dimensional Research, Active Directory Modernization: A Survey of IT Professionals.” Quest, 2017. Accessed Sept 2022.
    Grillenmeier, Guido. “Now’s the Time to Rethink Active Directory Security.“ Semperis, 4 Aug 2021. Accessed Oct. 2013.
    “How does your Active Directory align to today’s business?” Quest Software, 2017, accessed Sept 2022
    Lewis, Jack “On-Premises Active Directory: Can I remove it and go full cloud?” Softcat, Dec.2020. Accessed 15 Sept 2022.
    Loshin, Peter. “What is Kerberos?” TechTarget, Sept 2021. Accessed Sept 2022.
    Mann, Terry. “Why Cybersecurity Must Include Active Directory.” Lepide, 20 Sept. 2021. Accessed Sept. 2022.
    Roberts, Travis. “Azure AD without on-prem Windows Active Directory?” 4sysops, 25 Oct. 2021. Accessed Sept. 2022.
    “Understanding Active Directory® & its architecture.” ActiveReach, Jan 2022. Accessed Sept. 2022.
    “What is Active Directory Migration?” Quest Software Inc, 2022. Accessed Sept 2022.

    Review Your Application Strategy

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    • Over 80% of CXOs experience frustration with IT’s failure to deliver business value.
    • Sixty percent of CEOs believe that improvement is required around IT’s understanding of business goals.
    • Sixty percent of IT professionals know there is an opportunity to run applications more efficiently, eliminating wasteful or low-value activities.

    Our Advice

    Critical Insight

    • Organizations need to better align their application strategy with their business strategy as they proceed through tactical initiatives.
    • Application strategies provide guidance on how they will help the organization survive and thrive.

    Impact and Result

    Aligning your business with applications through your strategy will not only increase business satisfaction but also help to ensure you’re delivering applications that enable the organization’s goals.

    Review Your Application Strategy Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should have an application strategy and why you should use Info-Tech’s approach to review it. Learn how we can support you in completing this strategy and review.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Review your strategy

    This review guide provides organizations with a detailed assessment of their application strategy, ensuring that the applications enable the business strategy so that the organization can be more effective.The assessment provides criteria and exercises to provide actionable outcomes.

    • Application Strategy Assessment Tool
    • Application Strategy Action Plan Report Template
    • Application Strategy Sample Action Plan Report
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    Accelerate Digital Transformation With a Digital Factory

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    • Organizational challenges are hampering digital transformation (DX) initiatives.
    • The organization’s existing digital factory is failing to deliver value.
    • Designing a successful digital factory is a difficult process.

    Our Advice

    Critical Insight

    To remain competitive, enterprises must deliver products and services like a startup or a digital native enterprise. This requires enterprises to:

    • Understand how digital native enterprises are designed.
    • Understand the foundations of good design: purpose, organizational support, and leadership.
    • Understand the design of the operating model: structure and organization, management practices, culture, environment, teams, technology platforms, and meaningful metrics and KPIs.

    Impact and Result

    Organizations that implement this project will draw benefits in the following aspects:

    • Gain awareness and understanding of various aspects that hamper DX.
    • Set the right foundations by having clarity of purpose, alignment on organizational support, and the right leadership in place.
    • Design an optimal operating model by setting up the right organizational structures, management practices, lean and optimal governance, agile teams, and an environment that promotes productivity and wellbeing.
    • Finally, set the right measures and KPIs.

    Accelerate Digital Transformation With a Digital Factory Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to understand the importance of a well-designed digital factory.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Build the case

    Collect data and stats that will help build a narrative for digital factory.

    • Digital Factory Playbook

    2. Lay the foundation

    Discuss purpose, mission, organizational support, and leadership.

    3. Design the operating model

    Discuss organizational structure, management, culture, teams, environment, technology, and KPIs.

    [infographic]

    Workshop: Accelerate Digital Transformation With a Digital Factory

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Build the case

    The Purpose

    Understand and gather data and stats for factors impacting digital transformation.

    Develop a narrative for the digital factory.

    Key Benefits Achieved

    Identification of key pain points and data collected

    Narrative to support the digital factory

    Activities

    1.1 Understand the importance and urgency of digital transformation (DX).

    1.2 Collect data and stats on the progress of DX initiatives.

    1.3 Identify the factors that hamper DX and tie them to data/stats.

    1.4 Build the narrative for the digital factory (DF) using the data/stats.

    Outputs

    Identification of factors that hamper DX

    Data and stats on progress of DX

    Narrative for the digital factory

    2 Lay the foundation

    The Purpose

    Discuss the factors that impact the success of establishing a digital factory.

    Key Benefits Achieved

    A solid understanding and awareness that successful digital factories have clarity of purpose, organizational support, and sound leadership.

    Activities

    2.1 Discuss

    2.2 Discuss what organizational support the digital factory will require and align and commit to it.

    2.3 Discuss reference models to understand the dynamics and the strategic investment.

    2.4 Discuss leadership for the digital age.

    Outputs

    DF purpose and mission statements

    Alignment and commitment on organizational support

    Understanding of competitive dynamics and investment spread

    Develop the profile of a digital leader

    3 Design the operating model (part 1)

    The Purpose

    Understand the fundamentals of the operating model.

    Understand the gaps and formulate the strategies.

    Key Benefits Achieved

    Design of structure and organization

    Design of culture aligned with organizational goals

    Management practices aligned with the goals of the digital factory

    Activities

    3.1 Discuss structure and organization and associated organizational pathologies, with focus on hierarchy and silos, size and complexity, and project-centered mindset.

    3.2 Discuss the importance of culture and its impact on productivity and what shifts will be required.

    3.3 Discuss management for the digital factory, with focus on governance, rewards and compensation, and talent management.

    Outputs

    Organizational design in the context of identified pathologies

    Cultural design for the DF

    Management practices and governance for the digital factory

    Roles/responsibilities for governance

    4 Design the operating model (part 2)

    The Purpose

    Understand the fundamentals of the operating model.

    Understand the gaps and formulate the strategies.

    Key Benefits Achieved

    Discuss agile teams and the roles for DF

    Environment design that supports productivity

    Understanding of existing and new platforms

    Activities

    4.1 Discuss teams and various roles for the DF.

    4.2 Discuss the impact of the environment on productivity and satisfaction and discuss design factors.

    4.3 Discuss technology and tools, focusing on existing and future platforms, platform components, and organization.

    4.4 Discuss design of meaningful metrics and KPIs.

    Outputs

    Roles for DF teams

    Environment design factors

    Platforms and technology components

    Meaningful metrics and KPIs

    Build a Security Metrics Program to Drive Maturity

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    • Many security leaders put off adding metrics to their program because they don't know where to start or how to assess what is worth measuring.
    • Sometimes, this uncertainty causes the belief that their security programs are not mature enough for metrics to be worthwhile.
    • Because metrics can become very technical and precise,it's easy to think that they're inherently complicated (not true).

    Our Advice

    Critical Insight

    • The best metrics are tied to goals.
    • Tying your metrics to goals ensures that you are collecting metrics for a specific purpose rather than just to watch the numbers change.

    Impact and Result

    • A metric, really, is just a measure of success against a given goal. Gradually, programs will achieve their goals and set new more specific goals, and with them come more-specific metrics.
    • It is not necessary to jump into highly technical metrics right away. A lot can be gained from metrics that track behaviors.
    • A metrics program can be very simple and still effectively demonstrate the value of security to the organization. The key is to link your metrics to the goals or objectives the security team is pursuing, even if they are simple implementation plans (e.g. percentage of departments that have received security training course).

    Build a Security Metrics Program to Drive Maturity Research & Tools

    Start here – read the Executive Brief

    Read our concise Executive Brief to find out why you should build a security metrics program, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Link security metrics to goals to boost maturity

    Develop goals and KPIs to measure your progress.

    • Build a Security Metrics Program to Drive Maturity – Phase 1: Link Security Metrics to Goals to Boost Maturity
    • Security Metrics Determination and Tracking Tool
    • KPI Development Worksheets

    2. Adapt your reporting strategy for various metric types

    Learn how to present different types of metrics.

    • Build a Security Metrics Program to Drive Maturity – Phase 2: Adapt Your Reporting Strategy for Various Metric Types
    • Security Metrics KPX Dashboard
    • Board-Level Security Metrics Presentation Template
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    Workshop: Build a Security Metrics Program to Drive Maturity

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Current State, Initiatives, and Goals

    The Purpose

    Create a prioritized list of goals to improve the security program’s current state.

    Key Benefits Achieved

    Insight into the current program and the direct it needs to head in.

    Activities

    1.1 Discuss current state and existing approach to metrics.

    1.2 Review contract metrics already in place (or available).

    1.3 Determine security areas that should be measured.

    1.4 Determine what stakeholders are involved.

    1.5 Review current initiatives to address those risks (security strategy, if in place).

    1.6 Begin developing SMART goals for your initiative roadmap.

    Outputs

    Gap analysis results

    SMART goals

    2 KPI Development

    The Purpose

    Develop unique KPIs to measure progress against your security goals.

    Key Benefits Achieved

    Learn how to develop KPIs

    Prioritized list of security goals

    Activities

    2.1 Continue SMART goal development.

    2.2 Sort goals into types.

    2.3 Rephrase goals as KPIs and list associated metric(s).

    2.4 Continue KPI development.

    Outputs

    KPI Evolution Worksheet

    3 Metrics Prioritization

    The Purpose

    Determine which metrics will be included in the initial program launch.

    Key Benefits Achieved

    A set of realistic and manageable goals-based metrics.

    Activities

    3.1 Lay out prioritization criteria.

    3.2 Determine priority metrics (implementation).

    3.3 Determine priority metrics (improvement & organizational trend).

    Outputs

    Prioritized metrics

    Tool for tracking and presentation

    4 Metrics Reporting

    The Purpose

    Strategize presentation based around metric type to indicate organization’s risk posture.

    Key Benefits Achieved

    Develop versatile reporting techniques

    Activities

    4.1 Review metric types and discuss reporting strategies for each.

    4.2 Develop a story about risk.

    4.3 Discuss the use of KPXs and how to scale for less mature programs.

    Outputs

    Key Performance Index Tool and presentation materials

    Further reading

    Build a Security Metrics Program to Drive Maturity

    Good metrics come from good goals.

    ANALYST PERSPECTIVE

    Metrics are a maturity driver.

    "Metrics programs tend to fall into two groups: non-existent and unhelpful.

    The reason so many security professionals struggle to develop a meaningful metrics program is because they are unsure of what to measure or why.

    The truth is, for metrics to be useful, they need to be tied to something you care about – a state you are trying to achieve. In other words, some kind of goal. Used this way, metrics act as the scoreboard, letting you know if you’re making progress towards your goals, and thus, boosting your overall maturity."

    – Logan Rohde, Research Analyst, Security Practice Info-Tech Research Group

    Executive summary

    Situation

    • Many security leaders put off adding metrics to their program because they don't know where to start or how to assess what is worth measuring.

    Complication

    • Sometimes, this uncertainty causes the belief that their security programs are not mature enough for metrics to be worthwhile.
    • Because metrics can become very technical and precise, it's easy to think they're inherently complicated (not true).

    Resolution

    • A metric, really, is just a measure of success against a given goal. Gradually, programs will achieve their goals and set new, more specific goals, and with them comes more specific metrics.
    • It is not necessary to jump into highly technical metrics right away. A lot can be gained from metrics that track behaviors.
    • A metrics program can be very simple and still effectively demonstrate the value of security to the organization. The key is to link your metrics to the goals or objectives the security team is pursuing, even if they are simple implementation plans (e.g. percentage of departments that have received security training).

    Info-Tech Insight

    1. Metrics lead to maturity, not vice versa
      • Tracking metrics helps you assess progress and regress in your security program. This helps you quantify the maturity gains you’ve made and continue to make informed strategic decisions.
    2. The best metrics are tied to goals
      • Tying your metrics to goals ensures that you are collecting metrics for a specific purpose rather than just to watch the numbers change.

    Our understanding of the problem

    This Research is Designed For:

    • CISO

    This Research Will Help You:

    • Understand the value of metrics.
    • Right-size a metrics program based on your organization’s maturity and risk profile.
    • Tie metrics to goals to create meaningful KPIs.
    • Develop strategies to effectively communicate the right metrics to stakeholders.

    This Research Will Also Assist:

    • CIO
    • Security Manager
    • Business Professionals

    This Research Will Help Them:

    • Become informed on the metrics that matter to them.
    • Understand that investment in security is an investment in the business.
    • Feel confident in the progress of the organization’s security strategy.

    Info-Tech’s framework integrates several best practices to create a best-of-breed security framework

    Information Security Framework

    Governance

    • Context and Leadership
      • Information Security Charter
      • Information Security Organizational Structure
      • Culture and Awareness
    • Evaluation and Direction
      • Security Risk Management
      • Security Policies
      • Security Strategy and Communication
    • Compliance, Audit, and Review
      • Security Compliance Management
      • External Security Audit
      • Internal Security Audit
      • Management Review of Security

    Management

    • Prevention
      • Identity Security
        • Identity and Access Management
      • Data Security
        • Hardware Asset Management
        • Data Security & Privacy
      • Infrastructure Security
        • Network Security
        • Endpoint Security
        • Malicious Code
        • Application Security
        • Vulnerability Management
        • Cryptography Management
        • Physical Security
        • Cloud Security
      • HR Security
        • HR Security
      • Change and Support
        • Configuration and Change Management
        • Vendor Management
    • Detection
      • Security Threat Detection
      • Log and Event Management
    • Response and Recovery
      • Security Incident Management
      • Information Security in BCM
      • Security eDiscovery and Forensics
      • Backup and Recovery
    • Measurement
      • Metrics Program
      • Continuous Improvement

    Metrics help to improve security-business alignment

    While business leaders are now taking a greater interest in cybersecurity, alignment between the two groups still has room for improvement.

    Key statistics show that just...

    5% of public companies feel very confident that they are properly secured against a cyberattack.

    41% of boards take on cybersecurity directly rather than allocating it to another body (e.g. audit committee).

    19% of private companies do not discuss cybersecurity with the board.

    (ISACA, 2018)

    Info-Tech Insight

    Metrics help to level the playing field

    Poor alignment between security and the business often stems from difficulties with explaining how security objectives support business goals, which is ultimately a communication problem.

    However, metrics help to facilitate these conversations, as long as the metrics are expressed in practical, relatable terms.

    Security metrics benefit the business

    Executives get just as much out of management metrics as the people running them.

    1. Metrics assuage executives’ fears
      • Metrics help executives (and security leaders) feel more at ease with where the company is security-wise. Metrics help identify areas for improvement and gaps in the organization’s security posture that can be filled. A good metrics program will help identify deficiencies in most areas, even outside the security program, helping to identify what work needs to be done to reduce risk and increase the security posture of the organization.
    2. Metrics answer executives’ questions
      • Numbers either help ease confusion or signify other areas for improvement. Offering quantifiable evidence, in a language that the business can understand, offers better understanding and insight into the information security program. Metrics also help educate on types of threats, staff needed for security, and budget needs to decrease risk based on management’s threat tolerance. Metrics help make an organization more transparent, prepared, and knowledgeable.
    3. Metrics help to continually prove security’s worth
      • Traditionally, the security team has had to fight for a seat at the executive table, with little to no way to communicate with the business. However, the new trend is that the security team is now being invited before they have even asked to join. This trend allows the security team to better communicate on the organization’s security posture, describe threats and vulnerabilities, present a “plan of action,” and get a pulse on the organization’s risk tolerance.

    Common myths make security metrics seem challenging

    Security professionals have the perception that metrics programs are difficult to create. However, this attitude usually stems from one of the following myths. In reality, security metrics are much simpler than they seem at first, and they usually help resolve existing challenges rather than create new ones.

    Myth Truth
    1 There are certain metrics that are important to all organizations, based on maturity, industry, etc. Metrics are indications of change; for a metric to be useful it needs to be tied to a goal, which helps you understand the change you're seeing as either a positive or a negative. Industry and maturity have little bearing here.
    2 Metrics are only worthwhile once a certain maturity level is reached Metrics are a tool to help an organization along the maturity scale. Metrics help organizations measure progress of their goals by helping them see which tactics are and are not working.
    3 Security metrics should focus on specific, technical details (e.g. of systems) Metrics are usually a means of demonstrating, objectively, the state of a security program. That is, they are a means of communicating something. For this reason, it is better that metrics be phrased in easily digestible, non-technical terms (even if they are informed by technical security statistics).

    Tie your metrics to goals to make them worthwhile

    SMART metrics are really SMART goals.

    Specific

    Measurable

    Achievable

    Realistic

    Timebound

    Achievable: What is an achievable metric?

    When we say that a metric is “achievable,” we imply that it is tied to a goal of some kind – the thing we want to achieve.

    How do we set a goal?

    1. Determine what outcome you are trying to achieve.
      • This can be small or large (e.g. I want to determine what existing systems can provide metrics, or I want a 90% pass rate on our monthly phishing tests).
    2. Decide what indicates that you’ve achieved your goal.
      • At what point would you be satisfied with the progress made on the initiative(s) you’re working on? What conditions would indicate victory for you and allow you to move on to another goal?
    3. Develop a key performance indicator (KPI) to measure progress towards that goal.
      • Now that you’ve defined what you’re trying to achieve, find a way to indicate progress in relative or relational terms (e.g. percentage change from last quarter, percentage of implementation completed, ratio of programs in place to those still needing implementation).

    Info-Tech’s security metrics methodology is repeatable and iterative to help boost maturity

    Security Metric Lifecycle

    Start:

    Review current state and decide on priorities.

    Set a SMART goal for improvement.

    Develop an appropriate KPI.

    Use KPI to monitor program improvement.

    Present metrics to the board.

    Revise metrics if necessary.

    Metrics go hand in hand with your security strategy

    A security strategy is ultimately a large goal-setting exercise. You begin by determining your current maturity and how mature you need to be across all areas of information security, i.e. completing a gap analysis.

    As such, linking your metrics program to your security strategy is a great way to get your metrics program up and running – but it’s not the only way.

    Check out the following Info-Tech resource to get started today:

    Build an Information Security Strategy

    The value of security metrics goes beyond simply increasing security

    This blueprint applies to you whether you need to develop a metrics program from scratch or optimize and update your current strategy.

    Value of engaging in security metrics:

    • Increased visibility into your operations.
    • Improved accountability.
    • Better communication with executives as a result of having hard evidence of security performance.
    • Improved security posture through better understanding of what is working and what isn’t within the security program.

    Value of Info-Tech’s security metrics blueprint:

    • Doesn’t overwhelm you and allows you to focus on determining the metrics you need to worry about now without pressuring you to do it all at once.
    • Helps you develop a growth plan as your organization and metrics program mature, so you continue to optimize.
    • Creates effective communication. Prepares you to present the metrics that truly matter to executives rather than confusing them with unnecessary data. Pay attention to metric accuracy and reproducibility. No management wants inconsistent reporting.

    Impact

    Short term: Streamline your program. Based on your organization’s specific requirements and risk profile, figure out which metrics are best for now while also planning for future metrics as your organization matures.

    Long term: Once the program is in place, improvements will come with increased visibility into operations. Investments in security will be encouraged when more evidence is available to executives, contributing to overall improved security posture. Potential opportunities for eventual cost savings also exist as there is more informed security spending and fewer incidents.

    Info-Tech offers various levels of support to best suit your needs

    DIY Toolkit

    “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

    Guided Implementation

    “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

    Workshop

    “We need to hit the ground running and get this project kicked-off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

    Consulting

    “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

    Diagnostics and consistent frameworks used throughout all four options

    Link Security Metrics to Goals to Boost Maturity – Project Overview

    1. Link Security Metrics to Goals to Boost Maturity 2. Adapt Your Reporting Strategy for Various Metric Types
    Best-Practice Toolkit

    1.1 Review current state and set your goals

    1.2 Develop KPIs and prioritize your goals

    1.3 Implement and monitor the KPI to track goal progress

    2.1 Review best practices for presenting metrics

    2.2 Strategize your presentation based on metric type

    2.3 Tailor presentation to your audience

    2.4 Use your metrics to create a story about risk

    2.5 Revise your metrics

    Guided Implementations
    • Call 1: Setting Goals
    • Call 2: KPI Development
    • Call 1: Best Practices and Reporting Strategy
    • Call 2: Build a Dashboard and Presentation Deck
    Onsite Workshop Module 1: Current State, Initiatives, Goals, and KPIs Module 2: Metrics Reporting

    Phase 1 Outcome:

    • KPI development and populated metrics tracking tool.

    Phase 2 Outcome:

    • Reporting strategy with dashboard and presentation deck.

    Workshop overview

    Contact your account representative or email Workshops@InfoTech.com for more information.

    Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Workshop Day 5
    Activities

    Current State, Initiatives, and Goals

    • Discuss current state and existing approach to metrics.
    • Review contract metrics already in place (or available).
    • Determine security areas that should be measured.
    • Determine which stakeholders are involved.
    • Review current initiatives to address those risks (security strategy, if in place).
    • Begin developing SMART goals for your initiative roadmap.

    KPI Development

    • Continue SMART goal development.
    • Sort goals into types.
    • Rephrase goals as KPIs and list associated metric(s).
    • Continue KPI development.

    Metrics Prioritization

    • Lay out prioritization criteria.
    • Determine priority metrics (implementation).
    • Determine priority metrics (improvement & organizational trend).

    Metrics Reporting

    • Review metric types and discuss reporting strategies for each.
    • Develop a story about risk.
    • Discuss the use of KPXs and how to scale for less mature programs.

    Offsite Finalization

    • Review and finalization of documents drafted during workshop.
    Deliverables
    1. Gap analysis results
    1. Completed KPI development templates
    1. Prioritized metrics and tool for tracking and presentation.
    1. Key Performance Index tool and presentation materials.
    1. Finalization of completed deliverables

    Phase 1

    Link Security Metrics to Goals to Boost Maturity


    Phase 1

    1.1 Review current state and set your goals

    1.2 Develop KPIs and prioritize your goals

    1.3 Implement and monitor KPIs

    This phase will walk you through the following activities:

    • Current state assessment
    • Setting SMART goals
    • KPI development
    • Goals prioritization
    • KPI implementation

    This phase involves the following participants:

    • Security Team

    Outcomes of this phase

    • Goals-based KPIs
    • Security Metrics Determination and Tracking Tool

    Phase 1 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own or call us to complete a guided implementation. A guided implementation is a series of two to three advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 1: Link Security Metrics to Goals to Boost Maturity

    Proposed Time to Completion: 2-4 weeks

    Step 1.1: Setting Goals

    Start with an analyst kick-off call:

    • Determine current and target maturity for various security programs.
    • Develop SMART Goals.

    Then complete these activities…

    • CMMI Assessment

    Step 1.2 – 1.3: KPI Development

    Review findings with analyst:

    • Prioritize goals
    • Develop KPIs to track progress on goals
    • Track associated metrics

    Then complete these activities…

    • KPI Development

    With these tools & templates:

    • KPI Development Worksheet
    • Security Metrics Determination and Tracking Tool

    Phase 1 Results & Insights:

    • Basic Metrics program

    1.1 Review current state and set your goals

    120 minutes

    Let’s put the security program under the microscope.

    Before program improvement can take place, it is necessary to look at where things are at presently (in terms of maturity) and where we need to get them to.

    In other words, we need to perform a security program gap analysis.

    Info-Tech Best Practice

    The most thorough way of performing this gap analysis is by completing Info-Tech’s Build an Information Security Strategy blueprint, as it will provide you with a prioritized list of initiatives to boost your security program maturity.

    Completing an abbreviated gap analysis...

    • Security Areas
    • Network Security
    • Endpoint Security
    • Vulnerability Management
    • Identity Access Management
    • Incident Management
    • Training & Awareness
    • Compliance, Audit, & Review
    • Risk Management
    • Business Alignment & Governance
    • Data Security
    1. Using the CMMI scale on the next slide, assess your maturity level across the security areas to the left, giving your program a score from 1-5. Record your assessment on a whiteboard.
    2. Zone in on your areas of greatest concern and choose 3 to 5 areas to prioritize for improvement.
    3. Set a SMART goal for improvement, using the criteria on goals slides.

    Use the CMMI scale to contextualize your current maturity

    Use the Capability Maturity Model Integration (CMMI) scale below to help you understand your current level of maturity across the various areas of your security program.

    1. Initial
      • Incident can be managed. Outcomes are unpredictable due to lack of a standard operating procedure.
    2. Repeatable
      • Process in place, but not formally implemented or consistently applied. Outcomes improve but still lack predictability.
    3. Defined
      • Process is formalized and consistently applied. Outcomes become more predictable, due to consistent handling procedure.
    4. Managed
      • Process shows signs of maturity and can be tracked via metrics. Moving towards a predictive approach to incident management.
    5. Optimizing
      • Process reaches a fully reliable level, though improvements still possible. Regularity allows for process to be automated.

    (Adapted from the “CMMI Institute Maturity Model”)

    Base your goals around the five types of metrics

    Choose goals that make sense – even if they seem simple.

    The most effective metrics programs are personalized to reflect the goals of the security team and the business they work for. Using goals-based metrics allows you to make incremental improvements that can be measured and reported on, which makes program maturation a natural process.

    Info-Tech Best Practice

    Before setting a SMART goal, take a moment to consider your maturity for each security area, and which metric type you need to collect first, before moving to more ambitious goals.

    Security Areas

    • Network Security
    • Endpoint Security
    • Vulnerability Management
    • Identity Access Management
    • Incident Management
    • Training & Awareness
    • Compliance, Audit & Review
    • Risk Management
    • Business Alignment & Governance
    • Data Security
    Metric Type Description
    Initial Probe Determines what can be known (i.e. what sources for metrics exist?).
    Baseline Testing Establishes organization’s normal state based on current metrics.
    Implementation Focuses on setting up a series of related processes to increase organizational security (i.e. roll out MFA).
    Improvement Sets a target to be met and then maintained based on organizational risk tolerance.
    Organizational Trends Culls together several metrics to track (sometimes predict) how various trends affect the organization’s overall security. Usually focuses on large-scale issues (e.g. likelihood of a data breach).

    Set SMART goals for your security program

    Specific

    Measurable

    Achievable

    Realistic

    Timebound

    Now that you have determined which security areas you’d like to improve, decide on a goal that meets the SMART criteria.

    Examples of possible goals for various maturity levels:

    1. Perform initial probe to determine number of systems capable of providing metrics by the end of the week.
    2. Take baseline measurements each month for three months to determine organization’s baseline state.
    3. Implement a vulnerability management program to improve baseline state by the end of the quarter.
    4. Improve deployment of critical patches by applying 90% of them within the set window by the end of the year.
    5. Demonstrate how vulnerability management affects broad organizational trends at quarterly report to senior leadership.

    Compare the bolded text in these examples with the metric types on the previous slide

    Record and assess your goals in the Security Metrics Determination and Tracking Tool

    1.1 Security Metrics Determination and Tracking Tool

    Use tab “2. Identify Security Goals” to document and assess your goals.

    To increase visibility into the cost, effort, and value of any given goal, assess them using the following criteria:

    • Initial Cost
    • Ongoing Cost
    • Initial Staffing
    • Ongoing Staffing
    • Alignment w/Business
    • Benefit

    Use the calculated Cost/Effort Rating, Benefit Rating, and Difference Score later in this project to help with goal prioritization.

    Info-Tech Best Practice

    If you have already completed a security strategy with Info-Tech resources, this work may likely have already been done. Consult your Information Security Program Gap Analysis Tool from the Build an Information Security Strategy research.

    1.2 Develop KPIs and prioritize your goals

    There are two paths to success.

    At this time, it is necessary to evaluate the priorities of your security program.

    Option 1: Progress to KPI Development

    • If you would like practice developing KPIs for multiple goals to get used to the process, move to KPI development and then assess which goals you can pursue now based on resources available, saving the rest for later.

    Option 2: Progress to Prioritization of Goals

    • If you are already comfortable with KPI development and do not wish to create extras for later use, then prioritize your goals first and then develop KPIs for them.

    Phase 1 Schematic

    • Gap Analysis
    • Set SMART Goals (You are here.)
      • Develop KPIs
    • Prioritize Goals
    • Implement KPI & Monitor
    • Phase 2

    Develop a key performance indicator (KPI)

    Find out if you’re meeting your goals.

    Terms like “key performance indicator” may make this development practice seem more complicated than it really is. A KPI is just a single metric used to measure success towards a goal. In relational terms (i.e. as a percentage, ratio, etc.) to give it context (e.g. % of improvement over last quarter).

    KPI development is about answering the question: what would indicate that I have achieved my goal?

    To develop a KPI follow these steps:

    1. Review the case study on the following slides to get a sense of how KPIs can start simple and general and get more specific and complex over time.
    2. Using the example to the right, sort your SMART goals from step 1.1 into the various metric types, then determine what success would look like for you. What outcome are you trying to achieve? How will you know when you’ve achieved it?
    3. Fill out the KPI Development Worksheets to create sample KPIs for each of the SMART goals you have created. Ensure that you complete the accompanying KPI Checklist.

    KPIs differ from goal to goal, but their forms follow certain trends

    Metric Type KPI Form
    Initial Probe Progress of probe (e.g. % of systems checked to see if they can supply metrics).
    Baseline Testing What current data shows (e.g. % of systems needing attention).
    Implementation Progress of the implementation (e.g. % of complete vulnerability management program implementation).
    Improvement The threshold or target to be achieved and maintained (e.g. % of incidents responded to within target window).
    Organizational Trends The interplay of several KPIs and how they affect the organization’s risk posture (e.g. assessing the likelihood for a data breach).

    Explore the five metric types

    1. Initial Probe

    Focused on determining how many sources for metrics exist.

    • Question: What am I capable of knowing?
    • Goal: To determine what level of insight we have into our security processes.
    • Possible KPI: % of systems for which metrics are available.
    • Decision: Do we have sufficient resources available to collect metrics?

    2. Baseline Testing

    Focused on gaining initial insights about the state of your security program (what are the measurements?).

    • Question: Does this data suggest areas for improvement?
    • Goal: To create a roadmap for improvement.
    • Possible KPI: % of systems that provide useful metrics to measure improvement.
    • Decision: Is it necessary to acquire tools to increase, enhance, or streamline the metrics-gathering process?

    Info-Tech Insight

    Don't lose hope if you lack resources to move beyond these initial steps. Even if you are struggling to pull data, you can still draw meaningful metrics. The percent or ratio of processes or systems you lack insight into can be very valuable, as it provides a basis to initiate a risk-based discussion with management about the organization's security blind spots.

    Explore the five metric types (cont’d)

    3. Program Implementation

    Focused on developing a basic program to establish basic maturity (e.g. implement an awareness and training program).

    • Question: What needs to be implemented to establish basic maturity?
    • Goal: To begin closing the gap between current and desired maturity.
    • Possible KPI: % of implementation completed.
    • Decision: Have we achieved a formalized and repeatable process?

    4. Improvement

    Focused on attaining operational targets to lower organizational risk.

    • Question: What other related activities could help to support this goal (e.g. regular training sessions)?
    • Goal: To have metrics operate above or below a certain threshold (e.g. lower phishing-test click rate to an average of 10% across the organization)
    • Possible KPI: Phishing click rate %
    • Decision: What other metrics should be tracked to provide insight into KPI fluctuations?

    Info-Tech Insight

    Don't overthink your KPI. In many cases it will simply be your goal rephrased to express a percentage or ratio. In others, like the example above, it makes sense for them to be identical.

    5. Organizational Impact

    Focused on studying several related KPIs (Key Performance Index, or KPX) in an attempt to predict risks.

    • Question: What risks does the organization need to address?
    • Goal: To provide high-level summaries of several metrics that suggest emerging or declining risks.
    • Possible KPI: Likelihood of a given risk (based on the trends of the KPX).
    • Decision: Accept the risk, transfer the risk, mitigate the risk?

    Case study: Healthcare example

    Let’s take a look at KPI development in action.

    Meet Maria, the new CISO at a large hospital that desperately needs security program improvements. Maria’s first move was to learn the true state of the organization’s security. She quickly learned that there was no metrics program in place and that her staff were unaware what, if any, sources were available to pull security metrics from.

    After completing her initial probe into available metrics and then investigating the baseline readings, she determined that her areas of greatest concern were around vulnerability and access management. But she also decided it was time to get a security training and awareness program up and running to help mitigate risks in other areas she can’t deal with right away.

    See examples of Maria’s KPI development on the next four slides...

    Info-Tech Insight

    There is very little variation in the kinds of goals people have around initial probes and baseline testing. Metrics in these areas are virtually always about determining what data sources are available to you and what that data actually shows. The real decisions start in determining what you want to do based on the measures you’re seeing.

    Metric development example: Vulnerability Management

    See examples of Maria’s KPI development on the next four slides...

    Implementation

    Goal: Implement vulnerability management program

    KPI: % increase of insight into existing vulnerabilities

    Associated Metric: # of vulnerability detection methods

    Improvement

    Goal: Improve deployment time for patches

    KPI: % of critical patches fully deployed within target window

    • Associated Metric 1: # of critical vulnerabilities not patched
    • Associated Metric 2: # of patches delayed due to lack of staff
    • Associated Metric X

    Metric development example: Identity Access Management

    Implementation

    Goal: Implement MFA for privileged accounts

    KPI: % of privileged accounts with MFA applied

    Associated Metric: # of privileged accounts

    Improvement

    Goal: Remove all unnecessary privileged accounts

    KPI: % of accounts with unnecessary privileges

    • Associated Metric 1: # of privileged accounts
    • Associated Metric 2: # of necessary privileged accounts
    • Associated Metric X

    Metric development example: Training and Awareness

    Implementation

    Goal: Implement training and awareness program

    KPI: % of organization trained

    Associated Metric: # of departments trained

    Improvement

    Goal: Improve time to report phishing

    KPI: % of phishing cases reported within target window

    • Associated Metric 1: # of phishing tests
    • Associated Metric 2: # of training sessions
    • Associated Metric X

    Metric development example: Key Performance Index

    Organizational Trends

    Goal: Predict Data Breach Likelihood

    • KPX 1: Insider Threat Potential
      • % of phishing cases reported within target window
        • Associated Metrics:
          • # of phishing tests
          • # of training sessions
      • % of critical patches fully deployed within target window
        • Associated Metrics:
          • # of critical vulnerabilities not patched
          • # of patches delayed due to lack of staff
      • % of accounts with unnecessary privileges
        • Associated Metrics:
          • # of privileged accounts
          • # of necessary privileged accounts
    • KPX 2: Data Leakage Issues
      • % of incidents related to unsecured databases
        • Associated Metrics:
          • # of unsecured databases
          • # of business-critical databases
      • % of misclassified data
        • Associated Metrics:
          • # of misclassified data reports
          • # of DLP false positives
      • % of incidents involving data-handling procedure violations.
        • Associated Metrics:
          • # of data processes with SOP
          • # of data processes without SOP
    • KPX 3: Endpoint Vulnerability Issues
      • % of unpatched critical systems
        • Associated Metrics:
          • # of unpatched systems
          • # of missed patches
      • % of incidents related to IoT
        • Associated Metrics:
          • # of IoT devices
          • # of IoT unsecure devices
      • % of incidents related to BYOD
        • Associated Metrics:
          • # of end users doing BYOD
          • # of BYOD incidents

    Develop Goals-Based KPIs

    1.2 120 minutes

    Materials

    • Info-Tech KPI Development Worksheets

    Participants

    • Security Team

    Output

    • List of KPIs for immediate and future use (can be used to populate Info-Tech’s KPI Development Tool).

    It’s your turn.

    Follow the example of the CISO in the previous slides and try developing KPIs for the SMART goals set in step 1.1.

    • To begin, decide if you are starting with implementation or improvement metrics.
    • Enter your goal in the space provided on the left-hand side and work towards the right, assigning a KPI to track progress towards your goal.
    • Use the associated metrics boxes to record what raw data will inform or influence your KPI.
      • Associated metrics are connected to the KPI box with a segmented line. This is because these associated metrics are not absolutely necessary to track progress towards your goal.
      • However, if a KPI starts trending in the wrong direction, these associated metrics would be used to determine where the problem has occurred.
    • If desired, bundle together several related KPIs to create a key performance index (KPX), which is used to forecast the likelihood of certain risks that would have a major business impact (e.g. potential for insider threat, or risk for a data breach).

    Record KPIs and assign them to goals in the Security Metrics Determination and Tracking Tool

    1.2 Security Metrics Determination and Tracking Tool

    Document KPI metadata in the tool and optionally assign them to a goal.

    Tab “3. Identify Goal KPIs” allows you to record each KPI and its accompanying metadata:

    • Source
    • Owner
    • Audience
    • KPI Target
    • Effort to Collect
    • Frequency of Collection
    • Comments

    Optionally, each KPI can be mapped to goals defined on tab “2. Identify Security Goals.”

    Info-Tech Best Practice

    Ensure your metadata is comprehensive, complete, and realistic. A different employee should be able to use only the information outlined in the metadata to continue collecting measurements for the program.

    Complete Info-Tech’s KPI Development Worksheets

    1.2 KPI Development Worksheet

    Use these worksheets to model the maturation of your metrics program.

    Follow the examples contained in this slide deck and practice creating KPIs for:

    • Implementation metrics
    • Improvement metrics
    • Organizational trends metrics

    As well as drafting associated metrics to inform the KPIs you create.

    Info-Tech Best Practice

    Keep your metrics program manageable. This exercise may produce more goals, metrics, and KPIs than you deal with all at once. But that doesn’t mean you can’t save some for future use.

    Build an effort map to prioritize your SMART goals

    1.2 120 minutes

    Materials

    • Whiteboard
    • Sticky notes
    • Laptop

    Participants

    • Security team
    • Other stakeholders

    Output

    • Prioritized list of SMART goals

    An effort map visualizes a cost and benefit analysis. It is a quadrant output that visually shows how your SMART goals were assessed. Use the calculated Cost/Effort Rating and Benefit Rating values from tab “2. Identify Security Goals” of the Security Metrics Determination and Tracking Tool to aid this exercise.

    Steps:

    1. Establish the axes and colors for your effort map:
      1. X-axis (horizontal) - Security benefit
      2. Y-axis (vertical) - Overall cost/effort
      3. Sticky color - Business alignment
    2. Create sticky notes for each SMART goal and place them onto the effort map based on your determined axes.
      • Goal # Example Security Goal - Benefit (1-12) - Cost (1-12)

    The image shows a matric with four quadrants. The X-axis is labelled Low Benefit on the left side and High benefit on the right side. The Y-axis is labelled Low cost at the top and High cost at the bottom. The top left quadrant is labelled Could Dos, the top right quadrant is labelled Must Dos, the lower left quadrant is labelled May Not Dos, and the lower right quadrant is Should Dos. On the right, there are three post-it style notes, the blue one labelled High Alignment, the yellow labelled Medium Alignment, and the pink labelled Low Alignment.

    1.3 Implement and monitor the KPI to track goal progress

    Let’s put your KPI into action!

    Now that you’ve developed KPIs to monitor progress on your goals, it’s time to use them to drive security program maturation by following these steps:

    1. Review the KPI Development Worksheets (completed in step 1.2) for your prioritized list of goals. Be sure that you are able to track all of the associated metrics you have identified.
    2. Track the KPI and associated metrics using Info-Tech’s KPI Development Tool (see following slide).
    3. Update the data as necessary according to your SMART criteria of your goal.

    A Word on Key Risk Indicators...

    The term key risk indicator (KRI) gets used in a few different ways. However, in most cases, KRIs are closely associated with KPIs.

    1. KPIs and KRIs are the same thing
      • A KPI, at its core, is really a measure of risk. Sometimes it is more effective to emphasize that risk rather than performance (i.e. the data shows you’re not meeting your goal).
    2. KRI is KPI going the wrong way
      • After achieving the desired threshold for an improvement goal, our new goal is usually to maintain such a state. When this balance is upset, it indicates that settled risk has once again become active.
    3. KRI as a predictor of emerging risks
      • When organizations reach a highly mature state, they often start assessing how events external to the organization can affect the optimal performance of the organization. They monitor such events or trends and try to predict when the organization is likely to face additional risks.

    Track KPIs in the Security Metrics Determination and Tracking Tool

    1.3 Security Metrics Determination and Tracking Tool

    Once a metric has been measured, you have the option of entering that data into tab “4. Track Metrics” of the Tool.

    Tracking metric data in Info-Tech's tool provides the following data visualizations:

    • Sparklines at the end of each row (on tab “4. Track Metrics”) for a quick sense of metric performance.
    • A metrics dashboard (on tab “5. Graphs”) with three graph options in two color variations for each metric tracked in the tool, and an overall metric program health gauge.

    Info-Tech Best Practice

    Be diligent about measuring and tracking your metrics. Record any potential measurement biases or comments on measurement values to ensure you have a comprehensive record for future use. In the tool, this can be done by adding a comment to a cell with a metric measurement.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    Workshops offer an easy way to accelerate your project. While onsite, our analysts will work with you and your team to facilitate the activities outlined in the blueprint.

    Getting key stakeholders together to formalize the program, while getting started on data discovery and classification, allows you to kickstart the overall program.

    In addition, leverage over-the-phone support through Guided Implementations included in advisory memberships to ensure the continuous improvement of the classification program even after the workshop.

    Logan Rohde

    Research Analyst – Security, Risk & Compliance Info-Tech Research Group

    Ian Mulholland

    Senior Research Analyst – Security, Risk & Compliance Info-Tech Research Group

    Call 1-888-670-8889 for more information.

    Phase 2

    Adapt Your Reporting Strategy for Various Metric Types


    Phase 2

    2.1 Review best practices for presenting metrics

    2.2 Strategize your presentation based on metric type

    2.3 Tailor your presentation to your audience

    2.4 Use your metrics to create a story about risk

    2.5 Revise Metrics

    This phase will walk you through the following activities:

    • Develop reporting strategy
    • Use metrics to create a story about risk
    • Metrics revision

    This phase involves the following participants:

    • Security Team

    Outcomes of this phase

    • Metrics Dashboard
    • Metrics Presentation Deck

    Phase 2 outline

    Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

    Complete these steps on your own or call us to complete a guided implementation. A guided implementation is a series of two to three advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

    Guided Implementation 2: Adapt Your Reporting Strategy for Various Metric Types

    Proposed Time to Completion: 2-4 weeks

    Step 2.1 – 2.3: Best Practices and Reporting Strategy

    Start with an analyst kick-off call:

    • Do’s and Don’ts of reporting metrics.
    • Strategize presentation based on metric type.

    Then complete these activities…

    • Strategy development for 3-5 metrics

    Step 2.4 – 2.5: Build a Dashboard and Presentation Deck

    Review findings with analyst:

    • Review strategies for reporting.
    • Compile a Key Performance Index.
    • Revise metrics.

    Then complete these activities…

    • Dashboard creation
    • Presentation development

    With these tools & templates:

    • Security Metrics Determination and Tracking Tool Template
    • Security Metrics KPX Dashboard Tool

    Phase 2 Results & Insights:

    • Completed reporting strategy with presentable dashboard

    2.1 Review best practices for presenting metrics

    Avoid technical details (i.e. raw data) by focusing on the KPI.

    • KPIs add context to understand the behavior and associated risks.

    Put things in terms of risk; it's the language you both understand.

    • This usually means explaining what will happen if not addressed and what you recommend.
    • There are always three options:
      • Address it completely
      • Address it partially
      • Do not address it (i.e. accept the risk)

    Explain why you’re monitoring metrics in terms of the goals you’re hoping to achieve.

    • This sets you up well to explain what you've been doing and why it's important for you to meet your goals.

    Choose between KPI or KRI as the presentation format.

    • Base your decision on whether you are trying to emphasize current success or risk.

    Match presentation with the audience.

    • Board presentations will be short; middle-management ones may be a bit longer.
    • Maximize your results by focusing on the minimum possible information to make sure you sufficiently get your point across.
    • With the board, plan on showing no more than three slides.

    Read between the lines.

    • It can be difficult to get time with the board, so you may find yourself in a trial and error position, so pay attention to cues or suggestions that indicate the board is interested in something.
    • If you can, make an ally to get the inside scoop on what the board cares about.

    Read the news if you’re stuck for content.

    • Board members are likely to have awareness (and interest) in large-scale risks like data breaches and ransomware.

    Present your metrics as a story.

    • Summarize how the security program looks to you and why the metrics lead you to see it this way.

    2.2 Strategize your presentation based on metric type (1 of 5)

    Metric Type: Initial Probe

    Scenario: Implementing your first metrics program.

    • All metrics programs start with determining what measurements you are capable of taking.

    Decisions: Do you have sufficient insight into the program? (i.e. do you need to acquire additional tools to collect metrics?)

    Strategy: If there are no barriers to this (e.g. budget), then focus your presentation on the fact that you are addressing the risk of not knowing what your organization's baseline state is and what potential issues exist but are unknown. This is likely the first phase of an improvement plan, so sketching the overall plan is a good idea too.

    • If budget is an issue, explain the risks associated with not knowing and what you would need to make it happen.

    Possible KPIs:

    • % of project complete.
    • % of systems that provide worthwhile metrics.

    Strategize your presentation based on metric type (2 of 5)

    Metric Type: Baseline Testing

    Scenario: You've taken the metrics to determine what your organization’s normal state is and you're now looking towards addressing your gaps or problem areas.

    Decisions: What needs to be prioritized first and why? Are additional resources required to make this happen?

    Strategy: Explain your impression of the organization's normal state and what you plan to do about it. In other words, what goals are you prioritizing and why? Be sure to note any challenges that may occur along the way (e.g. staffing).

    • If the board doesn't like to open their pocketbook, your best play is to explain what stands to happen (or is happening) if risks are not addressed.

    Possible KPIs:

    • % of goals complete.
    • % of metrics indicating urgent attention needed.

    Strategize your presentation based on metric type (3 of 5)

    Metric Type: Implementation

    Scenario: You are now implementing solutions to address your security priorities.

    Decisions: What, to you, would establish the basis of a program?

    Strategy: Focus on what you're doing to implement a certain security need, why, and what still needs to be done when you’re finished.

    • Example: To establish a training and awareness program, a good first step is to actually hold training sessions with each department. A single lecture is simple but something to build from. A good next step would be to hold regular training sessions or implement monthly phishing tests.

    Possible KPIs:

    • % of implementation complete (e.g. % of departments trained).

    Strategize your presentation based on metric type (4 of 5)

    Metric Type: Improvement

    Scenario: Now that a basic program has been established, you are looking to develop its maturity to boost overall performance (i.e. setting a new development goal).

    Decisions: What is a reasonable target, given the organization's risk tolerance and current state?

    Strategy: Explain that you're now working to tighten up the security program. Note that although things are improving, risk will always remain, so we need to keep it within a threshold that’s proportionate with our risk tolerance.

    • Example: Lower phishing-test click rate to 10% or less. Phishing will always be a risk, and just one slip up can have a huge effect on business (i.e. lost money).

    Possible KPIs:

    • % of staff passing the phishing test.
    • % of employees reporting phishing attempts within time window.

    Strategize your presentation based on metric type (5 of 5)

    Metric Type: Organizational Trends

    Scenario: You've reached a mature state and now how several KPIs being tracked. You begin to look at several KPIs together (i.e. a KPX) to assess the organization's exposure for certain broad risk trends.

    Decisions: Which KPIs can be used together to look at broader risks?

    Strategy: Focus on the overall likelihood of a certain risk and why you've chosen to assess it with your chosen KPIs. Spend some time discussing what factors affect the movement of these KPIs, demonstrating how smaller behaviors create a ripple effect that affects the organization’s exposure to large-scale risks.

    Possible KPX: Insider Threat Risk

    • % of phishing test failures.
    • % of critical patches missed.
    • % of accounts with unnecessary privileges.

    Change your strategy to address security challenges

    Even challenges can elicit useful metrics.

    Not every security program is capable of progressing smoothly through the various metric types. In some cases, it is impossible to move towards goals and metrics for implementation, improvement, or organizational trends because the security program lacks resources.

    Info-Tech Insight

    When your business is suffering from a lack of resources, acquiring these resources automatically becomes the goal that your metrics should be addressing. To do this, focus on what risks are being created because something is missing.

    When your security program is lacking a critical resource, such as staff or technology, your metrics should focus on what security processes are suffering due to this lack. In other words, what critical activities are not getting done?

    KPI Examples:

    • % of critical patches not deployed due to lack of staff.
    • % of budget shortfall to acquire vulnerability scanner.
    • % of systems with unknown risk due to lack of vulnerability scanner.

    2.3 Tailor presentation to your audience

    Metrics come in three forms...

    1. Raw Data

    • Taken from logs or reports, provides values but not context.
    • Useful for those with technical understanding of the organization’s security program.

    2. Management-Level

    • Raw data that has been contextualized and indicates performance of something (i.e. a KPI).
    • Useful for those with familiarity with the overall state of the security program but do not have a hands-on role.

    3. Board-Level

    • KPI with additional context indicating overall effect on the organization.
    • Useful for those removed from the security program but who need to understand the relationship between security, business goals, and cyber risk.

    For a metric to be useful it must...

    1. Be understood by the audience it’s being presented to.
      • Using the criteria on the left, choose which metric form is most appropriate.
    2. Indicate whether or not a certain target or goal is being met.
      • Don’t expect metrics to speak for themselves; explain what the indications and implications are.
    3. Drive some kind of behavioral or strategic change if that target or goal is not being met.
      • Metrics should either affirm that things are where you want them to be or compel you to take action to make an improvement. If not, it is not a worthwhile metric.

    As a general rule, security metrics should become decreasingly technical and increasingly behavior-based as they are presented up the organizational hierarchy.

    "The higher you travel up the corporate chain, the more challenging it becomes to create meaningful security metrics. Security metrics are intimately tied to their underlying technologies, but the last thing the CEO cares about is technical details." – Ben Rothke, Senior Information Security Specialist, Tapad.

    Plan for reporting success

    The future of your security program may depend on this presentation; make it count.

    Reporting metrics is not just another presentation. Rather, it is an opportunity to demonstrate and explain the value of security.

    It is also a chance to correct any misconceptions about what security does or how it works.

    Use the tips on the right to help make your presentation as relatable as possible.

    Info-Tech Insight

    There is a difference between data manipulation and strategic presentation: the goal is not to bend the truth, but to present it in a way that allows you to show the board what they need to see and to explain it in terms familiar to them.

    General Tips for a Successful Presentation

    Avoid jargon; speak in practical terms

    • The board won’t receive your message if they can’t understand you.
    • Explain things as simply as you can; they only need to know enough to make decisions about addressing cyber risk.

    Address compliance

    • Boards are often interested in compliance, so be prepared to talk about it, but clarify that it doesn't equal security.
    • Instead, use compliance as a bridge to discussing areas of the security program that need attention.

    Have solid answers

    • Try to avoid answering questions with the answer, “It depends.”
      • Depends on what?
      • Why?
      • What do you recommend?
    • The board is relying on you for guidance, so be prepared to clarify what the board is asking (you may have to read between the lines to do this).
    • Also address the pain points of board members and have answers to their questions about how to resolve them.

    2.4 Use your metrics to create a story about risk

    Become the narrator of your organization’s security program.

    Security is about managing risk. This is also its primary value to the organization. As such, risk should be the theme of the story you tell.

    "Build a cohesive story that people can understand . . . Raw metrics are valuable from an operations standpoint, but at the executive level, it's about a cohesive story that helps executives understand the value of the security program and keeps the company moving forward. "– Adam Ely, CSO and Co-Founder, Bluebox Security, qtd. by Tenable, 2016

    How to Develop Your Own Story...

    1. Review your security program goals and the metrics you’re using to track progress towards them. Then, decide which metrics best tell this story (i.e. what you’re doing and why).
      • Less is more when presenting metrics, so be realistic about how much your audience can digest in one sitting.
      • Three metrics is usually a safe number; choose the ones that are most representative of your goals.
    2. Explain why you chose the goals you did (i.e. what risks were you addressing?). Then, make an honest assessment of how the security program is doing as far as meeting those goals:
      • What’s going well?
      • What still needs improvement?
      • What about your metrics suggests this?
    3. Address how risks have changed and explain your new recommended course of action.
      • What risks were present when you started?
      • What risks remain despite your progress?
      • How do these risks affect the business operation and what can security do to help?

    Story arc for security metrics

    The following model encapsulates the basic trajectory of all story development.

    Use this model to help you put together your story about risk.

    Introduction: Overall assessment of security program.

    Initial Incident: Determination of the problems and associated risks.

    Rising Action: Creation of goals and metrics to measure progress.

    Climax: Major development indicated by metrics.

    Falling Action: New insights gained about organization’s risks.

    Resolution: Recommendations based on observations.

    Info-Tech Best Practice

    Follow this model to ensure that your metrics presentation follows a coherent storyline that explains how you assessed the problem, why you chose to address it the way you did, what you learned in doing so, and finally what should be done next to boost the security program’s maturity.

    Use a nesting-doll approach when presenting metrics

    Move from high-level to low-level to support your claims

    1. Avoid the temptation to emphasize technical details when presenting metrics. The importance of a metric should be clear from just its name.
    2. This does not mean that technical details should be disregarded entirely. Your digestible, high-level metrics should be a snapshot of what’s taking place on the security ground floor.
    3. With this in mind, we should think of our metrics like a nesting doll, with each metrics level being supported by the one beneath it.

    ...How do you know that?

    Board-Level KPI

    Mgmt.-Level KPI

    Raw Data

    Think of your lower-level metrics as evidence to back up the story you are telling.

    When you’re asked how you arrived at a given conclusion, you know it’s time to go down a level and to explain those results.

    Think of this like showing your work.

    Info-Tech Insight

    This approach is built into the KPX reporting format, but can be used for all metric types by drawing from your associated metrics and goals already achieved.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics Determination and Tracking Tool

    Choose the dashboard tool that makes the most sense for you.

    Info-Tech provides two options for metric dashboards to meet the varying needs of our members.

    If you’re just starting out, you’ll likely be inclined towards the dashboard within the Security Metrics Determination and Tracking Tool (seen here).

    The image shows a screenshot of the Security Metrics Determination and Tracking Tool.

    But if you’ve already got several KPIs to report on, you may prefer the Security Metrics KPX Dashboard Tool, featured on the following slides.

    Info-Tech Best Practice

    Not all graphs will be needed in all cases. When presenting, consider taking screenshots of the most relevant data and displaying them in Info-Tech’s Board-Level Security Metrics Presentation Template.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image shows a screenshot of the Definitions section of the Security Metrics KPX Dashboard

    1. Start by customizing the definitions on tab 1 to match your organization’s understanding of high, medium, and low risk across the three impact areas (functional, informational, and recoverability).
    2. Next, enter up to 5 business goals that your security program supports.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image shows a screenshot of tab 2 of the Security Metrics KPX Dashboard.

    1. On tab 2, enter the large-scale risk you are tracking
    2. Proceed by naming each of your KPXs after three broad risks that – to you – contribute to the large-scale risk.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image is the same screenshot from the previous section, of tab 2 of the Security Metrics KPX Dashboard.

    1. Then, add up to five KPIs aimed at managing more granular risks that contribute to the broad risk.
    2. Assess the frequency and impact associated with these more granular risks to determine how likely it is to contribute to the broad risk the KPX is tracking.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image is the same screenshot of tab 2 of the Security Metrics KPX Dashboard.

    1. Repeat as necessary for the other KPXs on tab 2.
    2. Repeat steps 3-7 for up to two more large-scale risks and associated KPXs on tabs 3 and 4.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image shows a chart titled Business Alignment, with sample Business Goals and KPXs filled in.

    1. If desired, complete the Business Alignment evaluation (located to the right of KPX 2 on tabs 2-4) to demonstrate how well security is supporting business goals.

    "An important key to remember is to be consistent and stick to one framework once you've chosen it. As you meet with the same audiences repeatedly, having the same framework for reference will ensure that your communications become smoother over time." – Caroline Wong, Chief Strategy Officer, Cobalt.io

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image shows a screenshot of the dashboard on tab 5 of the Security Metrics KPX Dashboard.

    1. Use the dashboard on tab 5 to help you present your security metrics to senior leadership.

    Use one of Info-Tech’s dashboards to present your metrics

    2.4 Security Metrics KPX Dashboard

    Use Info-Tech’s Security Metrics KPX Dashboard to track and show your work.

    The image shows the same screenshot of Tab 2 of the Security Metrics KPX Dashboard that was shown in previous sections.

    Best Practice:

    This tool helps you convert your KPIs into the language of risk by assessing frequency and severity, which helps to make the risk relatable for senior leadership. However, it is still useful to track fluctuations in terms of percentage. To do this, track changes in the frequency, severity, and trend scores from quarter to quarter.

    Customize Info-Tech’s Security Metrics Presentation Template

    2.4 Board-Level Security Metrics Presentation Template

    Use the Board-Level Security Metrics Presentation Template deck to help structure and deliver your metrics presentation to the board.

    To make the dashboard slide, simply copy and paste the charts from the dashboard tool and arrange the images as needed.

    Adapt the status report and business alignment slides to reflect the story about risk that you are telling.

    2.5 Revise your metrics

    What's next?

    Now that you’ve made it through your metrics presentation, it’s important to reassess your goals with feedback from your audience in mind. Use the following workflow.

    The image shows a flowchart titled Metrics-Revision Workflow. The flowchart begins with the question Have you completed your goal? and then works through multiple potential answers.

    If you want additional support, have our analysts guide you through this phase as part of an Info-Tech workshop

    Book a workshop with our Info-Tech analysts:

    Workshops offer an easy way to accelerate your project. While onsite, our analysts will work with you and your team to facilitate the activities outlined in the blueprint.

    Getting key stakeholders together to formalize the program, while getting started on data discovery and classification, allows you to kickstart the overall program.

    In addition, leverage over-the-phone support through Guided Implementations included in advisory memberships to ensure the continuous improvement of the classification program even after the workshop.

    Logan Rohde

    Research Analyst – Security, Risk & Compliance Info-Tech Research Group

    Ian Mulholland

    Senior Research Analyst – Security, Risk & Compliance Info-Tech Research Group

    Call 1-888-670-8889 for more information.

    Insight breakdown

    Metrics lead to maturity, not vice versa.

    • Tracking metrics helps you assess progress and regress in your security program, which helps you quantify the maturity gains you’ve made.

    Don't lose hope if you lack resources to move beyond baseline testing.

    • Even if you are struggling to pull data, you can still draw meaningful metrics. The percent or ratio of processes or systems you lack insight into can be very valuable, as it provides a basis to initiate a risk-based discussion with management about the organization's security blind spots.

    The best metrics are tied to goals.

    • Tying your metrics to goals ensures that you are collecting metrics for a specific purpose rather than just to watch the numbers change.

    Summary of accomplishment

    Knowledge Gained

    • Current maturity assessment of security areas
    • Setting SMART goals
    • Metric types
    • KPI development
    • Goals prioritization
    • Reporting and revision strategies

    Processes Optimized

    • Metrics development
    • Metrics collection
    • Metrics reporting

    Deliverables Completed

    • KPI Development Worksheet
    • Security Metrics Determination and Tracking Tool
    • Security Metrics KPX Dashboard Tool
    • Board-Level Security Metrics Presentation Template

    Research contributors and experts

    Mike Creaney, Senior Security Engineer at Federal Home Loan Bank of Chicago

    Peter Chestna, Director, Enterprise Head of Application Security at BMO Financial Group

    Zane Lackey, Co-Founder / Chief Security Officer at Signal Sciences

    Ben Rothke, Senior Information Security Specialist at Tapad

    Caroline Wong, Chief Strategy Officer at Cobalt.io

    2 anonymous contributors

    Related Info-Tech research

    Build an Information Security Strategy

    Tailor best practices to effectively manage information security.

    Implement a Security Governance and Management Program

    Align security and business objectives to get the greatest benefit from both.

    Bibliography

    Capability Maturity Model Integration (CMMI). ISACA. Carnegie Mellon University.

    Ely, Adam. “Choose Security Metrics That Tell a Story.” Using Security Metrics to Drive Action: 33 Experts Share How to Communicate Security Program Effectiveness to Business Executives and the Board Eds. 2016. Web.

    https://www.ciosummits.com/Online_Assets_Tenable_eBook-_Using_Security_Metrics_to_Drive_Action.pdf

    ISACA. “Board Director Concerns about Cyber and Technology Risk.” CSX. 11 Sep. 2018. Web.

    Rothke, Ben. “CEOs Require Security Metrics with a High-Level Focus.” Using Security Metrics to Drive Action: 33 Experts Share How to Communicate Security Program Effectiveness to Business Executives and the Board Eds. 2016. Web.

    https://www.ciosummits.com/Online_Assets_Tenable_eBook-_Using_Security_Metrics_to_Drive_Action.pdf

    Wong, Caroline. Security Metrics: A Beginner’s Guide. McGraw Hill: New York, 2012.

    Build and Deliver an Optimized IT Update Presentation

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    • IT update presentation success comes with understanding the business and the needs of your stakeholders. It often takes time and effort to get it right.
    • Many IT updates are too technically focused and do not engage nor demonstrate value in the eyes of the business.
    • This is not the time to boast about technical metrics that lack relevance.
    • Too often IT updates are prepared without the necessary pre-discussions required to validate content and hone priorities.

    Our Advice

    Critical Insight

    • CIOs need to take charge of the IT value proposition, increasing the impact and strategic role of IT.
    • Use your IT update to focus decisions, improve relationships, find new sources of value, and drive credibility.
    • Evolve the strategic partnership with your business using key metrics to help guide the conversation.

    Impact and Result

    • Build and deliver an IT update that focuses on what is most important.
    • Achieve the buy-in you require while driving business value.
    • Gain clarity on your scope, goals, and outcomes.
    • Validate IT’s role as a strategic business partner.

    Build and Deliver an Optimized IT Update Presentation Research & Tools

    Start here – read the Executive Brief

    Read our Executive Brief to find out how an optimized IT update presentation is your opportunity to drive business value.Review Info-Tech’s methodology and understand how we can support you in completing this project.

    Besides the small introduction, subscribers and consulting clients within this management domain have access to:

    1. Scope and goals

    Confirm the “why” of the IT update presentation by determining its scope and goals.

    • Build and Deliver an Optimized IT Update Presentation – Phase 1: Scope and Goals

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    Confirm the “what” of the presentation by focusing on business requirements, metrics, presentation creation, and stakeholder validation.

    • Build and Deliver an Optimized IT Update Presentation – Phase 2: Assess and Build
    • IT Update Stakeholder Interview Guide
    • IT Metrics Prioritization Tool

    3. Deliver and inspire

    Confirm the “how” of the presentation by focusing on engaging your audience, getting what you need, and creating a feedback cycle.

    • Build and Deliver an Optimized IT Update Presentation – Phase 3: Deliver and Inspire
    • IT Update Open Issues Tracking Tool
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    Workshop: Build and Deliver an Optimized IT Update Presentation

    Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

    1 Scope, Goals, and Requirements

    The Purpose

    Determine the IT update’s scope and goals and identify stakeholder requirements

    Key Benefits Achieved

    IT update scope and goals

    Business stakeholder goals and requirements

    Activities

    1.1 Determine/validate the IT update scope

    1.2 Determine/validate the IT update goals

    1.3 Business context analysis

    1.4 Determine stakeholder needs and expectations

    1.5 Confirm business goals and requirements

    Outputs

    Documented IT update scope

    Documented IT update goals

    Validated business context

    Stakeholder requirements analysis

    Confirmed business goals and requirements

    2 Validate Metrics With Business Needs

    The Purpose

    Analyze metrics and content and validate against business needs

    Key Benefits Achieved

    Selection of key metrics

    Metrics and content validated to business needs

    Activities

    2.1 Analyze current IT metrics

    2.2 Review industry best-practice metrics

    2.3 Align metrics and content to business stakeholder needs

    Outputs

    Identification of key metrics

    Finalization of key metrics

    Metrics and content validated to business stakeholder needs

    3 Create an optimized IT update

    The Purpose

    Create an IT update presentation that is optimized to business needs

    Key Benefits Achieved

    Optimized IT update presentation

    Activities

    3.1 Understand the audience and how to best engage them

    3.2 Determine how to present the pertinent data

    3.3 IT update review with key business stakeholders

    3.4 Final edits and review of IT update presentation

    3.5 Pre-presentation checklist

    Outputs

    Clarity on update audience

    Draft IT update presentation

    Business stakeholder feedback

    Finalized IT update presentation

    Confirmation on IT update presentation readiness

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